Oregon | 0-26844 | 93-0945232 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
5435 NE Dawson Creek Drive | |
Hillsboro, Oregon | 97124 |
(Address of Principal Executive Offices) | (Zip Code) |
Emerging growth company | [ ] | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] |
Exhibit Number | Description | |
RADISYS CORPORATION | ||||
Date: | November 7, 2017 | By: | /s/ Jonathan Wilson | |
Jonathan Wilson | ||||
Chief Financial Officer and Vice President of Finance (Principal Financial and Accounting Officer) |
Company Contact | Investor Contact | |
Jon Wilson | Brett L. Perry | |
Chief Financial Officer | Shelton Group | |
503-615-1685 | 214-272-0070 | |
jon.wilson@radisys.com | bperry@sheltongroup.com |
• | Consolidated revenue of $28.8 million, above the midpoint of the Company’s prior guidance range of $26 to $30 million; |
• | GAAP loss per share was $0.39, and non-GAAP loss per share was $0.28. Included in both GAAP and non-GAAP loss per share was an expected inventory charge of approximately $7.0 million associated largely with legacy embedded products, which increased the loss by $0.18 per share; |
• | Awarded first commercial win for FlowEngine TDE-2000 with a strategic channel partner for initial deployment with a European service provider beginning in the fourth quarter; |
• | Secured two new Tier 1 service provider wins in the U.S. and India through channel partners for multi-year VoLTE deployments; and |
• | Closed agreement with global contract manufacturer to streamline supply chain and drive meaningful cost synergies beginning in 2018. |
• | Revenue is expected between $29 to $33 million. The guidance range contemplates potential variability in the timing of certain MediaEngine orders as well as the Company’s ongoing contract manufacturer transition. |
• | GAAP gross margin is expected to approximate 31% and GAAP R&D and SG&A expenses are expected to be approximately $13.5 million. Non-GAAP gross margin is expected between 36% and 39% of sales and non-GAAP R&D and SG&A expenses are expected to approximate $13.0 million. |
• | GAAP loss is expected to range from $0.19 to $0.13 per share. Non-GAAP loss is expected to range from $0.08 to $0.02 per share. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Product | $ | 20,641 | $ | 46,175 | $ | 75,680 | $ | 145,122 | |||||||
Service | 8,132 | 9,222 | 25,796 | 26,709 | |||||||||||
Total revenues | 28,773 | 55,397 | 101,476 | 171,831 | |||||||||||
Cost of sales: | |||||||||||||||
Product | 20,361 | 33,997 | 60,450 | 107,937 | |||||||||||
Service | 5,291 | 5,228 | 15,821 | 15,639 | |||||||||||
Amortization of purchased technology | 1,926 | 1,926 | 5,780 | 5,780 | |||||||||||
Total cost of sales | 27,578 | 41,151 | 82,051 | 129,356 | |||||||||||
Gross margin | 1,195 | 14,246 | 19,425 | 42,475 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 5,639 | 6,093 | 18,113 | 18,044 | |||||||||||
Selling, general and administrative | 7,849 | 8,321 | 25,445 | 24,514 | |||||||||||
Intangible assets amortization | 289 | 1,260 | 2,809 | 3,780 | |||||||||||
Restructuring and other charges, net | 1,344 | 655 | 2,814 | 1,602 | |||||||||||
Loss from operations | (13,926 | ) | (2,083 | ) | (29,756 | ) | (5,465 | ) | |||||||
Interest expense | (431 | ) | (116 | ) | (927 | ) | (392 | ) | |||||||
