Radisys Corporation (NASDAQ: RSYS), a leading provider of embedded wireless infrastructure solutions for telecom, aerospace, defense and public safety applications, announced revenues for the third quarter of $63.7 million and a GAAP net loss of $35.1 million or $1.28 per share. Included in the GAAP net loss is a $29.7 million non-cash goodwill impairment charge resulting from the recent reduction in the Company's market capitalization. Third quarter non-GAAP net loss was $3.4 million or $0.12 per diluted share. Third quarter non-GAAP results exclude the impact of purchase accounting adjustments, amortization of acquired intangible assets, goodwill impairment charges, stock-based compensation, restructuring and acquisition-related charges and non-cash tax expense. A reconciliation of GAAP to non-GAAP results is located in the tables below.
Commenting on the third quarter results, Brian Bronson, Radisys' Chief Executive Officer stated, “Our third quarter revenue, while disappointing, did meet the revised expectations we set on October 1 st. The macro telecommunications spending environment remains constrained and impacted our third quarter revenue. Despite the soft demand environment, the market reaction we've seen for our products has resulted in strong design wins over the last fifteen months. Specifically, third quarter design wins are estimated to result in greater than $90 million in revenue over the next five years and included:
- Security, Femto and LTE Gateway design wins. These gateway solutions combine our unique telecom hardware and software expertise, and truly differentiate us from our traditional hardware and software only competitors.
- The market response to our next-generation ATCA based MPX-12000 continues to exceed our expectations and has resulted in a growing funnel of opportunities. Last week, the MPX-12000 was selected as the overall winner in the Best of 4G World Awards, Mobile Broadband Technology category. Also, during the quarter we shipped our first units to a Tier 1 customer for use in enabling video and voice content over next generation LTE networks and expect the pace of shipments to accelerate in the coming quarters.
- Our first deep packet inspection solution design win with the RMS-220, our new network appliance, the industry's leading performance platform with Intel Data Plane Developer Kit (DPDK).
We continue to believe our growing design win portfolio and unique combination of hardware and software capabilities position us exceptionally well for improved financial performance when the macro telecommunications demand environment improves.”