RadiSys jumps as Q3 profit beats expectations
Shares of RadiSys Corp. (Nasdaq: RSYS) are soaring on news after the close on Thursday that the maker of embedded telecommunications technology posted third-quarter earnings that beat Wall Street’s projections in spite of a decline.
Net income for the three months ended Sept. 30 was $2.8 million, or $0.11 per share, above analysts’ projected earnings of $0.01 per share. The Hillsboro, Ore.-based company had a profit of $4.6 million, or $0.18 per share, during the same quarter in 2006.
Revenues came to $83.6 million, 8.4% above the projected $77.12 million and a rise of 2.7% compared with revenues of $81.4 million a year earlier.
“I am pleased with our results in the third quarter,” said president and CEO Scott Grout in a statement. “We’ve also seen continued strength in our design win performance over the past two quarters.”
Grout said that RadiSys was awarded business in applications such as medical imaging, network security, test and measurement and military. During the third quarter, the company also acquired certain business assets from Intel Corp. (Nasdaq: INTC).
Looking to the future, RadiSys forecast that its fourth quarter revenues to be between $92 and $98 million, for a net income in the range between $0.11 per share and $0.15 per share. Five analysts polled by Thomson Financial were calling for revenues of $83.55 million and a net income of $0.05 per share.
At 12:10 p.m. ET, shares of RadiSys (RSYS) were up $3.24, or 24%, to $16.83. The 52-week high is $18.73, established on Nov. 14, 2006. The 52-week low of $10.50 was set on Aug. 23.
