SOURCE: ADVA AG Optical Networking

March 02, 2010 18:54 ET

ADVA Optical Networking Reports Audited 2009 IFRS Financial Results Above Guidance for Q4

MARTINSRIED/MUNICH, GERMANY--(Marketwire - March 2, 2010) -


-- Q4 2009 revenues at EUR 59.6 million, IFRS pro forma operating income of EUR 3.1 million (5.2% of revenues)

-- FY 2009 revenues at EUR 232.8 million, IFRS pro forma operating income of EUR 6.1 million (2.6% of revenues)

-- Q1 2010 revenues expected to range between EUR 57 million and EUR 62 million with IFRS pro forma operating income between 0% and 4% of revenues


NORCROSS, GEORGIA, USA and MARTINSRIED/MUNICH, GERMANY -- ADVA Optical Networking announces Q4 and audited full-year 2009 financial results for the period ended December 31, 2009, and prepared in accordance with International Financial Reporting Standards (IFRS).

Q4 2009 IFRS FINANCIAL RESULTS

Revenues in Q4 2009 totaled EUR 59.6 million after EUR 56.8 million in Q4 2008 and EUR 58.1 million in Q3 2009, slightly above guidance of between EUR 54 million and EUR 59 million. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 3.1 million in Q4 2009 or 5.2% of revenues, also above guidance of between -1% and +4% of revenues. This compares to a Q4 2008 IFRS pro forma operating income of EUR 0.1 million or 0.1% of revenues, and to Q3 2009 IFRS pro forma operating income of EUR 2.0 million or 3.4% of revenues. To a large degree, the year-over-year improvement of pro forma operating income is due to revenue growth and higher gross margins. The IFRS operating income in Q4 2009 was EUR 2.1 million, after an operating loss of EUR 0.5 million in Q4 2008. The key driver for this development is the above-mentioned increase in pro forma operating income, offset in part by stock compensation expenses of EUR 0.4 million in Q4 2009 after EUR -0.1 million in Q4 2008.

The IFRS net income in Q4 2009 amounted to EUR 1.4 million, after a net loss of EUR 2.2 million in Q4 2008. This significant improvement was largely driven by the factors impacting the development of the operating result described above, as well as net foreign currency exchange gains of EUR 0.8 million in Q4 2009 after a loss of EUR 0.2 million in Q4 2008. Basic and diluted IFRS net earnings per share were EUR 0.03 each in Q4 2009 after EUR -0.05 each in Q4 2008.

FULL-YEAR 2009 IFRS FINANCIAL RESULTS

Driven by improved Ethernet access and carrier infrastructure business, revenues came in at EUR 232.8 million in 2009, 7.0% higher than the EUR 217.7 million reported in 2008. IFRS pro forma operating income at EUR 6.1 million in 2009 or 2.6% of revenues was significantly higher than the pro forma operating loss of EUR 0.7 million or negative 0.3% of revenues in 2008. This improvement is largely due to higher revenues.

The IFRS operating income in 2009 was EUR 2.3 million, after an operating loss of EUR 7.0 million in 2008. The major reasons for this positive development are the above-mentioned increase in pro forma operating income as well as significantly lower amortization of intangible assets from acquisitions of EUR 2.4 million in 2009 after EUR 4.6 million in 2008.

Finally, ADVA Optical Networking's IFRS net income amounted to EUR 1.3 million in 2009, after a net loss of EUR 8.9 million in 2008. Beyond the development of the operating income mentioned above, the increase in the net result was impacted by net foreign currency exchange gains of EUR 0.5 million in 2009 after a loss of EUR 1.1 million in 2008. Basic and diluted IFRS net earnings per share were EUR 0.03 each in 2009, after EUR -0.19 each in 2008.

CONFERENCE CALL

In conjunction with the release of its full-year 2009 audited IFRS financial results on March 3, 2010, 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 4035 9611 or +1 866 306 3455, and download the corresponding presentation from ADVA Optical Networking's website, located on the "financial results" page under "conference calls" in the investor relations section of ADVA Optical Networking's website atwww.advaoptical.com.

