7/19....RSYS...Delivers 40% Revenue Growth and 53% Earnings Growth for Quarter Ended June 30, 2000
HILLSBORO, Ore.--(BUSINESS WIRE)--July 19, 2000--RadiSys Corporation (Nasdaq:RSYS - news), a leading global designer and manufacturer of building blocks enabling next-generation Internet and communications systems, today reported record revenues of $86.2 million for the quarter ended June 30, 2000, a 40% increase from revenues of $61.4 million for the quarter ended June 30, 1999.
Net income for the quarter was a record $6.8 million, or $0.38 per share (diluted), which represented 53% earnings per share growth, compared to $4.1 million or $0.25 per share (diluted) for the quarter end June 30, 1999. The $0.25 per share for the quarter ended June 30, 1999 reflects a normalized tax rate of 24%, which excludes the recorded favorable impact to earnings resulting from income tax law changes and a resulting net operating loss carryforward benefit.
Cash earnings per share, defined as net income excluding goodwill and intangible amortization, net of tax, was $.44 per share (diluted) for the quarter ended June 30, 2000, which represents 52% growth, compared to $.29 per share for the quarter ended June 30, 1999.
``On top of the fine financial results, we also brought a significant amount of leading-edge technology to our customers in the quarter.'' stated Dr. Glen Myers, CEO. ``We announced our Artic 1107 CompactPCI SS7 Adapter which, through a highly innovative approach using three processors on the board, can drive 128 SS7 channels. We believe this to be the leader in SS7 density, and we already have one substantial design win at a top-tier communications equipment company. We announced and are shipping a dual Pentium III CompactPCI processor board and a very-high-density CompactPCI packaging system, both of which have already been through NEBS certification and are in production use by a major telecommunications company. In addition, at the SuperComm trade show we demonstrated a running product using Intel's new IXP1200 network processor.''
RadiSys achieved nineteen new design wins in the quarter. RadiSys characterizes a design win as a project estimated to produce more than $500,000 in revenue per year when in production. Nine of the wins are estimated to produce $2 million or more in revenue per year once in full production. Ten of the wins were in communications-equipment applications, five in medical equipment, two in industrial-automation equipment, and two in transaction terminals. Design wins ramp into production volume at varying rates; typically the ramp begins 6-12 months after the win occurs. A variety of risks can adversely affect a design win before the start of production, such as schedule delays, cancellations and changes in customer markets.
RadiSys (Nasdaq:RSYS - news) designs and manufactures building blocks for 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 statements and information contained herein, the matters discussed in this press release, including the statements regarding expectations of future orders and estimated revenues from design wins, 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 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, including Texas Micro Inc.; 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; and technological difficulties and resource constraints encountered in developing new products. 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 503/615-RSYS.
For more information, press only: Eric Stebel, Public Relations Manager, RadiSys, 713/541-8200
To receive these releases via email, visit our web page at www.radisys.com and subscribe to our electronic mailing list.
RadiSys Corporation
Consolidated Statement of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
(unaudited) (unaudited)
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Restated Restated
--------- ---------- --------- ----------
Revenues $ 86,170 $ 61,351 $ 167,464 $ 114,049
Cost of goods sold 55,635 38,440 108,071 72,299
--------- ---------- --------- ----------
Gross Profit 30,535 22,911 59,393 41,750
Research and
development 9,306 7,873 18,286 14,535
Selling, general
and administrative 9,707 9,101 19,249 17,606
Goodwill and
intangibles amortization 1,727 712 3,451 1,011
--------- ---------- --------- ----------
Income from operations 9,795 5,225 18,407 8,598
Interest income, net 260 269 203 707
Other income/(expense) (232) (38) 606 --
--------- ---------- --------- ----------
Income before
income tax provision 9,823 5,456 19,216 9,305
Income tax provision/
(benefit) 2,977 (3,886) 5,739 (2,954)
--------- ---------- --------- ----------
Net income $ 6,846 $ 9,342 $ 13,477 $ 12,259
========= ========== ========= ==========
Net income per
share (basic) $ 0.40 $ 0.58 $ 0.80 $ 0.77
========= ========== ========= ==========
Net income per
share (diluted) $ 0.38 $ 0.55(a)$ 0.74 $ 0.73(a)
========= ========== ========= ==========
Weighted Average
Shares (basic) 16,905 16,132 16,788 16,017
========= ========== ========= ==========
Weighted Average
Shares (diluted) 18,193 16,858 18,199 16,719
========= ========== ========= ==========
(a) The $0.55 per share (diluted) reported for the quarter ended
June 30, 1999 includes the favorable impact of certain changes in
federal income tax laws that resulted in $0.30 of additional EPS.
RadiSys Corporation
Consolidated Balance Sheet
(in thousands)
ASSETS
June 30, December 31,
2000 1999
(unaudited)
------------ -----------
Current assets
Cash and cash equivalents $ 42,391 $ 15,708
Accounts receivable, net 68,858 58,619
Inventories, net 46,234 41,374
Other current assets 2,122 1,747
Deferred income taxes 3,814 4,723
--------- ---------
Total current assets 163,419 122,171
Equipment, net 21,360 21,211
Goodwill and intangible
assets, net 32,485 34,177
Other assets 11,434 10,004
--------- ---------
Total assets $ 228,698 $ 187,563
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 32,979 $ 19,878
Short term borrowings 13,931 13,931
Income taxes payable 4,429 3,527
Accrued wages and bonuses 8,771 6,706
Other accrued liabilities 8,688 9,266
--------- ---------
Total liabilities 68,798 53,308
--------- ---------
Shareholders' equity
Common stock, 100,000 shares authorized,
17,018 and 16,489 shares issued and
outstanding 152,431 141,030
Accumulated other comprehensive income/
(loss):
Cumulative translation
adjustment (1,538) (1,546)
Unrealized gain/
(loss) on securities
available for sale 410 (349)
Accumulated earnings/
(deficit) 8,597 (4,880)
--------- ---------
Total shareholders' equity 159,900 134,255
--------- ---------
Total liabilities and
shareholders' equity $ 228,698 $ 187,563
========= =========
--------------------------------------------------------------------------------
Contact:
RadiSys Corporation
IR Contact: Brian Bronson, 503/615-1281
brian.bronson@radisys.com |
