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Technology Stocks : RadiSys Corp
RSYS 1.720+0.6%Dec 11 4:00 PM EST

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To: The Prudent Investor who wrote (834)7/26/1997 3:56:00 PM
From: D.J.Smyth   of 1472
 
Prudent, whoever wrote the Chip Review needs a relook at their math. With RSYS projected 5% growth next quarter and 10% to 12% following, the EPS would equal closer to $1.90 for 1997, not $1.80. This $.10 represents approx. an additional $8 million in revenue.

The report gives what we already knew about RSYS even prior to the conference call. What was not known and not mentioned was that RSYS stated that they won a design award which will be the largest in their history monetarily. This win was in the area of telecommunications. I can only assume, that given who their top five customers are, it is a design win for telephone/internet service.

Also important is that RSYS top five customers comprise 38% of their business. So, even in one or two of RSYS top five customers defect, RSYS will not be affected aversely.

I could find no negative in the report. What was stated was already known. Thank you for the post though.
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