RadiSys Beats Up on Analysts Yet Again

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.

Revenue details
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.

EPS details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

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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.

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