Hold - Price 6.89 on May 5
by Wedbush Morgan

Radvision, which designs video-communication technology, had a mixed 1Q....Revenue of $18 million, down 7% year over year, missed our estimate, consensus and guidance of $19 million. The Networking Business Unit declined 4% y/y due to conservative inventory management by Cisco....Non-Cisco sales grew just 5% to 6%, versus 24% growth in 4Q. EPS of 3 cents exceeded consensus and guidance estimated 2 cents, driven by cost-cutting and resulting [in] a 23% quarter over quarter decline in operating expenses. We're increasing our [fiscal-year] '09 EPS to 33 cents, from 16 cents, [but] lowering E-revenue to $80 million from $83 million....We're raising target to 8 from 7...reflecting an improved EPS outlook. Market cap: $135 million.

An Israeli investor, Radvision Chairman Zohar Zisapel, raised his stake to 3,229,332 shares (15.93%), by buying 405,596 from Aug. 4 to 22 at prices that ranged from $5.84 to $6.91.

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Company lost market share by not offering the best features on their voice conferencing phones. Now available, revenues should accelerate next year as market share is regained.

Radvision (RVSN) were down over 17.4% after the company lowered its third-quarter revenue forecast. The company now expects revenue of $20.5 million, compared with its previous projection of $25 million. Analysts anticipated revenue of $25.1 million, according to Thomson Financial. Radvision, which makes products for videoconferencing, video telephony and the development of voice-over-Internet protocol systems, said the decline is due to lower-than-expected sales both to the federal market and through its channels. Shares were falling $3.06 to $14.50.

Solid fundamentals. Boughts after 3 consecutive down days.

Downgraded by Ferris Baker Watts from Buy to Neutral

Growth

video telephony

cramer liked and it made sense

Once recommended by Kramer, but has been a dog for 2 years.

Lost 8%