Tel Aviv-based RADVision (Nasdaq: RVSN) today reported that its revenue in the second quarter grew to $11.7 million, compared with revenue of $10.4 million for the same period last year.
RADVision CEO Gadi Tamari said the company’s performance in the second quarter demonstrated that the Internet-based videoconferencing market was coming into its own.
"We had new orders from enterprises and service providers as well as repeat orders from existing customers who are expanding capacity. In addition, we are building a healthy pipeline of opportunities, and continue to expect to close three or four multi-million dollar contracts by the end of 2002," Tamari said.
Nevertheless, the company lowered its guidance for revenue for 2002 as a whole. CFO David Seligman said, "We're lowering the revenue forecast for the whole year from $51 million to $49 million in order to be certain that we will meet the forecast and not be under pressure. Some major deals are coming together now, but we are not completely sure about them. In any case, we are not changing the profit forecast. We will make a profit of about $1.5 million this year."
Net profit in the second quarter was $292,000, or $0.02 per share, beating analysts’ projections for a profit of $0.01 per share. Net loss in the second quarter of 2001 - excluding a restructuring charge - was $782,000, or $0.04 per share.
The company ended the quarter with $85.5 million in cash and liquid investments, an increase of $0.6 million over prior quarter. The increase reflected operating cash flow of $1 million and cash from exercise of employee options of $0.2 million offset by $0.6 million of capital expenditures, RADVision said.
Tamari concluded, "The IP videoconferencing market is growing as we expected this year, and we continue to expect to see modest growth until IT spending resumes. Our priority now is to continue to penetrate the target vertical markets - corporate, education, government, healthcare, financial services and service providers - and execute on all facets of our strategy - strengthening our channel network and enhancing our product portfolio, building a solid foundation for 2003 or 2004."
RADVision also announced today that Ami Amir, a director since November 1992, had resigned in order to pursue other business interests. Amir was the co-founder of RADVision and served as the company's president and CEO from November 1992 until April 2001.
"Ami played a pivotal role in the formation of RADVision," said Tamari. "We appreciate the guidance that he provided during the important formative stages of the company and wish him well in his new endeavors."
RADVision shares closed on Tuesday on the Nasdaq Market at $5, implying a company value of $100 million.
Published by Globes [online] - www.globes.co.il - on 24 July, 2002