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Radview cuts loss in 2005 by 35%

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midastouch017   Sunday, 04/09/06 06:23:33 AM
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Radview cuts loss in 2005 by 35%

09.4.06 | 12:30 By Omri Cohen

After signing an investment agreement with a group of investors led by Fortissimo Capital Fund, RadView Software Ltd. reported financial results for the fourth quarter and year ended December 31, 2005

Radview is a provider of solutions for verifying the performance, scalability and integrity of business critical Web applications

Revenues for 2005 rose 21% to $5.6 million. Increased revenues, along with lower operating costs, combined to lower the firm's net loss by 35% to $2.5 million, from a net loss of $3.8 million in 2004.

Despite a drop in fourth quarter sales from $1.4 million in 2004 to $1.25 million in 2005, Radview's net loss for the fourth quarter of 2005 was $518,000, or $0.03 per share, compared to a net loss of $866,000, or $0.04 per share, for the same period last year.
"We are encouraged by the improvement in our annual revenues and the substantial reduction in our loss," said Ilan Kinreich, President and CEO of RadView Software. "We look forward to continuing our efforts toward future profitability while expanding our presence in the marketplace."
The company separately announced the signing of definitive agreements on April 4, 2006 for financing with Fortissimo on behalf of itself and several co-investors, with a minimum initial investment of $1,500,000.

Of the $1.5 million minimum investment, $750,000 will be provided as an equity investment in exchange for 25 million preferred shares of the company at a price of $0.03 per share, and $750,000 will be provided to Radview as a convertible loan, convertible into preferred shares of the firm at $0.03 per share. The loan carries an interest rate of 8%.

The investors have an option to add an additional investment of up to $2,250,00 within 18 months.

Radview intends to use the net proceeds of the financing to fund its working capital needs.

"This financing will provide us with the funding to continue to produce innovative, quality products as we work towards profitability," said Kinreich.

Fortissimo will also receive warrants to purchase additional preferred shares at a cost of up to another $3 million at an exercise price of $0.04 per share, exercisable for a period of five years.
The agreeement is dependant on the approval of the company's shareholders. If it is approved, Fortissimo will become the largest shareholder in Radview.
Radview currently trades at a market capitalization of around $2 million.



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