Business & Finance
Business and Finance
Business and Finance
Thu, February 24, 2011
Wed, February 23, 2011 ADVA Optical Networking Reports Audited 2010 IFRS Financial Results in Line With Expectations
MARTINSRIED, GERMANY and MUNICH, GERMANY and NORCROSS, GA--(Marketwire - February 23, 2011) - ADVA Optical Networking announced Q4 and audited full-year 2010 financial results for the period ended December 31, 2010, and prepared in accordance with International Financial Reporting Standards (IFRS).
Q4 2010 IFRS Financial Results
Revenues in Q4 2010 totaled EUR 79.4 million after EUR 59.6 million in Q4 2009 and EUR 80.5 million in Q3 2010. This result is in line with guidance of between EUR 76 million and EUR 81 million. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 4.3 million in Q4 2010 or 5.4% of revenues, also in line with guidance of between 2% and 6% of revenues. This compares to Q4 2009 IFRS pro forma operating income of EUR 3.1 million or 5.2% of revenues, and to Q3 2010 IFRS pro forma operating income of EUR 4.4 million or 5.5% of revenues. To a large degree, the year-over-year improvement of pro forma operating income is due to revenue growth.
The IFRS operating income in Q4 2010 was EUR 3.1 million, up from EUR 2.1 million in Q4 2009. The key driver for this development is the above-mentioned increase in pro forma operating income.
The IFRS net income in Q4 2010 amounted to EUR 1.6 million after EUR 1.4 million in Q4 2009. The positive development of operating income described above was mostly compensated by higher tax expenses of EUR 1.9 million in Q4 2010 after EUR 1.2 million in Q4 2009. Basic and diluted IFRS net earnings per share at EUR 0.03 in Q4 2010 were unchanged from Q4 2009.
Full-Year 2010 IFRS Financial Results
Driven by increased enterprise, Ethernet access and carrier infrastructure business, revenues rose to a record high of EUR 291.7 million in 2010, 25.3% higher than the EUR 232.8 million reported in 2009. IFRS pro forma operating income at EUR 13.3 million in 2010 or 4.6% of revenues was significantly higher than the EUR 6.1 million or 2.6% of revenues in 2009. This improvement is largely due to higher revenues.
The IFRS operating income at EUR 9.3 million in 2010 was also significantly up vs. EUR 2.3 million in 2009. The major reason for this positive development is the above-mentioned increase in pro forma operating income.
Finally, IFRS net income amounted to EUR 7.0 million in 2010 after EUR 1.3 million in 2009. Beyond the development of the operating income mentioned above, the increase in the net result was positively affected by net foreign currency exchange gains of EUR 3.1 million in 2010 after EUR 0.5 million in the previous year. This was partially offset by higher income tax expenses of EUR 4.0 million in 2010 after EUR 0.3 million in 2009. Basic and diluted IFRS net earnings per share were EUR 0.15 in 2010, significantly up from EUR 0.03 in 2009.
Conference Call
In conjunction with the release of its full-year 2010 audited IFRS financial results on February 24, 2011, 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 at [ www.advaoptical.com ].
Q1 2011 Outlook
2011 is likely to be a year of continuing global recovery, although with significant volatility. ADVA Optical Networking therefore remains cautious about revenue development for the year. In Q1 2011, the Company expects revenues to range between EUR 70 million and EUR 75 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 2011 and beyond. The pro forma operating income guidance provided above excludes any such potential impairment charges. ADVA Optical Networking will publish its Q1 2011 financial results on April 20, 2011.
IFRS Consolidated Income Statement (in thousands of EUR, Q4 Q4 FY FY except earnings per share) 2010 2009 2010 2009 Revenues 79,403 59,600 291,725 232,808 Pro forma cost of goods sold -45,656 -32,550 -170,501 -132,851 Pro forma gross profit 33,747 27,050 121,224 99,957 Pro forma selling and marketing expenses -12,304 -9,390 -42,947 -36,725 Pro forma general and administrative expenses -5,932 -6,029 -23,277 -23,280 Pro forma research and development expenses -12,565 -10,449 -49,391 -40,714 Income from capitalization of development expenses, net of amortization for capitalized development projects 681 991 3,918 5,214 Other operating income (expenses), net 667 931 3,761 1,650 Pro forma operating income 4,294 3,104 13,288 6,102 Amortization of intangible assets from acquisitions -638 -591 -2,141 -2,443 Stock compensation expenses -551 -428 -1,848 -1,378 Operating income 3,105 2,085 9,299 2,281 Interest income (expense), net -447 -301 -1,439 -1,215 Other income (expense), net 828 842 3,130 543 Income before tax 3,486 2,626 10,990 1,609 Income tax benefit (expense), net -1,863 -1,217 -3,983 -289 Net income 1,623 1,409 7,007 1,320 Earnings per share in EUR basic 0.03 0.03 0.15 0.03 diluted 0.03 0.03 0.15 0.03 # # #
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.
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
ADVA AG Optical Networking Campus Martinsried, Fraunhoferstr. 9a Martinsried/Munich Germany
WKN: 510300;ISIN: DE0005103006;
Listed: Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Bayerische Börse München, Freiverkehr in Niedersächsische Börse zu Hannover, Prime Standard in Frankfurter Wertpapierbörse, Regulierter Markt in Frankfurter Wertpapierbörse;
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Source: ADVA AG Optical Networking via Thomson Reuters ONE
[HUG#1491926]
