Video conferencing solutions developer Radvision Ltd. (Nasdaq: RVSN; TASE: RVSN) today published a profit warning for the third quarter. On the basis of preliminary results, the company expects $17-17.5 million revenue, down from its previous guidance of $19 million. The company will publish its financial report on October 27.
Radvision expects a non-GAAP loss per share of $0.30-0.34 for the third quarter, up from its previous guidance of $0.27, and GAAP-based loss per share of $0.35-0.39, up from $0.32.
Radvision attributes the poor results to lower than expected revenue of $13-13.5 million by its Video Business Unit.
Radvision is going through a transition. Cisco Systems Inc. (Nasdaq: CSCO), which once accounted for 40% of the company's sales, acquired a rival in 2009 and subsequently slashed orders. To counter the loss, Radvision acquired an Italian company in 2010, but it has not yet been able to make up the loss.
Radvision's share price fell 8.6% in premarket trading on Nasdaq today to $5.10, giving a market cap of $100 million, and fell 9.1% by mid-afternoon on the TASE to NIS 18.80.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2011
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