Radisys Corporation (NASDAQ: RSYS), a global leader of open
telecom solutions, today announced financial results for the third
quarter ended September 30, 2018.
Third Quarter Summary
- Consolidated revenue of $27.0 million,
with Software-Systems revenue growth of 24% year-over-year;
- GAAP gross margin of 43.4% and non-GAAP
gross margin of 43.6%;
- GAAP loss of ($0.05) per share and
non-GAAP earnings of $0.05 per diluted share; and
- Exited the quarter with $14.1 million
of consolidated cash, cash equivalents and restricted cash, an
increase of $4.5 million over prior quarter.
“Our third quarter results reflect continued strength across our
business, and although we incurred a net loss on a GAAP basis, we
achieved a second consecutive quarter of non-GAAP profitability,”
said Brian Bronson, Radisys President and Chief Executive Officer.
“Our Software-Systems segment delivered another quarter of above
20% year-over-year revenue growth while demand for our Hardware
Solutions products continues to exceed our near-term
expectations.
“Additionally, we continue to work towards obtaining the final
regulatory approvals required for closing our acquisition by
Reliance before year-end. As we previously stated, we expect the
addition of Reliance’s visionary leadership and strong market
position to further enhance our ability to develop and integrate
large-scale, disruptive, open-centric end-to-end solutions.”
Software-Systems Results
For the third quarter of 2018, Software-Systems revenue was
$14.1 million, compared to $13.7 million in the prior quarter and
$11.3 million in the third quarter of 2017.
Gross margin was 59.6%, compared to 64.6% in the prior quarter
and 47.9% in the third quarter of 2017. Operating income was
breakeven, compared to operating income of $0.9 million in the
prior quarter and an operating loss of $2.4 million in the third
quarter of 2017.
Hardware Solutions Results
For the third quarter of 2018, Hardware Solutions revenue was
$12.9 million, compared to $10.7 million in the prior quarter and
$17.5 million in the third quarter of 2017.
Gross margin was 26.2%, compared to 20.9% in the prior quarter
and (13.2)% in the third quarter of 2017. Operating income was $1.8
million, compared to operating income of $0.8 million in the prior
quarter and an operating loss of $7.9 million in the third quarter
of 2017.
Consolidated Results
For the third quarter of 2018, consolidated revenue was $27.0
million, compared to $24.4 million in the prior quarter and $28.8
million in the third quarter of 2017.
On a GAAP basis, gross margin in the third quarter of 2018 was
43.4%, compared to 37.5% in the prior quarter and 4.2% in the third
quarter of 2017. Third quarter 2018 research and development and
selling, general, and administrative expenses on a GAAP basis were
$10.2 million, compared to $9.7 million in the prior quarter and
$13.5 million in the third quarter of 2017.
On a non-GAAP basis, third quarter 2018 gross margin was 43.6%,
compared to 45.3% in the prior quarter and 10.8% in the third
quarter of 2017. Third quarter 2018 research and development and
selling, general and administrative expenses on a non-GAAP basis
were $10.0 million, compared to $9.4 million in the prior quarter
and $13.4 million in the third quarter of 2017.
For the third quarter of 2018, the Company recorded a GAAP net
loss of $1.9 million, or ($0.05) per share, compared to a GAAP net
loss of $4.6 million, or ($0.12) per share, in the prior quarter
and a GAAP net loss of $15.4 million, or ($0.39) per share, in the
third quarter of 2017. On a non-GAAP basis, the Company recorded
net income of $2.0 million, or $0.05 per diluted share, in the
third quarter of 2018, compared to net income of $2.2 million, or
$0.06 per diluted share, in the prior quarter and a net loss of
$11.0 million, or ($0.28) per share, in the third quarter of
2017.
Proposed Acquisition of Radisys by Reliance
As previously announced on June 29, 2018, Radisys Corporation
and Reliance Industries entered into a definitive agreement under
which Reliance will acquire Radisys for US$1.72 per share in cash.
The transaction is subject to certain customary closing conditions,
including regulatory approvals, and is expected to close in the
fourth quarter of 2018. Due to the pending acquisition, the Company
will not be hosting a conference call or providing guidance on
anticipated financial results for future periods.
About Radisys
Radisys (NASDAQ: RSYS), a global leader in open telecom
solutions, enables service providers to drive disruption with new
open architecture business models. Radisys’ innovative
disaggregated and virtualized enabling technology solutions
leverage open reference architectures and standards, combined with
open software and hardware to power business transformation for the
telecom industry, while its world-class services organization
delivers systems integration expertise necessary to solve
communications and content providers’ complex deployment
challenges. For more information, visit www.Radisys.com.
