RADVISION LTD. : RADVISION Reports Fourth Quarter 2011 Results in Line with Improved Guidelines

- Revenues Are $21.8 Million - GAAP Net Loss Is $0.24 per Diluted Share - Non-GAAP Net Loss Is $0.17 per Diluted Share

RADVISION® (Nasdaq: RVSN), a leading technology and end-to-end solution provider for unified visual communications, reported today that revenues for the fourth quarter of 2011 were $21.8 million, in line with the Company's revised forecast. This compares with $26.6 million in the fourth quarter of 2010.

For the fourth quarter of 2011, the operating loss was $4.4 million on a GAAP basis and $3.1 million on a non-GAAP basis. For the fourth quarter of 2010, the Company had operating income of $1.5 million on a GAAP basis and $3.0 million on a non-GAAP basis.

The net loss for the fourth quarter of 2011 was $4.5 million, or $0.24 per diluted share, on a GAAP basis, and $3.1 million, or $0.17 per diluted share, on a non-GAAP basis. This compares with net income of $1.4 million, or $0.07 per diluted share, on a GAAP basis, and $2.9 million, or $0.16 per diluted share, on non-GAAP basis, in the fourth quarter of 2010.

The non-GAAP amounts in the fourth quarter of 2011 exclude $0.4 million of amortization of purchased intangibles and $0.1 million of net restructuring expenses, both related to the Aethra acquisition in February 2010. They also exclude $0.8 million for the effects of stock-based compensation expense in accordance with ASC 718, and a loss of $0.04 million due to the other than temporary impairment of certain Auction Rate Securities. The total amount excluded for non-GAAP purposes was $1.3 million, equivalent to $0.07 per diluted share.

The non-GAAP amounts in the fourth quarter of 2010 exclude $0.5 million of expense for amortization of purchased intangibles and $0.3 million of restructuring expenses related to the Aethra acquisition, $0.8 million for the effects of stock-based compensation expense, and a loss of $0.03 million due to the other than temporary impairment of certain Auction Rate Securities. The total amount excluded for non-GAAP purposes was $1.6 million, equivalent to $0.09 per diluted share.

For the fourth quarter of 2011, total revenues consisted of $18.1 million for the Video Business Unit (VBU) and $3.7 million for the Technology Business Unit (TBU). This compares with $22.6 million for the VBU and $4.0 million for the TBU reported in the fourth quarter of 2010.

The Company's revised guidelines for the fourth quarter of 2011, reported on January 3, 2012, was for revenues of approximately $21.5 million to $22.0 million and a net loss of $0.25 to $0.28 per diluted share on a GAAP basis, and $0.18 to $0. 21 per diluted share on a non-GAAP basis.

The reconciliation between GAAP net income and Non-GAAP net income is provided in the tables at the end of this release.

The Company ended the fourth quarter of 2011 with approximately $90.6 million in cash and liquid investments, equivalent to $4.92 per basic share, a decrease of $1.8 million from September 30, 2011. The decrease reflects $1.7 million used in operating activities and $0.3 million for capital expenditures offset by $0.2 million received from the exercise of options.

Boaz Raviv, Chief Executive Officer, commented: "A 55% sequential increase in our endpoint sales was the main driver behind the better than expected performance of our Video Business Unit, and of our fourth quarter results overall. Sales of our video infrastructure products rose 25% sequentially, aided by a near doubling of our sales to Service Providers and higher than expected OEM revenues. Our Technology Business Unit had a solid quarter, with growing success in its new products, which are video-focused and bring our two business units closer together.

The strength of our technology and the broadening of our portfolio of solutions for the SMB market contributed to our record endpoint sales and success with Service Providers in the fourth quarter. We have now introduced our next generation video system for the high end market, the SCOPIA XT5000, which is the most powerful HD video conferencing system in its class available today and is the flagship of our video system portfolio. This is a significant step forward in our end-to-end strategy and it is key to our return to profitability and future growth."

Guidance

The following statements are forward-looking, and actual results may differ materially.

