Radisys ® Corporation (NASDAQ: RSYS), a leading provider of embedded wireless infrastructure solutions for telecom, aerospace, defense and public safety applications, announced that, based upon preliminary results which are subject to final review and audit, it expects fourth quarter revenue near the high end of the guidance range provided on October 30, 2012 and positive non-GAAP earnings per share compared to a previous guidance range of ($0.06) to breakeven. Strong Software-Solutions revenues enabled better than expected profitability.
“A strong finish to the year in our software and solutions business along with continued operational focus enabled us to return to profitability more quickly than originally expected,” commented Brian Bronson, Radisys President and Chief Executive Officer. “Additionally, we generated positive cash flow in the fourth quarter and have adequate liquidity to retire the $16.9 million of convertible debt coming due in February 2013. We will set a specific earnings release and conference call date over the next month. I look forward to sharing the full results for the quarter, go forward guidance, and an update on the strategic objectives we outlined in October at that time.”
Non-GAAP Financial Measure
This press release contains a non-GAAP financial measure – non-GAAP earnings per share – the calculation of which excludes certain expenses, gains and losses, such as the effects of (a) purchase accounting adjustments, (b) amortization of acquired intangible assets, (c) stock-based compensation expense, (d) restructuring and acquisition-related charges (reversals), net, (e) impairment of goodwill, (f) gain on the liquidation of a foreign subsidiary, and (g) non-cash income tax expense. The Company believes that the use of non-GAAP financial measures provides useful information to investors to gain an overall understanding of its current financial performance and its prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that the Company believes are not indicative of its core operating results. In addition, non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring the Company's performance, and the Company believes it is providing investors with financial measures that most closely align to its internal measurement processes. These non-GAAP measures are considered to be reflective of the Company's core operating results as they more closely reflect the essential revenue-generating activities of the Company and direct operating expenses (resulting in cash expenditures) needed to perform these revenue-generating activities. The Company also believes, based on feedback provided to the Company during its earnings calls' Q&A sessions and discussions with the investment community, that the non-GAAP financial measures it provides are necessary to allow the investment community to construct their valuation models to better align its results and projections with its competitors and market sector, as there is significant variability and unpredictability across companies with respect to certain expenses, gains and losses.
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