|By Marketwired .||
|February 27, 2013 06:55 PM EST||
MARTINSRIED, GERMANY and MUNICH, GERMANY -- (Marketwire) -- 02/27/13 -- ADVA Optical Networking announced Q4 and audited full-year 2012 financial results for the period ended December 31, 2012, and prepared in accordance with International Financial Reporting Standards (IFRS).
Q4 2012 IFRS FINANCIAL RESULTS
Revenues totaled EUR 80.3 million in Q4 2012 and were in the upper half of guidance of between EUR 77 million and EUR 82 million. Revenues are down 3.8% vs. Q4 2011 at EUR 83.4 million and down 2.4% vs. Q3 2012 at EUR 82.3 million. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 4.8 million in Q4 2012 or 6.0% of revenues, at the upper end of guidance of between 2% and 6% of revenues. This compares to Q4 2011 IFRS pro forma operating income of EUR 7.4 million or 8.9% of revenues, and to Q3 2012 IFRS pro forma operating income of EUR 5.6 million or 6.8% of revenues. These developments are largely due to lower revenues and increased selling and marketing expenses.
The IFRS operating income in Q4 2012 was EUR 4.3 million, down from EUR 6.7 million in Q4 2011. This is due to the above-mentioned reasons for lower pro forma operating income.
The IFRS net income in Q4 2012 amounted to EUR 4.1 million after EUR 8.7 million in Q4 2011. Beyond the reduced operating income, net foreign currency exchange losses of EUR 0.1 million in Q4 2012 after gains of EUR 1.9 million in Q4 2011 contributed to this decrease. Basic and diluted IFRS net earnings per share were EUR 0.09 and EUR 0.08, respectively, down from EUR 0.18 each in Q4 2011.
FULL-YEAR 2012 IFRS FINANCIAL RESULTS
Driven by increased Ethernet access business, revenues rose to a record high of EUR 330.1 million in 2012, 6.2% above the EUR 310.9 million reported in 2011. IFRS pro forma operating income increased from EUR 17.3 million or 5.6% of revenues in 2011 to EUR 21.8 million or 6.6% of revenues in 2012. This improvement is largely due to revenue and gross margin growth.
2012 IFRS operating income at EUR 18.8 million also increased significantly from EUR 13.2 million in 2011. The main reason for this positive development is the above-mentioned increase in pro forma operating income and a reduction in amortization of intangible assets from acquisitions from EUR 2.5 million in 2011 to EUR 1.6 million in 2012.
Finally, IFRS net income amounted to EUR 16.7 million in 2012, slightly down vs. EUR 16.9 million in 2011. The positive operating income development was mostly compensated by income tax expenses of EUR 1.8 million after income tax benefits of EUR 2.9 million in 2011. Furthermore, net foreign currency exchange gains of EUR 0.8 million in 2012 were lower than the EUR 2.3 million recorded in 2011. Basic and diluted IFRS net earnings per share were EUR 0.35 and EUR 0.34 in 2012, slightly down from EUR 0.36 and EUR 0.35, respectively, in 2011.
"We are very pleased with our Q4 2012 results which were achieved in a very volatile macro-economic environment. At EUR 80.3 million, our Q4 2012 revenues are in the upper half of guidance. Our pro forma gross margin strengthened from 39.3% in Q3 2012 and 40.0% in Q4 2011, to 41.8% in Q4 2012. Prior to amortization of capitalized development expenses, pro forma gross margin increased from 44.5% in Q3 2012 and 43.9% in Q4 2011, to 46.7% in Q4 2012. We achieved pro forma operating income of 6.0% of revenues in Q4 2012, at the upper end of guidance, demonstrating our focus on managing operational costs. In addition, cash and cash equivalents were at another record high of EUR 70.6 million at the end of Q4 2012, slightly up from EUR 70.3 million at the end of the previous quarter. Throughout the year, ADVA Optical Networking maintained financial strength, with an equity ratio in excess of 50% and record high net liquidity at the end of every quarter. At year-end 2012, net liquidity was at an all-time high of EUR 41.6 million, up from EUR 41.3 million at the end of Q3 2012. For the full year 2012, through a combination of revenue growth, increased gross margins, and enhanced operational excellence, we were able to further grow profitability. Pro forma operating income grew by 26%, from EUR 17.3 million or 5.6% of revenues in 2011 to EUR 21.8 million or 6.6% of revenues in 2012," commented Jaswir Singh, chief financial officer & chief operating officer of ADVA Optical Networking.
In conjunction with the release of its full-year 2012 audited IFRS financial results on February 28, 2013, ADVA Optical Networking will host a conference call for analysts and investors at 3:00 p.m. CET / 9:00 a.m. EST. Participating in the call will be ADVA Optical Networking's chief executive officer, Brian Protiva, and chief financial officer & chief operating officer, Jaswir Singh. Interested parties may dial in at +49 69 201744 210 or +1 877 423 0830, pin code 997 939#, and download the corresponding presentation from ADVA Optical Networking's website, www.advaoptical.com, located in the "About Us / Investor Relations" section on the "Financial Results" page under "Conference Calls".
Q1 2013 OUTLOOK
In Q1 2013, ADVA Optical Networking expects revenues to range between EUR 72 million and EUR 77 million, and anticipates pro forma operating income of between -2% and +2% of revenues. As a matter of caution, ADVA Optical Networking notes that it will continue to perform quarterly reviews of the expected business development with respect to all intangible assets, including capitalized development expenses. In case of highly adverse business prospects, these reviews may result in non-cash impairment charges in Q1 2013 and beyond. The pro forma operating income guidance provided above excludes any such potential impairment charges. ADVA Optical Networking will publish its Q1 2013 financial results on April 25, 2013.
