Radisys reported consolidated revenue was $44.8 million, compared to $47.0 million in the prior quarter and $50.8 million in the third quarter of 2014. Gross margin (GAAP) for the quarter was 29.0%, compared to 26.8% in the prior quarter and 28.9% in the third quarter of 2014. There was a net loss (GAAP) of $2.1 million, or $0.06 per share, compared to a GAAP net loss of $4.1 million, or $0.11 per share, in the prior quarter and GAAP net loss of $4.5 million, or $0.12 per share, in the third quarter of 2014.
Software-Systems revenue was $15.5 million, compared to $14.2 million in the prior quarter and $11.6 million in the third quarter of 2014, representing an increase of 33% year-on-year. Revenue growth was supported by continued strong MediaEngine demand in support of VoLTE deployments. Embedded Products revenue was $29.3 million, compared to $32.9 million in the prior quarter and $39.2 million in the third quarter of 2014. The decline in Embedded Products revenue is consistent with expectations for this segment as part of the company's strategy announced in the first quarter of 2015.
"As expected, we delivered another strong quarter in our Software-Systems business with revenue increasing 33% year-over-year, and when combined with prudent expense management, led to meaningful improvement in our bottom-line results,” said Brian Bronson, Radisys President and CEO. “During the third quarter, we fulfilled the remainder of the $11 million follow-on MediaEngine order from our large Asian carrier customer and also received purchase orders as part of our ongoing engagement with a large North American carrier for the commercial deployment of our FlowEngine product. We currently expect to ship these initial commercial orders during the fourth quarter, which represents important validation for FlowEngine and the disruptive proposition it affords to communication service providers as we position to double revenue for this product line in 2016.”