Other income (expense), net | (116 | ) | 255 | (543 | ) | 1,463 | |||||||||
Loss before income tax expense | (14,473 | ) | (1,944 | ) | (31,226 | ) | (4,394 | ) | |||||||
Income tax expense | 938 | 694 | 1,747 | 1,800 | |||||||||||
Net loss | $ | (15,411 | ) | $ | (2,638 | ) | $ | (32,973 | ) | $ | (6,194 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.39 | ) | $ | (0.07 | ) | $ | (0.85 | ) | $ | (0.17 | ) | |||
Diluted | $ | (0.39 | ) | $ | (0.07 | ) | $ | (0.85 | ) | $ | (0.17 | ) | |||
Weighted average shares outstanding | |||||||||||||||
Basic | 39,087 | 38,056 | 38,922 | 37,402 | |||||||||||
Diluted | 39,087 | 38,056 | 38,922 | 37,402 |
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 12,682 | $ | 33,087 | |||
Accounts receivable, net | 33,854 | 38,378 | |||||
Inventories, net | 11,055 | 20,021 | |||||
Other current assets | 6,347 | 7,151 | |||||
Total current assets | 63,938 | 98,637 | |||||
Property and equipment, net | 7,131 | 6,713 | |||||
Intangible assets, net | 8,986 | 17,575 | |||||
Other assets, net | 2,872 | 5,260 | |||||
Total assets | $ | 82,927 | $ | 128,185 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 20,565 | $ | 20,805 | |||
Deferred revenue | 5,556 | 5,715 | |||||
Other accrued liabilities | 11,157 | 14,143 | |||||
Line of credit | 15,000 | 25,000 | |||||
Total current liabilities | 52,278 | 65,663 | |||||
Other long-term liabilities | 5,481 | 5,966 | |||||
Total liabilities | 57,759 | 71,629 | |||||
Shareholders' equity: | |||||||
Common stock | 341,780 | 339,715 | |||||
Accumulated deficit | (316,551 | ) | (281,600 | ) | |||
Accumulated other comprehensive income | (61 | ) | (1,559 | ) | |||
Total shareholders’ equity | 25,168 | 56,556 | |||||
Total liabilities and shareholders’ equity | $ | 82,927 | $ | 128,185 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net loss | $ | (15,411 | ) | $ | (2,638 | ) | $ | (32,973 | ) | $ | (6,194 | ) | |||
Adjustments to reconcile net loss to net cash | |||||||||||||||
provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 3,551 | 4,182 | 12,396 | 12,775 | |||||||||||
Stock-based compensation expense | 124 | 987 | 1,816 | 2,867 | |||||||||||
Inventory valuation allowance | 7,041 | 1,281 | 7,900 | 2,670 | |||||||||||
Other | 885 | 920 | 1,056 | (269 | ) | ||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | 9,737 | (13,572 | ) | 4,530 | 4,357 | ||||||||||
Inventories and deferred cost of sales | (2,071 | ) | 2,657 | 2,732 | 7,760 | ||||||||||
Other receivables | 39 | 656 | (44 | ) | 7,663 | ||||||||||
Accounts payable | (3,181 | ) | 7,439 | (26 | ) | (11,265 | ) | ||||||||
Deferred revenue | (3,067 | ) | 2,621 | (1,157 | ) | (14,738 | ) | ||||||||
Other operating assets and liabilities | (48 | ) | (2,516 | ) | (2,813 | ) | (2,986 | ) | |||||||
Net cash provided by (used in) operating activities | (2,401 | ) | 2,017 | (6,583 | ) | 2,640 | |||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (1,386 | ) | (2,290 | ) | (4,544 | ) | (3,420 | ) | |||||||
Net cash used in investing activities | (1,386 | ) | (2,290 | ) | (4,544 | ) | (3,420 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings on line of credit, net | (30,000 | ) | — | (10,000 | ) | 10,000 | |||||||||
Other financing activities, net | 209 | (3,200 | ) | 295 | (2,721 | ) | |||||||||
