This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RadiSys Lowers Fourth-Quarter Outlook

NEW YORK ( TheStreet) -- RadiSys (RSYS - Get Report) lowered its financial outlook after Thursday's closing bell, citing an expected decline in revenue from a single customer.

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: tips@thestreet.com

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
RSYS $2.31 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs