Radisys Corp (RSYS) Tops Q4 EPS by 5c, Beats on Revenues; Offers Q1 EPS/Revenue Mid-Point Guidance Above Consensus

Radisys Corp (NASDAQ: RSYS) reported Q4 EPS of ($0.01), $0.05 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $32.3 million versus the consensus estimate of $30.82 million.

Fourth Quarter Summary

• Consolidated revenue of $32.3 million, with sequential growth in Software-Systems revenue of 31%;
• GAAP gross margin of 4.2% and non-GAAP gross margin of 40.4%;
• GAAP loss per share was $0.50 and non-GAAP loss per share was $0.01, above the high-end of the Company’s guidance range;
• Secured initial orders from new FlowEngine customer for expected deployments into a European service provider;
• Announced MediaEngine product order for nearly $5 million from a leading Asian customer, of which $3.5 million was shipped during the quarter; and
• Secured new award for MediaEngine via a channel partner for VoLTE deployment with a Tier 1 service provider in China.

First Quarter 2018 Financial Guidance

• Revenue is expected between $22 to $24 million, with revenue mix weighted slightly towards the Hardware-Solutions segment at the midpoint. Hardware-Solutions revenue is expected to include approximately $5 million of revenue associated with legacy customer last-time builds.
• GAAP gross margin is expected to approximate 23% and GAAP R&D and SG&A expenses are expected to be approximately $11 million. Non-GAAP gross margin is expected between 31% and 33% of sales. Non-GAAP gross margins are expected to expand throughout 2018 as Software-Systems revenue becomes an increasingly larger portion of the Company’s revenue mix.
• Non-GAAP R&D and SG&A expenses are expected to approximate $10 million, down nearly 20% from the fourth quarter of 2017 as targeted expense actions are expected to be substantially complete by the end of the first quarter.
• GAAP loss is expected to range from ($0.22) to ($0.18) per share. Non-GAAP loss is expected to range from ($0.12) to ($0.08) per share. Both GAAP and non-GAAP loss per share are based on a projected 40 million shares outstanding.

GUIDANCE:

Radisys Corp sees Q1 2018 EPS of ($0.12)-($0.08), versus the consensus of ($0.11). Radisys Corp sees Q1 2018 revenue of $22-24 million, versus the consensus of $22.13 million.

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

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• Calamp Corp. (CAMP) Misses Q2 EPS by 33c
• Bio-key International, Inc. (BKYI) Tops Q2 EPS by 24c