ATCA/Standard Servers

RadiSys Drops a $4.8M Q1 Loss

HILLSBORO, Ore. -- Radisys Corporation (RSYS - News), a leading provider of embedded wireless infrastructure solutions for telecom, aerospace, defense and public safety applications, announced revenues for the first quarter of $75.5 million and non-GAAP revenue of $75.7 million. First quarter GAAP net loss was $4.8 million or $0.18 per share and non-GAAP net income was $1.5 million or $0.05 per diluted share. First quarter non-GAAP results exclude the impact of purchase accounting adjustments, amortization of acquired intangible assets, stock-based compensation and restructuring and acquisition-related charges. A reconciliation of GAAP to non-GAAP results is located in the tables below.

Commenting on the first quarter results, Mike Dagenais, Radisys’ Chief Executive Officer stated, “Our first quarter performance came in as expected. Solid shipments in both our ATCA and Software & Solutions product groups, which combined grew 60% year on year, enabled non-GAAP gross margins of nearly 34%. We also were able to drive lower costs relative to our plan due to the ongoing focus on improving efficiencies throughout the organization. We expect these efforts to result in additional 2012 expense synergies.”

Mr. Dagenais went on to say, “We had another good design win quarter with customers continuing to validate our strategy by awarding us wins that combine our hardware and software technology and leverage our professional services in unique ways. High margin wins for a network load balancer, femto gateway, and a ‘Push-to-Talk’ application aimed at the defense market are good examples from this last quarter that demonstrate our capability of bringing unique solutions to our customers. In addition, we had numerous design wins within our COMe product lines for use in military and communication applications.”

First Quarter Financial Highlights
  • GAAP revenue was $75.5 million and non-GAAP revenue was $75.7 million. ATCA and Software & Solutions Revenues were $49.7 million, up 60% Year over Year and growing to 66% of Total Revenue.
  • GAAP gross margin was 30.5%. Non-GAAP gross margin was 33.8% and represents a 5 percentage point increase from the same quarter last year, primarily resulting from improved product mix.
  • Total GAAP Research and Development (R&D) and Selling, General and Administrative (SG&A) expenses were $24.5 million and non-GAAP R&D and SG&A expenses were $23.6 million, down $3.3 million from the prior quarter as result of integration synergies.
  • Cash consumed from operating activities was $0.9 million and was in line with expectations. Cash and cash equivalents were $43.8 million at the end of the first quarter, down from $47.8 million at the end of the fourth quarter primarily due to acquisition related activities including severance related payouts and capital expenditures.

    Radisys Corp. (Nasdaq: RSYS)

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