checkAd

    DGAP-News  147  0 Kommentare ADVA unveils path to higher profitability at 2021 capital markets day

    DGAP-News: ADVA Optical Networking SE / Key word(s): Capital Markets Day
    ADVA unveils path to higher profitability at 2021 capital markets day

    24.03.2021 / 09:00
    The issuer is solely responsible for the content of this announcement.


    ADVA unveils path to higher profitability at 2021 capital markets day

    ADVA is transforming its operating model and expects solid growth over the coming years with higher pro forma operating income targeting 10% of revenues

     

    - New applications and growth verticals to contribute 40% of revenues by 2023

    - Software and services to contribute 30% of revenues by 2023

    - Verticalization with optical sub-module revenues to contribute 10% of revenues by 2023.


    Munich, Germany. March 24, 2021. ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, held its virtual capital markets day on March 23, 2021. During the event, the company outlined its path for accelerating growth with higher profitability levels aiming at 10% of revenues by 2023. Cash flow generation will become another key area of value creation. "Our focus on innovation leadership required high R&D investment - often at the expense of higher profitability," explained Brian Protiva, CEO, ADVA. "But now we started to see returns from several new technologies we've brought to market," he added. Brian Protiva cited three main drivers that will fundamentally change the business and increase enterprise value:

    - New applications and growth in new verticals

    - Software and service revenue expansion

    - Verticalization opportunities

    A fundamental change of business model
    Also at the event, ADVA CTO Christoph Glingener discussed new opportunities resulting from megatrends, such as digitization, deglobalization and decarbonization, which require innovative and differentiated technologies. ADVA's recent investments in new technologies tackle these trends and provide access to new markets in which ADVA can operate in a highly differentiated way. This enables above-average growth rates and higher profitability. New applications and markets with a high degree of differentiation are one important pillar of the strategy. "Revenue growth of our network synchronization technology area has outperformed other technologies and will continue to increase disproportionately. With our technology investments of recent years, we can address new higher-value applications with carriers and ICPs and open up new markets outside these customer groups. Revenue contribution from non-telco customer segments will grow from approximately 30% last year to over 40% in the next three years," explained Brian Protiva. The company aims to leverage innovation leadership in synchronization, security and network operating systems. "Partner expansion with global IT solution providers as well as expanding and upskilling the company's sales force in growth areas will open the door for a revenue contribution of 40% by 2023," added Scott St. John, CMSO, ADVA.

    Seite 1 von 5


    EQS Group AG
    0 Follower
    Autor folgen

    Verfasst von EQS Group AG
    DGAP-News ADVA unveils path to higher profitability at 2021 capital markets day DGAP-News: ADVA Optical Networking SE / Key word(s): Capital Markets Day ADVA unveils path to higher profitability at 2021 capital markets day 24.03.2021 / 09:00 The issuer is solely responsible for the content of this announcement. ADVA unveils …