- Revenues of EUR 122.3 Million Drive 40.4% Year-on-Year Growth
- Pro Forma Operating Income Rises to EUR 9.6 Million (7.8% of Revenues)
- Operating Income Increases 174% on 2014 Figures
Q3 2015 IFRS Financial Results
ADVA Optical Networking (FSE: ADV; Prime Standard Segment, TecDAX) announced Q3 2015 financial results for the quarter ended on September 30, 2015 and prepared in accordance with International Financial Reporting Standards (IFRS).
Quarterly revenues climbed to a record of EUR 122.3 million. The Q3 2015 figure marks an all-time high for the company and sees year-on-year (YoY) growth leap by 40.4% (Q3 2014: EUR 87.1 million). Net profit nearly doubled to EUR 8.6 million (Q3 2014: EUR 4.4 million). Today’s figures are in the middle of the guidance forecast that was announced earlier this year on July 23.
The significant increase in revenues and YoY net profit was due to several factors: the demand for data center interconnect (DCI) technology, the continued push for 100G metro solutions and the rebound in European carrier and enterprise spend.
Pro forma operating income in Q3 2015 rose substantially to EUR 9.6 million or 7.8% of revenues, which marks a 173% YoY increase (Q3 2014: EUR 3.5 million) and is at the upper end of the previously announced guidance. The operating income climbed to EUR 8.5 million. This figure is a 174% increase YoY (Q3 2014: EUR 3.1 million).
The Q3 results place ADVA Optical Networking in a financially strong position with cash and cash equivalents at EUR 79.3 million. What’s more, net liquidity is at a record high of EUR 50.1 million, while working capital reached EUR 90.0 million. This positive development provides considerable operational flexibility for the company.
We were the first vendor to address the 100G metro market and we expect to see further exciting developments here.
Additional Key Data
Pro forma financial numbers exclude non-cash charges related to the stock compensation programs and amortization and impairment of goodwill and acquisition-related intangible assets.
Q4 2015 Outlook
In Q4 2015, ADVA Optical Networking expects revenues to range between EUR 107 million and EUR 117 million and anticipates a pro forma operating income of between 6% and 9% 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 Q4 2015 and beyond, which are excluded from the above guidance. The company will publish its Q4 2015 financial results on February 25, 2016.
Conference Call Details
In conjunction with the release of its Q3 2015 financial results on October 22, 2015, ADVA Optical Networking will host a conference call for analysts and investors at 3:00 p.m. CEST / 9:00 a.m. EDT. Participating in the call will be ADVA Optical Networking's CEO, Brian Protiva, and CFO, Ulrich Dopfer. Interested parties may dial in at +49 69 22 22 29 043 or +1 855 402 77 66, pin code 86473684#, 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 at www.advaoptical.com.
The complete 2015 Nine-Month Report (January - September) is available as a PDF on our website: www.advaoptical.com via the links About Us – Investor Relations – Financial Results.
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.
Use of Pro Forma Financial Information
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.