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.