Click here to close now.


Microsoft Cloud Authors: Jayaram Krishnaswamy, Elizabeth White, Andreas Grabner, Jim Kaskade, Pat Romanski

News Feed Item

ADVA Optical Networking Reports Audited 2012 IFRS Financial Results In Line with Expectations

Q4 2012 revenues at EUR 80.3 million, IFRS pro forma operating income of EUR 4.8 million (6.0% of revenues)

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).


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.


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,, located in the "About Us / Investor Relations" section on the "Financial Results" page under "Conference Calls".


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.


(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

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.

Published By:

ADVA Optical Networking SE, Martinsried/Munich and Meiningen, Germany

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


For Press:
Gareth Spence
t +44 1904 699 358

For Investors:
Wolfgang Guessgen
t +49 89 89 0665 940

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that Luxoft Holding, Inc., a leading provider of software development services and innovative IT solutions, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Luxoft’s software development services consist of core and mission-critical custom software development and support, product engineering and testing, and technology consulting.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target - this makes the integration of these separate pipelines and the coordination of software upd...
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT influence Big Data: Device, Connectivity, Context, and Intelligence. He will dive deep to the matrix...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Building actually breathes - immediately flagging overheating in a closet or over cooling in unoccupied ho...
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect and correlate data from control systems, sensors, mobile devices and IT systems for a variety of Ind...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innovation is automation. The most painful pain point for any business is the mismatch between supplies a...
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
As enterprises capture more and more data of all types – structured, semi-structured, and unstructured – data discovery requirements for business intelligence (BI), Big Data, and predictive analytics initiatives grow more complex. A company’s ability to become data-driven and compete on analytics depends on the speed with which it can provision their analytics applications with all relevant information. The task of finding data has traditionally resided with IT, but now organizations increasingly turn towards data source discovery tools to find the right data, in context, for business users, d...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 150 developers, designers, quality assurance engineers, project manage...