ATCA/Standard Servers

RadiSys Posts Q1

HILLSBORO, Ore. -- RadiSys Corporation (NASDAQ:RSYS) , a leading global provider of advanced embedded systems, reported revenues of $65.8 million for the quarter ended March 31, 2006. First quarter revenues represent an increase of 14% compared to the same period last year and an increase of 6% sequentially. Revenues from the wireless market increased by 58% over the same period last year and revenues from the medical market increased by 14% over the same period last year. First quarter GAAP net income was $1.4 million or $0.07 per diluted share including stock compensation expense of $1.3 million and restructuring charges of $0.1 million. Non-GAAP net income for the first quarter, excluding stock compensation expense and restructuring charges, was $2.5 million or $0.11 per diluted share.

Commenting on the first quarter results, Scott Grout, president and CEO stated, "We continue to increase our investment in market leading new products. In the quarter, we announced another seven new products in our Promentum(TM) family of AdvancedTCA(R) (ATCA) solutions. Specifically we announced our new Promentum(TM) SYS-6010, the industry's first 10 Gigabit common managed platform that provides the highest throughput node connectivity and compute densities available today. The SYS-6010 is targeted at data plane applications such as IMS (IP Multimedia Subsystem), Radio Network Controllers, Base Station Controllers, Media Gateways, Call Servers and IPTV.

Mr. Grout continued, "We are seeing significant market traction with our Promentum(TM) and Procelerant(TM) family of products. Since the beginning of the first quarter of 2005, we have closed new business that we currently estimate will bring us approximately $400 million in new revenue in the first three years of customer deployment. Most of this business will be ramping into production beginning in 2007 or 2008. This amount of new business represents a 100% increase from the $200 million we reported in October of last year, which was our estimate of new business closed for the first three quarters of 2005. Consistent with our strategy, over 40% of this new business is for higher value system-level solutions. In addition, over 80% of this new business is related to standards-based products. This new business includes an estimated $270 million from 40 new customers. Some of the applications awarded include 3G wireless infrastructure, 1xEV-DO wideband CDMA, Voice over Internet Protocol (VoIP), Softswitch platforms, IPTV, network security and real-time image processing. We are pleased with this traction and with the customer acceptance of our products in the marketplace, which has us well- positioned to take advantage of what we believe are large emerging opportunities in our target markets."

Radisys Corp. (Nasdaq: RSYS)

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