Adva Optical. Fakten, Daten, Hintergründe für unsere Pusher und Basher (Seite 1988)

[Agnetha]

oh Gott, Prior empfielt Adva

... und ich hab gerade für 2,84 zurückgekauft, was ich für 3,60 verkauft hatte... d.h. ja jetzt wohl, daß der Kurs noch weiter fällt

Agnetha, verzweifelt

[cherry2000]

18.06.2003
ADVA Kursziel 4,50 Euro
Prior Börse

Die Experten des Börsenbriefs "Prior Börse" sehen für die Aktie von ADVA (ISIN DE0005103006/ WKN 510300) ein Kursziel von 4,50 Euro.

Seit Gründung im Jahr 1994 habe die Gesellschaft Verluste von 215 Mio. Euro angehäuft. Die Zeit roter Zahlen scheine nun vorbei zu sein. Im 1. Quartal habe die Gesellschaft 590.000 Euro nach Steuern verdient. Der Umsatz habe sich bei 21,3 Mio. Euro stabilisiert.

Dass die Gesellschaft längst nachhaltig die Gewinnzone erreicht habe, sei bereits im Vorjahr, insbesondere aber im 4. Quartal zu erkennen gewesen. Von Oktober bis Dezember habe ADVA einen Gewinn von netto 4 Mio. Euro erzielt, bei einem Umsatz von 22,2 Mio. Euro.

Derzeit belaufe sich die Marktkapitalisierung auf rund 100 Mio. Euro. Dies sei nicht viel für ein rentables Hightech-Unternehmen, das im vergangenen Jahr 88 Mio. Euro umgesetzt habe. Die Eigenkapitalquote betrage 55%. In der Kasse befänden sich 15 Mio. Euro. Das Unternehmen habe zwar noch einen 13 Mio. Euro schweren Kredit bei der Deutschen Bank laufen. Doch der Schuldenpegel sinke von Quartal zu Quartal.

Die Experten der "Prior Börse" sehen das Kursziel für die ADVA-Aktie bei 4,50 Euro.

[Mielke50]

@DoktorNo - ich habe noch nicht zugekauft, ich denke, daß wir die 2,50 € in Kürze sehen werden.Eine Korrektur, nachdem das alles ziemlich schnell ging, scheint angebracht. Langfristig sehe ich dann den Kurs zum Ende des Jahres um 3€. Grüße

[equitytrader]

@raunzer

Wie wär`s wenn wir uns die €3 für den HV-Bericht teilen, bin nämlich auch neugierig was da drin steht

[DoktorNO]

@ mielke

sieht doch ganz gut aus heute.... koennen wohl so zwischen 2,50 und 2,80 unsere Positionen wieder aufstocken! Habe gerade den ersten Zukauf getaetigt.

Gruss, DNO

[tandill]

Schön, der Kurs geht aber erst mal rückwärts. Unter 2 vielleicht eine Kaufmöglichkeit.

mfg

[tuzzi]

FSP 3000 SYSTEME VON ADVA OPTICAL NETWORKING ERHALTEN QUALIFIZIERUNG VON EMC

Martinsried/Muenchen. 17. Juni 2003. ADVA Optical Networking (FWB: ADV), ein fuehrender globaler Anbieter optischer Netzwerkloesungen, hat bekannt gegeben, dass die Fiber Service Platform (FSP) 3000 Systeme Interoperabilitaetstests im Rahmen des E-Lab Tested Program der EMC Corporation erfolgreich abgeschlossen haben.

Grossunternehmen und Netzbetreiber koennen die FSP 3000 Systeme nun zusammen mit den EMC-Netzwerk-Speichersystemen Symmetrix, der Remote-Replication-Software SRDF (Symmetrix Remote Data Facility) und den EMC CLARiiON Storage-Systemen mit der MirrorView Software einsetzen und dabei den kombinierten technischen Support von EMC und ADVA nutzen. Die haeufigsten Einsatzbereiche dieser System-Kombinationen sind Disaster Recovery, Hochverfuegbarkeitsloesungen (Business Continuity) und Konsolidierung von Rechnungszentren. Die FSP-Systeme von ADVA ermoeglichen eine betraechtliche Steigerung der UEbertragungsdistanzen fuer die Replikation unternehmenskritischer Daten auf Speichersystemen an entfernten Standorten. Erreicht wird dies durch die Optimierung der verfuegbaren Bandbreiten mithilfe der Coarse und Dense Wavelength Division Multiplexing- (C/DWDM) Technologie.

