RADVision: Not Expecting the Expected (RVSN, CSCO, PLCM, BBBB, PGI, MSFT)

The news this morning is bleak and reflects many of these issues.  RADVision cut its revenues to $18.0 to $18.5 million for the second quarter, and that led it to cut earnings guidance to -$0.41 to -$0.44 in GAP EPS and -$0.27 to -$0.30 on a non-GAAP EPS basis.

Prior guidance was $22 million in revenues; -$0.17 GAAP EPS; and -$0.12 non-GAAP EPS.  Thomson Reuters had estimates of -$0.12 EPS and $21.79 million in revenues, but this was from only two analysts.

The lower guidance is due called “primarily the result of lower than anticipated revenues in the company’s Video Business Unit (VBU),” and that will now be about $14.5 to $15.0 million. As noted in Cicso’s ties… “This includes revenues from Cisco of approximately $1.5 million, which is in line with forecast but substantially below the $9.5 million of revenues from Cisco in the second quarter of 2010. Despite its revised forecast, the Company’s core VBU revenues are expected to increase by more than 30% from the second quarter of 2010, after excluding revenues from Cisco from both periods.”

The revenues from RADVision’s Technology Business Unit also being lowered and now expected to approximate $3.5 million.

RADVision is a thin volume stock.  Shares are indicated down over 5% at $7.41 this morning versus a 52-week range of $6.07 to $12.00.  This is an example of what can happen when smaller companies lose their growth partners.

JON C. OGG