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Radisys (Radisys) Operating Income : $-15.2 Mil (TTM As of Sep. 2018)


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What is Radisys Operating Income?

Radisys's Operating Income for the three months ended in Sep. 2018 was $1.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2018 was $-15.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Radisys's Operating Income for the three months ended in Sep. 2018 was $1.3 Mil. Radisys's Revenue for the three months ended in Sep. 2018 was $27.0 Mil. Therefore, Radisys's Operating Margin % for the quarter that ended in Sep. 2018 was 4.88%.

Radisys's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Radisys's annualized ROC % for the quarter that ended in Sep. 2018 was 66.98%. Radisys's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2018 was 32.81%.


Radisys Operating Income Historical Data

The historical data trend for Radisys's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Radisys Operating Income Chart

Radisys Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -27.29 -21.10 -9.05 -6.74 -38.44

Radisys Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -12.58 -11.50 -4.25 -0.74 1.32

Radisys Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2018 adds up the quarterly data reported by the company within the most recent 12 months, which was $-15.2 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Radisys  (NAS:RSYS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Radisys's annualized ROC % for the quarter that ended in Sep. 2018 is calculated as:

ROC % (Q: Sep. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2018 ) + Invested Capital (Q: Sep. 2018 ))/ count )
=5.272 * ( 1 - -399.47% )/( (38.703 + 39.929)/ 2 )
=26.3320584/39.316
=66.98 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2018) data.

2. Joel Greenblatt's definition of Return on Capital:

Radisys's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2018 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2018 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2018  Q: Sep. 2018
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4.144/( ( (3.569 + max(11.207, 0)) + (3.242 + max(7.245, 0)) )/ 2 )
=4.144/( ( 14.776 + 10.487 )/ 2 )
=4.144/12.6315
=32.81 %

where Working Capital is:

Working Capital(Q: Jun. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(30.31 + 3.813 + 6.213) - (18.492 + 6.276 + 4.361)
=11.207

Working Capital(Q: Sep. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(31.13 + 2.156 + 5.589) - (20.175 + 6.495 + 4.96)
=7.245

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2018) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Radisys's Operating Margin % for the quarter that ended in Sep. 2018 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2018 )/Revenue (Q: Sep. 2018 )
=1.318/27.023
=4.88 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Radisys Operating Income Related Terms

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Radisys (Radisys) Business Description

Traded in Other Exchanges
N/A
Address
Radisys Corp is a provider of computer systems in the United States. Its products include hyper-scale software-defined infrastructure, service aware traffic distribution platforms, real-time media processing engines and wireless access technologies. Its products and services fall within two operating segments: Software-Systems and Hardware Solutions. Software-Systems products are targeted at delivering differentiated solutions for service providers, specifically within telecommunications, to enable their deployment of next-generation networks and technologies. Hardware Solutions include open-standards-based DCEngine product family as well as its legacy embedded products portfolio which accounts for most of the company's revenues.
Executives
Stephen L Domenik director C/O SEVIN ROSEN FUNDS, 13455 NOEL RD #1670, DALLAS TX 75240
C Scott Gibson director PMB 316, PO BOX 30,000, JACKSON WY 83002
Pesquidoux Hubert De director TEKELEC, 5200 PARAMOUNT PARKWAY, MORRISVILLE NC 27560
Lorene K Steffes director INTL BUS MACHINES CORP OFF 1S 501, 1133 WESTCHESTER AVE, WHITE PLAINS NY 10604
Allen L. Muhich officer: CFO 250 TECHNOLOGY PARK, LAKE MARY FL 32746
David Nierenberg 10 percent owner 19605 NE 8TH STREET, CAMAS WA 98607
Nierenberg Investment Management Co 10 percent owner 19605 NE 8TH ST, CAMAS WA 98607
D3 Offshore Fund Lp 10 percent owner 19605 NE 8TH ST CAMAS WA 98607
Nierenberg Investment Management Offshore Inc 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
Kevin C Melia director
D3 Family Canadian Fund, L.p. 10 percent owner 19605 NE 8TH STREET, CAMAS WA 98607
D3 Family Bulldog Fund Lp 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
D3 Family Fund Lp 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
Amit Agarwal officer: VP & GM, Software & Solutions 5435 NE DAWSON CREEK DR., HILLSBORO OR 97124
Richard J Faubert director 14242 S CANYON DR, PHOENIX AZ 85048

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