<<the initial news on this lawsuit came out on 11/25.>>
Actually, news of the lawsuit came out on July 31, 1996, soon after the suit was filed (see the press release below). For those interested, the Radisys home page has a lot of useful information, including several technical papers about embedded computer systems. There are also a few interesting articles about actual applications of RadiSys's equipment, including one about AT&T and another about a medical application.
radisys.com
I did some digging around yesterday and found that Radisys's initial public offering at $12 in Oct 1995 had an equivalent P/E of 35 which, interestingly, is about where the P/E stood on Friday after the sell off. I'm not buying any more shares right now since I believe the P/E may compress further, however, if the share price drops to the thirties, I will be watching closely to buy more.
July 31 Press Release:
Beaverton, OR - JULY 31, 1996 - RadiSys Corporation (NASDAQ: RSYS), a leading developer of embedded computer components and subsystems, said today that there is no substance to the allegations of financial discrepancies that have reportedly been made by a former employee in a wrongful termination lawsuit.
In its regular year-end audit Price Waterhouse issued an unqualified audit opinion for the year ended December 31, 1995, said Brian Turner, RadiSys Chief Financial Officer. An unqualified audit opinion means that no material discrepancies were found. The audit covers the period before the company completed its initial public offering (IPO) in October 1995, a month before the terminated employee was hired.
"The employee in question was terminated for completely unrelated causes within six months after he was hired to run the company's manufacturing operations," said Turner. "There is no substance to any of the allegations he reportedly makes in his lawsuit." |
