Infrastructure software vendor Radisys Corp. continued to lose money during the third quarter, but the company attributed much of its missed performance to a delayed Media Resource Function order from an overseas carrier.
Brian Bronson, Radisys’ president and CEO, said that the company’s third quarter expectations “relied heavily on receiving and shipping a large MRF order from an Asian carrier that ultimately was not received before quarter end. Our relationship with this carrier is excellent and we are in the initial stages of what I believe will be a meaningful long-term partnership that could generate over $10 million of revenue over the next couple of years.”
Radisys reported a net loss for the third quarter of $12.7 million on revenues of $54.1 million. The company also warned of a significant decrease in revenue expected for the fourth quarter, with revenue expected to be between $44 million-$50 million “primarily due to the timing of customer orders,” plus relatively flat software solutions revenue due in part to engineering progress that isn’t expected until 2014.
However, the company said that orders for its Trillium software supporting small cell deployments exceeded expectations, increasing 23% year-over-year and 82% sequentially. Radisys said that its small cell deployments in Korea “are demonstrating the commercial readiness of our small cell and overall LTE solutions” and that the proving out of its products is expected to to a driver of both short- and long-term growth for Trillium.
Meanwhile, Radisys had announced $20 million in cost reductions in July and said it is on-track to meet that goal, having closed its Shanghai design center and transferred development work to its Shenzen site; the company is consolidating its operations in Asia to a single site at Shenzen, closing an additonal facility in Penang. That consolidation is expected to contribute an additional $6 million in profit starting in the second half of next year; Radisys also shut down an administrative office in Ireland.