"Despite the difficult macro-economic environment, we achieved our goal to grow profitably. ADVA Optical Networking successfully recognizes and targets rapidly changing technology trends and growth markets. We continue to be the multi-year global market leader in Ethernet Access Devices with a market share of more than 20%, and remain a strong competitor in EMEA for metro optical transport solutions. Although long-term growth perspectives continue to be strong, for 2013 we are likely to face significant volatility in our market. Current carrier investment plans draw a mixed picture. However, an increasing share of the carriers' spending will flow into the migration to LTE projects which should translate into incremental business for ADVA Optical Networking. Beyond potential full-year revenue growth, our focus on innovation and strategic technology partnerships will result in an expanding share of higher- margin, software-heavy applications as well as expanded service offerings, supporting our long-term profitability commitment," stated Brian Protiva, chief executive officer of ADVA Optical Networking.
IFRS CONSOLIDATED INCOME STATEMENT (in thousands of EUR, Q4 Q4 FY FY except earnings per share) 2012 2011 2012 2011 Revenues 80,268 83,432 330,069 310,945 Pro forma cost of goods sold(*) -46,711 -50,099 -196,820 -191,560 --------------------------------------------------------------------------- Pro forma gross profit(*) 33,557 33,333 133,249 119,385 Pro forma selling and marketing expenses -12,995 -11,296 -46,259 -43,411 Pro forma general and administrative expenses -6,114 -5,465 -25,725 -24,007 Pro forma research and development expenses -15,515 -16,848 -65,055 -60,083 Income from capitalization of development expenses(*) 5,064 7,397 23,529 23,648 Other operating income and expenses, net 840 291 2,059 1,751 --------------------------------------------------------------------------- Pro forma operating income 4,837 7,412 21,798 17,283 Amortization of intangible assets from acquisitions -145 -640 -1,620 -2,493 Stock compensation expenses -404 -98 -1,344 -1,583 --------------------------------------------------------------------------- Operating income 4,288 6,674 18,834 13,207 Interest income and expenses, net -298 -378 -1,163 -1,531 Other financial gains and losses, net -138 1,937 834 2,328 --------------------------------------------------------------------------- Income before tax 3,852 8,233 18,505 14,004 Income tax benefit (expense), net 249 451 -1,783 2,935 --------------------------------------------------------------------------- Net income 4,101 8,684 16,722 16,939 Earnings per share in EUR Basic 0.09 0.18 0.35 0.36 Diluted 0.08 0.18 0.34 0.35
(*) Research and development expenses include income from capitalization of development expenses. From 2012, amortization for capitalized development projects is presented as cost of goods sold. Prior period information has been adjusted accordingly, by reclassification of amortization from research and development expenses to cost of goods sold. The effect on cost of goods sold amounted to EUR 3,917/15,394 thousand and EUR 3,267/14,131 thousand in Q4/12M 2012 and Q4/12M 2011, respectively.
About ADVA Optical Networking
ADVA Optical Networking is a global provider of intelligent telecommunications infrastructure solutions. With software-automated Optical+Ethernet transmission technology, the Company builds the foundation for high-speed, next- generation networks. The Company's FSP product family adds scalability and intelligence to customers' networks while removing complexity and cost. With a flexible and fast-moving organization, ADVA Optical Networking forges close partnerships with its customers to meet the growing demand for data, storage, voice and video services. Thanks to reliable performance for two decades, the Company has become a trusted partner for more than 250 carriers and 10,000 enterprises across the globe. For more information, please visit us at www.advaoptical.com.
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.
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.
ADVA Optical Networking SE, Martinsried/Munich and Meiningen, Germany www.advaoptical.com
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ADVA Optical Networking SE via Thomson Reuters ONE
t +44 1904 699 358
t +49 89 89 0665 940
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
May. 25, 2016 02:30 PM EDT Reads: 1,844
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
May. 25, 2016 02:15 PM EDT Reads: 2,101
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
May. 25, 2016 02:00 PM EDT Reads: 1,502
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 25, 2016 02:00 PM EDT Reads: 1,121
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
May. 25, 2016 02:00 PM EDT Reads: 1,009
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 25, 2016 01:45 PM EDT Reads: 908
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
May. 25, 2016 01:30 PM EDT Reads: 2,471
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 25, 2016 12:45 PM EDT Reads: 1,160
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 25, 2016 12:45 PM EDT Reads: 901
Cloud-based NCLC (No-code/low code) application builder platforms empower everyone in the organization to quickly build applications and executable processes that broaden access, deepen collaboration, and enhance transparency for all team members. Line of business owners (LOBO) and operations managers know best their part of the business and their processes. IT departments are beginning to leverage NCLC platforms to empower and enable LOBOs to lead the innovation, transform the organization, an...
May. 25, 2016 12:00 PM EDT Reads: 1,647
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 25, 2016 11:00 AM EDT Reads: 839
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 25, 2016 10:15 AM EDT Reads: 386
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
May. 25, 2016 09:45 AM EDT Reads: 1,708
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
May. 25, 2016 09:30 AM EDT Reads: 1,258
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
May. 25, 2016 09:15 AM EDT Reads: 2,067
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
May. 25, 2016 09:00 AM EDT Reads: 1,241
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 25, 2016 04:15 AM EDT Reads: 3,049
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
May. 25, 2016 04:00 AM EDT Reads: 1,718
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 25, 2016 02:00 AM EDT Reads: 1,165
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 24, 2016 06:00 PM EDT Reads: 4,682