Radvision Stock Drops as Company Lowers Quarterly Forecast

By Ed Silverstein October 06, 2011

Shares of Radvision Ltd. dropped on Wednesday after the company lowered its forecast for third-quarter earnings.

Bloomberg Businessweek said Radvision is the third technology company in Israel to lower its outlook during the current week.

Radvision dropped 4.8 percent to $5.31 on the NASDAQ, as it lowered its revenue forecast by 11 percent, according to media reports.

It appears the move is in response to spending reductions by businesses and government in response to a possible slowdown in the world economy, Bloomberg Businessweek adds.

The company expects third quarter revenues to be between $17.0 million and $17.5 million, according to a company statement. 

The company’s was expecting about $19 million in revenues, according to an earlier forecast.

The lower projection was mostly attributed to lower revenues in the company’s Video Business Unit (VBU), which are now expected to be between $13.0 million and $13.5 million. 

“While our progress was slower than expected in the third quarter amidst challenging economic conditions and an intensely competitive environment, we are continuing to invest in market penetration and in R&D because of our full confidence in the competitive strength of our award-winning video conferencing technology and in our strategy,” Boaz Raviv, CEO, said in a company press release.  He added that the company wants to expand the number of channel partners and to achieve profitable growth.

The company will report results for the third quarter on Oct. 27.

Radvision provides products and technology for unified visual communications over IP and 3G networks, according to the company website. It has won a number of awards for its technology. For example, Radvision was chosen by Frost & Sullivan for the China Best Practice Award – 2010 Excellence in Video Technology Innovation of the Year in recognition of the company’s “remarkable efforts and innovative contribution in the video technology field,” according to a report from TechZone360.


Ed Silverstein is a TechZone360 contributor. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Is 5G a Spectrum-eating Monster that Destroys Competition?

By: Fred Goldstein    6/15/2018

To hear the current FCC talk about it, 5G mobile service is the be-all and end-all of not only mobile communications, but the answer to most of the co…

Read More

FX Group Makes the Red Carpet Shoppable with Blockchain-Based mCart Marketplace-as-a-Service

By: TMCnet News    6/14/2018

mCart by Mavatar announces the launch of the world's first blockchain-based decentralized mCart marketplace by the FX Group.

Read More

Judge Gives AT&T-Time Warner Deal Green Light

By: Paula Bernier    6/12/2018

Federal judge Richard Leon gave the $85 billion deal the green light today - and without any requirements to sell off any parts of the company. He als…

Read More

A New Foundation for Evolving Blockchain As a Fundamental Network Technology

By: Arti Loftus    6/12/2018

There are now thousands of blockchains, and unless you are a cryptophile, you won't recognize most of them.

Read More