Radisys Updates Fourth Quarter Guidance and Announces Authorization of Stock Repurchase Plan

HILLSBORO, OR — December 16, 2010— Radisys® Corporation (NASDAQ: RSYS), a leading provider of innovative hardware and software platforms for next generation IP-based wireless, wireline and video networks, today announced that it anticipates its revenue and earnings for the fourth quarter ending December 31, 2010 to be lower than its previously stated guidance. Fourth quarter revenue is now expected to be between $62 and $64 million, down from the previous guidance of $68 to $72 million. The Company expects a GAAP fourth quarter net loss of between $0.15 and $0.20 per share, down from the prior guidance of breakeven to net income of $0.05 per diluted share. Non-GAAP fourth quarter results are expected to be between net income of $0.01 per diluted share and a net loss of $0.02 per share, down from the prior guidance of net income of $0.12 to $0.17 per diluted share. GAAP expectations per share assume an effective tax rate of 10% and non-GAAP expectations per share assume an effective tax rate of 40%. In addition, the fourth quarter GAAP projected results include an estimated restructuring charge of $1.7 million that was not included in the previous guidance, for employee-related expenses associated with ongoing reductions to simplify the Company’s operational infrastructure and to reduce the legacy business cost structure.

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