Q1 2010 OUTLOOK

The macro-economic environment continues to recover slowly and with significant volatility. ADVA Optical Networking therefore remains cautious about revenue development in 2010. In Q1 2010, the Company expects revenues to range between EUR 57 million and EUR 62 million, and anticipates pro forma operating income of between 0% and 4% of revenues. Further, ADVA Optical Networking notes that it will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capitalized research and development expenses. These reviews may result in non-cash impairment charges in Q1 2010 and beyond. The pro forma operating income guidance provided above excludes any such potential impairment charges. ADVA Optical Networking will publish its Q1 2010 financial results on April 29, 2010. IFRS CONSOLIDATED INCOME STATEMENT

 (in thousands of EUR,                         Q4      Q4       FY       FY
 except earnings per share)                  2009    2008     2009     2008



 Revenues                                  59,600  56,849  232,808  217,672

 Pro forma cost of goods sold             -32,550 -32,746 -132,851 -125,802
---------------------------------------------------------------------------
 Pro forma gross profit                    27,050  24,103   99,957   91,870

 Pro forma
 selling and marketing expenses            -9,390  -9,157  -36,725  -34,087

 Pro forma
 general and administrative expenses       -6,029  -6,746  -23,280  -26,298

 Pro forma
 research and development expenses        -10,449 -10,010  -40,714  -40,682

 Income from capitalization of development
 expenses, net of amortization for
 capitalized development projects             991   1,501    5,214    9,004

 Restructuring expenses                         0       0        0   -2,251

 Other operating income (expenses), net       931     388    1,650    1,736
---------------------------------------------------------------------------
 Pro forma operating income                 3,104      79    6,102     -708

 Amortization of
 intangible assets from acquisitions         -591    -747   -2,443   -4,574

 Stock compensation expenses                 -428     121   -1,378   -1,761
---------------------------------------------------------------------------
 Operating income (loss)                    2,085    -547    2,281   -7,043

 Interest income (expense), net              -301    -262   -1,215   -1,005

 Other income (expense), net                  842    -171      543   -1,103
---------------------------------------------------------------------------
 Income (loss) before tax                   2,626    -980    1,609   -9,151

 Income tax benefit (expense), net         -1,217  -1,198     -289      275
---------------------------------------------------------------------------
 Net income (loss)                          1,409  -2,178    1,320   -8,876


 Earnings per share in EUR

    basic                                    0.03   -0.05     0.03    -0.19

    diluted                                  0.03   -0.05     0.03    -0.19


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 AG Optical Networking
Campus Martinsried, Fraunhoferstr. 9a Martinsried/Munich Germany

WKN: 510300;ISIN: DE0005103006 ;Index:CDAX,TECH All Share,Prime All Share;
Listed: Freiverkehr in Hanseatische Wertpapierborse zu Hamburg,
Freiverkehr in Borse Berlin,
Freiverkehr in Borse Dusseldorf,
Freiverkehr in Bayerische Borse Munchen,
Freiverkehr in Niedersachsische Borse zu Hannover,
Prime Standard in Frankfurter Wertpapierborse,
Regulierter Markt in Frankfurter Wertpapierborse;

Contact Information

  • PUBLISHED BY:
    ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany
    ADVA Optical Networking North America, Inc., Norcross, Georgia, USA
    ADVA Optical Networking (Shenzhen) Ltd., Shenzhen, China
    www.advaoptical.com

    FOR PRESS:
    Christine Keck
    t +1 301 920 0237 (U.S.)
    t +44 1904 699 358 (Europe)
    t +86 755 8621 7400 (Asia)
    public-relations(at)advaoptical.com

    FOR INVESTORS:
    Wolfgang Guessgen
    t +1 201 940 7212 (U.S.)
    t +49 89 89 0665 940 (Europe)
    t +86 755 8621 7400 (Asia)
    investor-relations(at)advaoptical.com

    [HUG#1390323]