Friday, 28 July 2017

ADVA achieves record Q3 results

ADVA Optical Networking
Thursday 22 October 15

ADVA Optical Networking announced Q3 2015 financial results for the quarter ended on September 30, 2015 and prepared in accordance with International Financial Reporting Standards (IFRS). Q3 2015 IFRS Financial Results Quarterly revenues climbed to a record of EUR 122.3 million. The Q3 2015 figure marks an all-time high for the company and sees year-on-year (YoY) growth leap by 40.4% (Q3 2014…

ADVA Optical Networking announced Q3 2015 financial results for the quarter ended on September 30, 2015 and prepared in accordance with International Financial Reporting Standards (IFRS).

Q3 2015 IFRS Financial Results
Quarterly revenues climbed to a record of EUR 122.3 million. The Q3 2015 figure marks an all-time high for the company and sees year-on-year (YoY) growth leap by 40.4% (Q3 2014: EUR 87.1 million). Net profit nearly doubled to EUR 8.6 million (Q3 2014: EUR 4.4 million). Today’s figures are in the middle of the guidance forecast that was announced earlier this year on July 23.

The significant increase in revenues and YoY net profit was due to several factors: the demand for data center interconnect (DCI) technology, the continued push for 100G metro solutions and the rebound in European carrier and enterprise spend.

Pro forma operating income in Q3 2015 rose substantially to EUR 9.6 million or 7.8% of revenues, which marks a 173% YoY increase (Q3 2014: EUR 3.5 million) and is at the upper end of the previously announced guidance. The operating income climbed to EUR 8.5 million. This figure is a 174% increase YoY (Q3 2014: EUR 3.1 million).

The Q3 results place ADVA Optical Networking in a financially strong position with cash and cash equivalents at EUR 79.3 million. What’s more, net liquidity is at a record high of EUR 50.1 million, while working capital reached EUR 90.0 million. This positive development provides considerable operational flexibility for the company.

“Q3 was an outstanding quarter. We delivered revenues of EUR 122.3 million – a quarterly record for our company,” said Brian Protiva, CEO, ADVA Optical Networking. “This shouldn’t come as any surprise. We’ve built a lot of momentum and seen strong growth throughout the year. One of the keys to our success is our focused innovation. Our business teams are working closely with customers to develop products that they want to buy. You only need to look at our work in the DCI market to see evidence of this. Our technology is leading the field. Another clear example of this success is the 100G metro space. We were the first vendor to address this market and we expect to see further exciting developments here. There can be no question that we’re more competitive now than we’ve ever been.”

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.

Q4 2015 Outlook
In Q4 2015, ADVA Optical Networking expects revenues to range between EUR 107 million and EUR 117 million and anticipates a pro forma operating income of between 6% and 9% 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 Q4 2015 and beyond, which are excluded from the above guidance. The company will publish its Q4 2015 financial results on February 25, 2016.


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