Radisys celebrates contract wins after lower Q3 revenues, profit

Wednesday 8 November 2017 | 12:38 CET | News
Radisys third quarter results came in line with its expectations, with CEO Brian Bronson saying the company made real progress  pushing its proof-of-concepts into commercial wins, with two new MediaEngine VoLTE contract awards as well as the company’s first contract for deploying its new FlowEngine appliance, the TDE-2000. With MobilityEngine. The CEO added that Radisys was moving towards trials with two Tier 1 service providers tied to initial CORD deployments and that it would now also seek to refine its cost structure. Radisys alerted the market in July about challenges presented by two of its largest customers, which it said would hit revenues and its profit line

Revenues for the quarter slid to 28.8 million from 55.4 million year-on-year. The gross margin sank to 4.2 percent from 25.7 percent while the net loss widened to USD 15.4 million or USD 0.19, from a loss the year earlier of 2.6 million or 0.07 per share. The adjusted net loss went to USD 11.0 million or USD 0.28 per share, from a profit of 2.6 million and 0.07 per diluted share. 

At Software-Systems, revenue slipped to USD 11.3 million from 10.4 million, pulled lower by the timing of professional services programs, which should benefit the fourth quarter. At Hardware Solutions, revenues fell to USD 17.5 million from 23.6 million in Q2 and 45 million year-on-year. The company said the sequential decline reflects an expected discontinuance in new DCEngine orders from the company’s tier one US customer. 

For the fourth quarter, the company is guiding for revenues of USD 29-33 million, taking into account the potential variability in the timing of certain MediaEngine orders as well as the company’s ongoing contract manufacturer transition. The gross margin is expeted at 31 percent, the net loss at USD 0.19-0.13 per share and the adjusted net loss at USD 0.08-0.02 per share.

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