MARTINSRIED and MUNICH, Germany, July 29, 2004 (PRIMEZONE) --
-- 11.0% sequential and 12.7% y-o-y revenue growth to
EUR 25.6 million complemented by pro forma operating
income of EUR 3.5 million (13.7% of revenues)
ADVA Optical Networking today announced second quarter and six-month 2004 financial results for the period ended June 30, 2004, and prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP).
SECOND QUARTER 2004 FINANCIAL RESULTS
Revenues in the second quarter 2004 totalled EUR 25.6 million compared to revenues of EUR 23.0 million in the first quarter 2004 and EUR 22.7 million in the second quarter 2003. Pro forma operating income, excluding stock-based compensation and acquisition-related charges, increased 59.7% to EUR 3.5 million in the second quarter 2004, compared to EUR 2.2 million in the second quarter 2003. The increase in pro forma operating income was achieved as a result of higher revenues and gross margins. Pro forma net income from continuing operations increased 66.5% to EUR 3.3 million in the second quarter 2004 (EUR 0.10 pro forma basic net earnings per share), compared to EUR 2.0 million in the second quarter 2003 (EUR 0.06 pro forma basic net earnings per share).
Actual net income increased from EUR 0.6 million in the second quarter 2003 to EUR 2.9 million in the second quarter 2004, impacted by stock-based compensation and acquisition-related expense charges totalling EUR 1.4 million and EUR 0.4 million, respectively. Actual basic net earnings per share amounted to EUR 0.02 during the second quarter 2003 and EUR 0.09 during the second quarter 2004.
SIX-MONTH 2004 FINANCIAL RESULTS
Revenues increased from EUR 44.0 million during the first six months of 2003 to EUR 48.6 million during the first six months of 2004. Pro forma operating income, excluding stock-based compensation and acquisition-related charges, increased 56.2% from EUR 4.4 million during the first six months of 2003 to EUR 6.8 million during the first six months of 2004. Pro forma net income from continuing operations increased 82.7% to EUR 6.9 million during the first six months of 2004 (EUR 0.21 pro forma basic net earnings per share), compared to EUR 3.8 million during the first six months of 2003 (EUR 0.11 pro forma basic net earnings per share).
Actual net income increased from EUR 1.2 million during the first six months of 2003 to EUR 3.1 million during the first six months of 2004, impacted by stock-based compensation and acquisition-related expense charges totalling EUR 2.5 million and EUR 3.8 million, respectively, due to the sharp increase in our stock price during these periods. Actual basic net earnings per share improved from EUR 0.04 during the first six months of 2003 to EUR 0.09 during the first six months of 2004.
CONFERENCE CALL AND WEBCAST
In conjunction with the release of its second quarter and six-month 2004 financial results, ADVA will host a conference call for analysts and investors at 3:00 p.m. CET / 9:00 a.m. EST today, July 29, 2004. To listen to the Webcast, analysts and investors are encouraged to go to the con calls and presentations page in the investor relations section of ADVA's website at www.advaoptical.com.
The call will be later archived as an audio file and the conference call presentation will also be available in the investor relations section of ADVA's website.
ADVA's complete financial statements and six-month 2004 report can be found on its website.
EXECUTIVE OFFICER AND SUPERVISORY BOARD CHANGES
ADVA's Supervisory Board and Chief Operating Officer Stephan Offermanns decided not to extend his contract following its expiration on July 31, 2004. Stephan's primary responsibilities have been added to Jurgen Hansjosten's current role. Effective August 1, 2004, ADVA's executive officer team will be comprised of four members: Brian L. Protiva, Chief Executive Officer; Jurgen Hansjosten, Chief Sales & Operating Officer; Brian P. McCann, Chief Marketing & Strategy Officer; and Andreas G. Rutsch, Chief Financial Officer.
David Gudmundson, Vice President Corporate Development at JDS Uniphase, was approved by shareholders as a new Supervisory Board member at the annual shareholders meeting in June 2004 and replaces Nina Aversano, who resigned during the second quarter 2004.
THIRD QUARTER 2004 OUTLOOK
ADVA anticipates revenues of between EUR 26 to 28 million in the third quarter 2004. Consolidation of the Metro Packet Systems acquisition will increase research and development expenses and amortization of intangible assets, resulting in a slightly lower pro forma operating income margin in the third quarter 2004.
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
To view the full release visit the following link:http://hugin.info/130141/R/953991/135962.pdf