Tuesday, May 3, 2016

Radisys Posts Q1 Revenue of $55.1 Million, Exceeding Guidance

Radisys reported Q1 revenue of $55.1 million, up 13% year-on-year. GAAP loss per share was $0.08, an improvement of $0.11 year-on-year. Non-GAAP earnings were $0.05 per diluted share, an increase of $0.02 per share year-on-year and at the high-end of the company’s guidance range.

The company posted Software-Systems revenue of $14.1 million, representing 45% year-on-year growth, with gross margin of 62.5%.  Embedded Products revenue was $41.1 million, compared to $28.4 million in the prior quarter and $39.0 million in the first quarter of 2015.

Radisys also said it fulfilled an initial $19 million order and subsequently received follow-on orders for its DCEngine from a Tier 1 U.S. service provider.

“We had a strong start to 2016 with first quarter revenue of $55.1 million, exceeding the high-end of our guidance range of $49 to $52 million,” said Brian Bronson, Radisys President and Chief Executive Officer. “We continue to gain momentum across our business, as validated by the 45% year-on-year revenue growth in Software-Systems combined with significant revenue contribution from our recently introduced hyperscale data center solution called DCEngine. This product positions Radisys to deliver a rack-level solution enhanced with innovative hardware, software and services customization. DCEngine is a disruptive solution that displaces the existing offerings of traditional telecom and IT equipment manufacturers by enabling leading service providers to virtualize their networks. Although we incurred somewhat higher costs associated with incubating and deploying these initial shipments, our first quarter non-GAAP earnings per share came in at the top end of our guidance range. Moreover, the successful delivery and fulfillment of these initial DCEngine orders subsequently resulted in follow-on orders from our marquee U.S. customer as well as a growing number of inquiries from other prospective service providers.”