RadiSys Earnings: Here’s Why the Stock is Down Now

RadiSys Corporation (NASDAQ:RSYS) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.45%.

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RadiSys Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.0 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Decreased 9.66% to $68.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RadiSys Corporation reported adjusted EPS loss of $0 per share. By that measure, the company beat the mean analyst estimate of $-0.01. It beat the average revenue estimate of $68 million.

Quoting Management: Commenting on the first quarter results, Brian Bronson, Radisys’ President and Chief Executive Officer, stated, “I am pleased that along with successfully meeting a number of key product development and operational objectives set seven months ago, our first quarter revenue and profitability met our guidance. During the first quarter, we released essential features that enabled the recognition of our first MPX-12000 revenue. The funnel for our new MRF is strong and we are in multiple trials with carriers in Voice over LTE applications as well as enabling RCS in the IP Multimedia Subsystem core. We also are seeing nice traction in our solutions business which takes our breadth of technology to develop products for our customers such as load balancing, edge routing, intelligent gateways and compact packet cores.”

Key Stats (on next page)…

Revenue decreased 1.59% from $69.3 million in the previous quarter. EPS decreased to $0.0 in the quarter versus EPS of $0.03 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.04 to a profit $0.03. For the current year, the average estimate has moved up from a profit of $0.3 to a profit of $0.33 over the last ninety days.

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