As forecasted MONTHS ago: "RadiSys Revises Guidance for Q4 and Q1
12/12/0 16:6 (New York)
Business Editors, High-Tech Writers
HILLSBORO, Ore.--(BUSINESS WIRE)--Dec. 12, 2000--RadiSys
Corporation (Nasdaq:RSYS) today announced that its revenue and
earnings for the fourth quarter ending December 31, 2000, and the
first quarter ending March 31, 2001 will be lower than its previously
stated guidance.
Q4 revenue is expected to be in the vicinity of $83 million, as
opposed to approximately flat with Q3, or $90.7 million, as previously
communicated. The company expects earnings per share for Q4 to be
between $.20 and $.24, prior to one-time gains associated with the
repurchase of notes and benefits associated with R&D tax credits.
Earnings per share for Q4 was previously expected to be approximately
flat with Q3, which was $0.41 excluding the benefit of R&D tax
credits. The drop in earnings per share is due to the drop in revenue
and an expectation of lower gross margin due to product mix and
underutilized manufacturing capacity.
Revenue and earnings for the first quarter ending March 31, 2001
are expected to be approximately flat with Q4 2000. The company's
revenue and earnings guidance for the year 2001 remains unchanged at
25-35% growth over 2000.
Commenting on the revised guidance Chairman and CEO Glen Myers
stated, "We've seen even more conservatism this month from many of our
customers. Customers have lowered their near-term forecasts and have
postponed shipment of orders previously placed. The biggest drop has
been from our manufacturing-automation-equipment customers,
specifically semiconductor and electronics-assembly equipment.
Positives that we see are that our shipments into wireless
infrastructure equipment are very strong, and our customers are still
forecasting a strong rebound in the second quarter of 2001. I am
highly optimistic that once we get past the next few months of
widespread industry indecision, the technology that we are delivering
to major new areas such as packet networks, voice/data convergence,
2.5G and 3G wireless infrastructure, will put us in a position of
strong growth for the remainder of 2001 and beyond."
RadiSys will conduct an analyst conference call today at 5 PM
Eastern Time. The public is invited to participate in the conference
call by either calling 630/395-0302, password is RadiSys, or
listening via live audio webcast on the RadiSys web-site at
www.radisys.com. Replays of the call will be available at
402/220-0344 or via audio webcast at www.radisys.com.
RadiSys (Nasdaq:RSYS) designs and manufactures building blocks
for 6 next-generation Internet, communications, industrial automation,
medical equipment, and transaction terminal applications. As a leading
independent provider to OEMs, RadiSys delivers a time-to-market
advantage in a tight "virtual division" relationship with its
customers. The building blocks include Intel-based embedded computers,
DSP modules and algorithms, network interfaces and protocols, systems
platforms, embedded software, systems engineering and integration
services. RadiSys' highly differentiated position in the market is a
result of its intense focus on Intel-based technology, having the
broadest array of building blocks, and having a "perfect fit" product
development strategy using its intellectual property to design
customer subsystems.
RadiSys is a registered trademark. All other products are
trademarks or registered trademarks of their respective companies.
Except for the historical information contained herein, the
matters discussed in this press release, including the statements
regarding future development and business activities, expectations of
future orders and estimated revenues and earnings, are forward-looking
statements that involve risks and uncertainties. The following are
among the factors that could cause actual results to differ
materially: dependence on the relationship with Intel Corporation and
its products; lower than expected or delayed sales in the
communications market; lower than expected design wins with key OEMs;
failure of leading OEMs to incorporate RadiSys' solutions in
successful products; deliveries of products containing errors, defects
and bugs; dependence on a limited number of suppliers or, in some
cases, one supplier for components and equipment used to manufacture
products; difficulties in integrating acquired businesses and assets;
competition in the embedded computer market, which may lead to pricing
pressures; political, economic and regulatory risks associated with
international operations; technological developments; the inability to
protect RadiSys' intellectual property or successfully to defend
against infringement claims by others; availability of qualified
personnel; business conditions in the general economy and in the
markets RadiSys serves, particularly the communications market;
technological difficulties and resource constraints encountered in
developing new products; and difficulty or inability to meet
obligations to repay indebtedness. The forward-looking statements
should be considered in light of these factors.
For more information, contact RadiSys at
investor.relations@radisys.com or call the RadiSys Investor Line at
1-503-615-RSYS.
--30--RYG/se*
CONTACT: RadiSys Corporation
Brian Bronson, 503/615-1281 (Investor Relations)
brian.bronson@radisys.com |
