Hillsboro, Ore.-based Radisys, which makes a variety of computer system products, said it now sees revenue of $62 million to $64 million for the fourth quarter ending Dec. 31, down from a prior forecast of $68 million to $72 million.
The company expects to report a GAAP loss of 15 to 20 cents a share for the quarter and between a profit of a penny per share and a loss of 2 cents a share on a non-GAAP basis vs. previous expectations of breakeven to earnings of 5 cents a share, and a profit of 12 to 17 cents a share, respectively.
The current average estimate of three analysts polled by Thomson Reuters is for earnings of 15 cents a share in the December period on revenue of $69.9 million."While much of our business is performing well relative to our original fourth quarter guidance, we recently received news that our projected fourth quarter revenue with a large North America media server end customer is expected to be significantly lower," said Scott Grout, the company's president and CEO, in a statement. "Specifically, our end customer reprioritized their capital expenditures in the quarter and removed a planned set of media server feature enhancements from their fourth quarter deployment programs," Grout continued. Radisys, which also announced its board has approved a $20 million buyback program, said it still expects future business with this particular customer to include features and capacity upgrades. The stock closed Thursday up 1.3% at $9.48. Based on that regular session finish, the shares are down about 2% year-to-date. -- Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: email@example.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV