-- 16% y-o-y Q4 revenue growth to EUR 27.3 million; pro forma operating
income of EUR 1.9 million, or 7% of revenues
-- 13% y-o-y 2004 revenue growth to EUR 102.1 million; pro forma
operating income of EUR 12.3 million, or 12% of revenues
-- Confirms Q1 revenue growth to between EUR 27 and 30 million
MARTINSRIED/MUNICH, Germany and MAHWAH, N.J., March 10, 2005 (PRIMEZONE) -- ADVA Optical Networking today announced audited fourth quarter and full-year 2004 financial results for the period ended December 31, 2004, and prepared in accordance with U.S. GAAP.
FOURTH QUARTER 2004 FINANCIAL RESULTS
Revenues in the fourth quarter 2004 totalled EUR 27.3 million, an increase of 16.3% over EUR 23.4 million in the fourth quarter 2003. Based on the average exchange rate during these periods, fourth quarter 2004 revenues grew 26.7% year-over-year to $35.4 million USD. Pro forma operating income, excluding stock-based compensation and acquisition-related charges, totalled EUR 1.9 million in the fourth quarter 2004, compared to EUR 2.6 million in the fourth quarter 2003. The anticipated decrease in pro forma operating income was due to strategic pricing for several large, key customer projects and the resulting lower gross margins. Pro forma net income totalled EUR 1.2 million in the fourth quarter 2004 (EUR 0.04 pro forma basic net earnings per share), compared to EUR 4.2 million in the fourth quarter 2003 (EUR 0.13 pro forma basic net earnings per share).
Actual net income totalled EUR 1.1 million in the fourth quarter 2004, compared to EUR 2.7 million in the fourth quarter 2003, impacted by stock-based compensation and acquisition-related expense charges totalling EUR 0.1 million and EUR 1.4 million, respectively. Actual basic net earnings per share amounted to EUR 0.03 during the fourth quarter 2004, versus EUR 0.08 during the fourth quarter 2003.
FULL-YEAR 2004 FINANCIAL RESULTS
Revenues increased from EUR 90.4 million in 2003 to EUR 102.1 million in 2004. Based on the average exchange rate during these periods, full-year 2004 revenues grew 24.2% year-over-year to $126.9 million USD. Pro forma operating income increased 30.4% from EUR 9.4 million in 2003 to EUR 12.3 million in 2004. Pro forma net income increased from EUR 10.6 million in 2003 to EUR 11.3 million in 2004 (EUR 0.32 and EUR 0.34 pro forma basic net earnings per share, respectively).
Actual net income increased from EUR 4.9 million in 2003 to EUR 6.7 million in 2004, impacted by stock-based compensation and acquisition-related expense charges totalling EUR 5.7 million and EUR 4.5 million, respectively. Actual basic net earnings per share improved from EUR 0.15 in 2003 to EUR 0.20 in 2004.
CONFERENCE CALL AND WEBCAST
In conjunction with the release of its full-year 2004 audited financial results today, March 10, 2005, ADVA will host a tour for analysts and investors at its CeBIT booth at 4:00 pm CET in Hannover, Germany, and provide an update on its technology solutions and product portfolio. ADVA will thereafter host a conference call for analysts and investors at 5:00 pm CET/11:00 am EST in Room 104 at the CeBIT Conference Center. Participating in the call will be ADVA's Chief Executive Officer, Brian L. Protiva, and Chief Financial Officer, Andreas G. Rutsch. Investors may listen live via Webcast on ADVA's website, located on the 'earnings webcasts' page under 'financial results' in the investor relations section of ADVA's website at www.advaoptical.com.
ADVA's complete financial statements and 2004 annual report can be found on its website.
TRANSITION TO IFRS ACCOUNTING STANDARDS
As required by European legislation, ADVA will be transitioning its financial reporting from U.S. GAAP accounting standards to IFRS. Prior to publication of the first quarter 2005 financial results according to IFRS standards, ADVA will release the 2004 IFRS financial statements on April 20, 2005, and host a conference call and webcast for analysts and investors at 3:00 pm CET/9:00 am EST. Participating in the call will be ADVA's Chief Financial Officer, Andreas G. Rutsch. Investors may listen live via Webcast on ADVA's website, located on the 'earnings webcasts' page under 'financial results' in the investor relations section of ADVA's website at www.advaoptical.com.
FIRST QUARTER 2005 OUTLOOK
ADVA confirms guidance of sequential revenue growth to between EUR 27 and 30 million in the first quarter 2005 and full-year 2005 revenue growth of 13% to 23%. A clear strategy to continue aggressively competing for customer projects, pursuing new market opportunities, and investing to expand ADVA's global presence are expected to result in pro forma operating income margins between 5% to 8% in the first quarter 2005 and 7% to 10% for the full-year 2005. Current financial guidance is provided according to U.S. GAAP, though pro forma estimates are defined as excluding stock-based compensation and acquisition-related charges. ADVA will publish its first quarter 2005 financial results on May 10, 2005, and host its annual shareholders meeting on June 14, 2005, in Meiningen, Germany.
http://hugin.info/130141/R/983983/146539.pdf
PUBLISHED BY:
ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Mahwah/New Jersey, USA ADVA Optical Networking Corp., Tokyo, Japan www.advaoptical.com