Radisys posted Q3 revenue of $55.4 million, representing a 24% year-on-year revenue growth. GAAP loss per share was $0.07, with non-GAAP earnings of $0.07 per diluted share.
Software-Systems revenue was $10.4 million, compared to $14.6 million in the prior quarter and $15.5 million in the third quarter of 2015. The year-on-year decline was the result of large prior year orders for MediaEngine product from an Asian service provider deploying its greenfield LTE network.
Embedded Products revenue was $45.0 million, compared to $46.7 million in the prior quarter and $29.3 million in the third quarter of 2015. The year-on-year increase reflects the shipment of follow-on DCEngine orders and growth with existing Embedded customers, offset by expected declines with non-strategic legacy customers.
“Third quarter revenue exceeded the top end of our guidance range, due in part to a partial pull-in of DCEngine orders from our largest Tier 1 U.S. customer that we previously expected to deliver in the fourth quarter,” said Brian Bronson, Radisys President and Chief Executive Officer. “Earnings were also better than expected in the quarter, resulting in non-GAAP earnings per share of $0.21 for the first nine months of 2016, which is equivalent to our full year EPS in 2015.
“Strategically, the ongoing traction with our Tier 1 U.S. customer over the last few quarters for both DCEngine and FlowEngine, combined with the recently expanded activity across multiple product lines at our large customer in Asia, are powerful testaments to our ability to introduce and implement highly disruptive solutions for leading service providers. Our execution in support of commercial deployments by these service providers has meaningfully elevated awareness of Radisys at multiple Tier 1 service providers that are now either actively evaluating in labs or conducting trials of our DCEngine and FlowEngine products. During the quarter, we also advanced sales activity for our MediaEngine product line by securing a long-term strategic win in support of next-generation NFV conferencing deployments, which we expect initial bookings from in the first half of 2017.
