Radisys Corp (NASDAQ: RSYS) reported Q2 EPS of $0.10, $0.04 better than the analyst estimate of $0.06. Revenue for the quarter came in at $61.3 million versus the consensus estimate of $59.72 million.

“Strength in both our Software-Systems and Embedded Products segments resulted in second quarter earnings that exceeded guidance,” said Brian Bronson, Radisys President and Chief Executive Officer. “Revenue from our DCEngine and FlowEngine product lines each achieved quarterly records, contributing to consolidated revenue growth of 30 percent year-over-year. Additionally, our ongoing initiatives to optimize the supply chain and manage costs drove strong sequential expansion in consolidated gross margin, which I expect to improve in the second half of the year. The initial ramp and shipments of our DCEngine product, which contributed incremental revenue approaching $50 million, helped produce a tremendous first half of 2016. As expected, we anticipate more modest DCEngine orders in support of further customer deployments in the second half of 2016, resulting in lower third quarter revenue on a sequential basis while still driving continued double-digit year-on-year growth.”

Mr. Bronson continued, “The sales funnel across both DCEngine and FlowEngine continues to build as we enter the second half of 2016, and we continue to actively hire new sales, marketing and other key talent around the globe. I believe this influx of new talent, coupled with our planned new feature releases for FlowEngine, will help us capture, if not accelerate, the opportunity in front of us while maintaining our annual earnings guidance.”

GUIDANCE:

Radisys Corp sees Q3 2016 EPS of $0.02-$0.06, versus the consensus of $0.07. Radisys Corp sees Q3 2016 revenue of $48-52 million, versus the consensus of $46.12 million.

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