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Embedded Wireless Infrastructure Solutions Company Overview Q4 2012

Radisys Company Overview 4Q 2012

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Page 1: Radisys Company Overview 4Q 2012

Embedded Wireless Infrastructure Solutions

Company Overview

Q4 2012

Page 2: Radisys Company Overview 4Q 2012

Safe Harbor & Non-GAAP Measures

Safe Harbor Statement This presentation contains forward-looking statements, including the Company’s outlook. Radisys undertakes no obligation to update any such statement to reflect later developments. Information on factors that could cause actual results to vary materially from those in this presentation is available in our most recent Annual Report on Form 10-K as filed with the SEC.

Non-GAAP Measures This presentation contains non-GAAP measures that are labeled as “non-GAAP. A reconciliation of those measures to the most comparable GAAP measures is available in the Company’s prior earnings releases on Form 8-K as filed with the SEC.

Page 3: Radisys Company Overview 4Q 2012

ApplicationServer

Media Resource Function

IMS

Internet

Policy & ChargingRouting Function

Policy & ChargingEnforcement Function

Mobility Management

Entity

LTE SecurityGateway

ServingGateway

PacketGateway

eNodeB

UserEquipment

75+ Customer Wins Macro Small Cells

Audio Video Conf ~65% Market Share

10G 40G ATCA~40% ATCA Share

Traffic ManagementDumb Smart Pipes

Home eNodeB

UserEquipment

Radio Access Network Evolved Packet Core Policy Control IP Multimedia Subsystem

End-to-End LTE Infrastructure

Page 4: Radisys Company Overview 4Q 2012

Company Snapshot

Brian BronsonChief Executive Officer

Manish SinghChief Technology Officer

Radisys Executive Leadership

Software & Services Partners

2011 Revenue Employees

~ $350M970 in 14 locationsworldwide

575 Hardware &Software Engineers

160 ProfessionalServices

135 Operations

Long LifeMarkets

Telecom / Networking

Aerospace & Defense

Public Safety Medical

Silicon Partners6WIND, ENEA, InterDigital, MontaVista, Oracle, Tech Mahindra, VMware, Wind River, Wipro

Broadcom, Cavium, DesignArt, EZchip, Freescale, Intel, LSI, Mindspeed, Octasic, Qualcomm, TI

Allen MuhichInterim Chief Financial Officer

Page 5: Radisys Company Overview 4Q 2012

Diversified Markets, Key Customers

Telecommunications Media Servers Aero & Defense

Custom Solutions Medical & Embedded

Page 6: Radisys Company Overview 4Q 2012

Global Footprint

Page 7: Radisys Company Overview 4Q 2012

Radisys Positioning

WirelessMuch of our investment is driven by a variety of wireless markets, fueling the need for high performance & reliability

EmbeddedWidely recognized as the leader in embedded solutions for mission-critical applications in Telecom and Aerospace & Defense

SolutionsComplete portfolio of technologies and solutions including embedded modules, blades, software, media servers, & professional services

InfrastructureWe deliver the core and critical elements of networks and systems which must not fail

Page 8: Radisys Company Overview 4Q 2012

Embedded Wireless Infrastructure Solutions

Leveraging our Expertise

Professional ServicesApplication Integration

Media ServersConferencing, MRF

Protocol SoftwareLTE & 3G Small Cells

COTS PlatformsATCA, COM Express

Solutions to expand and optimize network capacity

Page 9: Radisys Company Overview 4Q 2012

What This Means for our Customers

Unmatched Scale Market-leading ATCA platform vendor

Supply chain, leverage with key technology partners

Continued aggressive investment in R&D

Field-Proven Performance and Reliability Software / Hardware deployed in networks everywhere

