Radisys Corp (RSYS) Tops Q1 EPS by 3c; Issues Solid Outlook

Radisys Corp (NASDAQ: RSYS) reported Q1 EPS of $0.05, $0.03 better than the analyst estimate of $0.02. Revenue for the quarter came in at $55.1 million versus the consensus estimate of $50.32 million.

GUIDANCE:

Radisys Corp sees FY2016 EPS of $0.22-$0.28, versus the consensus of $0.25. Radisys Corp sees FY2016 revenue of $195-215 million, versus the consensus of $186.33 million.

“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.”

Mr. Bronson continued, “In support of our efforts to secure new customers across multiple product lines by leveraging the success we’ve demonstrated to-date, we also recently announced our collaboration with ON.Lab. This collaboration is part of an initiative referred to as CORD, Central Office Re-architected as a Data Center, which is funded by several of the world’s largest service providers and intended to assist with their migration from existing purpose-built central office infrastructure to a telecom optimized data center environment. As part of this initiative, Radisys has been selected as a systems integrator to bring best-in-class technology and network elements together and is ideally positioned to fulfill this role given our history in enabling telecom technology spanning software, hardware and professional services. This unique opportunity has the potential to drive incremental product and service revenue for Radisys in the future, and we look forward to showcasing our proven expertise in SDN offerings for service providers as part of this collaboration.”

For earnings history and earnings-related data on Radisys Corp (RSYS) click here.

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