Chuck Hollis, Vice President of Markets and Products bei EMC, erklaert, "Unser E-Lab Tested Qualifizierungsverfahren besteht aus einer Reihe sehr anspruchsvoller Funktionalitaets- und Zuverlaessigkeitstests, welche die Interoperabilitaet aller Komponenten eines Multivendor-Speichernetzwerks gewaehrleisten. Die E-Lab-Qualifizierung stellt sicher, dass die optische Metronetzwerk-Plattform von ADVA vollstaendig interoperabel mit den Netzwerkspeichersystemen von EMC ist. Dadurch sind Kunden in der Lage, heterogene Speichernetzwerke schnell, zuverlaessig und kostenguenstig zu implementieren."

"Die Anbindung von entfernten Speichersystemen ist heute eine der wichtigsten Applikationen fuer Netzwerke der Grossunternehmen und Netzbetreiber", erklaert Brian P. McCann, Vorstand Marketing & Strategie bei ADVA Optical Networking. "Optische Metronetzwerk-Loesungen bieten im Vergleich zu einer T3/E3-Loesung eine bis zu 50 mal hoehere Bandbreite bei gleichen Kosten. Dadurch werden die Speichersysteme mit optischer Anbindung zu einer extrem flexiblen und kostenguenstigen Alternative. Hinzu kommen Vorteile wie die Unterstuetzung fuer native Fibre Channel- und Ethernet-Schnittstellen, die dafuer sorgen, dass die Loesungen von ADVA zusaetzliche Marktchancen fuer Remote-Speicherloesungen bieten."

EMC ist einer der fuehrenden Anbieter von IT-Infrastruktur fuer moderne, komplexe Multivendor-Umgebungen. Das Unternehmen hat ueber 2 Milliarden US-Dollar in sein E-Lab Programm fuer Interoperabilitaetstests investiert. ADVA und EMC arbeiten seit Anfang 2002 zusammen und haben Interoperabilitaetstests sowohl fuer die FSP 2000 als auch die FSP 3000 abgeschlossen. Detaillierte Ergebnisse der Tests, die auch die FSP-Produkte von ADVA umfassen, stehen im Bereich "Interoperability Support Matrices" unter www.emc.com/horizontal/interoperability zur Verfuegung. Zu den Vertriebspartnern von ADVA-Produkten gehoeren unter anderem: CNT/INRANGE Technologies, Fujitsu Network Communications, Hitachi Telecommunications und Siemens.

Die FSP 3000 ist ADVAs Infrastrukturloesung fuer Stadtzugangsnetze, Kernnetzbereiche und regionale Netzwerke. Durch den parallelen Einsatz der Multiplex-Verfahren Dense Wavelength Division Multiplexing (DWDM) und Time Division Multiplexing (TDM) kann der Datentransfer aller Protokolle zwischen 8MBit/s und 10GBit/s sowie von bis zu 256 Applikationen ueber eine einzige Glasfaser unterstuetzt werden. Die FSP 3000 unterstuetzt Netzwerke mit Punkt-zu-Punkt-Verbindungen, linearen Add/Drop-, Ring- und vermaschten Netztopologien mit bis zu zehn Knoten ueber Entfernungen bis zu 500 Kilometer ohne Verstaerkung.

UEBER ADVA OPTICAL NETWORKING
ADVA Optical Networking ist ein weltweit fuehrender Anbieter optischer Netzwerkloesungen fuer die schnelle und kostenguenstige Bereitstellung von Daten-, Datensicherungs-, Sprach- und Videodiensten im Metro-Bereich. ADVAs Fiber Service Platform Portfolio ist insbesondere auf die Anforderungen von Netzbetreibern und Unternehmenskunden zugeschnitten bei gleichzeitiger Gewaehrleistung niedrigster Gesamtkosten. Die Loesungen von ADVA werden weltweit von mehr als 70 Netzbetreibern und mehr als 500 Unternehmen eingesetzt. Der Vertrieb erfolgt ueber ein internationales Netz von fuehrenden Partnern sowie ueber ADVAs Direktvertrieb. Weitere Informationen sind auf unserer Internetseite http://www.advaoptical.com/ verfuegbar.

