ADVA Optical Networking Reports Q1 2014 Financial Results In Line with Guidance - Seite 3

"Although, we are seeing signs of the telecommunications industry slowly returning to growth in Europe, the broader sentiment remains cautious as the shift to software-centric networks and architectural changes is deferring service provider investment decisions in the short-term.  In order to support the exponential increase of high-capacity data and video applications, the drive toward Long Term Evolution-Advanced (LTE-A) networks and small cells is creating pressure on both mobile network operators and backhaul service providers, and thus both are continuing to evolve their networks to packet-based solutions. Precise timing and synchronization is critical for this development. The acquisition of Oscilloquartz is a strategic milestone for us and provides ADVA Optical Networking with a complete end-to-end solution for the delivery and, most importantly, assurance of highly accurate timing - a first within the industry; thereby allowing our rapid expansion into the synchronization business for next-generation networks. The next few years will clearly highlight the strategic vision of this acquisition, heightening our revenue growth potential, margin opportunity, and increasing shareholder value," stated Brian Protiva, chief executive officer of ADVA Optical Networking.

THREE-MONTH IFRS CONSOLIDATED INCOME STATEMENT

(in thousands of EUR, except earnings per share)	Q1 2014	Q1 2013
Revenues	78,119	77,034
Pro forma cost of goods sold	-50,503	-47,265
Pro forma gross profit	27,616	29,769
Pro forma selling and marketing expenses	-11,389	-11,685
Pro forma general and administrative expenses	-6,313	-6,673
Pro forma research and development expenses	-16,695	-16,842
Income from capitalization of development expenses	5,063	5,580
Other operating income and expenses, net	2,109	656
Pro forma operating income	391	805
Amortization of intangible assets from acquisitions	-171	-171
Stock compensation expenses	-135	-252
Operating income	85	382
Interest income and expenses, net	-336	-152
Other financial gains and losses, net	40	-756
Income (loss) before tax	-211	-526
Income tax benefit (expense), net	-186	1,286
Net income (loss)	-397	760
Earnings per share in EUR
Basic	-0.01	0.02
Diluted	-0.01	0.02

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