RadiSys Lowers Fourth-Quarter Outlook

NEW YORK ( TheStreet) -- RadiSys ( RSYS) 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.

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

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