HERAUSGEGEBEN VON:
ADVA AG Optical Networking, Martinsried/Muenchen und Meiningen
www.advaoptical.com

Fuer Presse und Investoren:
Alexa M. Schmidt
Christina Friedrich
t [phone]
[e-mail]
[e-mail]
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[DoktorNO]

irgendwie ist der interessanteste Artikel nicht unter den geposteten....

insbesondere Brian`s comment "250m revenue in 2-3 years"!!
(Abschnitt - reaping the rewards (am Ende)

Ausfuerlicher und interessanter kann die HV nicht gewesen sein....


ADVA Optical Networking - Ready to Reap the Rewards
20th May 2003

Interview with Brian Protiva, Chief Executive Officer.
This is a follow-up to the interview ADVA in Wonderland conducted with Chief Marketing and Strategy Officer Brian McCann in July 2001.


Introduction


ADVA was formed in 1994, when the company was spun-off from AMS Electronics (now Egora Holdings - a technology incubator). The company is based in Germany, with headquarters in Munich, and has facilities worldwide in countries including the UK, the U.S. and Japan.

ADVA develops and markets optical WDM (Wave Division Multiplexing) systems for worldwide carrier and enterprise markets, primarily targeting metropolitan area networks. The company claims equipment deployments with more than 70 carrier, and over 500 enterprise, end customers.

ADVA has developed numerous industry partnerships for product sales and distribution, also a number of OEM agreements with major equipment vendors. The company is now seeking to extend product capabilities and features to address additional markets.

ADVA today

Summarising the position today, Mr Protiva said that ADVA is a company that has successfully mitigated rapid industry consolidation, read the market opportunity accurately, invested in developing the right products, and elected to address the most appropriate markets - the result being a successful business. He added that any company, be it a $20 million, $300 million or $1 billion company, must progress through a number of stages to successfully build up the business:

"At this point, ADVA has the organisational structure and the technology platform to grow to be a $300 - $500 million company. ADVA is now preparing for the next growth spurt that will take it to this level. A great deal of time, effort and investment has been devoted to rationalising the company infrastructure, expanding the customer base and developing the product portfolio."

Commenting further on preparations for company growth, Brian Protiva said that while ADVA is presently recruiting new staff into engineering and sales roles, there are no plans to increase headcount significantly - it is anticipated that staff numbers will climb by between eight and fifteen percent during 2003. The company currently employs a total of 400 people, comprising a sales and network consulting team numbering 88 staff, reporting to Jürgen Hansjosten, plus approximately 120 engineering staff.

ADVA has broadened its scope, from targeting primarily enterprise customers to, since 1997, focusing on the carrier market. The company now generates approximately seventy percent of its business from carrier customers. Mr Protiva noted that this is the reverse of the situation during the financial year 2000 to 2001, when the enterprise market provided seventy percent of sales, and carrier customers thirty percent.

Strategy - reaching the market

Discussing the enterprise market, Mr Protiva expressed the view that a key factor for equipment vendors when addressing this market is the establishment of a global presence, which, conversely, very few companies possess. To achieve this global footprint ADVA sought methods of `multiplying` - gearing - its capabilities.

The most effective ways to multiply ADVA`s capabilities were judged to be through OEM agreements, partnerships and reselling - via carriers. This strategy for expansion was founded on a European base, plus footholds in North America and Asia-Pacific. A crucial element of the strategy was seen to be the winning of business - and development of relationships - with incumbent carriers, plus the competitive local exchange and `data-centric` carriers.

Combining partnerships to address the needs of the enterprise market, with companies such as INRANGE Technologies, and OEM agreements with major vendors Siemens, Fujitsu Network Communications and Hitachi Ltd, ADVA is able to effect a global reach without direct contact with every customer. Mr Protiva noted that, for ADVA, the main difference between the direct and indirect sale is the profit margin - a direct sale will naturally yield far higher margins.