Forward-Looking Statements
Certain statements contained in this communication may
constitute “forward-looking statements.” Forward-looking statements
can usually be identified by the use of words such as “aim,”
“anticipate,” “believe,” “continue,” “could,” “estimate,” “evolve,”
“expect,” “forecast,” “intend,” “looking ahead,” “may,” “opinion,”
“plan,” “possible,” “potential,” “project,” “should,” “will” and
other expressions which indicate future events or trends. Such
statements include statements as to the expected timing of
completion of the merger, the expected benefits and costs of the
transaction, management plans relating to the transaction and the
satisfaction of all closing conditions to the transaction,
including the ability to obtain regulatory approvals.
These forward-looking statements are based upon certain
expectations and assumptions and are subject to risks and
uncertainties. Actual results could differ materially from those
anticipated as a result of various factors, including the
following: conditions to the closing of the transaction, including
receipt of required regulatory approvals, may not be satisfied
timely, if at all; the transaction may involve unexpected costs,
liabilities or delays; revenues following the transaction may be
lower than expected; operating costs, customer loss and business
disruption (including, without limitation, difficulties in
maintaining relationships with employees, customers, clients or
suppliers) may be greater than expected following the transaction;
uncertainties surrounding the transaction; the outcome of any legal
proceedings related to the transaction; Radisys may be adversely
affected by other economic, business, and/or competitive factors;
risks that the pending transaction disrupts current plans and
operations; the retention of key employees of Radisys; other risks
to consummation of the transaction, including circumstances that
could give rise to the termination of the merger agreement and the
risk that the transaction will not be consummated within the
expected time period or at all; and the other risks described from
time to time in Radisys’ reports filed with the Securities and
Exchange Commission (the “SEC”) under the heading “Risk Factors,”
including the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2017, subsequent Quarterly Reports on Form
10-Q and in other of Radisys’ filings with the SEC.
All forward-looking statements are qualified by, and should be
considered in conjunction with, such cautionary statements. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which such
statements were made. Except as required by applicable law, Radisys
undertakes no obligation to update forward-looking statements to
reflect events or circumstances arising after such date.
Non-GAAP Financial Measures
To supplement its consolidated financial statements in
accordance with generally accepted accounting principles (GAAP),
the Company's earnings release contains non-GAAP financial measures
that exclude certain expenses, gains and losses, such as the
effects of (a) amortization of acquired intangible assets, (b)
stock-based compensation expense, (c) restructuring and other
charges, net, (d) non-cash income tax expense, (e) restructuring
inventory adjustment, (f) amortization of financing activities
expenses, (g) change in fair value of warrants, and (h) loss (gain)
on the liquidation of foreign subsidiaries. The Company believes
that the use of non-GAAP financial measures provides useful
information to investors to gain an overall understanding of its
current financial performance and its prospects for the future.
Specifically, the Company believes the non-GAAP results provide
useful information to both management and investors by excluding
certain expenses, gains and losses that the Company believes are
not indicative of its core operating results. In addition, non-GAAP
financial measures are used by management for budgeting and
forecasting as well as subsequently measuring the Company's
performance, and the Company believes that it is providing
investors with financial measures that most closely align to its
internal measurement processes. These non-GAAP measures are
considered to be reflective of the Company's core operating results
as they more closely reflect the essential revenue-generating
activities of the Company and direct operating expenses (resulting
in cash expenditures) needed to perform these revenue-generating
activities. The Company also believes, based on feedback provided
to the Company during its earnings calls' Q&A sessions and
discussions with the investment community, that the non-GAAP
financial measures it provides are necessary to allow the
investment community to construct their valuation models to better
align its results and projections with its competitors and market
sector, as there is significant variability and unpredictability
across companies with respect to certain expenses, gains and
losses.
The non-GAAP financial information is presented using a
consistent methodology from quarter-to-quarter and year-to-year.
These measures should be considered in addition to results prepared
in accordance with GAAP. In addition, these non-GAAP financial
measures are not based on any comprehensive set of accounting rules
or principles. The Company believes that non-GAAP financial
measures have limitations in that they do not reflect all of the
amounts associated with the Company's results of operations as
determined in accordance with GAAP and that these measures should
only be used to evaluate the Company's results of operations in
conjunction with the corresponding GAAP financial measures.
