RadiSys Corp. (RSYS, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $176.8 million; its shares were traded at around $7.57 with a P/E ratio of 18.4 and P/S ratio of 0.5.
Net loss was $2.1 million and $3.1 million for the three months ended June 30, 2009 and 2008, respectively. Net loss per share was $0.09 and $0.14 for the three months ended June 30, 2009 and 2008, respectively. Net loss was $42.2 million and $10.2 million for the six months ended June 30, 2009 and 2008, respectively. Net loss per share was $1.81 and $0.46 for the six months ended June 30, 2009 and 2008, respectively. Net loss for the three months ended June 30, 2009, decreased compared to the three months ended June 30, 2008, primarily due to improvements in gross margin which increased to 31.1% for the three months ended June 30, 2009 from 25.1% for the three months ended June 30, 2008. This was largely driven by favorable changes in product mix, which included a greater percentage of revenues from our next-generation communications networks products, as compared to the three months ended June 30, 2008. Further contributing to the increased gross margin percentage was less amortization of purchased technology, which resulted from the extension of the useful lives of various assets in the fourth quarter of 2008. In addition, research and development costs decreased by $2.5 million, to $10.5 million during the three months ended June 30, 2009 from $13.0 million during the three months ended June 30, 2008. This decrease was primarily due to restructuring activities and the corresponding decrease in payroll and payroll related costs in the Companys research and development functions. These decreases were offset by income tax expense of $770,000 during the three months ended June 30, 2009, as opposed to the income tax benefit of $1.1 million recorded in the three months ended June 30, 2008. Net loss increased for the six months ended June 30, 2009, as compared to the six months ended June 30, 2008, primarily due to increased income tax expense, which totaled $39.7 million for the six months ended June 30, 2009, as compared to an income tax benefit of $1.6 million for the six months ended June 30, 2008. The increase in income tax expense was driven by the valuation allowance for our U.S. deferred tax assets during the three months ended March 31, 2009. This increase was offset by both decreased operating and other expenses for the six months ended June 30, 2009, as compared to the six months ended June 30, 2008.
Cash and cash equivalents amounted to $87.6 million and $74.0 million at June 30, 2009 and December 31, 2008, respectively. The increase in cash and cash equivalents during the six months ended June 30, 2009, is primarily due to cash generated from our operating activities in the amount of $12.6 million. Additionally, financing activities generated cash flows of $2.6 million largely due to proceeds from the issuance of our common stock. Cash flows used in investing activities totaling $1.5 million, primarily related to capital expenditures, partially offset these increases.
Revenues decreased by $19.5 million or 20.0%, to $78.1 million in the three months ended June 30, 2009 from $97.6 million in the three months ended June 30, 2008. Revenues decreased by $28.0 million or 15.2%, to $155.7 million in the six months ended June 30, 2009 from $183.7 million in the six months ended June 30, 2008. The decrease in revenues for the three and six months ended June 30, 2009, compared to the same periods in 2008, is primarily due to decreased sales of our traditional communications networking products along with decreased revenues from our commercial products. These declines were largely the result of general economic weakness for our products along with decreased customer deployments, as compared to the same periods in 2008, which were driven by the maturity of products in the traditional communications networks product group. These decreases were partially offset by increased revenues from our next-generation communications networking products during the three and six months ended June 30, 2009, as compared to the same periods in 2008. The increase in next-generation communications networks revenues was due to design wins ramping into production as well as a customer-driven acceleration of a network build, which was originally planned for the second half of 2009.
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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 $176.8 million; its shares were traded at around $7.57 with a P/E ratio of 18.4 and P/S ratio of 0.5.
Highlight of Business Operations:
Total revenue was $78.1 million and $97.6 million for the three months ended June 30, 2009 and 2008, respectively. Total revenue was $155.7 million and $183.7 million for the six months ended June 30, 2009 and 2008, respectively. Backlog was approximately $39.1 million and $34.4 million at June 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 six months ended June 30, 2009, compared to the same periods in 2008, was driven by decreased revenues from our traditional communications networking and commercial products. These declines were offset by increased revenues from our next-generation communications networks products.Net loss was $2.1 million and $3.1 million for the three months ended June 30, 2009 and 2008, respectively. Net loss per share was $0.09 and $0.14 for the three months ended June 30, 2009 and 2008, respectively. Net loss was $42.2 million and $10.2 million for the six months ended June 30, 2009 and 2008, respectively. Net loss per share was $1.81 and $0.46 for the six months ended June 30, 2009 and 2008, respectively. Net loss for the three months ended June 30, 2009, decreased compared to the three months ended June 30, 2008, primarily due to improvements in gross margin which increased to 31.1% for the three months ended June 30, 2009 from 25.1% for the three months ended June 30, 2008. This was largely driven by favorable changes in product mix, which included a greater percentage of revenues from our next-generation communications networks products, as compared to the three months ended June 30, 2008. Further contributing to the increased gross margin percentage was less amortization of purchased technology, which resulted from the extension of the useful lives of various assets in the fourth quarter of 2008. In addition, research and development costs decreased by $2.5 million, to $10.5 million during the three months ended June 30, 2009 from $13.0 million during the three months ended June 30, 2008. This decrease was primarily due to restructuring activities and the corresponding decrease in payroll and payroll related costs in the Companys research and development functions. These decreases were offset by income tax expense of $770,000 during the three months ended June 30, 2009, as opposed to the income tax benefit of $1.1 million recorded in the three months ended June 30, 2008. Net loss increased for the six months ended June 30, 2009, as compared to the six months ended June 30, 2008, primarily due to increased income tax expense, which totaled $39.7 million for the six months ended June 30, 2009, as compared to an income tax benefit of $1.6 million for the six months ended June 30, 2008. The increase in income tax expense was driven by the valuation allowance for our U.S. deferred tax assets during the three months ended March 31, 2009. This increase was offset by both decreased operating and other expenses for the six months ended June 30, 2009, as compared to the six months ended June 30, 2008.
Cash and cash equivalents amounted to $87.6 million and $74.0 million at June 30, 2009 and December 31, 2008, respectively. The increase in cash and cash equivalents during the six months ended June 30, 2009, is primarily due to cash generated from our operating activities in the amount of $12.6 million. Additionally, financing activities generated cash flows of $2.6 million largely due to proceeds from the issuance of our common stock. Cash flows used in investing activities totaling $1.5 million, primarily related to capital expenditures, partially offset these increases.
Revenues decreased by $19.5 million or 20.0%, to $78.1 million in the three months ended June 30, 2009 from $97.6 million in the three months ended June 30, 2008. Revenues decreased by $28.0 million or 15.2%, to $155.7 million in the six months ended June 30, 2009 from $183.7 million in the six months ended June 30, 2008. The decrease in revenues for the three and six months ended June 30, 2009, compared to the same periods in 2008, is primarily due to decreased sales of our traditional communications networking products along with decreased revenues from our commercial products. These declines were largely the result of general economic weakness for our products along with decreased customer deployments, as compared to the same periods in 2008, which were driven by the maturity of products in the traditional communications networks product group. These decreases were partially offset by increased revenues from our next-generation communications networking products during the three and six months ended June 30, 2009, as compared to the same periods in 2008. The increase in next-generation communications networks revenues was due to design wins ramping into production as well as a customer-driven acceleration of a network build, which was originally planned for the second half of 2009.
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