Net cash provided by (used in) financing activities | (29,791 | ) | (3,200 | ) | (9,705 | ) | 7,279 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 12 | 26 | 427 | 216 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (33,566 | ) | (3,447 | ) | (20,405 | ) | 6,715 | ||||||||
Cash and cash equivalents, beginning of period | 46,248 | 30,926 | 33,087 | 20,764 | |||||||||||
Cash and cash equivalents, end of period | $ | 12,682 | $ | 27,479 | $ | 12,682 | $ | 27,479 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue | ||||||||||||||||
Software-Systems | $ | 11,306 | $ | 10,441 | $ | 32,943 | $ | 39,101 | ||||||||
Hardware Solutions | 17,467 | 44,956 | 68,533 | 132,730 | ||||||||||||
Total revenues | $ | 28,773 | $ | 55,397 | $ | 101,476 | $ | 171,831 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Gross margin | ||||||||||||||||
Software-Systems | $ | 5,420 | $ | 6,226 | $ | 17,128 | $ | 24,186 | ||||||||
Hardware Solutions | (2,302 | ) | 10,070 | 8,211 | 24,370 | |||||||||||
Corporate and other | (1,923 | ) | (2,050 | ) | (5,914 | ) | (6,081 | ) | ||||||||
Total gross margin | $ | 1,195 | $ | 14,246 | $ | 19,425 | $ | 42,475 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Income (loss) from operations | ||||||||||||||||
Software-Systems | $ | (2,358 | ) | $ | (2,201 | ) | $ | (7,574 | ) | $ | (1,390 | ) | ||||
Hardware Solutions | (7,885 | ) | 4,946 | (8,963 | ) | 9,954 | ||||||||||
Corporate and other | (3,683 | ) | (4,828 | ) | (13,219 | ) | (14,029 | ) | ||||||||
Total loss from operations | $ | (13,926 | ) | $ | (2,083 | ) | $ | (29,756 | ) | $ | (5,465 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
North America | $ | 11,492 | 39.9 | % | $ | 34,541 | 62.4 | % | $ | 49,854 | 49.1 | % | $ | 116,698 | 67.9 | % | |||||||
Asia Pacific | 5,703 | 19.8 | 7,946 | 14.3 | 17,819 | 17.6 | 22,025 | 12.8 | |||||||||||||||
Europe, the Middle East and Africa | 11,578 | 40.3 | 12,910 | 23.3 | 33,803 | 33.3 | 33,108 | 19.3 | |||||||||||||||
Total | $ | 28,773 | 100.0 | % | $ | 55,397 | 100.0 | % | $ | 101,476 | 100.0 | % | $ | 171,831 | 100.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
GROSS MARGIN: | |||||||||||||||||||||||
GAAP gross margin | $ | 1,195 | 4.2 | % | $ | 14,246 | 25.7 | % | $ | 19,425 | 19.1 | % | $ | 42,475 | 24.7 | % | |||||||
(a) Amortization of acquired intangible assets | 1,926 | 1,926 | 5,780 | 5,780 | |||||||||||||||||||
(b) Stock-based compensation | (3 | ) | 124 | 134 | 301 | ||||||||||||||||||
Non-GAAP gross margin | $ | 3,118 | 10.8 | % | $ | 16,296 | 29.4 | % | $ | 25,339 | 25.0 | % | $ | 48,556 | 28.3 | % | |||||||
RESEARCH AND DEVELOPMENT: | |||||||||||||||||||||||
GAAP research and development | $ | 5,639 | 19.6 | % | $ | 6,093 | 11.0 | % | $ | 18,113 | 17.8 | % | $ | 18,044 | 10.5 | % | |||||||
(b) Stock-based compensation | 23 | 238 | 366 | 676 | |||||||||||||||||||
Non-GAAP research and development | $ | 5,616 | 19.5 | % | $ | 5,855 | 10.6 | % | $ | 17,747 | 17.5 | % | $ | 17,368 | 10.1 | % | |||||||
SELLING, GENERAL AND ADMINISTRATIVE: | |||||||||||||||||||||||
GAAP selling, general and administrative | $ | 7,849 | 27.3 | % | $ | 8,321 | 15.0 | % | $ | 25,445 | 25.1 | % | $ | 24,514 | 14.3 | % | |||||||
(b) Stock-based compensation | 105 | 625 | 1,317 | 1,890 | |||||||||||||||||||
Non-GAAP selling, general and administrative | $ | 7,744 | 26.9 | % | $ | 7,696 | 13.9 | % | $ | 24,128 | 23.8 | % | $ | 22,624 | 13.2 | % | |||||||