A reconciliation of non-GAAP information to GAAP information is
included in the tables below. The non-GAAP financial measures
disclosed by the Company should not be considered a substitute for
or superior to financial measures calculated in accordance with
GAAP, and reconciliations between GAAP and non-GAAP financial
measures included in this earnings release should be carefully
evaluated. The non-GAAP financial measures used by the Company may
be calculated differently from, and therefore may not be comparable
to, similarly titled measures used by other companies.
Radisys® is a registered trademark of
Radisys
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts,
unaudited) Three Months Ended Nine Months
Ended September 30, September 30,
2018 2017
2018 2017 Revenues
Product $ 17,907 $ 20,641 $ 50,775 $ 75,680 Service 9,116
8,132 26,851 25,796
Total revenues 27,023 28,773
77,626 101,476 Cost of sales: Product
9,743 20,361 30,457 60,450 Service 5,314 5,291 15,229 15,821
Amortization of purchased technology 226 1,926
4,080 5,780 Total cost of sales
15,283 27,578 49,766
82,051 Gross margin 11,740 1,195 27,860 19,425
Operating expenses: Research and development 3,467 5,639 10,388
18,113 Selling, general and administrative 6,758 7,849 20,546
25,445 Intangible assets amortization 197 289 593 2,809
Restructuring and other charges, net 1,130
1,344 3,990 2,814 Income (loss)
from operations 188 (13,926 ) (7,657 ) (29,756 ) Change in fair
value of warrant liability (599 ) — (1,102 ) — Interest expense
(1,411 ) (431 ) (4,206 ) (927 ) Other income (expense), net
1,447 (116 ) 2,700 (543 ) Income
(loss) before income tax expense (375 ) (14,473 ) (10,265 ) (31,226
) Income tax expense 1,498 938
2,687 1,747 Net loss $ (1,873 ) $ (15,411 ) $
(12,952 ) $ (32,973 ) Net loss per share: Basic $ (0.05 ) $
(0.39 ) $ (0.33 ) $ (0.85 ) Diluted $ (0.05 ) $ (0.39 ) $ (0.33 ) $
(0.85 ) Weighted average shares outstanding Basic 39,616
39,087 39,496 38,922
Diluted 39,616 39,087
39,496 38,922
CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, unaudited)
September 30, 2018
December 31, 2017
ASSETS Current assets: Cash and cash equivalents $ 10,094 $
8,124 Restricted cash 4,000 — Accounts receivable, net 31,130
32,820 Inventories, net 2,156 4,265 Other current assets
2,970 6,607 Total current assets 50,350 51,816
Property and equipment, net 3,242 4,728 Intangible assets, net
2,189 6,862 Other assets, net 2,054 2,623
Total assets $ 57,835 $ 66,029
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Accounts payable $ 8,060 $ 18,297 Deferred revenue 6,495 4,200
Other accrued liabilities 12,115 14,116 Line of credit 11,989
16,000 Short term obligations 9,000 — Warrant liability
4,960 — Total current liabilities 52,619
52,613 Long term debt obligations, net 5,647 — Other long-term
liabilities 7,119 6,866 Total
liabilities 65,385 59,479 Shareholders'
equity: Common stock 343,280 342,219 Accumulated deficit (349,134 )
(336,182 ) Accumulated other comprehensive income (loss)
(1,696 ) 513 Total shareholders’ equity (deficit)
(7,550 ) 6,550 Total liabilities and
shareholders’ equity $ 57,835 $ 66,029
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In
thousands, unaudited) Three Months Ended
Nine Months Ended September 30, September 30,
2018 2017
2018 2017 Cash flows
from operating activities: Net loss $ (1,873 ) $ (15,411 ) $
(12,952 ) $ (32,973 ) Adjustments to reconcile net loss to net cash
used in operating activities: Depreciation and amortization 936
3,551 6,459 12,396 Amortization of debt discount and issuance costs
807 — 2,465 — Stock-based compensation expense 250 124 957 1,816
Inventory valuation allowance 350 7,041 (24 ) 7,900 Change in fair
value of warranty liability 599 — 1,102 — Other 789 885 1,082 1,056