World Class Support Sales, field engineering & customer program management

Professional Services

Integration, platform migration, application development

Thought Leadership Ideas and technologies for customers to establish markets

and improve products

Leading and defining standards

Page 10: Radisys Company Overview 4Q 2012

Data Remains the Growth Engine

Capacity Mind The Gap

Text

Traffic Doubling every 12 months Video = Operators’ Albatross

Must Increase ARPU Must Lower Cost per Bit

Source: Cisco VNI Source: Heavy Reading

Revenues

Traffic

Revenues & Traffic Gap Widening

Revenue vs. Traffic Growth

Voice Era

Data Era

Page 11: Radisys Company Overview 4Q 2012

50B Supported Devices by 2020

Traditional Device

DemandNearly

Insatiable

Many New Categories of

Connected Devices by

2020

Smart Phones Tablets Notebooks

IP Cameras Gaming Devices

eBooks Connected Cars

Personal Medical Devices

Page 12: Radisys Company Overview 4Q 2012

Traffic Segmentation = Control

Video Conference

Operator VoIP

Gaming

Video on Demand

Business Class VPN

P2P

Email

Browsing

Platinum

Bronze

Silver

Gold

Tiered SLAsApp-Based

QoSMaximum Network Optimization

Page 13: Radisys Company Overview 4Q 2012

Customer Applications

SmallCells

RuggedizedCommunications

Voice & VideoConferencing

SecurityGateway

LTE & 3GNetwork Core

MediaProcessing

Lawful Intercept

TrafficOffload

Compact “LTE-in-a-Box”

Page 14: Radisys Company Overview 4Q 2012

T-Series ATCA Platforms

Broadest portfolio of ATCA assets• #1 supplier of telecom platforms

• Unsurpassed breadth of silicon & partner technologies

• Full platform integration

Software & Professional Services• Software / hardware for specialized

solutions (e.g., DPI, Security, EPC)

• Cutting-edge partner ecosystem

Page 15: Radisys Company Overview 4Q 2012

COM Express & Rackmount Servers

Products Computer on Module form factor: Small,

low power, ruggedized, extended temp

Rackmount Servers: max performance image processing, DPI, long-life solutions

Applications Network security

Machine imaging

Portable instruments

Defense & Public Safety: Manned & unmanned vehicles, ruggedized laptops

Page 16: Radisys Company Overview 4Q 2012

World-Famous Trillium Software

Products Leading Protocol Software for Signaling

Unmatched Architecture Flexibility

Patented Technology

All Top 10 TEMs use Trillium

Applications Small Cells

LTE & 3G Wireless

VoIP (Voice over IP)

IMS (IP Multimedia Subsystem)

Page 17: Radisys Company Overview 4Q 2012

3G / LTE Small Cells

3G Femtotality LTE TOTALeNodeB Multi-mode

3G + LTE + Wi-Fi 60+ LTE / 3G Small

Cell Licenses

Coverage

Cap

acit

y

Macro

Micro Pico

Metro

Femto

Our Focus: Small Cells

Scott Huber
Page 18: Radisys Company Overview 4Q 2012

Silicon Ecosystem

Trillium Software Portability Across the Largest Silicon Ecosystem

Page 19: Radisys Company Overview 4Q 2012

IP Media Servers

Products Market leader with ~65% share

Solutions for improving conferencing quality & adding new features

Powerful, multi-service platforms for real-time manipulation of voice, video & images

Applications Audio Conferencing

Messaging

IP Video & Transcoding

Page 20: Radisys Company Overview 4Q 2012

Video Conferencing

Today

Page 21: Radisys Company Overview 4Q 2012

Video Conferencing

Tomorrow

Extend Video Conferencing Beyond conference rooms Mobile work force, remote

executives

Operators’ Opportunity Beyond bit pipes ARPU generator using LTE IMS

Page 22: Radisys Company Overview 4Q 2012

Device Silos• iPhone: Facetime-to-Facetime

ONLY

• Skype breaking silos

Wi-Fi Access• Limited Mobility, hotspot bound

Internet Core• Best effort, no QoS

Breaking Silos• Ubiquitous video calling

• Interworking = MRF transcoding

3G/LTE Access• Ubiquitous mobility

EPC + DPI• Conversational managed QoS

Video Calling

Infrastructure in PlaceSmartphones, tablets, etc.3G / LTE networks

Operators’ OpportunityBeyond a bit pipeARPU generator

Today Tomorrow

Page 23: Radisys Company Overview 4Q 2012

Powering Network-Centric Warfare

Situational awareness and speed to understanding = Victory

Airborne Assets Platform Data

Platform / SensorCommands

GroundStation

Tactical Operations Center (TOC)LTE Software for voice, data & positioning; low

latency with high throughput

Compute engine for mobile systems & handhelds

Page 24: Radisys Company Overview 4Q 2012

*2012/2013 Projection is a general projection as of April 24, 2012.

Revenue Transition

Page 25: Radisys Company Overview 4Q 2012

Corporate Summary

Lowering cost per bit, increasing ARPU

Control, data & media plane expertise – all under one roof

The only embedded vendor with hardware, software and services

Accelerating time-to-market, lowering total-cost-of-ownership