Mike: After posting the previous message, I checked the numbers and found last quarter's quarter-over-quarter growth was $22.5 to $27.5 million, still a hefty 22+%.
(Next time I'll check the numbers before I post.)
I also found that RSYS noted the implications of the Intel deal in its earnings report announcement last quarter:
"A significant contributor to our revenue and net income growth in 1996 was a result of the acquisition of Multibus and iRMX from Intel Corporation in April 1996," stated Dr. Glen Myers, RadiSys president and CEO. "However, in the fourth quarter alone, we began to ramp production of ten new embedded computers for ten new OEM applications. One of these, a new product for Nortel Matra has special significance because it is a new Multibus II product whose development for Nortel Matra was started by Intel and finished by RadiSys."
I understand your point about inflated year-over-year growth, but I don't understand:
1) Why the decline in RSYS non-Intel business is important, and,
2) Why RSYS ability to quickly grow the Intel-purchased component of its business isn't important, i.e., who cares if Intel used to own it, as long as it continues to grow under RSYS tutelage?
I also noted that in each of the earnings report announcements issued by RSYS for the last three quarters, the company touted its "design wins." I think it was eight in the 2nd quarter (which were to begin producing income in "early 1997"), and nine in quarters #3 and #4.
Finally, I'm still thoroughly confused by the "non-Intel" revenue figures provided in your post. Without three extra zeroes, the numbers are ridiculous (e.g., appreciably less than Glen Myer's salary); with three zeroes, they overstate RSYS total annual revenues WITH the Intel business. |
