RADVISION announced that based on preliminary results,
the company now expects to report revenues for the second quarter of 2011 of
approximately $18.0 to $18.5 million.
As a result, the net loss for the second quarter of 2011
is expected to range from $0.41 to $0.44 per diluted share on a GAAP basis and
from $0.27 to $0.30 per diluted share on a non-GAAP basis. GAAP results also
include a tax asset valuation allowance expense of approximately $1.7 million,
equivalent to $0.09 per diluted share.
This compares with its forecast on May 5, 2011 that
revenues for the 2011 second quarter would approximate $22 million and that the
net loss would be approximately $0.17 per diluted share on a GAAP basis and
$0.12 per diluted share on a non-GAAP basis. The non-GAAP amounts exclude
stock-based compensation expense of $0.5 million in accordance with ASC 718 and
amortization of purchased intangible assets of $0.4 million.
The revised second quarter outlook is primarily the
result of lower than anticipated revenues in the Company’s Video Business Unit
(VBU), which are expected to approximate $14.5 to $15.0 million. This includes
revenues from Cisco of approximately $1.5 million,
which is in line with forecast but substantially below the $9.5 million of
revenues from Cisco in the second quarter of 2010.
Despite its revised forecast, the company’s core VBU revenues
are expected to increase by more than 30 percent from the second quarter of
2010, after excluding revenues from Cisco from both periods.
The company noted further that revenues from its
Technology Business Unit (TBU) are expected to approximate $3.5 million, which
is also below its original forecast for the second quarter of 2011.
While we knew the second quarter would be challenging
because of the anticipated substantial drop in Cisco revenues from the second
quarter last year, the quarter was more difficult than expected. While our
revenues in EMEA, APAC and CALA continued to grow year over year, revenues in
our VBU in North America did not meet our plan,” said Boaz Raviv, chief
executive officer, RADVISION.
Our Company is currently in the midst of becoming an
end-to-end video conferencing provider but getting full traction is taking
longer than originally expected. Getting back on track with our plan is our
priority. We have overcome challenges in the past and we are taking all
necessary actions to ensure we return to growth company-wide as quickly as
possible,” Raviv added.
By Telecomlead.com Team