Product category:
Networking Hardware
News Release from: RadiSys Corporation
Edited by the Electronicstalk Editorial
Team on 01 November 2004
Embedded systems revenues up by 23%
RadiSys, a supplier of advanced embedded systems, has reported revenues of $61.7 million for the quarter ended September 30, 2004, a 23% increase from the same period last year.
RadiSys, a supplier of advanced embedded systems, reported revenues of $61.7 million for the quarter ended September 30, 2004, a 23% increase from the same period last year Net income for the quarter was $3.8 million, or $.20 per diluted share, versus net income of $2.3 million, or $.12 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 third quarter also include a $428 thousand restructuring charge associated with the elimination of 14 positions in the Company's Birmingham, UK office.
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The Company plans to integrate these operations into other existing RadiSys locations and believes that this consolidation further facilitates its ability to provide more integrated platform solutions to its customers.
The Company also recently announced its ongoing commitment to the AdvancedTCAR (Advanced Telecom Computing Architecture) market with its expanded PromentumT family of AdvancedTCA-compliant products and new RadiSys Alliance Partner program.
The Company's AdvancedTCA strategy is based on its success as a proven strategic supplier of tested modular platforms with significant platform-level product already field deployed and carrying service.
These types of platforms enable TEMs (Telecom Equipment Manufacturers) to reduce the cost and time required to bring new communications systems to market.
The PromentumT product family is comprised of integrated, carrier grade blade-server and network element solutions that address control plane and data plane applications.
In addition, the RadiSys Alliance Partner program enables the Company to broaden the scope and value of its solutions through a set of leading ecosystem partners.
"We delivered another solid quarter both strategically and operationally," stated Scott Grout, CEO.
"Our wireless infrastructure business continues to be strong, which enabled us to deliver revenue and earnings growth despite some softening within some of our enterprise markets.
We underscored our commitment to the AdvancedTCA market by announcing our PromentumT family of products as well as the RadiSys Alliance Partner program.
We also continued to make meaningful progress in our globalization efforts, including the expansion of both our China development center and our manufacturing outsourcing initiative." Business Outlook The following statements are based on current expectations.
These statements are forward-looking, and actual results may differ materially.
The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
Commenting on the outlook, Scott Grout, CEO, said, "We currently expect to see fourth quarter revenues in the range of $62 to $64 million.
Included in the revenue guidance for the fourth quarter is a $1.4 million end of life component inventory sale to one of our major customers.
The inventory sale will be recorded as revenue and will not generate any gross profit, as the inventory will be sold at cost.
While we continue to experience growth in our wireless revenue, our enterprise market continues to show some softening.
Diluted earnings per share for the fourth quarter, excluding restructuring charges, are currently expected to be between $.16 and $.18." Included in the estimated calculation of earnings per share for the fourth quarter are an additional 4.2 million diluted shares associated with the Company's senior convertible notes.
Earlier this month, the Financial Accounting Standards Board (FASB) adopted a rule that eliminates the favorable accounting treatment associated with the contingent convertible feature included in the Company's senior convertible notes.
The rule takes effect in the fourth quarter and therefore the Company will report full dilution associated with the senior convertible notes in the fourth quarter.
Including the additional 4.2 million shares in the Company's results for the first three fiscal quarters of 2004 would have resulted in diluted earnings per share of $.13, $.16, and $.17 per share, totaling $.46 per share for the nine months ended September 30, 2004.
The Company currently expects to record a restructuring charge in the fourth quarter to continue its alignment of skills required to develop, market, sell, and support more advanced embedded platforms and solutions.
The expected restructuring will also include a reduction in the Company's internal manufacturing operations given the positive progress by the Company on its global manufacturing outsourcing initiative.
The restructuring charge is expected to include severance expense for 55 to 65 employees and is estimated to be between $1 million to $1.5 million, which will be paid out in the next two quarters.
The Company expects to continue hiring new employees to expand the skills necessary to execute on its' stated strategy.
In closing, Mr Grout stated, "We continue to see growing interest by our customers for turn-key, embedded platforms and will continue to deploy our investments and align our resources to position us to seize these opportunities in our end markets.
We are focused on providing more advanced and more integrated embedded solutions that enable our customers to bring better products to market, faster and more economically.".
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