SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2007
RADVISION LTD.
(Name of Registrant)
24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-________
This Form 6-K is being incorporated by reference into the Registrant's Form S-8
Registration Statements File Nos. 333-45422, 333-53814, 333-55130, 333-66250,
333-82488, 333-104377, 333-116964, 333-127013 and 333-141654.
RADVision Ltd.
6-K Items
1. Press release re RADVISION Reports Strong First Quarter 2007 Results
dated May 2, 2007.
ITEM 1
Press Release Source: RADVISION
RADVISION Reports Strong First Quarter 2007 Results
Wednesday May 2, 8:00 am ET
Revenues Reach First Quarter Record of $24.3 Million
GAAP Diluted EPS Is $0.15; Non-GAAP Diluted EPS Is $0.21 before FAS123R Effect
TEL AVIV, Israel--(BUSINESS WIRE)--RADVISION(R) (Nasdaq: RVSN - News) today
announced that revenues for the first quarter of 2007 reached a record for the
quarter of $24.3 million, a 21% increase from $20.1 million reported in the
first quarter of 2006.
Operating income for the first quarter of 2007 was $1.8 million, in line with
the first quarter of 2006. Excluding the effects of stock-based compensation
expense related to the adoption of FAS123R in both periods, the Company achieved
non-GAAP operating income of $3.2 million compared with $2.9 million in the same
period of 2006.
Net income for the first quarter of 2007 was $3.5 million, or $0.15 per diluted
share compared with $2.9 million or $0.13 per diluted share in the 2006 first
quarter. Excluding the effect of stock-based compensation expense which amounted
to $1.3 million or $0.06 per diluted in the 2007 first quarter and $1.0 million
or $0.04 per diluted share in 2006 first quarter, non-GAAP net income for the
first quarter of 2007 was $4.9 million or $0.21 per diluted share compared with
$3.9 million or $0.17 per diluted share reported in the first quarter of 2006.
The Company had forecast that 2007 first quarter revenues would approximate
$23.5 million and that net income would approximate $3.0 million or $0.13 per
diluted share including stock-based compensation expense. Excluding the effect
of stock-based compensation expense, the Company expected first quarter 2007
non-GAAP net income to be $4.4 million or $0.19 per diluted share.
Business unit revenues for the first quarter of 2007 consisted of $18.3 million
in Networking Business Unit (NBU) sales, representing an increase of 30% from
the first quarter of 2006, and $6.0 million in Technology Business Unit (TBU)
sales, which were level with the first quarter of 2006. TBU revenues met the
Company's forecast while NBU revenues exceeded it.
The Company ended the first quarter of 2007 with approximately $155.8 million in
cash and liquid investments, equivalent to $6.98 per basic share, and an
increase of $10.2 million from December 31, 2006. The increase reflects cash
flow from operations of $7.2 million and cash flow from the exercise of options
of $3.8 million offset in part by $800,000 of capital expenditures.
Boaz Raviv, Chief Executive Officer, commented: "Our first quarter growth was
driven by continued strong demand for our SCOPIA(TM) video platform in the room
conferencing market and the success of our channel partner relationships led by
Cisco. In total, our room conferencing revenues were almost double those of the
first quarter last year as were our revenues through Cisco. This was accompanied
by a substantial increase in our room conferencing sales through other channels.
In addition, we recognized $1.3 million in revenues in the first quarter from
the final delivery of products to the DVS II project with Northup Grumman, which
we announced at the end of 2005.
"We have now introduced SCOPIA(TM) Desktop, which we believe represents another
major advance in the Unified Communications market place. SCOPIA Desktop is a
simple solution that extends the reach of traditional room conferencing to
remote users without complex software installations, licensing fees or firewall
transversal problems. It is bundled with our SCOPIA MCU and was developed using
elements from our Click to Meet(R) desktop software. Initial market response has
been very exciting.
"Revenues directly from Click to Meet, which integrates advanced video into a
variety of desktop environments, totaled $1.1 million in the first quarter,
including continued sales to the Federal market. We also completed installation
of Click to Meet for Lotus Sametime at two IBM centers in the first quarter. A
service provider in Europe, which is standardizing on the Microsoft Windows
Communicator and Live Meeting, has initiated a trial using Click to Meet as the
video solution. With the introduction of SCOPIA Desktop, we expect the
distinction between our room conferencing and desktop sales to be increasingly
blurred.
"In the 3G mobile market, we continued to see strong traction for our SCOPIA(TM)
Interactive Video Platform, which enables rapid development and deployment of
video services by mobile operators and application service providers, as well as
additional sales of our SCOPIA(TM) 3G Video Gateway. Total 3G revenues were $1.8
million for the first quarter.
"Our Technology Business Unit achieved on-target revenues in the first quarter.
With the introduction of new tools and testing solutions in accordance with our
roadmap, we continued advancing our technology leadership and penetrating new
market segments."
Mr. Raviv concluded: "The strong first quarter gave us a good start to 2007. We
plan to continue our progress throughout the year."
Guidance
The following statements are forward-looking, and actual results may differ
materially.
