It appears that AT&T is now getting serious about launching VoLTE. Google 'AT&T Launches High Definition Voice in ' and you'll see that most of the results are dated from last quarter to the present (today included). AT&T is an end customer via Nokia (17% of revenues).
That said, AT&T is boosting its capex for next year.
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Elliot Management proposes merger between Mitel and Polycom. Elliot Management supports Vertex financially which owns Radisys. No wonder Vertex sold some RSYS over the summer for Elliot to add to Mitel, a significant customer of RSYS. Polycom, I believe, is also a RSYS customer.
EZChip, a Radisys partner, is getting acquired by Mellanox by their fellow compatriots at Mellanox.
Using their Price /Sales multiple less cash, RSYS would fetch $8.12.
At this point, it appears that every investor is still in 'show me the money' mode before I bid the price up. It has been a long turnaround effort and, unfortunately, many investors burned out. That said, it is crystal clear to this investor that the company has turned the corner. In my opinion, 2015 will be the transition year, while 2016 will be the ramping year. Carriers will finally take VoLTE, small cells, an video streaming on 4G networks very seriously next year, imo. The foregoing has become apparent from the M&A activity alone during the course of his year.
Lots of funds sold out last quarter. It seems like there is another big seller here lately, capping the stock price. Given the improving fundamentals (embedded biz profitable, software growing nicely), the stock should be higher with no overhang.
$10 would be sexy. RSYS is a better business than ENVI too, actually. Generating cash from the legacy biz and will be growing about the same rate in Software-Systems. Disclosure: Long.
Thank you for the post. Undoubtedly, RSYS' potential is yet to be recognized by the market. It will soon, imo, particularly as we get past the 3Q15 earnings report.
Video is taking off. See, 'IP Video Services Explode at IBC'.
Radisys to participate in the Conference. See 'Drexel Hamilton to Host Telecom, Media and Technology Conference on September 9th and 10th in New York City'. I suppose Radisys will put out a press release soon.
Amazon has acquired Elemental Technologies "for the company's software-defined video processing capabilities". "The media entertainment industry is going through a shift in technology that is unprecedented," said AWS VP of edge services Kalyanaraman Prasad in a press conference, referring to the migration toward Internet-based video delivery. See, 'Amazon Acquires Elemental for AWS'.
See also, '5 Signs OTT's Time Has Come'.
"Today, ZTE announced a "global cooperation agreement" with Telefónica , one of the giants of the carrier world, with extensive operations in Latin America and Europe. ZTE is already a long-standing supplier of fixed, mobile, optical and IMS systems to the Spanish giant, but this agreement takes the relationship into new areas, including PON-based fixed broadband access, photonic mesh optical transport, microwave backhaul and VoLTE/RCS capabilities." ( See, 'ZTE's Euro Star Shines Brighter' )
Per separate article pertaining to the same: "China Mobile has said it hopes to reach 50 million subscribers with its VoLTE service by early 2016." See, 'Alcatel-Lucent, ZTE and Huawei are pitching in to facilitate the first VoLTE launch in China.'
See this article dated August 11, 2015: 'China Mobile enlists Huawei, ZTE, Alca-Lu for VoLTE project'
See also: 'ZTE Selects Radisys’ Virtualized Media Resource Function to Power its VoLTE, VoWiFi, and Value-added Services'.
If you haven't already, I encourage you to read the Mitel conference call transcript. (Needless to say, you could also listen to the audio conference call).
Anyway, Mavenir expects the 3rd and 4th quarters (particularly the 4th quarter) to be stronger than the 1H15. As you guys know, Radisys' trials are mostly through Mavenir. The trials appear to have already gone into deployment judging from the fact that Mavenir is now noted as a top customer in the 10Q. From their conf. call notes, Mavenir picked up ten additional footprints. I can't confirm that RSYS is part of those ten but suffice it to say that Mavenir has been using our Media Engine in the previously announced trials.
That said, I suppose that the stock remains at current levels due to the conservative revenue guidance tor the 3rd qtr. From all the research I've done, I venture to say that the guidance was purposely conservative. But if you are long the stock, remember that the real growth is still to come in 2016 and beyond. That said, I look for a stock price of $4 to be sustained after 3Q15.