-
Q2 2017
Revenues of EUR 144.2 Million, up 1.7% From Q1 2017
-
Q2 2017 Pro
Forma Operating Income: EUR 9.2 Million (6.4% of
Revenues)
-
Q3 2017
Outlook (excluding potential acquisitions): Revenues
EUR 120-130 Million; Pro Forma Operating Income 2%-5% of
Revenues
Munich, Germany.
July 20, 2017. ADVA Optical Networking (ISIN: DE0005103006, WKN
510300) announced financial results for its 2017 second quarter
ended on June 30, 2017. The results have been prepared in
accordance with International Financial Reporting Standards
(IFRS).
Q2 2017 IFRS
Financial Results
Quarterly revenues increased to EUR 144.2 million from EUR
141.8 in Q1 2017. This marks a decrease of 8.3% year-on-year (YoY)
(Q2 2016: EUR 157.2 million) and is within in the
guidance announced on April 27, 2017.
Pro forma operating income in
Q2 2017 stood at EUR 9.2 million or 6.4% of revenues, up
from EUR 6.6 million or 4.7% of revenues in Q1 2017. This number
represents a EUR 5.0 million YoY increase (Q2 2016:
EUR 4.2 million) and is also within previously announced
guidance. The operating income amounted to EUR 8.1 million
(Q2 2016: EUR 3.1 million). Cash and cash equivalents
totaled EUR 80.8 million. Net liquidity reached EUR 30.8
million and net working capital EUR 100.3 million.
"These are exciting and turbulent
times for our industry," said Brian Protiva, CEO, ADVA Optical
Networking. "It's a time of incredible contrasts. On one side,
cloud and mobility continue to be mega growth drivers driving
demand for more bandwidth. On the other hand, our industry
continues to face pricing pressure and fierce competition creating
the need for further consolidation. Our bid to acquire MRV
Communications will enable us to expand our customer footprint,
expand our market leadership in Ethernet access devices and expand
our portfolio of packet optical solutions. The combined product
portfolio will be supported by our continued commitment to
operational excellence providing our customers with response times
that are unmatched in the industry. Our world-class engineering
team, the agility of our organization and our customer focus give
us a solid foundation for further growth and profitability."
Additional Key
Data*
| (Million EUR) |
Q2
2017 |
Q2
2016 |
Change |
Q1
2017 |
Change |
|
|
|
|
|
|
|
| Revenues |
144.2 |
157.2 |
-8.3% |
141.8 |
1.7% |
| Pro forma gross profit |
46.7 |
43.0 |
8.6% |
46.1 |
1.2% |
| in % of
revenues |
32.4% |
27.3% |
5.1pp |
32.5% |
-0.1pp |
| Pro forma
operating income |
9.2 |
4.2 |
118.2% |
6.6 |
38.4% |
| in % of
revenues |
6.4% |
2.7% |
3.7pp |
4.7% |
1.7pp |
| Operating income |
8.1 |
3.1 |
162.7% |
5.5 |
47.1% |
| Net income |
4.5 |
9.8 |
-53.9% |
6.2 |
-26.9% |
| |
|
|
|
|
|
| (Million EUR) |
Jun. 30,
2017 |
Jun. 30,
2016 |
Change |
Dec. 31,
2016 |
Change |
| Cash and cash equivalents |
80.8 |
82.5 |
-2.1% |
69.7 |
15.9% |
| Net
liquidity |
30.8 |
20.0 |
53.6% |
15.0 |
104.8% |
*Potential differences due to rounding
Pro forma financial numbers
exclude non-cash charges related to the stock compensation programs
and amortization and impairment of goodwill and acquisition-related
intangible assets.
"Our revenues are currently
developing in a non-uniform way," commented Uli Dopfer,
CFO, ADVA Optical Networking. "With the FSP 3000
CloudConnect(TM), we are attracting new customers from different
regions and customer segments. However, the current demand from one
of our top customers in the ICP segment is still weak and we have
not yet been able to design in our FSP 3000 CloudConnect(TM). As a
result, the revenue outlook for the remainder of the fiscal year is
subdued. Only via a fast and efficient integration of MRV
Communications will we be able to stabilize revenues close to
last year's level. Owing to the weakened revenue development and
the expected takeover of MRV Communications, we will be revising
our cost structures and cut back on operating costs."
Q3 2017 Outlook
In Q3 2017, ADVA Optical Networking (excluding potential
acquisitions) expects revenues to range between EUR 120
million and EUR 130 million and anticipates a pro forma
operating income of between 2% and 5% of revenues. ADVA Optical
Networking performs quarterly reviews of the expected business
development with respect to all intangible assets, including
capitalized development expenses. In case of adverse business
prospects, these reviews may result in non-cash impairment charges
in Q3 2017 and beyond, which are excluded from the above guidance.
The company will publish its Q3 2017 financial results on October
26, 2017.
Conference Call
Details
In conjunction with the release of its Q2 2017 financial
results on July 20, 2017, ADVA Optical Networking will host a
conference call for analysts and investors at 3:00 p.m. CEST / 9:00
a.m. EDT. Participating in the call will be ADVA Optical
Networking's CEO, Brian Protiva, and CFO, Ulrich Dopfer. Interested
parties may dial in at +49 69 22 22 29 043 or +1 855 402 77 66, pin
code 807 469 45#. A corresponding presentation is available on ADVA
Optical Networking's website:
www.advaoptical.com/en/about-us/investor-relations/financial-results/conference-calls.aspx.
The complete 2017 Six-Month Report
(January - June) is available as a PDF on our website:
www.advaoptical.com/en/about-us/investor-relations/financial-results/financial-statements.aspx.
Forward-Looking
Statements
The economic projections and forward-looking statements contained
in this document relate to future facts. Such projections and
forward-looking statements are subject to risks which cannot be
foreseen and which are beyond the control of ADVA Optical
Networking. ADVA Optical Networking is therefore not in a position
to make any representation as to the accuracy of economic
projections and forward-looking statements or their impact on the
financial situation of ADVA Optical Networking or the market in the
shares of ADVA Optical Networking.
Use of Pro Forma
Financial Information
ADVA Optical Networking provides consolidated pro forma financial
results in this press release solely as supplemental financial
information to help investors and the financial community make
meaningful comparisons of ADVA Optical Networking's operating
results from one financial period to another. ADVA Optical
Networking believes that these pro forma consolidated financial
results are helpful because they exclude non-cash charges related
to the stock option programs and amortization and impairment of
goodwill and acquisition-related intangible assets, which are not
reflective of the Company's operating results for the period
presented. This pro forma information is not prepared in accordance
with IFRS and should not be considered a substitute for historical
information presented in accordance with IFRS.
About ADVA
Optical Networking
At ADVA Optical Networking we're creating new opportunities for
tomorrow's networks, a new vision for a connected world. Our
intelligent telecommunications hardware, software and services have
been deployed by several hundred service providers and thousands of
enterprises. Over the past twenty years, our innovative
connectivity solutions have helped to drive our customers' networks
forward, helped to drive their businesses to new levels of success.
We forge close working relationships with all our customers. As
your trusted partner we ensure that we're always ready to exceed
your networking expectations. For more information on our products
and our team, please visit us at: www.advaoptical.com.
Published
By:
ADVA Optical Networking SE, Munich, Germany
www.advaoptical.com
For Press:
Gareth Spence
t +44 1904 699 358
public-relations(at)advaoptical.com
For Investors:
Stephan Rettenberger
t +49 89 890 665 854
investor-relations(at)advaoptical.com