Practical solutions

ADVA is not perceived within the communications industry as a `technology innovator`; countering this image, Mr Protiva said this is largely due to ADVA`s policy of applying technology to the needs of customers, rather than innovating "for the sake of it" to no practical end. He noted that many of the pure `innovators` of the past few years are now bankrupt. Brian Protiva emphasised that ADVA has a long history and a great deal of experience in the telecommunications market, which is leveraged in the development of effective, practical, solutions:

"ADVA aims to utilise appropriate technologies to solve the problem-set facing the customer at the lowest possible cost. When encountering the leading equipment vendors in the market, ADVA continues to win contracts - through offering the best technology platform. We position products for a specific application, rather than simply touting a long list of system features."

Product strategy

At the heart of ADVA`s product strategy sits the goal of providing enterprise customers with a fifty-fold increase in bandwidth at a similar cost to that of their existing solution - basically, cost effective access to `fat pipes`. Overlaying this core aim, ADVA seeks to better cater to the needs of the enterprise market through continued extension of system capabilities `up the protocol stack` - which translates as reaching customers with their `native` signalling protocols.

As noted, ADVA started out addressing the enterprise market. The company has now successfully advanced `into` the network, catering to carrier customers in the metro network space. Mr Protiva said that, dependent upon the viability of further potential market sectors and the `fit` of system capabilities, this migration will continue.

Evidencing this, ADVA is engaged in boosting - to 500 km - the reach of existing metro systems to position these for the regional network market. At present there are no plans to extend into the long-haul market. Mr Protiva noted, however, that in the future, if the company felt that it could bring something extra to this market and its partners, such a move would be considered.

The shift in focus to carrier customers notwithstanding, Mr Protiva was keen to emphasise that ADVA does not intend to exit the enterprise market space. The strategy is one of expansion of product capabilities, and hence the addressable market, and not the abandonment of established markets in pursuit of new ones.

It was noted that, while direct sales to the enterprise sector have declined as a proportion of ADVA`s total sales, this would be compensated through increased indirect sales via carriers, as they deploy an increasing number of managed services to enterprises.

Strategic alliances

A core component of ADVA`s strategy is the forming of partnerships with other companies - primarily to increase its geographic footprint. Partnerships are founded according to a number of criteria, including strategic importance to the potential partner, complementary product portfolios, and the sales channel structure of the partner company. Mr Protiva noted that short-term tactical relationships are not of interest:

"The strategic element of any potential agreement is a prerequisite. Where we feel that this is lacking we will not pursue a potential partnership, irrespective of other factors."

Mr Protiva stated that ADVA wishes to avoid, so far as is possible, the development of a large, global sales and support function, preferring to effectively partner with companies having such resources in place, in order to develop carrier and enterprise markets together. ADVA`s sales team is tasked chiefly with targeting and enabling the carrier market. Commenting on direct sales activities, Mr Protiva said that partners might be brought in where opportunities involve capabilities outside of ADVA`s expertise, although "we are not necessarily interested in using our resources to win unrelated business for other companies!"

ADVA aims to develop long-term relationships with companies having complementary product portfolios, and does not seek to compete with partner companies by encroaching into their core markets, for example, the long-haul sector. Equally, the company does not envisage partners competing against it, as partners will concentrate on their areas of expertise, which will, by definition, be outside of the metro network sector. Mr Protiva stated that ADVA will not, and cannot, supply every major vendor, and so will inevitably compete with those companies that target the metro market.

The close-knit, long-term partnerships sought by ADVA entail integration throughout each company - from the CEO to the engineering team. Mr Protiva likened ADVA`s strategy to that of IBM in the professional services sector - that company selected a few areas from the addressable market on which to focus, developed partnerships with third-party companies to cover the remaining areas and was able to deliver complete solutions.

The key to successful OEM agreements, according to Mr Protiva, is a balanced, 50:50 split in control, with neither party in the driving seat - if one company gains undue influence the relationship is likely to break down as decisions will not necessarily be in the interests of the partnership. For this reason, ADVA devotes a great deal of effort to managing its partnerships, including integration at all levels of the organisation.

