UPDATE 2-Radvision cuts Q3 revenue outlook, shares fall
(Recasts, adds analyst comment, details from conference call)
By Bijoy Anandoth Koyitty
BANGALORE Oct 1 (Reuters) - Israel-based video conferencing systems maker Radvision Ltd RVSN.O lowered its third-quarter revenue outlook due to weak sales at its networking business unit, sending its shares down to year-low levels.
Shares of the company were down more than 16 percent at $14.68 in afternoon trade, making them one of the top percentage losers on the Nasdaq. They had touched a year-low of $13.65 earlier in the session.
The outlook is on a lower revenue forecast for its networking business unit due to lower-than-expected sales both to the federal market and through its channels, the company said in a statement.
Manuel Recarey, an analyst with Kaufman Brothers, said the networking business unit contributes about 75 percent of Radvision's revenue, and a significant portion of it comes from its Scopia line of video conferencing platform.
The company expects revenue of about $20.5 million for the quarter, down from its prior view of about $25 million. It had reported revenue of $23.6 million in the year-ago period.
In a conference call with analysts, the company said it lost some market share in the quarter as its competitor products provided the popular high definition continuous presence feature, which is absent in Scopia.
Radvision expects to introduce the feature at the end of October. Continuación...