Radisys Reports First Quarter 2017 Results

Radisys Corporation (NASDAQ: RSYS), the services acceleration company, has announced first quarter 2017 consolidated revenue of USD 37.6m, which was in line with the guidance range, the company said.

GAAP loss per share was USD 0.26, with a non-GAAP loss of USD 0.14 per share which includes USD 0.5m tied to unfavorable currency translation within other expense.

For the first quarter of 2017, Software-Systems revenue was USD 10.1m, compared to USD 17.7m in the prior quarter and USD 14.1m in the first quarter of 2016. The sequential and year-on-year decline was the result of lower quarterly revenue contribution from MediaEngine product sales to an Asian service provider in support of their LTE network deployment.

Gross margin was 53.8% in the first quarter of 2017, compared to 58.3% in the prior quarter and 62.5% in the first quarter of 2016. The sequential and year-on-year decline was the result of unfavorable product mix tied to a higher percentage of stand-alone product sales in the prior quarters.

Operating loss was USD 3.3m, compared to operating income of USD 1.4m in the prior quarter and operating income of USD 0.8m in the first quarter of 2016. The sequential and year-on-year decline represents continued investment in our strategic product lines, coupled with expected customer seasonality and timing of new product introductions.

For the first quarter of 2017, Hardware Solutions revenue was USD 27.5m, compared to USD 22.9m in the prior quarter and USD 41.1m in the first quarter of 2016. The sequential increase reflects resumed deployments of DCEngine systems by our largest customer and partially offset by an expected decline in revenue from legacy embedded product lines.

Gross margin was 17.4% in the first quarter of 2017, compared to 23.1% in the prior quarter and 14.5% in the first quarter of 2016. The sequential decline is the result of a higher mix of DCEngine sales relative to legacy embedded product lines.

Operating loss was USD 1.3m, compared to an operating loss of USD 0.1m in the prior quarter and operating income of USD 1.3m in the first quarter of 2016. The sequential decline was the result of continued investments in product roadmap as well as sales and marketing personnel required to accelerate execution on the Company´s DCEngine strategy.

Radisys helps communications and content providers, and their strategic partners, create new revenue streams and drive cost out of their services delivery infrastructure. Radisys´ hyperscale software defined infrastructure, service aware traffic distribution platforms, real-time media processing engines and wireless access technologies enable its customers to maximize, virtualize and monetize their networks.