Wedbush Lowers Price Target on RADVision (RVSN) Following New Outlook
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Price: $5.16 +10.73%
Rating Summary:
1 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reiterating its Neutral rating on shares of RADVision Ltd. (NASDAQ: RVSN) while lowering its price target from $7 to $6.
The company pre-released its Q3 results with revenue expected to fall be $17-$17.5 million and EPS of ($0.34)-($0.30), well below its previous guidance of $19 million and ($0.27). The company is scheduled to release its actual results on October 27.
Management noted that the video business would only earn $13-$13.5 million in revenue. The new guidance is below the firm's estimate of $15 million and marks the third consecutive quarter over quarter decline in the business.
An analyst at Wedbush comments, "In our view, the difficult strategy to transition to an end to end supplier is being compounded by the macro. The company will have to modify its strategy as we believe it is unsustainable to generate $17-17.5mn in revenue per quarter, while spending a similar amount in opex. We believe the company has to become more aggressive in forming partnerships and cut opex immediately in order to prudently manage cash, or risk further marginalization in an industry which is in transition."
To go inline with current market conditions and the company's new guidance, the firm firm cut its Q3 and FY11 EPS estimates from ($0.27) and ($0.90) to ($0.32) and ($1.02). Wedbush also cut its FY12 EPS estimate from ($0.65) to ($1.05). Revenue for FY11 and FY12 is now forecasted to be $74.1 million and $71.8 million, representing a decline year over year.
For more ratings news on RADVision Ltd. click here and for the rating history of RADVision Ltd. click here.
Shares of RADVision Ltd. closed at $5.58 yesterday.
The company pre-released its Q3 results with revenue expected to fall be $17-$17.5 million and EPS of ($0.34)-($0.30), well below its previous guidance of $19 million and ($0.27). The company is scheduled to release its actual results on October 27.
Management noted that the video business would only earn $13-$13.5 million in revenue. The new guidance is below the firm's estimate of $15 million and marks the third consecutive quarter over quarter decline in the business.
An analyst at Wedbush comments, "In our view, the difficult strategy to transition to an end to end supplier is being compounded by the macro. The company will have to modify its strategy as we believe it is unsustainable to generate $17-17.5mn in revenue per quarter, while spending a similar amount in opex. We believe the company has to become more aggressive in forming partnerships and cut opex immediately in order to prudently manage cash, or risk further marginalization in an industry which is in transition."
To go inline with current market conditions and the company's new guidance, the firm firm cut its Q3 and FY11 EPS estimates from ($0.27) and ($0.90) to ($0.32) and ($1.02). Wedbush also cut its FY12 EPS estimate from ($0.65) to ($1.05). Revenue for FY11 and FY12 is now forecasted to be $74.1 million and $71.8 million, representing a decline year over year.
For more ratings news on RADVision Ltd. click here and for the rating history of RADVision Ltd. click here.
Shares of RADVision Ltd. closed at $5.58 yesterday.
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