Seeking Alpha
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

Letter To The RadiSys Board Of Directors

February 7, 2015

To The RadiSys Board of Directors:

I believe RadiSys (RSYS) shares are trading at a substantial discount to the underlying value of RadiSys' two businesses: Software & Systems ("S&S") and Embedded Products and Hardware Services ("EPHS"). The reason is clear: the market is unable or unwilling to properly value the company given the obfuscation in the consolidated financial statements caused by investments in higher-growth, higher-margin software businesses coupled with the legacy, low-margin, cash cow businesses. Growth and cash cow investors are usually not the same.

I believe CEO Brian Bronson and the rest of the RadiSys team have made a strong effort to refocus the company on higher-margin growth businesses while right-sizing the cost structure to return EPHS to profitability even as sales remain pressured.

Further, I believe that tying newly issued stock options directly to stock price appreciation is another indication of a shareholder-friendly management team… Read More …