Product category:
Networking Hardware
News Release from: RadiSys Corporation
Edited by the Electronicstalk Editorial
Team on 27 April 2004
Key markets strengthen Radisys
performance
Radisys Corp has reported revenues of $61.1 million for the quarter ended 31st March 2004, a 26% increase from the same period last year, and up 10% from the prior quarter.
Radisys Corp has reported revenues of $61.1 million for the quarter ended 31st March 2004, a 26% increase from the same period last year, and up 10% from the prior quarter Net income for the quarter was $2.8 million, or $0.15 per diluted share, versus a net loss of $4.2 million, or $0.24 per share, a year ago
This article was originally published on Electronicstalk on 19 Feb 2002 at 8.00am (UK)
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The results for the quarter include a $3.1 million end of life component inventory sale to a major customer.
The inventory sale was recorded as revenue but did not generate any gross profit as the inventory was sold at cost.
"I'm very pleased with the results for the quarter as the team continues to focus on our customers and profitable growth", stated Scott Grout, CEO.
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"We continue to see strengthening in a number of our key markets, particularly the service provider market, which enabled us to deliver another quarter of sequential and year over year revenue growth.
Pre-tax earnings are also up nicely, both sequentially and year over year.
We also continued to improve our balance sheet as we generated $9 million in cash and reduced cash cycle time to 49 days versus 63 days in the prior quarter".
The company achieved 12 new design wins in the quarter.
During the quarter, the company incurred nonrecurring expenses of $614,000 associated with evaluating a potential acquisition that the company currently does not expect to complete.
In addition, the company reversed $180,000 of restructuring liabilities.
The reversal of restructuring liabilities was primarily attributable to a reduction in future obligations associated with vacated leased facilities.
The company expects to see a similar reversal in restructuring liabilities for the second quarter.
The company also incurred $177,000 of expense for stock compensation associated with accounting for shares to be issued under the employee stock purchase plan.
Accounting rules require that the company record stock compensation expense if the plan does not include enough authorised shares at the inception of a given offering to complete all of the purchases associated with that offering.
Due to the decrease in the company's stock price during 2002 and early 2003, and the subsequent recovery since then, an offering consummated in February 2003 and expiring in August 2004, is currently projected to fall short of completing the offering by approximately 260,000 shares.
The company did receive shareholder authorisation for additional shares in 2003.
The company expects to record the remainder of the stock compensation expense in the following two quarters.
The remaining expense is currently estimated to be $380,000 in the second quarter and $200,000 in the third quarter of 2004.
Commenting on the outlook, Scott Grout, CEO, said: "We currently expect to see second quarter revenue of $59 to $61 million, compared with first quarter revenue of $61.1 million, which included $3.1 million of incremental revenue from an end of life component inventory sale to one of our major customers.
Diluted earnings per share are expected to be flat or slightly higher than last quarter's results of $0.15 per diluted share, again using a 25% tax rate assumption.
We have several products that are running at volumes above our planned levels for the first half of the year.
Because of this positive trend we are accelerating the movement of these products to a new, low-cost China-based EMS partner.
While we are moving these higher volume products to our new Asian partner, we expect our gross margin rate to temporarily decline by about 1.5%.
However, we currently expect our gross margin rate to return to more normal levels, specifically 32 to 33%, in the following quarter or two as we realise the savings associated with the accelerated outsourcing to Asia".
In closing, Grout stated: "We are very pleased with the company's performance in the first quarter and I continue to be optimistic about our growth prospects going forward as we continue to partner with our customers to deliver them better products, faster time to market and lower total cost".
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