Shares in Radvision, which closed at $17.56 on Friday in Nasdaq trading, fell sharply in Monday morning trading, falling almost 20% to $14.19
High definition video-conferencing solutions developer Radvision Ltd. (Nasdaq: RVSN; TASE: RVSN) revised its third quarter outlook, lowering revenue guidance by about $4.5 million.
Based on preliminary results for its third quarter, which ended September 30, it now expects to report revenues for the quarter of approximately $20.5 million compared with its forecast of approximately $25 million reported in July. In the second quarter, Radvision posted $24.7 million revenue, 12% more than the $22 million posted for the second quarter of 2006. At the same time, it provided its initial guidance for third quarter revenue.
The revised revenue reflects a 13% decrease from the $23.6 million recorded in the corresponding quarter of 2006.
Actual results for the third quarter of 2007 will be reported on November 1st.
Radvision noted that its revised third quarter outlook reflects a reduced revenue forecast for its networking business unit, as sales both to the US federal market and through its channels were lower than expected. A major factor in the sales shortfall to the channels is increased customer demand for high definition continuous presence, which Radvision will only introduce at the end of October.
Radvision CEO Boaz Raviv commented: "We are disappointed by this setback in the third quarter but remain fully confident in our strategy and market position and in the growth prospects of video-conferencing in the enterprise and service provider markets."
Published by Globes [online], Israel business news - www.globes.co.il - on October 1, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007