Radisys Corporation (RSYS) saw its loss widen to $2.64 million, or $0.07 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.07 million, or $0.06 a share. On an adjusted basis, net profit for the quarter was almost stable at $2.59 million, when compared with the last year period.
Revenue during the quarter grew 23.71 percent to $55.40 million from $44.78 million in the previous year period. Gross margin for the quarter contracted 333 basis points over the previous year period to 25.72 percent. Operating margin for the quarter stood at negative 3.76 percent as compared to a negative 4.50 percent for the previous year period.
Operating loss for the quarter was $2.08 million, compared with an operating loss of $2.02 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2.74 million compared to $2.52 million in the prior year period. At the same time, adjusted operating margin contracted 68 basis points in the quarter to 4.96 percent from 5.64 percent in the last year period.
"Third quarter revenue exceeded the top end of our guidance range, due in part to a partial pull-in of DCEngine orders from our largest Tier 1 U.S. customer that we previously expected to deliver in the fourth quarter," said Brian Bronson, Radisys president and chief executive officer. "Earnings were also better than expected in the quarter, resulting in non-GAAP earnings per share of $0.21 for the first nine months of 2016, which is equivalent to our full year EPS in 2015."
For fiscal year 2016, Radisys Corporation expects net loss to be in the range of $4 million to $2.50 million. It forecasts adjusted net income to be in the range of $0.80 million to $2.50 million. The company forecasts diluted loss per share to be in the range of $0.10 to $0.06, the company forecasts diluted earnings per share to be in the range of $0.02 to $0.06 on adjusted basis.
Operating cash flow drops significantlyRadisys Corporation has generated cash of $2.64 million from operating activities during the nine month period, down 62.83 percent or $4.46 million, when compared with the last year period. The company has spent $3.42 million cash to meet investing activities during the nine month period as against cash outgo of $1.65 million in the last year period.
Cash flow from financing activities was $7.28 million for the nine month period as against cash outgo of $17.85 million in the last year period.
Cash and cash equivalents stood at $27.48 million as on Sep. 30, 2016, up 49.54 percent or $9.10 million from $18.38 million on Sep. 30, 2015.
Working capital increases sharply
Radisys Corporation has recorded an increase in the working capital over the last year. It stood at $34.13 million as at Sep. 30, 2016, up 32.88 percent or $8.44 million from $25.68 million on Sep. 30, 2015. Current ratio was at 1.45 as on Sep. 30, 2016, up from 1.44 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 59 days for the last year period. Days sales outstanding went down to 83 days for the quarter compared with 93 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding went down to 65 days for the quarter from 78 for the same period last year.
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