The Company expects to report revenues for the first quarter of 2012 of approximately $17.0 million and a net loss of approximately $7.6 million, or $0.41 per diluted share, on a GAAP basis, and $6.8 million, or $0.37 per diluted share, on a non-GAAP basis. The non-GAAP amount excludes stock-based compensation expense of approximately $0.4 million in accordance with ASC 718 and amortization of purchased Aethra intangible assets of $0.4 million. That compares to revenues in the first quarter of 2011 of $20.8 million and a net loss of $3.3 million, or $0.18 per diluted share, on a GAAP basis, and $2.4 million, or $0.13 per diluted share, on a non-GAAP basis. The non-GAAP amount in the 2011 first quarter excludes stock-based compensation expense $0.5 million and $0.5 million of expense for amortization of purchased intangibles. (Full details of the Company's forecast 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 in the United States ("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 Aethra assets purchase agreement payment, net profit and loss from other than temporary impairment of available-for-sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, an increase in valuation allowance for tax assets, net, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net. 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 Aethra assets purchase agreement payment, other than temporary impairment of available-for-sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, an increase in valuation allowance for tax assets, net, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net 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 from the non-GAAP measures used by other companies.

Fourth Quarter 2011 Earnings Conference Call/Webcast

RADVISION will hold a conference call to discuss its fourth quarter 2011 results and first quarter 2012 outlook, today, Wednesday, February 8, at 9:00 a.m. (Eastern). To access the conference call, please dial 1-800-619-7571 (International dialers may call [phone]) by 8:50 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 11:00 p.m. (Eastern) on February 14^th. To access the replay, please dial 1-800-239-4590 (International dialers may call [phone]).

The PowerPoint presentation highlighting key financial metrics as well as the first quarter 2012 guidelines 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 8^th and will be archived on the website until the end of the first quarter.

About RADVISION

Founded in 1992, RADVISION (Nasdaq: RVSN) is a leading provider of video conferencing and telepresence technologies over IP and wireless networks. RADVISION teams with its channel and service provider partners to offer end-to-end visual communications that help businesses collaborate more efficiently. RADVISION propels the unified communications evolution forward with unique technologies that harness the power of video, voice, and data over any network. Visit www.radvision.com, our blog, and follow us on Facebook, LinkedIn, Twitter, and YouTube.

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 RADVISION's Form 20-F Annual Report. 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.

RADVISION and SCOPIA are registered trademarks of RADVISION, Ltd. All product and company names herein may be trademarks of their registered owners. All rights reserved © 2012 RADVISION, Ltd.

RADVISION LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands, except share and per share data
					Three months ended December 31,										Twelve months ended December 31,
					2011					2010					2011					2010
					Unaudited
Revenues					$	21,797				$	26,617				$	77,958				$	95,239
Cost of revenues						6,958					7,240					23,929					25,338
Gross profit						14,839					19,377					54,029					69,901
Operating costs and expenses:
Research and development						7,910					7,681					31,736					30,799
Selling and marketing						9,106					7,862					35,607					31,012
General and administrative						1,688					1,621					5,701					6,057
Amortization of purchased intangibles						429					479					1,762					1,785
Aethra assets purchase payment						-					-					806					-
Acquisition-related restructuring expenses , net						105					262					105					2,722
Acquisition-related costs						-					-					-					364
Total operating costs and expenses						19,238					17,905					75,717					72,739
Operating income (loss)						(4,399	)				1,472					(21,688	)				(2,838	)
Financial income, net						203					173					920					1,000
Income (loss) before taxes on income						(4,196	)				1,645					(20,768	)				(1,838	)
Taxes on income						(268	)				(278	)				(2,655	)				(1,586	)
Net income (loss)					$	(4,464	)			$	1,367				$	(23,423	)			$	(3,424	)
Basic net earnings (loss) per Ordinary share					$	(0.24	)			$	0.07				$	(1.27	)			$	(0.18	)
Weighted Average Number of Shares Outstanding   During the Period - Basic						18,415,699					18,563,574					18,448,792					19,221,050
Diluted net earnings (loss) per Ordinary share					$	(0.24	)			$	0.07				$	(1.27	)			$	(0.18	)
Weighted Average Number of Shares Outstanding   During the Period - Diluted						18,415,699					18,734,337					18,448,792					19, 221,050

CONSOLIDATED STATEMENTS OF INCOME (Cont.)

