Nature of Operations

Radisys Corporation (NASDAQ: RSYS), the services acceleration company, provides hyperscale software defined infrastructure, service aware traffic distribution platforms, real-time media processing engines and wireless access technologies that enable its customers to maximize, virtualize and monetize their networks. The Company's products and services fall within two operating segments: Software-Systems and Hardware Solutions


•	Software-Systems. Software-Systems is comprised of three product families: FlowEngine, MediaEngine and CellEngine.

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FlowEngine products target the communication service provider traffic management market and are designed to classify data flows and then distribute these flows to Virtualized Network Functions ("VNF"). FlowEngine offloads the processing for packet classification and distribution, improving virtualized function utilization and making the overall Network Functions Virtualization ("NFV") architecture more efficient. A FlowEngine system consists of FlowEngine software running on a Traffic Distribution Engine ("TDE") platform. FlowEngine integrates a subset of firewalls, edge routing, data center switching, and load balancing functionality, along with standards based SDN protocols, that efficiently process data flows in virtualized communications environments.

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MediaEngine products are designed into the IP Multimedia Subsystem ("IMS") core of telecom networks, providing media processing capabilities required for a broad range of applications including Voice over Long-Term Evolution ("VoLTE"), Voice over WiFi (“VoWifi”), Web Real-Time Communication ("WebRTC"), multimedia conferencing, as well as the media interworking including transcoding, transrating and media quality treatment that are required to achieve interoperability between legacy and new generation devices using disparate audio and video communication devices and applications.


◦	CellEngine software, which includes TOTALeNodeB LTE and Femtotality 3G software products, provides a communication linkage between wireless end user devices and mobile core networks through small cell base stations that mobile service providers are deploying to optimize wireless network spectrum utilization and coverage.


◦	Also included in the Software-Solutions segments is the Company's Customer Development Solutions ("CDS") organization that consists of telecommunication professionals who assist customers to develop unique telecommunications products and applications.


•	Hardware Solutions includes the open-standards based DCEngine product family as well as the Company's legacy embedded products portfolio.

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DCEngine products provide multi-rack level network funtions virtualization ("NFVi") and container based infrastructure for hosting VNF's and applications under open software-defined wetworking ("SDN") control. DCEngine uses the principles of open compute platform ("OCP") architectures, delivering rack-scale compute, storage and networking resources based on open Commercial off the shelf ("COTS") technology and integrates open source software.

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Legacy embedded products includes ATCA, computer-on-module express ("COM Express") and rack mount servers. These products are predominantly hardware-based and include both internal designs as well as third party hardware. These products enable the control and movement of data in both 3G and LTE telecom networks and provide the hardware enablement for network elements applications such as Deep Packet Inspection ("DPI"), policy management and intelligent gateways (security, femto and LTE gateways). Additionally, these products enable image processing capabilities for healthcare markets and enable energy-efficient computing capabilities dedicated for industrial deployments.