- Revenues Are $21.8 Million;
- GAAP Net Loss Is $0.24 per Diluted Share;
- Non-GAAP Net Loss Is $0.17 per Diluted Share.
RADVISION® (Nasdaq: RVSN), a leading technology and end-to-end solution provider for unified visual communications, reported today that revenues for the fourth quarter of 2011 were $21.8 million, in line with the Company’s revised forecast. This compares with $26.6 million in the fourth quarter of 2010.
For the fourth quarter of 2011, the operating loss was $4.4 million on a GAAP basis and $3.1 million on a nonGAAP basis. For the fourth quarter of 2010, the Company had operating income of $1.5 million on a GAAP basis and $3.0 million on a non-GAAP basis.
The net loss for the fourth quarter of 2011 was $4.5 million, or $0.24 per diluted share, on a GAAP basis, and $3.1 million, or $0.17 per diluted share, on a non-GAAP basis. This compares with net income of $1.4 million, or $0.07 per diluted share, on a GAAP basis, and $2.9 million, or $0.16 per diluted share, on non-GAAP basis, in the fourth quarter of 2010.
The non-GAAP amounts in the fourth quarter of 2011 exclude $0.4 million of amortization of purchased intangibles and $0.1 million of net restructuring expenses, both related to the Aethra acquisition in February 2010. They also exclude $0.8 million for the effects of stock-based compensation expense in accordance with ASC 718, and a loss of $0.04 million due to the other than temporary impairment of certain Auction Rate Securities. The total amount excluded for non-GAAP purposes was $1.3 million, equivalent to $0.07 per diluted share.
The non-GAAP amounts in the fourth quarter of 2010 exclude $0.5 million of expense for amortization of purchased intangibles and $0.3 million of restructuring expenses related to the Aethra acquisition, $0.8 million for the effects of stock-based compensation expense, and a loss of $0.03 million due to the other than temporary impairment of certain Auction Rate Securities. The total amount excluded for non-GAAP purposes was $1.6 million, equivalent to $0.09 per diluted share.
For the fourth quarter of 2011, total revenues consisted of $18.1 million for the Video Business Unit (VBU) and $3.7 million for the Technology Business Unit (TBU). This compares with $22.6 million for the VBU and $4.0 million for the TBU reported in the fourth quarter of 2010.
The Company’s revised guidelines for the fourth quarter of 2011, reported on January 3, 2012, was for revenues of approximately $21.5 million to $22.0 million and a net loss of $0.25 to $0.28 per diluted share on a GAAP basis, and $0.18 to $0. 21 per diluted share on a non-GAAP basis.
The reconciliation between GAAP net income and Non-GAAP net income is provided in the tables at the end of this release.
The Company ended the fourth quarter of 2011 with approximately $90.6 million in cash and liquid investments, equivalent to $4.92 per basic share, a decrease of $1.8 million from September 30, 2011. The decrease reflects $1.7 million used in operating activities and $0.3 million for capital expenditures offset by $0.2 million received from the exercise of options.
Boaz Raviv, Chief Executive Officer, commented: “A 55% sequential increase in our endpoint sales was the main driver behind the better than expected performance of our Video Business Unit, and of our fourth quarter results overall. Sales of our video infrastructure products rose 25% sequentially, aided by a near doubling of our sales to Service Providers and higher than expected OEM revenues. Our Technology Business Unit had a solid quarter, with growing success in its new products, which are video-focused and bring our two business units closer together.
The strength of our technology and the broadening of our portfolio of solutions for the SMB market contributed to our record endpoint sales and success with Service Providers in the fourth quarter. We have now introduced our next generation video system for the high end market, the SCOPIA XT5000, which is the most powerful HD video conferencing system in its class available today and is the flagship of our video system portfolio. This is a significant step forward in our end-to-end strategy and it is key to our return to profitability and future growth.”
The following statements are forward-looking, and actual results may differ materially.
The Company expects to report revenues for the first quarter of 2012 of approximately $17.0 million and a net loss of approximately $7.6 million, or $0.41 per diluted share, on a GAAP basis, and $6.8 million, or $0.37 per diluted share, on a non-GAAP basis. The non-GAAP amount excludes stock-based compensation expense of approximately $0.4 million in accordance with ASC 718 and amortization of purchased Aethra intangible assets of $0.4 million. That compares to revenues in the first quarter of 2011 of $20.8 million and a net loss of $3.3 million, or $0.18 per diluted share, on a GAAP basis, and $2.4 million, or $0.13 per diluted share, on a non-GAAP basis. The non-GAAP amount in the 2011 first quarter excludes stock-based compensation expense $0.5 million and $0.5 million of expense for amortization of purchased intangibles. (Full details of the Company’s forecast are available on the Company’s website)
GAAP versus NON-GAAP Presentation
To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company uses non-GAAP measures of operating results, net income and earnings per share, which are adjusted from results based on GAAP to exclude the Aethra assets purchase agreement payment, net profit and loss from other than temporary impairment of available-for-sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, an increase in valuation allowance for tax assets, net, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net. These non-GAAP financial measures are provided to enhance overall understanding of the current financial performance and prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management, and investors as these non-GAAP results exclude the Aethra assets purchase agreement payment, other than temporary impairment of available-for-sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, an increase in valuation allowance for tax assets, net, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net that the Company believes are not indicative of the core operating results. Further, these non-GAAP results are one of the primary indicators management uses for assessing the Company's performance, allocating resources and planning and forecasting future periods. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. These non-GAAP measures may be different from the non-GAAP measures used by other companies.
Fourth Quarter 2011 Earnings Conference Call/Webcast
RADVISION will hold a conference call to discuss its fourth quarter 2011 results and first quarter 2012 outlook, today, Wednesday, February 8, at 9:00 am. (Eastern). To access the conference call, please dial 1800-619-7571 (International dialers may call +1-210-839-8500) by 8:50 am. (Eastern). The passcode “RADVISION” will be required to access the live conference call. A live webcast of the conference call also will be available on the Company's website and archived on the site until the next quarter. A replay of the call will be available beginning approximately one hour after the conclusion of the call through 11:00 pm. (Eastern) on February 14th. To access the replay, please dial 1-800-239-4590 (International dialers may call +1-402-220-9698).
The PowerPoint presentation highlighting key financial metrics as well as the first quarter 2012 guidelines also will be available in the Investor Relations section of the Company’s website. The presentation will be available beginning at 8:00 am. (Eastern) on February 8th and will be archived on the website until the end of the first quarter.
Founded in 1992, RADVISION (radvision.com) is a leading provider of video conferencing and telepresence technologies over IP and wireless networks. RADVISION teams with its channel and service provider partners to offer end-to-end visual communications that help businesses collaborate more efficiently. RADVISION propels the unified communications evolution forward with unique technologies that harness the power of video, voice, and data over any network.
This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to general business conditions in the industry, changes in demand for products, the timing and amount or cancellation of orders and other risks detailed from time to time in RADVISION’s filings with the Securities Exchange Commission, including RADVISION’s Form 20-F Annual Report. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.
RADVISION and SCOPIA are registered trademarks of RADVISION, Ltd. All product and company names herein may be trademarks of their registered owners. All rights
reserved © 2012 RADVISION, Ltd.