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 February 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 and 333-127013.
RADVision Ltd.
6-K Items
1. Press release re RADVISION Reports Strong Fourth Quarter and Full Year
2006 Results dated February 8, 2007.
ITEM 1
Press Release Source: RADVISION
RADVISION Reports Strong Fourth Quarter and Full Year 2006 Results
Thursday February 8, 8:00 am ET
- Fourth Quarter Revenues Reach Record $25.3 Million -
- GAAP Diluted EPS is $0.31; Non-GAAP Diluted EPS is $0.37 before FAS123R
Effect -
FAIR LAWN, N.J.--(BUSINESS WIRE)--RADVISION(R) (Nasdaq: RVSN - News) today
announced that revenues for the fourth quarter of 2006 reached a record $25.3
million, representing a 19% increase from $21.2 million reported in the fourth
quarter of 2005.
Operating income for the fourth quarter of 2006 was $3.4 million. Excluding the
effects of stock-based compensation expense related to the adoption of FAS123R,
the Company achieved operating income of $4.7 million on a non-GAAP basis. This
compares with operating income of $4.2 million reported in the fourth quarter of
2005.
Net income for the 2006 fourth quarter was $7.2 million, or $0.31 per diluted
share, and included a tax benefit of $2.1 million equivalent to $0.09 per
diluted share mainly due to deferred tax benefit, and stock-based compensation
expense of $1.3 million or $0.06 per diluted share. Excluding the effect of
stock-based compensation expense, net income was $8.5 million or $0.37 per
diluted share on a non-GAAP basis. This compares with $5.4 million or $0.24 per
diluted share reported in the 2005 fourth quarter.
The Company had forecast that 2006 fourth quarter revenues would approximate
$24.7 million and that net income would approximate $4.1 million or $0.18 per
diluted share including a tax expense of $0.6 million and stock-based
compensation expense related to the adoption of FAS123R. Excluding the effect of
stock-based compensation expense, the Company expected fourth quarter 2006
non-GAAP net income to be $5.4 million or $0.24 per diluted share.
Business unit revenues for the fourth quarter of 2006 consisted of $18.9 million
in Networking Business Unit (NBU) sales and $6.4 million in Technology Business
Unit (TBU) sales, representing increases of 25% and 6%, respectively, over the
fourth quarter of 2005. NBU and TBU revenues exceeded the Company's forecast.
For full year 2006, revenues were $91.0 million, operating income was $8.5
million and net income was $15.2 million or $0.67 per diluted share. Excluding
the effects of stock-based compensation expense (amounting to $4.7 million and
equivalent to $0.21 per diluted share) and a patent settlement reserve
recognized in the 2006 third quarter (of $1.9 million, and equivalent to $0.08
per diluted share), operating income for full year 2006 was $15.2 million and
net income was $21.9 million or $0.96 per diluted share, on a non-GAAP basis.
For full year 2005, revenues were $74.0 million, operating income was $11.5
million and net income was $14.7 million or $0.66 per diluted share.
The Company ended the fourth quarter of 2006 with approximately $145.6 million
in cash and liquid investments, equivalent to $6.61 per basic share, and an
increase of $9.9 million from September 30, 2006. The increase reflects cash
flow from operations of $8.3 million and cash flow from the exercise of options
of $2.3 million offset in part by $700,000 of capital expenditures.
Boaz Raviv, Chief Executive Officer, commented: "The main driver of our fourth
quarter and full year 2006 performance was continued substantial growth and
expanded market share in the room conferencing market. That was due to strong
demand for our SCOPIA(TM) v.5 videoconferencing platform and, most importantly,
because of our successful partner relationships, led by Cisco. Our sales through
Cisco continued to reach record levels. We also achieved growth in the balance
of our room conferencing sales. We expect room conferencing to be a major growth
engine for us throughout 2007."
Mr. Raviv continued: "2006 was the year the concept of Unified Communications
became a commercial reality. Our Click to Meet(R) solution remains at the core
of our strategy in this market because it can integrate advanced video into a
wide variety of desktop environments. We recently announced the general
availability of Click to Meet for IBM Lotus Sametime and have trials underway
with several large Lotus Sametime customers including a major oil company in
South America. We also had new and follow-on sales of our Click to Meet solution
worldwide. We plan to introduce additional Unified Communications solutions
based on our SCOPIA infrastructure and Click to Meet software.