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 in the United States ("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 Aethra assets purchase agreement payment, net profit or loss from other than temporary impairment of available for sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, an increase in valuation allowance for tax assets, net, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net. 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 Aethra assets purchase agreement payment, other than temporary impairment of available for sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, an increase in valuation allowance for tax assets, net, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net 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, 2011																December 31, 2010
					(Unaudited)
					GAAP results (as reported)					Non-GAAP Adjustment (*)					Non-GAAP results						GAAP results (as reported)				Non-GAAP Adjustment (*)					Non-GAAP results
Gross profit					$	14,839				$	53				$	14,892					$	19,377			$	21				$	19,398
Total operating costs and expenses					$	19,238				$	(1,245	)			$	17,993					$	17,905			$	(1,503	)			$	16,402
Operating income (loss)					$	(4,399	)			$	1,298				$	(3,101		)			$	1,472			$	1,524				$	2,996
Income (loss) before taxes on income					$	(4,196	)			$	1,337				$	(2,859		)			$	1,645			$	1,558				$	3,203
Net income (loss)					$	(4,464	)			$	1,337				$	(3,127		)			$	1,367			$	1,558				$	2,925
Basic net earnings (loss) per Ordinary share					$	(0.24	)			$	0.07				$	(0.17		)			$	0.07			$	0.09				$	0.16
Diluted net earnings (loss) per Ordinary share					$	(0.24	)			$	0.07				$	(0.17		)			$	0.07			$	0.09				$	0.16

(*) Reconciliation of GAAP to Non-GAAP measures (Unaudited)
					Three months ended December 31,
					2011					2010
					Unaudited
GAAP net income (loss)					$	(4,464	)			$	1,367
Share-based compensation						764					783
Amortization of purchased intangibles						429					479
Acquisition-related restructuring expenses , net						105					262
Other than temporary impairment of available for sale marketable securities						39					34
Non-GAAP net income (loss)					$	(3,127	)			$	2,925
Non-GAAP diluted net income (loss) per Ordinary share					$	(0.17	)			$	0.16

CONSOLIDATED STATEMENTS OF INCOME (Cont.)
U.S. dollars in thousands, except per share data
					Twelve months ended
					December 31, 2011																December 31, 2010
					(Unaudited)
					GAAP results (as reported)					Non-GAAP Adjustment (*)					Non-GAAP results						GAAP results (as reported)					Non-GAAP Adjustment (*)					Non-GAAP results
Gross profit					$	54,029				$	118				$	54,147					$	69,901				$	129				$	70,030
Total operating costs and expenses					$	75,717				$	(4,592	)			$	71,125					$	72,739				$	(7,367	)			$	65,372
Operating income (loss)					$	(21,688	)			$	4,710				$	(16,978		)			$	(2,838	)			$	7,496				$	4,658
Income (loss) before taxes on income					$	(20,768	)			$	5,050				$	(15,718		)			$	(1,838	)			$	7,801				$	5,963
Net income (loss)					$	(23,423	)			$	6,747				$	(16,676		)			$	(3,424	)			$	7,801				$	4,377
Basic net earnings (loss) per Ordinary share					$	(1.27	)			$	0.37				$	(0.90		)			$	(0.18	)			$	0.41				$	0.23
Diluted net earnings (loss) per Ordinary share					$	(1.27	)			$	0.37				$	(0.90		)			$	(0.18	)			$	0.41				$	0.23

(*) Reconciliation of GAAP to Non-GAAP measures (Unaudited)
					Twelve months ended December 31,
					2011					2010
					Unaudited
GAAP net loss					$	(23,423	)			$	(3,424	)
Share-based compensation						2,037					2,626
Amortization of purchased intangibles						1,762					1,785
Increase in valuation allowance for tax assets, net						1,697					-
Aethra assets purchase payment						806					-
Other than temporary impairment of available for sale marketable securities						340					304
Acquisition-related restructuring expenses, net						105					2,722
Acquisition-related costs						-					364
Non-GAAP net income (loss)					$	(16,676	)			$	4,377
Non-GAAP diluted net income (loss) per Ordinary share					$	(0.90	)			$	0.23

