RADVision (Nasdaq: RVSN) is dual listing on the Tel Aviv Stock Exchange (TASE). Radvision develops products for video transmission over Internet Protocol (IP) networks.
"Trading in the company's shares on Nasdaq has fallen, and we hope the dual listing will increase turnover," said Radvision CFO David Seligman today. "We know there are many Israeli institutional groups whose ability to invest overseas is restricted. They might invest more now that the share is also listed on the TASE. 70% of Radvision's shares are held by the public, 50% through institutional investors."
Dual listing has not particularly helped other newly listed companies. Turnover for Mind CTI (Nasdaq: MNDO) and Nova Measuring Instruments (Nasdaq: NVMI) is negligible, and mostly pitiful for even veteran dual listed companies. But there are some companies that have benefited from dual listing.
Radvision recently expanded its cooperation with Tandberg, a communications equipment manufacturer. This is a strategic connection. The video transmission over IP networks market is divided in two. The end products market is dominated by Polycom (Nasdaq:PLCM), although Tandberg is gaining market share. The market for network equipment to operate and manage the end equipment is dominated by Cisco Systems (Nasdaq:CSCO), Polycom (which acquired Israel’s Accord Networks two years ago) and Radvision.
Radvision’s cooperation with Tandberg might challenge Polycom’s large advantage as a leading supplier of both network and end products. “The equipment market is tough, and Tandberg succeeded in the second quarter of 2002, while Polycom did not,” said Seligman on the publication of Radvision’s second quarter results. “That is probably because Tandberg’s products are cheaper than Polycom’s. Expensive end equipment is mainly used n conference rooms, while cheaper equipment is more widely installed alongside or inside personal computers. That means that the number of users of IP video is growing and video conferencing is increasing. We provide technology that enables this communication, so we naturally benefit from this trend.”
Published by Globes [online] - www.globes.co.il - on August 6, 2002