TEL AVIV, Israel -- RADVISION(R) (Nasdaq: RVSN) reported today that revenues for the fourth quarter of 2010 reached a record $26.6 million, an increase of 17% from $22.7 million in the fourth quarter of 2009 and above the Company's forecast.

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. For the fourth quarter of 2009, operating income was $2.5 million on a GAAP basis and $4.1 million on a non-GAAP basis.

Net income for the fourth quarter of 2010 was $1.4 million, or $0.07 per diluted share, on a GAAP basis and $2.9 million, or $0.16 per diluted share, on a non-GAAP basis. This compares with a net loss of $1.5 million, or $0.08 per diluted share, on a GAAP basis, and net income of $4.4 million, or $0.23 per diluted share, on non-GAAP basis in the fourth quarter of 2009.

The non-GAAP amount in the fourth quarter of 2010 excludes $0.8 million for the effects of stock-based compensation expense in accordance with ASC 718 (previously SFAS 123R), $0.5 million of expense for amortization of purchased intangibles and $0.3 million of restructuring expenses both related to the acquisition of certain assets of Aethra group in February 2010, and a loss of $0.03 million due to the other than temporary impairment of certain Auction Rate Securities, with the total of $1.6 million, equivalent to $0.09 per diluted share. For the fourth quarter of 2009, the non-GAAP amount excludes $1.0 million of stock-based compensation expense, a deferred tax asset write-down of $4.3 million and Aethra acquisition-related costs of $0.6 million, with the total of $6.0 million equivalent to $0.31 per diluted share.

For the fourth quarter of 2010, total revenues consisted of $22.6 million for the Video Business Unit (VBU) and $4.0 million for the Technology Business Unit (TBU). This compares with $18.4 million for the VBU and $4.3 million for the TBU reported in the fourth quarter of 2009.

The Company's forecast for the fourth quarter of 2010, presented on October 28, 2010, was for revenues of $26.0 million (consisting of VBU revenues of $21.5 million and TBU revenues of $4.5 million), non-GAAP operating income of $2.5 million and non-GAAP net income of $2.2 million or $0.12 per diluted share.

Boaz Raviv, Chief Executive Officer, commented: "We achieved record fourth quarter revenues that were ahead of forecast due to the strong performance of our Video Business Unit as our transformation to an end-to-end video solutions provider continued. Our VBU revenues increased 23% from the 2009 fourth quarter due to the further ramp-up of our video endpoint sales, strong growth in the sales of our SCOPIA network infrastructure, and continued expansion of our reseller channel network."

Radvision Ltd. (Nasdaq: RVSN)