INCOME (LOSS) FROM OPERATIONS: | |||||||||||||||||||||||
GAAP loss from operations | $ | (13,926 | ) | (48.4 | )% | $ | (2,083 | ) | (3.8 | )% | $ | (29,756 | ) | (29.3 | )% | $ | (5,465 | ) | (3.2 | )% | |||
(a) Amortization of acquired intangible assets | 2,214 | 3,186 | 8,588 | 9,560 | |||||||||||||||||||
(b) Stock-based compensation | 125 | 987 | 1,817 | 2,867 | |||||||||||||||||||
(c) Restructuring and other charges, net | 1,344 | 655 | 2,814 | 1,602 | |||||||||||||||||||
Non-GAAP income (loss) from operations | $ | (10,243 | ) | (35.6 | )% | $ | 2,745 | 5.0 | % | $ | (16,537 | ) | (16.3 | )% | $ | 8,564 | 5.0 | % | |||||
NET INCOME (LOSS): | |||||||||||||||||||||||
GAAP net loss | $ | (15,411 | ) | (53.6 | )% | $ | (2,638 | ) | (4.8 | )% | $ | (32,973 | ) | (32.5 | )% | $ | (6,194 | ) | (3.6 | )% | |||
(a) Amortization of acquired intangible assets | 2,214 | 3,186 | 8,588 | 9,560 | |||||||||||||||||||
(b) Stock-based compensation | 125 | 987 | 1,817 | 2,867 | |||||||||||||||||||
(c) Restructuring and other charges, net | 1,344 | 655 | 2,814 | 1,602 | |||||||||||||||||||
(d) Income taxes | 460 | 404 | 693 | 682 | |||||||||||||||||||
(e) Loss (gain) on the liquidation of foreign subsidiaries | $ | 313 | $ | — | $ | 313 | $ | (421 | ) | ||||||||||||||
Non-GAAP net income (loss) | $ | (10,955 | ) | (38.1 | )% | $ | 2,594 | 4.7 | % | $ | (18,748 | ) | (18.5 | )% | $ | 8,096 | 4.7 | % | |||||
GAAP weighted average diluted shares | 39,087 | 38,056 | 38,922 | 37,402 | |||||||||||||||||||
Dilutive equity awards included in | |||||||||||||||||||||||
non-GAAP earnings per share | — | 1,313 | — | 1,164 | |||||||||||||||||||
Non-GAAP weighted average diluted shares | 39,087 | 39,369 | 38,922 | 38,566 | |||||||||||||||||||
GAAP net loss per share (diluted) | $ | (0.39 | ) | $ | (0.07 | ) | $ | (0.85 | ) | $ | (0.17 | ) | |||||||||||
Non-GAAP adjustments detailed above | 0.11 | 0.14 | 0.37 | 0.38 | |||||||||||||||||||
Non-GAAP net income (loss) per share (diluted) | $ | (0.28 | ) | $ | 0.07 | $ | (0.48 | ) | $ | 0.21 |
Three Months Ended | ||||||
December 31, 2017 | ||||||
Low End | High End | |||||
GAAP net loss | (7.5 | ) | (5.2 | ) | ||
(a) Amortization of acquired intangible assets | 2.1 | 2.1 | ||||
(b) Stock-based compensation | 0.5 | 0.5 | ||||
(c) Restructuring and acquisition-related charges, net | 1.5 | 1.5 | ||||
(f) Income taxes | 0.2 | 0.2 | ||||
Total adjustments | 4.3 | 4.3 | ||||
Non-GAAP net loss | (3.2 | ) | (0.9 | ) | ||
GAAP weighted average shares | 39,200 | 39,200 | ||||
Non-GAAP adjustments | — | — | ||||
Non-GAAP weighted average shares | 39,200 | 39,200 | ||||
GAAP net loss per share | (0.19 | ) | (0.13 | ) | ||
Non-GAAP adjustments detailed above | 0.11 | 0.11 | ||||
Non-GAAP net loss per share | (0.08 | ) | (0.02 | ) |
Estimates at the midpoint of the guidance range | ||
Three Months Ended | ||
December 31, 2017 | ||
GAAP | 31.2 | % |
(a) Amortization of acquired intangible assets | 6.2 | |
(b) Stock-based compensation | 0.1 | |
Non-GAAP | 37.5 | % |
Estimates at the midpoint of the guidance range | |||
Three Months Ended | |||
December 31, 2017 | |||
GAAP | $ | 13.5 | |
(b) Stock-based compensation | 0.5 | ||
Non-GAAP | $ | 13.0 |
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end