"In the 3G mobile market, we achieved significant growth in sales of the
SCOPIA(TM) Interactive Video Platform, our flexible, easy-to-use video service
creation platform, as well as additional sales of our SCOPIA(TM) 3G Video
Gateway. We saw revenue growth in this market in both APAC and EMEA in the
fourth quarter and had additional sales to a leading mobile carrier in the U.S.,
where the adoption of EVDO-Rev. A is just beginning.
"Our Technology Business Unit achieved record sales for 2006. Our SIP IMS
Toolkit and ProLab IMS Testing solution have been well-received by the market
and we have expanded the capability of ProLab to include testing of IMS networks
as well as video quality. Our standard toolkits combined with our Multimedia
Terminal Framework software also made gains in the rapidly growing IPTV
marketplace in the fourth quarter."
Mr. Raviv concluded: "In 2006, Unified Communications, High Definition and IMS
have moved front and center as market themes and we remain at the forefront of
all three."
Guidance
The following statements are forward-looking, and actual results may differ
materially.
The Company expects revenues for the first quarter of 2007 to be approximately
$23.5 million and net income to approximate $3.0 million or $0.13 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, first
quarter 2007 non-GAAP net income is expected to be $4.4 million or $0.19 per
diluted share. That compares to first quarter 2006 revenues of $20.1 million and
net income of $2.9 million or $0.13 per diluted share. This includes stock-based
compensation expense related to the adoption of FAS123R of $1.0 million or $0.04
per diluted share. Excluding this item, net income for the first quarter of 2006
was $3.9 million or $0.17 per diluted share. (Full details are available on the
Company's web site at www.radvision.com.)
Fourth Quarter 2006 Earnings Conference Call/Webcast
RADVISION will hold a conference call to discuss its fourth quarter 2006 results
and first quarter 2007 outlook, today, Thursday, February 8, 2007 at 9:00 a.m.
(Eastern). To access the conference call, please dial 1-888-791-1856
(International dialers may call +1-210-234-0005) by 8:45 a.m. (Eastern) on
February 8th. 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 February 15th. To access the replay, please
dial 1-800-839-0129 (International dialers may call +1-402-998-1201).
The PowerPoint presentation highlighting key financial metrics as well as the
fourth quarter 2006 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 February 8th and will be archived on the website until
the end of the first 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.
Consolidated Statements of Income
(U.S. Dollars in thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Audited
------------
Revenues $ 25,261 $ 21,170 $ 91,023 $ 74,012
Cost of revenues 5,252 3,830 18,165 13,110
------------ ------------ ------------ ------------
Gross profit 20,009 17,340 72,858 60,902
------------ ------------ ------------ ------------
Operating costs and expenses:
Research and
development 6,855 5,230 25,331 20,110
Marketing and
selling 7,847 6,660 30,648 24,588
General and
administrative 1,887 1,201 6,492 4,677
Patent settlement
reserve - - 1,900 -
------------ ------------ ------------ ------------
Total operating
costs and
expenses 16,589 13,091 64,371 49,375
------------ ------------ ------------ ------------
Operating income 3,420 4,249 8,487 11,527
Financial income,
net 1,621 948 5,825 3,051
------------ ------------ ------------ ------------
Income before
taxes 5,041 5,197 14,312 14,578
Taxes on income,
net 2,114 153 936 112
------------ ------------ ------------ ------------
Net income $ 7,155 $ 5,350 $ 15,248 $ 14,690
============ ============ ============ ============
Basic net earnings
per Ordinary
share $ 0.33 $ 0.25 $ 0.69 $ 0.70
============ ============ ============ ============
Weighted Average
Number of Shares
Outstanding
During the Period
- Basic 22,012,523 21,557,589 22,076,563 21,121,908
============ ============ ============ ============
Diluted net
earnings per
Ordinary share $ 0.31 $ 0.24 $ 0.67 $ 0.66
============ ============ ============ ============
Weighted Average
Number of Shares
