|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
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
May. 4, 2016 08:15 AM EDT Reads: 979
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
May. 4, 2016 08:00 AM EDT Reads: 1,296
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 4, 2016 08:00 AM EDT Reads: 1,166
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
May. 4, 2016 08:00 AM EDT Reads: 1,242
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
May. 4, 2016 07:45 AM EDT Reads: 1,180
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
May. 4, 2016 07:30 AM EDT Reads: 402
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 4, 2016 07:00 AM EDT Reads: 827
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
May. 4, 2016 05:30 AM EDT Reads: 409
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
May. 4, 2016 04:45 AM EDT Reads: 1,338
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 3, 2016 10:00 PM EDT Reads: 1,368
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
May. 3, 2016 08:45 PM EDT Reads: 1,297
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
May. 3, 2016 08:30 PM EDT Reads: 1,253
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
May. 3, 2016 08:00 PM EDT Reads: 1,089
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 3, 2016 03:15 PM EDT Reads: 1,224
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
May. 3, 2016 12:30 PM EDT Reads: 1,205
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
May. 3, 2016 12:15 PM EDT Reads: 1,604
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 3, 2016 12:00 PM EDT Reads: 1,384
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 3, 2016 09:45 AM EDT Reads: 1,490
SYS-CON Events announced today that Fusion, a leading provider of cloud services, 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. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
May. 2, 2016 10:00 AM EDT Reads: 2,711
SYS-CON Events announced today that DatacenterDynamics 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. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
May. 2, 2016 06:30 AM EDT Reads: 2,583