The Company expects revenues for the second quarter of 2007 to be approximately
$25.0 million and net income to approximate $3.7 million or $0.16 per diluted
share. This includes stock-based compensation expense related to the adoption of
FAS123R of $1.4 million or $0.06 per diluted share. Excluding this item, second
quarter 2007 non-GAAP net income is expected to be $5.1 million or $0.22 per
diluted share. That compares to second quarter 2006 revenues of $22.0 million
and net income of $3.2 million or $0.14 per diluted share. This includes
stock-based compensation expense related to the adoption of FAS123R of $1.2
million or $0.06 per diluted share. Excluding this item, net income for the
second quarter of 2006 was $4.4 million or $0.19 per diluted share. (Full
details are available on the Company's web site at www.radvision.com.)
GAAP versus NON-GAAP Presentation
To supplement the consolidated financial statements presented in accordance with
generally accepted accounting principles ("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 expenses recorded for stock
compensation in accordance with SFAS 123(R). 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 expenses recorded for stock compensation in
accordance with SFAS 123(R) 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 than the non-GAAP measures used by other companies.
First Quarter 2007 Earnings Conference Call/Webcast
RADVISION will hold a conference call to discuss its first quarter 2007 results
and second quarter 2007 outlook, today, Wednesday, May 2, 2007 at 9:00 a.m.
(Eastern). To access the conference call, please dial 1-888-889-4951
(International dialers may call +1-210-234-0001) by 8:45 a.m. (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. Simply click on the following
link or copy it onto your browser:
www.radvision.com/Corporate/Investors/FinancialReports/. A replay of the call
will be available beginning approximately one hour after the conclusion of the
call through 11:59 p.m. (Eastern) on May 9th. To access the replay, please dial
1-800-284-5340 (International dialers may call +1-402-998-1028).
The PowerPoint presentation highlighting key financial metrics as well as the
second quarter 2007 estimate also will be available in the Investor Relations
section of the company's website. The presentation will be available beginning
at 8:00 a.m. (Eastern) on May 2nd and will be archived on the website until the
end of the second quarter.
About RADVISION
RADVISION (Nasdaq: RVSN - News) is the industry's leading provider of
market-proven products and technologies for unified visual communications over
IP and 3G networks. With its complete set of standards-based video networking
infrastructure and developer toolkits for voice, video, data and wireless
communications, RADVISION is driving the unified communications evolution by
combining the power of video, voice, data and wireless - for high definition
videoconferencing systems, innovative converged mobile services, and highly
scalable video-enabled desktop platforms on IP, 3G and emerging next-generation
networks. For more information about RADVISION, visit www.radvision.com.
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 its
Annual Report on Form 20-F. 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.
The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.
RADVISION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands, except share and per share data
Three months ended
March 31,
-------------------------
2007 2006
------------ ------------
Unaudited
-------------------------
Revenues $ 24,265 $ 20,136
Cost of revenues 5,005 3,651
------------ ------------
Gross profit 19,260 16,485
------------ ------------
Operating costs and expenses:
Research and development 7,665 5,745
Marketing and selling 7,993 7,399
General and administrative 1,758 1,461
------------ ------------
Total operating costs and expenses 17,416 14,605
------------ ------------
Operating income 1,844 1,880
Financial income, net 1,721 1,271
------------ ------------
Income before taxes on income 3,565 3,151
Taxes on income, net 26 254
------------ ------------
Net income $ 3,539 $ 2,897
============ ============
Basic net earnings per Ordinary share $ 0.16 $ 0.13
============ ============
Weighted Average Number of Shares
Outstanding During the Period - Basic 22,309,914 21,995,368
============ ============
Diluted net earnings per Ordinary share $ 0.15 $ 0.13
============ ============
Weighted Average Number of Shares
Outstanding During the Period - Diluted 23,135,853 22,460,281
============ ============
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands, except per share data
Reconciliation of GAAP to NON-GAAP Operating Results
To supplement the consolidated financial statements presented in accordance with
generally accepted accounting principles ("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 expenses recorded for stock
compensation in accordance with SFAS 123(R). 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 expenses recorded for stock
compensation in accordance with SFAS 123(R) 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 than the non-GAAP measures used by other companies. The following
table reconciles the GAAP to non-GAAP operating results:
Three months ended
March 31, 2007
-------------------------------------
(Unaudited)
-------------------------------------
Non GAAP
adjustment Non GAAP
GAAP results share-based results
(as reported) compensation Pro Forma
------------- ------------- ---------
Gross profit $ 19,260 $ 96 $19,356
Total operating costs and
expenses $ 17,416 $ 1,234 $16,182
Operating income $ 1,844 $ 1,330 $3,174
