x
ATCA/Standard Servers

RadiSys Reports Q4

HILLSBORO, Ore. -- RadiSys® Corporation (NASDAQ: RSYS - News), a leading global provider of application-ready software and hardware platforms, announced revenues for the fourth quarter of $78.1 million, net income of $0.5 million or $0.02 per diluted share, and non-GAAP net income of $5.0 million or $0.19 per diluted share, up 58% over the same quarter last year.

Commenting on fourth quarter and full year results, Scott Grout, RadiSys President and CEO stated, “We had a very strong finish to the year with fourth quarter Next Generation Communications revenues up more than 30% sequentially. We delivered better than expected gross margins, earnings and cash flow, which put our year ending cash balance at $101 million. We have grown our Next Generation Communications revenue, which has blended gross margins between 40 and 50 percent, from $36 million in 2007 to over $100 million this past year. Our overall non-GAAP gross margin rate increased by 5 percentage points during this same timeframe, and we expect additional expansion in our rate as our revenue mix continues to move towards more higher-value Next Generation products.”

Multi-year Strategic Highlights

  • Market Share - The Company achieved significant traction in Next Generation ATCA and Media Server platforms, which strengthened its #1 market share position in these target markets. During the year, the Company announced its new market leading ATCA 40G and enhanced Media Server products.

  • Design Wins - The Company’s Next Generation platforms have been designed into over fifty different programs during the past two years across dozens of compelling new applications including 3G, 4G/LTE, Femtocell Gateway, Wimax, VoIP, IP Communications, Mobile Video, Video Gateways, Video Conferencing, IPTV, IP IVR/ Voice-to-text, IP Messaging, Network Surveillance, Network Security, Defense and Packet Inspection.

  • Customers - The Company is now selling Next Generation products into many of the largest and most innovative communications customers in the market. The Company’s Next Generation products are sold to 8 of the top 10 Conference Service Providers (CSPs), 9 of the top 10 tier one Telecom Equipment Manufacturers (TEMs), and to more than three dozen different TEMs worldwide.

  • Growing ASPs - The Company increased its Average Selling Prices (ASPs) by 10x, comparing its Legacy board businesses with its Next Generation platforms business, where platforms sell for between $20 thousand and $70 thousand per platform.

  • Next Generation Growth - The Company almost tripled its Next Generation revenues over the past two years, growing from $36 million in 2007 to over $100 million in 2009. Gross margin on the Company’s Next Generation platforms are in the mid-40’s and are approximately 20 percentage points higher than the Company’s Legacy products.

  • Asia Presence – The Company significantly grew its presence in Asia with a 39% increase in revenue and 87% growth in R&D and Operations employees in Asia over the past two years. During 2009, the Company also doubled the size of its R&D facility in Shanghai, China.

  • Cash Flow - The Company generated $60.3 million of cash flow from operating activities during the past two years.

    Fourth Quarter 2009 Financial Highlights

  • Revenue was $78.1 million, down 11.9%, from the same quarter in the prior year due to the continued decline in the Company’s lower margin Legacy products. Next Generation revenues were up 31.5% sequentially and were 7.3% higher compared to the same quarter in the prior year.

  • GAAP gross margin was 30.4%, up 1.9 percentage points year-over-year. Non-GAAP gross margin was 32.7%, up 1.1 percentage points year-over-year and higher than previous Company projections due to greater higher margin Next Generation revenues and reduced lower margin Legacy revenues, as well as improved operational costs.

  • Total GAAP R&D and SG&A expenses were $21.2 million, down $2.7 million or 11.2% from the same quarter last year. Non-GAAP R&D and SG&A expenses were $19.6 million, down $2.3 million or 10.7% from the same quarter last year, as more of the Company’s operations were moved to lower cost geographies.

  • GAAP operating income was $1.1 million. Non-GAAP operating income was $6.0 million or 7.7% of revenue, up from 6.9% in the same quarter in the prior year due to increased Next Generation revenues, reduced Legacy revenues, and improved operational costs.

  • Cash flow from operating activities was $10.6 million and higher than the Company previously projected. Cash and cash equivalents were $100.7 million at the end of the fourth quarter, up 36% from the prior year.

    2009 Annual Financial Highlights

  • 2009 revenue was $304.3 million, down $68.3 million or 18.3% over the prior year with all of the decline coming from the Company’s Legacy products. Next Generation products finished at $102 million for the full year.

  • GAAP gross margin was 30.5%, up 4.7 percentage points over the prior year. Non-GAAP gross margin was 33.0%, up 3.1 percentage points year-over-year, due to higher Next Generation revenues, reduced Legacy revenues and improved operational costs.

  • GAAP operating loss was $2.2 million. Non-GAAP operating income was $20.6 million or 6.8% of revenues and up $0.7 million or 1.4 percentage points from the prior year.

  • Cash flow from operating activities was $25.4 million in 2009.

    Radisys Corp. (Nasdaq: RSYS)

  • Be the first to post a comment regarding this story.
    HOME
    Sign In
    SEARCH
    CLOSE
    MORE
    CLOSE