Changes in operating assets and liabilities: Accounts receivable
(816 ) 9,737 1,695 4,530 Inventories and deferred cost of sales
1,389 (2,071 ) (457 ) 2,732 Other receivables 144 39 1,902 (44 )
Accounts payable 76 (3,181 ) (10,369 ) (26 ) Deferred revenue (26 )
(3,067 ) 1,546 (1,157 ) Other operating assets and liabilities
2,246 (48 ) 2,497 (2,813
) Net cash provided by (used in) operating activities 4,871
(2,401 ) (4,097 ) (6,583 )
Cash
flows from investing activities: Capital expenditures
(129 ) (1,386 ) (530 ) (4,544 ) Net cash used
in investing activities (129 ) (1,386 ) (530 )
(4,544 )
Cash flows from financing activities:
Borrowings on line of credit, net (187 ) (30,000 ) (4,011 ) (10,000
) Proceeds from borrowings on senior notes — — 17,000 — Payments of
debt issuance costs (20 ) — (2,390 ) — Other financing activities,
net (6 ) 209 104 295
Net cash provided by (used in) financing activities
(213 ) (29,791 ) 10,703 (9,705 ) Effect
of exchange rate changes on cash and cash equivalents (34 )
12 (106 ) 427
Net increase
(decrease) in cash and cash equivalents 4,495
(33,566 ) 5,970 (20,405 ) Cash and cash
equivalents, beginning of period 5,599 46,248 8,124 33,087
Restricted cash and cash equivalents, beginning of period
4,000 — — —
Cash, cash equivalents, and restricted cash, beginning of
period 9,599 46,248 8,124
33,087 Cash and cash equivalents, end of
period 10,094 12,682 10,094 12,682 Restricted cash and cash
equivalents, end of period 4,000 —
4,000 —
Cash, cash equivalents, and
restricted cash, end of period $ 14,094 $ 12,682
$ 14,094 $ 12,682
REVENUES, GROSS
MARGIN AND INCOME (LOSS) FROM OPERATIONS BY OPERATING SEGMENT
(In thousands, unaudited) Three Months Ended
Nine Months Ended September 30, September 30,
2018 2017
2018 2017 Revenue
Software-Systems $ 14,073 $ 11,306 $ 38,884 $ 32,943 Hardware
Solutions 12,950 17,467 38,742
68,533 Total revenues $ 27,023 $ 28,773
$ 77,626 $ 101,476
Three Months
Ended Nine Months Ended September 30,
September 30, 2018 2017
2018 2017 Gross
margin Software-Systems $ 8,390 $ 5,420 $ 22,699 $ 17,128 Hardware
Solutions 3,387 (2,302 ) 8,737 8,211 Corporate and other (37
) (1,923 ) (3,576 ) (5,914 ) Total gross
margin $ 11,740 $ 1,195 $ 27,860 $ 19,425
Three Months Ended Nine Months Ended
September 30, September 30, 2018
2017 2018
2017 Income (loss) from operations Software-Systems $
39 $ (2,358 ) $ (2,159 ) $ (7,574 ) Hardware Solutions 1,751 (7,885
) 3,547 (8,963 ) Corporate and other (1,602 ) (3,683
) (9,045 ) (13,219 ) Total income (loss) from
operations $ 188 $ (13,926 ) $ (7,657 ) $ (29,756 )
REVENUES BY GEOGRAPHY (In thousands,
unaudited) Three Months Ended Nine Months
Ended September 30, September 30, 2018
2017 2018
2017 North America $ 12,675 46.9 % $ 11,492
39.9 % $ 31,956 41.2 % $ 49,854 49.1 % Asia
Pacific 2,822 10.4 5,703 19.8 12,267 15.8 17,819 17.6 Europe, the
Middle East and Africa 11,526 42.7
11,578 40.3 33,403 43.0
33,803 33.3 Total $ 27,023 100.0 % $ 28,773
100.0 % $ 77,626 100.0 % $ 101,476 100.0 %
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES AND AS A PERCENT OF REVENUES (In thousands, except
per share amounts, unaudited) Three Months Ended
Nine Months Ended September 30, September
30, 2018 2017 2018
2017 GROSS MARGIN: GAAP
gross margin $ 11,740 43.4 % $ 1,195
4.2 % $ 27,860 35.9 % $ 19,425 19.1 %
(a) Amortization of acquired intangible assets 227 1,926 4,081
5,780 (b) Stock-based compensation 12 (3 ) 70 134 (e) Restructuring
inventory adjustment (201 ) —
$ (575 ) —
Non-GAAP gross margin $ 11,778 43.6 % $ 3,118
10.8 % $ 31,436 40.5 % $ 25,339
25.0 %
RESEARCH AND DEVELOPMENT: GAAP research and
development $ 3,467 12.8 % $ 5,639 19.6
% $ 10,388 13.4 % $ 18,113 17.8 % (b)
Stock-based compensation 35 23