Despite the importance to ADVA of OEM agreements, Mr Protiva noted that currently revenues deriving from these account for only approximately 25% of total sales - indicating significant potential for growth.

Competition

ADVA counts Nortel Networks as the main competition, although Cisco Systems poses a significant threat and remains a dark horse; no other major vendors are considered notable competitors in the metro space.

Of the smaller equipment vendors - believed to number between five and ten companies - none are seen as direct competitors. Commenting on specific companies, Mr Protiva said that Riverstone Networks is not encountered in the market due to its focus on the IP space, specifically Layer 2 and Layer 3 networks. Extreme Networks, a potential competitor given its integrated CWDM features, is a signed up partner to satisfy customer requirements for a much broader metro optical transport solution.

Mr Protiva stated that currently severe pricing pressure exists in the metro equipment market, a factor which alone mitigates against the success of small companies. Such players are felt to lack benefits of scale and available funding for investment in developing the latest product features.

He added that two to three years ago there were between fifteen and twenty equipment vendors active in the metro space; there are now no more than five and of these only three - ADVA, Cisco Systems and Nortel Networks - are targeting the enterprise sector. The other two companies, addressing the carrier market, are Alcatel and CIENA. ADVA believes that the present metro market climate is sufficient to sustain this number of equipment vendors.

As the most often encountered competitor, Cisco Systems is not seen as possessing any single overwhelming advantage over ADVA. Mr Protiva noted that ADVA is very comfortable with the solution that it offers, citing product features, pricing and operating costs as key in clinching contract wins. He emphasised that ADVA has complete confidence in the feature-set that its product delivers, adding that the company has been developing products for the metro market for longer than any other company addressing the sector.

Cisco claims to offer more 10 Gbit/s multiplexing capability than ADVA but Brian Protiva said this is not believed to result in lost business for ADVA, and, moreover, that this claim is diluted by the fact that ADVA takes a different view of the market. Cisco`s main advantage is felt to derive from its leveraging of existing relationships with customers, sometimes relating to business in other market sectors:

"Cisco Systems is historically very good at leveraging the sales structure, over and above the actual technology that is offered - basically, playing to their strengths of size and resources. This substantiates the ADVA policy of `multiplying` capabilities through partnerships."

Market topography

ADVA does discriminate between carrier and enterprise segments of the metro market. Customers from either camp may purchase network infrastructure, although enterprises, with a keen eye on expenditure, increasingly tend to buy-in managed services from service providers.

Mr Protiva commented that enterprise customers demand low-cost connectivity delivered to a specific, tailored SLA (Service Level Agreement) - the overriding factor being price. Carriers want the ability to supply a branded service portfolio.

ADVA focuses on delivering these capabilities to the carriers, and believes that its systems enable provision of a range of services and functionality not available via other technology platforms, and at low cost. The transition by enterprise customers to buying-in services from a carrier, rather than developing their own network, explains the shift in ADVA business from that centred on enterprise customers to one predominantly catering to the carrier market.

Regional focus

Geographically, North America is deemed the prime target for expansion of ADVA`s activities, with Asia-Pacific second. The company has a relatively strong position built up in Japan and Australia, and will now focus efforts in China and South Korea.

The company holds an established position across the European region, and is continuing to expand its customer base there. Mr Protiva noted that in Europe the only barren zone for ADVA is Scandinavia, due in large part to limited sales opportunities arising from the proliferation of fibre infrastructure. ADVA has seen success in Eastern Europe, claiming contract wins in the Czech Republic, Hungary, Poland, Russia and Slovakia, including "some 10 Gbit/s projects"; details of these contracts have not been announced publicly.

The North American metro network market is considered to be dominated by Nortel, closely followed by Cisco. ADVA believes that it is making steady progress in breaking into the region, through winning significant contracts with managed service providers. The company is also continuing to develop an eighteen month-old partnership with Fujitsu Network Communications formed to address the North American market.

Mr Protiva commented that the establishment of successful operations in North America and Asia-Pacific is seen as a long-term commitment, noting that the company`s presence in Europe has been built up over an eight-year period:

"Growing from a `20 percent player` to a `20-40 percent player`, in terms of market share, within North America will be a long haul, and similarly in Asia. We understand this and allow for it when mapping out the ongoing strategy for ADVA."