Outstanding
During the Period
- Diluted 22,829,275 22,740,403 22,747,188 22,214,949
============ ============ ============ ============
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 one time patent settlement
reserve and 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
one time patent settlement reserve and 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 December 31,
--------------------------------------------------
2006 2005
------------------------------------ -------------
Unaudited
--------------------------------------------------
GAAP results Non-GAAP Non-GAAP GAAP results
(as reported) adjustment* results (as reported)
------------- ------------ --------- -------------
Gross profit 20,009 109 20,118 17,340
Total operating
costs and expenses 16,589 (1,210) 15,379 13,091
Operating income 3,420 1,319 4,739 4,249
Income before taxes 5,041 1,319 6,360 5,197
Net income $ 7,155 $ 1,319 $ 8,474 $ 5,350
============= ============ ========= =============
Basic net earnings
per Ordinary share $ 0.33 $ 0.05 $ 0.38 $ 0.25
============= ============ ========= =============
Diluted net
earnings per
Ordinary share $ 0.31 $ 0.06 $ 0.37 $ 0.24
============= ============ ========= =============
Twelve months ended December 31,
----------------------------------------------------
2006 2005
-------------------------------------- -------------
Unaudited
----------------------------------------------------
GAAP results Non-GAAP Non-GAAP GAAP results
(as reported) adjustment** results (as reported)
------------- ------------- ---------- -------------
Gross profit 72,858 373 73,231 60,902
Total operating
costs and
expenses 64,371 (6,304) 58,067 49,375
Operating income 8,487 6,677 15,164 11,527
Income before
taxes 14,312 6,677 20,989 14,578
Net income $ 15,248 $ 6,677 $ 21,925 $ 14,690
============= ============= ========== =============
Basic net
earnings per
Ordinary share $ 0.69 $ 0.30 $ 0.99 $ 0.70
============= ============= ========== =============
Diluted net
earnings per
Ordinary share $ 0.67 $ 0.29 $ 0.96 $ 0.66
============= ============= ========== =============
*) Adjustment excludes the expenses recorded for stock compensation in
accordance with SFAS 123(R).
**) Adjustment exclude one time patent settlement reserve and the expenses
recorded for stock compensation in accordance with SFAS 123(R).
RADVISION LTD.
Consolidated Balance Sheet
(U.S. Dollars in thousands)
December 31, December 31,
2006 2005
------------ ------------
ASSETS Audited
------------
CURRENT ASSETS:
Cash and cash equivalents *) $ 23,110 $ 32,927
Short-term bank deposits *) 48,357 17,503
Short-term marketable securities *) 36,048 46,015
Trade receivables, net 12,866 12,257
Other accounts receivable and prepaid
expenses 5,838 4,318
Inventories 2,979 2,593
------------ ------------
Total current assets 129,198 115,613
------------ ------------
LONG-TERM INVESTMENTS AND RECEIVABLES:
Long-term bank deposits *) 11,365 11,395
Long-term marketable securities *) 26,691 17,111
Severance pay fund 3,481 2,931
Deferred tax asset 2,797 -
------------ ------------
Total long-term investments and receivables 44,334 31,437
------------ ------------
Property and equipment, net 3,609 3,190
------------ ------------
Goodwill 2,966 2,966
------------ ------------
Intangible assets, net 2,452 3,542
------------ ------------
Total assets $ 182,559 $ 156,748
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 2,919 $ 1,783
Deferred revenues 8,748 8,533
Accrued expenses and other accounts
payable 13,870 12,122
------------ ------------
Total current liabilities 25,537 22,438
------------ ------------
Accrued severance pay 4,417 3,643
------------ ------------
Total liabilities 29,954 26,081
------------ ------------
SHAREHOLDERS' EQUITY:
Share capital 228 218
Additional paid-in capital 126,944 116,446
Treasury Stock (1,670) -
Retained earnings 27,103 14,003
------------ ------------
Total shareholders' equity 152,605 130,667
------------ ------------
Total liabilities and shareholders' equity $ 182,559 $ 156,748
============ ============
*) Total cash and liquid investments $ 145,571 $ 124,951
============ ============
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: February 8, 2007