Hillsboro, Ore.--Oct. 23, 1997--RadiSys Corporation announcedrecord revenues for the third quarter and the nine monthsended September 30, 1997.
Reported revenue increased 40.7 percent to $31,594,000 from $22,459,000 for the third quarter 1996. For the nine months ended September 30, 1997, revenue increased 66.5 percent to $89,220,000 from $53,558,000 for 1996. As anticipated, gross margin for the quarter was approximately40.3 percent compared with 46.5 percent in the third quarter 1996.
Operating income increased 21.3 percent to $5,954,000 for the third quarter from $4,910,000 for the same period in 1996, and increased 96.4 percent for the nine months to $16,376,000. Net income for the quarterended September 30, 1997 increased 19.1 percent to $4,025,000 or $0.49 per share compared to $3,379,000 or $0.43 per share for 1996. Net incomefor the nine months ended September 30, 1997 was $11,147,000 or $1.37per share compared with $5,924,000 or $0.83 per share for 1996.
RadiSys captured eight new major OEM design wins in the quarter.The company characterizes a major design win as a project estimated to produce at least $500,000 in revenue per year when in production.These eight design wins will ramp into production at a range of different times; the majority are expected to ramp into production in1998. There are a variety of risks that could affect these programs before the start of production, such as schedule slippage and changesin the marketplace.
The new Telecommunications Division will develop and sell embedded computer solutions to equipment makers in telecommunicationsand related businesses. Arif Kareem is the vice president and general manager of the Telecommunications Division. RadiSys' DSP design center in Newton, Massachusetts, an integral part of RadiSys' thrust in telecom, will be part of this division.
The new Automation and Control Division will support equipment makers in manufacturing and industrial automation and control, with Ron Dilbeck as vice president and general manager. RadiSys' EmbeddedSoftware Operation will exist as a major part of this division, and continue the investment in the INtime software product, which has achieved significant design wins in manufacturing and industrial automation applications.
The new Commercial Equipment Division will focus on equipment makers in the medical device, office automation, and entertainment businesses. Steve Verleye is the vice president and general manager of this new division. RadiSys' design center in the United Kingdom will be part of the Commercial Equipment Division.
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