Brand name

Discussing profit margins for ADVA, Mr Protiva stated that this averages around 40% - the figure will be lower for indirect sales, higher for direct sales. It was pointed out that margins are enhanced through ADVA equipment being marketed as a brand in its own right by resellers. ADVA ranks as the top brand name in Europe, and second worldwide within the enterprise metro equipment market; among the major communications companies, the ADVA name has a high profile.

Mr Protiva noted that resellers actively promote the availability of ADVA technology, in the same way that computer suppliers advertise Intel technology via the `Intel inside` logo. Even so, the major carriers do not always push supplier brand names. For example, BT utilises ADVA`s FSP 500 system, but does not advertise the vendor name; when providing a service portfolio to government or enterprise customers the underlying technology is not important.

Enterprise applications

The most common applications for ADVA solutions with enterprise customers, Mr Protiva said, are disaster recovery, network access and converged networking solutions. These types of project typically range in value from $20,000 to several million dollars - it was noted that ADVA directs efforts toward the upper end of this range, preferring to leave smaller contracts to its partner companies:

"ADVA believes that the enterprise market continues to represent a profitable opportunity, and one that it is capable of exploiting effectively. As with our competitors, customers are reached via both direct and indirect channels, including through partnerships with carriers. Cisco Systems follows a similar model in addressing this market, through agreements with Hewlett Packard, IBM and Siemens."

ADVA sees demand for storage network equipment and Ethernet-based technology as nascent opportunities, opening up additional, potentially huge markets for the company. Mr Protiva commented that expansion into these areas would serve to both increase total addressable market and create additional revenue streams with existing customers.

Regarding `traditional` markets, ADVA views the supply of equipment for switching and multiplexing of SDH and SONET traffic as a commodity market - one comprehensively addressed by the major vendors, namely Alcatel, Lucent, Marconi, Nortel and Siemens, plus, possibly, Cisco and Fujitsu. As such, the company has no interest in addressing the market.

However, Mr Protiva pointed out that ADVA products do recognise SDH and SONET traffic, offering functionality pertaining to framing, performance monitoring and interoperation with 2.5 Gbit/s and 10 Gbit/s signals.

Market value

The worldwide metro network equipment market, covering only WDM equipment and excluding SONET, SDH and Ethernet technology, is currently valued at between $300 and $500 million annually. The metro WDM system market is expected to witness growth during 2003 - if only single-digit - while a return to double-digit growth is anticipated during 2004.

Transformation of the market

Mr Protiva discussed developments in the IT industry and potential impacts on the company. Each of the major players in the industry - Dell, Hewlett Packard and IBM - is seen to hold a different position.

Dell is expected to continue to `shift boxes` very successfully, founded on a strong business model. Mr Protiva commented that the company is arguably the leading player in this field, illustrated by gross profit margins of 19 percent (or 6 percent net). The expectation is that Dell will begin to shift its attention up the value chain to the IT services market, as HP and IBM have done. IBM is seen to display equal dominance in the services sector.

HP is viewed to be in a more difficult position, falling somewhere between the other two but below Dell in the `box` market and IBM in the services sector. The future for the company is felt to lie in becoming the number two player in the IT services market.

For ADVA, the prime opportunity in this market environment is felt to be with HP, through that company`s full-scale integration services offerings. Dell is not expected to provide any immediate or medium-term openings as the company is not a reseller; IBM has already established a range of industry partnerships.

Mr Protiva stated that ADVA products are compatible with HP systems and technology, and that the two companies have cooperated with regard to product interoperability and certification, adding:

"Hewlett Packard is able to deliver complete customer solutions - a contract could, for example, integrate HP servers with Brocade Communications Systems` Fibre Channel switches and ADVA multiplexers, managed by a third-party company`s software."

ADVA views the relationship with HP as potentially highly lucrative for both parties.

Regarding competing industry partnerships, and particularly 3Com`s global agreement with Huawei Technologies, ADVA does not see any immediate threat. In the case of 3Com, this is due primarily to Huawei Technologies` limited capabilities when addressing the carrier market. However, Mr Protiva noted that such relationships could pose a significant competitive threat in the future.

