Here's the release:
RadiSys reports net income increases 522% in the first quarter
HILLSBORO, Ore.--(BUSINESS WIRE)--April 24, 1997--RadiSys Corp.(NASDAQ: RSYS) today announced record revenues for the first quarter ended March 31, 1997.
Reported revenues increased 152% to $27,830,000 from $11,065,000 for the first quarter 1996.
Operating income increased 689% to $5,000,000 for the first quarter from $634,000 for the same period in 1996. Net income for the quarter was $3,422,000 or $0.43 per share compared to $550,000 or $0.09 per share for the same period in 1996.
"Certainly a big part of our revenue and income growth continued to result from the acquisition of the Multibus business from Intel Corporation in April 1996." stated Dr. Glen Myers, president and CEO of RadiSys "However, in the first quarter we also experienced strong growth in the other parts of our business, completed the acquisition of a company immersed in DSP technology for embedded applications, and introduced a software product called INtime -- a major extension to Windows NT that turns NT into an embedded, real-time operating system."
Gross margins for the quarter were 41.8% compared with 41.7% in the fourth quarter of 1996. Gross margins were higher than expected primarily due to the product mix.
RadiSys captured nine new major OEM design wins during the first quarter. The company characterizes a major design win as a project estimated to produce at least $500,000 in revenue per year when in production.
"Our nine design wins were quite diversified along many different lines," stated Dr. Myers. "For instance, one win was a major commitment to our new INtime software product, one was a design win for our new R400 chip, and another was a DSP win. Three of the wins were in Europe, something I'm particularly proud of because our investment in a highly trained direct sales force in Europe is bearing fruit. Three of the wins were in telecommunications equipment applications and one in automotive, which are two rapidly growing markets for us."
RadiSys continues to invest in new product development, as reflected in the 148% increase in research and development expenditures in the first quarter over the prior year.
Except for the historical statements and information contained herein, the matters discussed in this news release, including the revenue and margin expectations, are forward looking statements that involve risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to: business conditions and growth in the electronics industry and general economy, both domestic and international; lower than expected customer orders; competitive factors, including pricing pressures, technological developments and products offered by competitors; availability of components; technological difficulties and resource constraints encountered in developing new products; and the timely flow of competitive new products and market acceptance of those products. The forward looking statements should be considered in
light of these factors.
RadiSys Corp. is the leading independent supplier of embedded computer components and subsystems used by OEMs in manufacturing automation, telecommunications, medical equipment, transportation, test and measurement, and retail/office automation applications. |
