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Product category: Networking Hardware
News Release from: RadiSys Corporation
Edited by the Electronicstalk Editorial Team on 27 July 2004

"Exceptional" quarter for Radisys

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Radisys Corp has reported revenues of $60.3 million for the quarter ended 30th June 2004 - a 23% increase from the same period last year.

Radisys Corp has reported revenues of $60.3 million for the quarter ended 30th June 2004 - a 23% increase from the same period last year Net income for the quarter was $3.5 million, or $0.18 per diluted share, compared with net income of $1.8 million, or 0.10 per share, a year ago

The company generated positive cash flow from operations and increased net cash to $71.4 million from $65.7 million last quarter.

Net cash is defined as cash and investments less convertible debt at face value.

Total cash and investments decreased to $181.4 million from $234.4 million as of last quarter, as the company repurchased $58.8 million of the outstanding 5.5% convertible subordinated notes during the quarter.

"The team delivered an exceptional quarter", stated Scott Grout, CEO.

"Our continued revenue growth and solid earnings performance are a direct result of our leadership position and investments in a number of attractive end markets".

"The increases in revenue and gross margin allowed us to deliver strong earnings performance while also enhancing our investments in new turnkey product platforms".

"We introduced our first AdvancedTCA product this quarter and are making meaningful progress in our globalisation efforts, including the expansion of both our China development centre and our manufacturing outsourcing operations".

Commenting on the outlook, Grout said: "We currently expect to see third quarter revenues in the range of $61 to $62 million".

"Gross margins will be in the 32 to 33% range for Q3 and we expect operating margins, at similar revenue levels, to be between 7.5% and 8.5% over the next few quarters as we continue to invest in re-usable platform and building block solutions".

"Diluted earnings per share for the third quarter are expected to remain at about the same level as Q2".

In closing, Grout stated: "The Radisys team delivered another strong quarter from both a strategic and financial perspective".

"The company is well positioned to capitalise on the embedded solutions market as it continues to move to higher levels of functionality and integration".

"We have a solid balance sheet and continue to focus on leveraging our strategic investments into market leading solutions that allow our customers to bring better products to market faster and more economically".

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