RadiSys Earnings: Everything You Must Know Now

RadiSys Corporation (NASDAQ:RSYS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

RadiSys Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 82.35% to $0.03 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Decreased 15.7% to $65.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RadiSys Corporation reported adjusted EPS income of $0.03 per share. By that measure, the company met the mean analyst estimate of $0.03. It missed the average revenue estimate of $66 million.

Quoting Management: Brian Bronson, Radisys’ President and Chief Executive Officer, stated, “Radisys met or exceeded virtually all of our second quarter strategic, operational, and financial objectives. Our strategy to leverage our MRF in applications such as VoLTE, audio and video transcoding and in providing Rich Communications Services (NYSE:RCS) is continuing to gain momentum with four new second quarter MRF design wins. Coupled with a 40% increase in our Trillium license and professional service opportunities compared to six months ago, our Software-Solutions revenue is positioned for strong growth in the second half of 2013. We also had another solid design win quarter for our Platforms products, generated a non-GAAP profit with positive cash flow and have put plans in place to make all product lines profitable in the future.”

Key Stats (on next page)…

Revenue decreased 4.08% from $68.18 million in the previous quarter. EPS increased to $0.03 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.09 to a profit $0.10. For the current year, the average estimate has moved up from a profit of $0.27 to a profit of $0.31 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)