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ADVA Optical Networking 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."

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.

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