155 366
Non-GAAP research and development $ 3,432
12.7 % $ 5,616 19.5 % $ 10,233
13.2 % $ 17,747 17.5 %
SELLING,
GENERAL AND ADMINISTRATIVE: GAAP selling, general and
administrative $ 6,758 25.0 % $ 7,849
27.3 % $ 20,546 26.5 % $ 25,445 25.1 %
(b) Stock-based compensation 202
105 731
1,317 Non-GAAP selling, general and
administrative $ 6,556 24.3 % $ 7,744
26.9 % $ 19,815 25.5 % $ 24,128 23.8 %
INCOME (LOSS) FROM OPERATIONS: GAAP income (loss)
from operations $ 188 0.7 % $ (13,926 ) (48.4
)% $ (7,657 ) (9.9 )% $ (29,756 ) (29.3 )% (a)
Amortization of acquired intangible assets 423 2,214 4,673 8,588
(b) Stock-based compensation 250 125 957 1,817 (c) Restructuring
and other charges, net 1,130 1,344 3,990 2,814 (e) Restructuring
inventory adjustment (201 ) —
(575 ) —
Non-GAAP income (loss) from operations $ 1,790
6.6 % $ (10,243 ) (35.6 )% $ 1,388 1.8 % $
(16,537 ) (16.3 )%
NET INCOME (LOSS): GAAP net
loss $ (1,873 ) (6.9 )% $ (15,411 ) (53.6 )% $
(12,952 ) (16.7 )% $ (32,973 ) (32.5 )% (a)
Amortization of acquired intangible assets 423 2,214 4,673 8,588
(b) Stock-based compensation 250 125 957 1,817 (c) Restructuring
and other charges, net 1,130 1,344 3,990 2,814 (d) Income taxes 850
460 1,329 693 (e) Restructuring Inventory adjustment (201 ) — (575
) — (f) Amortization of financing activities 780 — 2,383 — (g)
Change in fair value of warrants 599 — 1,102 — (h) Loss (gain) on
the liquidation of foreign subsidiaries —
— 313
313 Non-GAAP net income (loss) $ 1,958
7.2 % $ (10,955 ) (38.1 )% $ 907
1.2 % $ (18,748 ) (18.5 )% GAAP weighted average
diluted shares 39,616 39,087 39,496 38,922 Dilutive equity awards
included in non-GAAP earnings per share 3,362
— 740
— Non-GAAP weighted average
diluted shares 42,978 39,087
40,236
38,922 GAAP net loss per share (diluted) $
(0.05 ) $ (0.39 ) $ (0.33 ) $ (0.85 ) Non-GAAP adjustments detailed
above 0.10 0.11
0.35 0.37
Non-GAAP net income (loss) per share (diluted) $ 0.05
$ (0.28 ) $ 0.02 $
(0.48 )
Non-GAAP financial measures includes the performance of
Software-Systems and Embedded Products and Hardware Services.
The Company excludes the following corporate and other expenses,
reversals, gains and losses from its non-GAAP financial measures,
when applicable:
(a) Amortization of acquired intangible assets:
Amortization of acquisition-related intangible assets primarily
relate to core and existing technologies, trade name and customer
relationships that were acquired with the acquisitions of
Continuous Computing and Pactolus. The Company excludes the
amortization of acquisition-related intangible assets because it
does not reflect the Company's ongoing business and it does not
have a direct correlation to the operation of the Company's
business. In addition, in accordance with GAAP, the Company
generally recognizes expenses for internally-developed intangible
assets as they are incurred, notwithstanding the potential future
benefit such assets may provide. Unlike internally-developed
intangible assets, however, and also in accordance with GAAP, the
Company generally capitalizes the cost of acquired intangible
assets and recognizes that cost as an expense over the useful lives
of the assets acquired. As a result of their GAAP treatment, there
is an inherent lack of comparability between the financial
performance of internally-developed intangible assets and acquired
intangible assets. Accordingly, the Company believes it is useful
to provide, as a supplement to its GAAP operating results, non-GAAP
financial measures that exclude the amortization of acquired
intangibles in order to enhance the period-over-period comparison
of its operating results, as there is significant variability and
unpredictability across companies with respect to this expense.
