ADVA Optical Networking SE
- WKN: 510300
- ISIN: DE0005103006
- Land: Deutschland
Nachricht vom 24.10.2019 | 07:00
ADVA Optical Networking SE: ADVA posts quarterly revenues of EUR 144.3 million for Q3 2019
DGAP-News: ADVA Optical Networking SE
/ Key word(s): Quarterly / Interim Statement
ADVA posts quarterly revenues of EUR 144.3 million for Q3 2019
Pro forma operating income for Q3 2019 was EUR 7.4 million (5.1% of revenues), compared to EUR 4.3 million (3.3% of revenues) in Q2 2019 and compared to a pro forma operating income of EUR 6.8 million (5.4% of revenues) in the same year-ago period. Pro forma operating income for Q3 2019 was also at the upper end of the company's guidance range of between 3% and 6% of revenues.
Operating income for Q3 2019 of EUR 3.2 million increased from EUR 2.5 million reported for Q2 2019 and decreased compared to EUR 5.0 million in the same year-ago quarter. This is mainly due to tariffs on China-made products in the US market and the strength of the US dollar.
Net income for Q3 2019 increased substantially by 68.9% to EUR 2.2 million from EUR 1.3 million in Q2 2019; however, it declined significantly from EUR 3.9 million in Q3 2018.
At quarter-end, the company's cash and cash equivalents totaled EUR 38.4 million, representing a decrease of 20.5% compared to EUR 48.3 million at the end of Q2 2019. The company built up inventories and thus working capital in the past quarter to reduce the negative impact of import duties, which led to a reduction in cash and cash equivalents.
The company's net debt increased by EUR 6.8 million to EUR 74.9 million from EUR 68.1 million at the end of Q2 2019.
Net working capital at quarter-end was EUR 137.8 million compared to EUR 127.6 million at the end of Q2 2019.
"In the third quarter of the fiscal year, our revenues continued to develop very positively, and we are satisfied with the overall order entry," commented Uli Dopfer, CFO, ADVA. "Both of our two key metrics were at the upper end of our guidance range, and year-over-year we increased revenues significantly by 14.4%. Somewhat challenging, on the other hand, are the negative effects of US trade policy on our business. As such, we've taken several measures to counteract the impact of this trade conflict. These include the relocation of production from China, proactive material purchasing and rapid transfer of pre-engineered subsystems, as well as tightening the control of operational costs. These measures are partly associated with one-time costs but will sustainably support us in terms of the positive development of our profitability."
"We've made significant progress across all of our strategic product groups in Q3. As a result, customer demand for our technology continues to accelerate," said Brian Protiva, CEO, ADVA. "Our new FSP 3000 TeraFlex(TM) terminal is truly industry-leading. It provides open, scalable and programmable optical transmission technology that delivers the lowest cost per bit. With these features, it's no surprise that this product is testing so strongly with our customers. Our FSP 150 packet edge solutions combined with our Ensemble software suite is also drawing strong customer reaction and is playing a pivotal role in the development of new open networking concepts such as edge computing. What's more, our NFV software continues to grow in strength and customer wins are rapidly accelerating. And last but not least, the positive revenue development of our Oscilloquartz synchronization solutions continues to gather momentum. So much so, we expect to exceed our good 2018 results in this area in the current financial year."
The company will publish its financial results for Q4 and the full fiscal year 2019 on February 20, 2020.
To participate, please dial the appropriate number at least five minutes before the start time and ask for the ADVA conference call.
International number: +49 69 201 744 210
A corresponding presentation is available on ADVA's website:
The complete quarterly statement 9M 2019 (January - September) is available as a PDF here: https://www.adva.com/en/about-us/investors/financial-results/financial-statements
A replay of the call will be available here:
|Company:||ADVA Optical Networking SE|
|Phone:||+49 89 890 665 0|
|Fax:||+49 89 890 665 199|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||895645|
|End of News||DGAP News Service|
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