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except per share data
					December 31,					December 31,
					2011					2010
					Unaudited					Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents *)					$	19,710				$	17,753
Short-term bank deposits *)						22,690					47,792
Short-term marketable securities *)						12,785					14,897
Trade receivables						18,495					15,137
Other accounts receivable and prepaid expenses						6,129					7,083
Inventories						2,216					2,556
Total current assets						82,025					105,218
LONG-TERM INVESTMENTS AND RECEIVABLES:
Long-term marketable securities *)						35,405					35,943
Long-term prepaid expenses						258					1,055
Severance pay fund						7,260					7,662
Long-term deferred tax asset						733					1,488
Total long-term investments and receivables						43,656					46,148
Property and equipment, net						4,194					4,573
Goodwill						4,747					4,747
Other intangible assets, net						3,163					4,925
Total assets					$	137,785				$	165,611
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables					$	3,137				$	3,499
Deferred revenues						7,868					7,938
Accrued expenses and other accounts payable						15,035					19,057
Total current liabilities						26,040					30,494
Accrued severance pay						8,956					8,776
Total liabilities						34,996					39,270
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.1 par value						234					234
Additional paid-in capital						151,554					149,121
Treasury stock						(40,747	)				(39,745	)
Accumulated other comprehensive income						(742	)				(276	)
Retained earnings (deficit)						(7,510	)				17,007
Total shareholders' equity						102,789					126,341
Total liabilities and shareholders' equity					$	137,785				$	165,611
*) Total cash and liquid investments					$	90,590				$	116,385

CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
					Twelve months ended December 31,
					2011					2010
					Unaudited					Audited
Cash flows from operating activities:
Net loss					$	(23,423	)			$	(3,424	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization						4,583					4,724
Accrued interest, amortization of premium and accretion of discount on   marketable securities and bank deposits, net						480					(365	)
Amortization of deferred stock compensation						2,037					2,626
Tax benefit relating to loss carryforwards resulting from exercise of stock options						(396	)				(497	)
Increase in trade receivables, net						(3,358	)				(3,425	)
Decrease (increase) in other accounts receivable and prepaid expenses						48					(1,032	)
Decrease (increase) in inventories						340					(1,476	)
Decrease in long-term prepaid expenses						797					1,255
Decrease (increase) in deferred tax asset						1,235					(136	)
Increase (decrease) in trade payables						(362	)				2,024
Decrease in deferred revenues						(70	)				(126	)
Increase (decrease) in accrued expenses and other accounts payable						(2,101	)				5,800
Accrued severance pay, net						582					57
Net cash provided by (used in) operating activities						(19,608	)				6,005
Cash flows from investing activities:
Proceeds from redemption of marketable securities						27,140					23,490
Purchase of marketable securities						(24,973	)				(43,285	)
Proceeds from withdrawal of bank deposits						66,331					50,512
Purchase of bank deposits						(41,163	)				(42,971	)
Purchase of property and equipment						(2,442	)				(2,863	)
Payment for the acquisition of Aethra						(1,575	)				(6,984	)
Net cash provided by (used in) investing activities						23,318					(22,101	)
Cash flows from financing activities:
Purchase of treasury stock						(3,860	)				(7,131	)
Exercise of options by employees						1,711					194
Tax benefit related to exercise of stock options						396					497
Net cash used in financing activities						(1,753	)				(6,440	)
Increase (decrease) in cash and cash equivalents						1,957					(22,536	)
Cash and cash equivalents at beginning of period						17,753					40,289
Cash and cash equivalents at end of period					$	19,710				$	17,753

RADVISION
Corporate:
Adi Sfadia, [phone]
Chief Financial Officer
[e-mail]
or
Investor Relations:
Comm-Partners LLC
June Filingeri, [phone]
[e-mail]