Revenue during the quarter dropped 7.98 percent to $40.56 million from $44.08 million in the previous year period. Gross margin for the quarter expanded 199 basis points over the previous year period to 33.56 percent. Operating margin for the quarter stood at negative 10.34 percent as compared to a negative 3.46 percent for the previous year period.

Operating loss for the quarter was $4.19 million, compared with an operating loss of $1.52 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1.24 million compared to $2.82 million in the prior year period. At the same time, adjusted operating margin contracted 335 basis points in the quarter to 3.05 percent from 6.40 percent in the last year period.

"Fourth quarter operating results were in-line with our expectations and enabled us to successfully deliver against our increased annual revenue guidance as well as the earnings per share guidance we provided at the outset of 2016," said Brian Bronson, Radisys president and chief executive officer. "We were able to achieve these results while continuing to accelerate investments across our strategic product lines, namely our FlowEngine and DCEngine products as well as our professional service capabilities in support of CORD (Central Office Re-architected as a Datacenter), which are critical to fuel our longer-term revenue growth. Looking at the fourth quarter more specifically, we booked record quarterly Software-Systems revenue, driven by continued MediaEngine product deployments with our large Tier 1 Asian customer combined with growth in professional services revenue as part of enabling our broader strategy across multiple Tier 1 service providers."

For financial year 2017, Radisys Corporation forecasts revenue to be in the range of $190 million to $220 million. The company projects net loss to be in the range of $14.40 million to $9.60 million. The company expects adjusted net income to be in the range of $2.90 million to $6.90 million. The company expects diluted loss per share to be in the range of $0.36 to $0.24. The company expects diluted earnings per share to be in the range of $0.07 to $0.17 on adjusted basis.

For the first-quarter 2017, Radisys Corporation forecasts revenue to be in the range of $37 million to $41 million. The company projects net loss to be in the range of $11.30 million to $8.80 million. The company expects adjusted net loss to be in the range of $6.30 million to $4 million. The company expects diluted loss per share to be in the range of $0.29 to $0.23. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.16 to $0.10.

The company has spent $4.93 million cash to meet investing activities during the year as against cash outgo of $2.22 million in the last year.

Cash flow from financing activities was $7.47 million for the year as against cash outgo of $12.81 million in the last year period.

Cash and cash equivalents stood at $33.09 million as on Dec. 31, 2016, up 59.35 percent or $12.32 million from $20.76 million on Dec. 31, 2015.

Working capital increases
Radisys Corporation has recorded an increase in the working capital over the last year. It stood at $32.97 million as at Dec. 31, 2016, up 15.45 percent or $4.41 million from $28.56 million on Dec. 31, 2015. Current ratio was at 1.50 as on Dec. 31, 2016, up from 1.29 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 44 days for the last year period. Days sales outstanding went down to 44 days for the quarter compared with 64 days for the same period last year.

Days inventory outstanding has decreased to 34 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went down to 36 days for the quarter from 66 for the same period last year.