Gediminas Jasionis

RADVision Ltd. (Nasdaq: RVSN) Financials Fail To Improve

by Gediminas Jasionis February 4, 2010
RADVISION logoRADVision Ltd. (Nasdaq: RVSN) the last financial update beat the forecasts but stayed in line with a year ago performance. $22.7 million in sales generated $1.5 million loss which actually translated into $4.4 million profit when calculated on a non-GAAP basis.

During the quarter RADVision reduced their operating costs by $5 million, which allowed achieving operating profit. Taxes were the main problem turning otherwise would be positive bottom line red.

On a broader scale the company finished 2009 with significantly decreased loss of $774 thousand compared to nearly $13 million they've lost throughout 2008. The decrease was attributable to cut down of S&GA, marketing and R&D expenses. In other words the company has set back and scaled down. With no substantial growth in revenues, the expenses were eaten away the cash and now it will be avoided.

RADVision stock reaction was positive on the update but failed to retain momentum, possibly because of current market weakness. On the other hand the results weren't too impressive as well. RADVision failed to retain positive bottom line or even grow their revenues.

Basically the financials gave no reason for the stock price to get out of the current consolidation area. Movements between $5.5 and $7 will likely continue as a more meaningful breakout is more likely to bring the price down than up.

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