Q1 2007 revenues up 85% on Q1 2006
to reach a new all-time high of EUR 68.7 million
to reach a new all-time high of EUR 68.7 million
IFRS Q1 2007 record pro forma operating income of EUR 6.9 million
(10% of revenues)
(10% of revenues)
Q2 2007 revenues forecasted to be at least EUR 66 million with
pro forma operating margin of at least 7%
pro forma operating margin of at least 7%
Mahwah, New Jersey, USA and Martinsried/Munich, Germany. May 8, 2007. ADVA Optical Networking today announced Q1 2007 financial results for the quarter ended March 31, 2007, and prepared in accordance with International Financial Reporting Standards (IFRS).
Q1 2007 IFRS FINANCIAL RESULTS
Revenues in Q1 2007 totaled EUR 68.7 million, up 85% when compared to EUR 37.1 million in Q1 2006 and up 12% when compared to EUR 61.3 million in Q4 2006, respectively. IFRS pro forma operating income, excluding stock-based compensation and amortization and impairment of goodwill and acquisition-related intangible assets, was at EUR 6.9 million in Q1 2007, up from EUR 5.7 million in Q1 2006, driven by increased revenues as well as the fact that general & administrative and selling & marketing expenses grew at less pronounced rates than revenues. IFRS pro forma quarterly net profit was at EUR 4.8 million in Q1 2007, up from EUR 3.8 million in Q1 2006, with diluted pro forma net earnings per share of EUR 0.10 both in Q1 2007 and in Q1 2006, respectively.
Q1 2007 IFRS actual net profit amounted to EUR 1.4 million after EUR 3.0 million in Q1 2006, largely driven by increased amortization of acquisition-related intangible assets excluding goodwill related to the acquisition of Movaz in July 2006. Diluted net earnings per share were EUR 0.03 in Q1 2007 and EUR 0.08 in Q1 2006.
CONFERENCE CALL AND WEBCAST
In conjunction with the release of its Q1 2007 IFRS financial results, today, May 8, 2007, ADVA Optical Networking will host a conference call for analysts and investors at 3:00 p.m. CEDT/9:00 a.m. EDT. Participating in the call will be ADVA Optical Networking's Chief Executive Officer, Brian Protiva, and Chief Financial Officer, Andreas Rutsch. Interested parties may dial in at +49 69 2711 3400 or +1 877 527 5884, and listen live via webcast on ADVA Optical Networking's website, located on the 'webcasts' page in the investor relations section of ADVA Optical Networking's website at www.advaoptical.com.
Q2 AND FULL-YEAR 2007 OUTLOOK
ADVA Optical Networking is forecasting its market for optical WDM and Ethernet access solutions for metro networks to grow by 20% to 25% in 2007. These expectations are based on steadily increasing demand for bandwidth from residential end customers and corporations, with carriers returning to rapid investment in new optical networking infrastructure solutions. Based on an exceptionally strong Q1 2007, ADVA Optical Networking is projecting Q2 2007 revenues of at least EUR 66 million with an IFRS pro forma operating margin of at least 7% of revenues. This takes into account dramatically lower revenue contribution from one major distribution channel. For FY 2007, however, ADVA Optical Networking is increasing its revenue guidance from at least EUR 260 million to at least EUR 267 million, reflecting the strong underlying growth of its Optical+Ethernet business, with IFRS pro forma operating income of at least 9% of revenues. These projections reflect ADVA Optical Networking's clear strategy to aggressively pursue new customer and distribution opportunities, to focus on the ongoing integration of Movaz and to invest in the global expansion of research and development. ADVA Optical Networking will release its financial results for the quarter ending June 30, 2007, on August 2, 2007.
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PUBLISHED BY:
ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany
ADVA Optical Networking Inc., Mahwah, New Jersey, USA
ADVA Optical Networking Corp., Tokyo, Japan
FOR PRESS:
Christine Keck
t +1 201 258 8293 (U.S.)
t +44 1904 699 358 (Europe)
t +81 3 5408 5891 (Asia)
FOR INVESTORS:
Wolfgang Guessgen
t +1 201 258 8300 (U.S.)
t +49 89 89 0665 940 (Europe)
t +81 3 5408 5891 (Asia)