Income before taxes on income $ 3,565 $ 1,330 $4,895
Net income $ 3,539 $ 1,330 $4,869
============= ============= =========
Basic net earnings per Ordinary
share $ 0.16 $ 0.06 $ 0.22
============= ============= =========
Diluted net earnings per
Ordinary share $ 0.15 $ 0.06 $ 0.21
============= ============= =========
Three months ended
March 31, 2006
-------------------------------------
(Unaudited)
-------------------------------------
Non GAAP
adjustment Non GAAP
GAAP results share-based results
(as reported) compensation Pro Forma
------------- ------------- ---------
Gross profit $ 16,485 $ 69 $16,554
Total operating costs and
expenses $ 14,605 $ 959 $13,646
Operating income $ 1,880 $ 1,028 $2,908
Income before taxes on income $ 3,151 $ 1,028 $4,179
Net income $ 2,897 $ 1,028 $3,925
============= ============= =========
Basic net earnings per Ordinary
share $ 0.13 $ 0.05 $ 0.18
============= ============= =========
Diluted net earnings per
Ordinary share $ 0.13 $ 0.04 $ 0.17
============= ============= =========
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except per share data
March 31, December
2007 31, 2006
---------- ---------
Unaudited Audited
---------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents *) $ 30,594 $ 23,110
Short-term bank deposits *) 53,938 48,357
Short-term held-to-maturity marketable
securities *) 44,728 36,048
Trade receivables 10,057 12,866
Other accounts receivable and prepaid
expenses 4,965 5,838
Inventories 3,136 2,979
---------- ---------
Total current assets 147,418 129,198
---------- ---------
LONG-TERM INVESTMENTS AND RECEIVABLES:
Long-term bank deposits *) 3,141 11,365
Long-term held-to-maturity marketable
securities *) 23,414 26,691
Severance pay fund 3,690 3,481
Long term deferred tax asset 2,851 2,797
---------- ---------
Total long-term investments and receivables 33,096 44,334
---------- ---------
Property and equipment, net 3,904 3,609
---------- ---------
Goodwill 2,966 2,966
---------- ---------
Other intangible assets, net 2,180 2,452
---------- ---------
Total assets $189,564 $182,559
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 2,606 $ 2,919
Deferred revenues 6,573 8,748
Accrued expenses and other accounts payable 14,279 13,870
---------- ---------
Total current liabilities 23,458 25,537
---------- ---------
Accrued severance pay 4,972 4,417
---------- ---------
Total liabilities 28,430 29,954
---------- ---------
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.1 par value 233 228
Additional paid-in capital 130,781 126,944
Treasury stock - (1,670)
Retained earnings 30,120 27,103
---------- ---------
Total shareholders' equity 161,134 152,605
---------- ---------
Total liabilities and shareholders' equity $189,564 $182,559
========== =========
*) Total cash and liquid investments $155,815 $145,571
========== =========
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three months ended
March 31,
-------------------
2007 2006
--------- ---------
Unaudited
-------------------
Cash flows from operating activities:
--------------------------------------------------
Net income $ 3,539 $ 2,897
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 809 687
Accrued interest on held-to-maturity marketable
securities and bank deposits and amortization
of premium 213 (344)
Stock-based compensation 1,330 1,028
Reversal of valuation allowance relating to
loss carryforwards in respect of exercise of
stock options - (170)
Decrease in trade receivables, net 2,809 3,545
Decrease in other accounts receivable and
prepaid expenses 1,220 951
Increase in inventories (157) (927)
Decrease (increase) in deferred tax asset (536) 116
Decrease in trade payables (313) (288)
Increase (decrease) in deferred revenues (2,175) 244
Increase (decrease) in accrued expenses and
other accounts payable 409 (35)
Increase in accrued severance pay, net 346 233
--------- ---------
Net cash provided by operating activities 7,494 7,937
--------- ---------
Cash flows from investing activities:
--------------------------------------------------
Proceeds from redemption of held-to-maturity
marketable securities 11,670 15,454
Purchase of held-to-maturity marketable
securities (16,900) (22,466)
Proceeds from withdrawal of bank deposits 38,672 5,282
Purchase of bank deposits (36,415) (24,424)
Purchase of property and equipment (832) (775)
--------- ---------
Net cash used in investing activities (3,805) (26,929)
--------- ---------
Cash flows from financing activities:
--------------------------------------------------
Issuance of Ordinary shares and treasury stock
for cash upon exercise of options 3,760 3,032
Tax benefit related to exercise of stock
options 35 -
Reversal of valuation allowance relating to
loss carryforwards in respect of exercise of
stock options - 170
--------- ---------
Net cash provided by financing activities 3,795 3,202
--------- ---------
Decrease (increase) in cash and cash equivalents 7,484 (15,790)
Cash and cash equivalents at the beginning of the
period 23,110 32,927
--------- ---------
Cash and cash equivalents at the end of the period $ 30,594 $ 17,137
========= =========
Supplemental disclosure of non-cash flow from
investing and financing activities:
--------------------------------------------------
Receivables on account of shares $ 13 $ 99
========= =========
Contact:
RADVISION
Tsipi Kagan, +1-201-689-6340
Chief Financial Officer
cfo@radvision.com
or
Investor Relations:
Comm-Partners LLC
June Filingeri, +1-203-972-0186
junefil@optonline.net
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
RADVISION LTD.
(Registrant)
By /s/Arnold Taragin
-----------------
Arnold Taragin
Corporate Vice President and General Counsel
Date: May 2, 2007