RadiSys (NAS: RSYS) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RadiSys beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share improved.
Gross margins improved, operating margins shrank, and net margins dropped.
RadiSys chalked up revenue of $79.5 million. The three analysts polled by S&P Capital IQ foresaw sales of $78.4 million. Sales were 19% higher than the prior-year quarter's $66.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.05. The three earnings estimates compiled by S&P Capital IQ anticipated $0 per share on the same basis. GAAP EPS were -$0.25 for Q4 versus -$0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 34.6%, 20 basis points better than the prior-year quarter. Operating margin was -6.0%, 700 basis points worse than the prior-year quarter. Net margin was -8.4%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $76.8 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $339.0 million. The average EPS estimate is $0.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 93 members out of 102 rating the stock outperform, and nine members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give RadiSys a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RadiSys is buy, with an average price target of $9.75.
Over the decades, small-cap stocks like RadiSys have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
Add RadiSys to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.