10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

RadiSys Corp. Reports Operating Results (10-Q)

November 06, 2009 | About:
10qk

10qk

18 followers
RadiSys Corp. (RSYS) filed Quarterly Report for the period ended 2009-09-30.

RadiSys Corporation is a leader in computer based building blocks used by original equipment manufacturers for products in the telecommunications and networked equipment markets. Unlike general purpose computers embedded computer solutions are incorporated into systems and equipment to provide a single or a limited number of critical system control functions and are generally integrated into larger automated systems. Radisys Corp. has a market cap of $208.5 million; its shares were traded at around $8.86 with a P/E ratio of 27.8 and P/S ratio of 0.5.

Highlight of Business Operations:

Total revenue was $70.4 million and $100.3 million for the three months ended September 30, 2009 and 2008, respectively. Total revenue was $226.1 million and $283.9 million for the nine months ended September 30, 2009 and 2008, respectively. Backlog was approximately $51.7 million and $34.4 million at September 30, 2009 and December 31, 2008, respectively. Backlog includes all purchase orders scheduled for delivery within 12 months. The decrease in revenues for the three and nine months ended September 30, 2009, compared to the same periods in 2008, was driven by decreased revenues in all of our product groups.

Net loss was $832,000 and $481,000 for the three months ended September 30, 2009 and 2008, respectively. Net loss per share was $0.04 and $0.02 for the three months ended September 30, 2009 and 2008, respectively. Net loss was $43.0 million and $10.7 million for the nine months ended September 30, 2009 and 2008, respectively. Net loss per share was $1.84 and $0.48 for the nine months ended September 30, 2009 and 2008, respectively. Net loss for the three months ended September 30, 2009, increased compared to the three months ended September 30, 2008, primarily due to decreased revenues in all of our product groups. These declines were largely the result of general economic weakness along with declines due to the maturity of our traditional communications networking products and decreased customer deployments for our next-generation communications networking products, as compared to the same periods in 2008. The decline in revenues was partially offset by improvements in our gross margin by 2.7 percentage points due to an improved mix of products and better operational costs. The decline in revenue was also partially offset by lower operating expense from ongoing expense control. Net loss increased for the nine months ended September 30, 2009, as compared to the nine months ended September 30, 2008, primarily due to increased income tax expense, which totaled $39.1 million for the nine months ended September 30, 2009, as compared to an income tax benefit of $739,000 for the nine months ended September 30, 2008. The increase in income tax expense was driven by the valuation allowance taken for our U.S. deferred tax assets during the three months ended March 31, 2009. Without the charge associated with the valuation allowance we would have seen an improvement in our net loss for the nine months ended September 30, 2009 compared to the same period in 2008. The improvement is due to better margins associated with a more favorable product mix as well as our ongoing focus on expense control.

Cash and cash equivalents amounted to $92.1 million and $74.0 million at September 30, 2009 and December 31, 2008, respectively. The increase in cash and cash equivalents during the nine months ended September 30, 2009, is primarily due to cash generated from our operating activities in the amount of $14.9 million. Additionally, financing activities generated cash flows of $5.2 million largely due to proceeds from the issuance of our common stock, through our stock compensation plans, along with borrowings on our line of credit totaling $1.7 million. These increases were offset by cash flows used in investing activities of $2.1 million, primarily related to capital expenditures.

Revenues decreased by $29.8 million or 29.7%, to $70.4 million in the three months ended September 30, 2009 from $100.3 million in the three months ended September 30, 2008. Revenues decreased by $57.8 million or 20.3%, to $226.1 million in the nine months ended September 30, 2009 from $283.9 million in the nine months ended September 30, 2008. The decrease in revenues for the three and nine months ended September 30, 2009, compared to the same periods in 2008, is due to decreased revenues from all of our product groups. These declines were largely the result of general economic weakness for our products, declines due to the maturity of our traditional communications networking products and decreased customer deployments for our next-generation communications networking products, as compared to the same periods in 2008.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.3/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK