5445 NE Dawson Creek Drive Hillsboro, OR 97124 Toll-Free: 1-800-950-0044 Phone: 1-503-615-1100 FAX: 1-503-615-1121 Balance is All Internet E-Mail:
[email protected] World Wide Web: http://www.radisys.com/ customer focused market diversity technology partner financial foundation RADISYS 2002 ANNUAL REPORT ANNUAL 2002 RADISYS Financial Overview To our shareholders 2002 (In thousands, except per share data) Years Ended December 31, 2002 was an important year for RadiSys. Our team did an exceptional job diversifying our revenue base, winning new business and driving our financial model to break-even. This was accomplished while making Consolidated Statement of Operations Data 2002 2001 2000 1999 1998 significant investments in research and development and introducing compelling new products for our customers. Our investments in new products enabled the Company to achieve 46 new design wins. These Revenues $200,139 $227,752 $340,676 $251,090 $186,548 design wins are with large customers in a diverse set of end markets. I believe this strong customer position Gross profit $ 59,272 $ 35,172 $116,897 $ 92,297 $ 62,684 will be the foundation for our long-term success. We also strengthened our balance sheet by generating $18 million of operating cash flow and exiting the year with $119 million in cash and investments. I believe (Loss) income from operations $ (7,676) $(60,332) $ 34,005 $ 16,604 $ 8,569 our accomplishments, coupled with our deep customer relationships and increased market diversification, position us well as a leading embedded solutions provider in our industry. Net (loss) income $ (3,305) $(34,486) $ 32,646 $ 18,997 $ 7,818 Net (loss) income per share (diluted)* $ (0.19) $ (2.00) $ 1.80 $ 1.11 $ 0.48 Customer focused Weighted average shares outstanding (diluted)* 17,495 17,249 18,161 17,110 16,129 We have an impressive list of customers in each of our addressable markets.