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Radisys (Radisys) Financial Strength : 0 (As of Sep. 2018)


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What is Radisys Financial Strength?

Radisys has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Radisys's Interest Coverage for the quarter that ended in Sep. 2018 was 0.93. Radisys's debt to revenue ratio for the quarter that ended in Sep. 2018 was 0.25. As of today, Radisys's Altman Z-Score is 0.00.


Competitive Comparison of Radisys's Financial Strength

For the Computer Hardware subindustry, Radisys's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Radisys's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Radisys's Financial Strength distribution charts can be found below:

* The bar in red indicates where Radisys's Financial Strength falls into.



Radisys Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Radisys's Interest Expense for the months ended in Sep. 2018 was $-1.4 Mil. Its Operating Income for the months ended in Sep. 2018 was $1.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2018 was $5.6 Mil.

Radisys's Interest Coverage for the quarter that ended in Sep. 2018 is

Interest Coverage=-1*Operating Income (Q: Sep. 2018 )/Interest Expense (Q: Sep. 2018 )
=-1*1.318/-1.411
=0.93

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Radisys's Debt to Revenue Ratio for the quarter that ended in Sep. 2018 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2018 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(20.989 + 5.647) / 108.092
=0.25

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Radisys has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Radisys has the Financial Strength Rank of 0.


Radisys Financial Strength Related Terms

Thank you for viewing the detailed overview of Radisys's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


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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