(b) Stock-based compensation: Stock-based compensation
consists of expenses recorded under GAAP, in connection with stock
awards such as stock options, restricted stock awards and
restricted stock units granted under the Company's equity incentive
plans and shares issued pursuant to the Company's employee stock
purchase plan. The Company excludes stock-based compensation from
non-GAAP financial measures because it is a non-cash measurement
that does not reflect the Company's ongoing business and because
the Company believes that investors want to understand the impact
on the Company of the adoption of the applicable GAAP surrounding
share based payments; the Company believes that the provision of
non-GAAP information that excludes stock-based compensation
improves the ability of investors to compare its period-over-period
operating results, as there is significant variability and
unpredictability across companies with respect to this expense.
(c) Restructuring and other charges, net: Restructuring
and other charges, net relates to costs associated with
non-recurring events. These include costs incurred for employee
severance, acquisition or divestiture activities, excess facility
costs, certain legal costs, asset related charges and other
expenses associated with business restructuring activities.
Restructuring and other charges are excluded from non-GAAP
financial measures because they are not considered core operating
activities. Although the Company has engaged in various
restructuring activities over the past several years, each has been
a discrete event based on a unique set of business objectives. The
Company does not engage in restructuring activities in the ordinary
course of business. As such, the Company believes it is appropriate
to exclude restructuring charges from its non-GAAP financial
measures because it enhances the ability of investors to compare
the Company's period-over-period operating results.
(d) Income taxes: Non-GAAP income tax expense is equal to
the Company's projected cash tax expense. Adjustments to GAAP
income tax expense are required to eliminate the recognition of tax
expense from profitable entities where we utilize deferred tax
assets to offset current period tax liabilities. We believe that
providing this non-GAAP figure is useful to our investors as it
more closely represents the true economic impact of our tax
positions.
(e) Restructuring inventory adjustment: Includes
inventory write-downs and benefits associated with non-recurring
events, predominantly tied to the Company’s decision to end-of-life
or discontinue certain products for which the Company has no future
ongoing demand. During 2017, the Company recorded such charges tied
to discrete product decisions within its Hardware-Solutions segment
associated with its DCEngine and certain legacy embedded products.
Restructuring inventory write-downs and benefits are excluded from
non-GAAP financial measures because they are not considered core
operating activities. Although the Company has incurred various
inventory write-downs over the past several years, they have
generally been associated with ongoing business activities. As
such, the Company believes it is appropriate to exclude end-of-life
and product discontinuance inventory write-downs and benefits
related to those write-downs from its non-GAAP financial measures
because it enhances the ability of investors to compare the
Company's period-over-period operating results.
(f) Amortization of financing activities: Amortization of
financing activities consists of expenses recorded under GAAP
related to the amortization of debt issuance costs, the
amortization of warrant issuance costs, and terminations costs
related to previous unamortized debt issuance costs from terminated
financing agreements. The Company excludes amortization of
financing activities because they are not considered to reflect the
core cash-generating performance of the business and therefore is
excluded from our non-GAAP results.
(g) Change in fair value of warrants: Represents the
change to the current fair value of the warranty liability. The
Company excludes the change in fair value of warrants from non-GAAP
financial measures because it is a non-cash measurement that does
not reflect the Company's ongoing business. The Company believes
that the provision of non-GAAP information that excludes changes in
fair value of warrants improves the ability of investors to compare
its period-over-period operating results, as there is significant
variability and unpredictability based on the current fair value of
the underlying warrants.
(h) Loss (gain) on the liquidation of foreign
subsidiaries: On a non-recurring basis we have recorded a gain
or loss to reflect the realization of accumulated foreign currency
translation adjustments upon the liquidation of certain
international subsidiaries. This gain or loss represents the net
unrealized foreign currency translation gains or losses accumulated
from changes in exchange rates and the related effects from the
translation of assets and liabilities of these entities. The
liquidation of foreign subsidiaries occurs on an infrequent basis
and management does not view the impact of this non-cash charge as
indicative of the ongoing performance of the Company. As such, the
Company believes it is appropriate to exclude this gain from its
non-GAAP financial measures because it enhances the ability of
investors to compare the Company's period-over-period operating
results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181108005806/en/
Company ContactRadisys CorporationJon Wilson,
503-615-1685Chief Financial
Officerjon.wilson@radisys.comorInvestor ContactShelton
GroupBrett L. Perry, 214-272-0070bperry@sheltongroup.com
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