ADVA Optical Networking Reports Q1 2014 Financial Results In Line with Guidance

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ADVA Optical Networking Reports Q1 2014 Financial Results In Line with Guidance

Q1 2014 revenues at EUR 78.1 million

Q1 2014 IFRS pro forma operating income of EUR 0.4 million (0.5% of revenues)

Q2 2014 revenues expected to range between EUR 84 million and EUR 89 million with IFRS pro forma operating income between -2% and +2% of revenues


Martinsried/Munich, Germany. April 24, 2014. ADVA Optical Networking (FSE: ADV) announced Q1 2014 financial results for the quarter ended on March 31, 2014, and prepared in accordance with International Financial Reporting Standards (IFRS).

Q1 2014 IFRS FINANCIAL RESULTS
Revenues totaled EUR 78.1 million in Q1 2014 and were at the upper end of guidance of between EUR 74 million and EUR 79 million. This is up 1.4% vs. Q1 2013 at EUR 77.0 million and up 2.5% vs. EUR 76.2 million in Q4 2013. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 0.4 million or 0.5% of revenues, and was in line with guidance of between -2% and +2% of revenues. This compares to EUR 0.8 million or 1.0% of revenues in Q1 2013 and EUR 2.3 million or 3.0% of revenues in Q4 2013. These developments are largely due to lower gross margins adversely impacted by product and customer mix, higher amortization charges for capitalized development projects and reduced income from capitalization of development expenses.

IFRS operating income amounted to EUR 0.1 million in Q1 2014, after EUR 0.4 million in Q1 2013. The key driver for this unfavorable development is the above-mentioned decrease of pro forma operating income. The decline in part is offset by lower stock compensation expenses, which amounted to EUR 0.1 million in Q1 2014 after EUR 0.3 million in Q1 2013.

Q1 2014 IFRS net loss amounted to EUR 0.4 million, after a net income of EUR 0.8 million in Q1 2013. The reduction was largely driven by the development of the operating result described above, as well as higher interest expenses of EUR 0.4 million after EUR 0.2 million in Q1 2013. Basic and diluted IFRS net earnings per share were EUR -0.01 each in Q1 2014 after EUR 0.02 each in Q1 2013.