Future focus

Looking ahead, Mr Protiva believes that the strategy for ADVA is clear - from a product perspective, extending capabilities into the network and `up the technology stack`; from a marketing perspective, continuing development of direct and VAR sales channels and OEM agreements.

ADVA is progressing with positioning products closer to the core of the network; by extending capabilities to address the regional market; and also seeking to better meet customer requirements by enriching platform features - including through broadening the range of signalling protocols offered - moving `up the stack`. These activities will serve to enlarge ADVA`s total addressable market and consolidate its position with existing customers. Mr Protiva emphasised that these developments represent logical, evolutionary steps, and not a giant leap.

New business model

Brian Protiva expects that major changes will sweep through the telecommunications industry over the coming few years, resulting in a transformation of corporate business models. He likened this anticipated overhaul in company operations to that experienced in the airline industry with the advent of the budget airlines.

ADVA claims to have successfully implemented a radical business model, centred on aggressive innovation and efficient logistics, combined with an ability to operate on low margins. The company believes that very few other equipment vendors in the industry have reached a similar position, citing UTStarcom and ADTRAN as two exceptions.

The role of partnerships in the communications industry is expected to grow, as even the major equipment vendors will be unable to effectively address market sectors spanning from wireless to optical to IP networking solutions, "although Cisco Systems is attempting to do so."

The expectation is that each major player will concentrate on one or two market sectors, with the aim of becoming `the best` in their chosen areas of expertise. To address the broader market, a product portfolio would be patched together through partnerships with specialised equipment suppliers, such as ADVA. This strategy is seen to be comparable to that followed by IBM in the IT industry over the past ten to fifteen years, via its highly successful Global Services business.

Mr Protiva believes that the first major equipment vendor to adopt this approach in addressing the telecommunications market - principally the carriers - will gain a significant advantage, through offering a coherent portfolio of integrated, best-in-class solutions.

Reaping the rewards

It was noted that ADVA floated on the Neuer Markt (the German equivalent of the NASDAQ) in 1999, however, Mr Protiva stated that there are no plans to seek a NASDAQ listing in the medium-term, although this remains a long-term goal:

"For ADVA today, there would be no advantage to be gained from listing on the NASDAQ. Apart from any other factors, I believe that annual revenues of at least $250 million should be a precursor to any planned flotation, bearing in mind that charges associated with listing on the NASDAQ currently total between $2 million and $5 million per year. And, in the present market climate, there are few benefits to be derived from being a public company - the primary motivation, access to funding, is simply absent."

ADVA believes that its achievements over the past two years have been widely underestimated within the industry at large, and equate to far more than the common perception of `stability`, or mere survival. Brian Protiva commented that, during this two year period, ADVA has successfully regenerated its operations, launched new products, and signed up a number of new customers; he pointed out that, as a result of the market climate over the past two years, expenditure on communications equipment has plummeted, but despite this, ADVA has maintained revenue levels by significantly increasing its presence in the market:

"As the market recovers, ADVA will reap the rewards from these efforts. I am confident that annual revenues of $250 million will be realised within two to three years - the aim, which I view as realistic, is to significantly increase sales during 2003 and 2004."

In conclusion, Mr Protiva said that during the extremely hard times witnessed by the telecommunications industry over the past two years, very few companies have adapted effectively to position for the recovery, and many have disappeared completely from the landscape:

"The worst now appears to have passed, leaving a substantially consolidated market. In the metro market space five viable equipment vendors remain, although it would not be a surprise if one of these subsequently vacated the sector. Having continued to build market share and strengthen its position in the market throughout the downturn, ADVA is confident that it is now placed to take maximum advantage of the expanding opportunities in a recovering market."

[Raunzer]

@mielke 50

hätte auch zu gern gewußt was an der HV alles gesagt wurde, aber irgendwie herscht über dem, ein Mantel des Schweigens. Oder anscheinend war niemand dort, der hier aktiv ist. Und ich hab ehrlich gesagt keinen Bock 3€ für einen Bericht von der HV auszugeben.

[Mielke50]

@raunzer - alte Kamellen - vom 24.März 2003!!!! Oh, wie langweilig. Interessant wären News von der ADVA - HV vom 11.06.03!