MUNICH, Germany and MAHWAH, N.J., Oct. 28, 2004 (PRIMEZONE) -- ADVA Optical Networking:
-- 14% y-o-y Q3 revenue growth to EUR 26.3 million achieved
-- 24% of total revenues generated by Americas region
-- Pro forma Q3 operating income increased to record EUR 3.6
million (14%) and pro forma EPS totalled EUR 0.09
-- Forecasted Q4 revenue growth to between EUR 26 and 30
million
ADVA Optical Networking today announced third quarter and nine-month 2004 financial results for the period ended September 30, 2004, and prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP).
THIRD QUARTER 2004 FINANCIAL RESULTS
Revenues in the third quarter 2004 totalled EUR 26.3 million, compared to revenues of EUR 25.6 million in the second quarter 2004 and EUR 23.0 million in the third quarter 2003. Pro forma operating income, excluding stock-based compensation and acquisition-related charges, increased 43.0% to EUR 3.6 million in the third quarter 2004, compared to EUR 2.5 million in the third 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 20.5% to EUR 3.2 million in the third quarter 2004 (EUR 0.09 pro forma basic net earnings per share), compared to EUR 2.6 million in the third quarter 2003 (EUR 0.08 pro forma basic net earnings per share). Actual net income increased from EUR 1.0 million in the third quarter 2003 to EUR 2.5 million in the third quarter 2004, impacted by stock-based compensation and acquisition-related expense charges totalling EUR 1.6 million and EUR 0.6 million, respectively. Actual basic net earnings per share amounted to EUR 0.03 during the third quarter 2003 and EUR 0.08 during the third quarter 2004.
NINE-MONTH 2004 FINANCIAL RESULTS
Revenues increased from EUR 67.0 million during the first nine months of 2003 to EUR 74.9 million during the first nine months of 2004. Pro forma operating income increased 51.4% from EUR 6.9 million during the first nine months of 2003 to EUR 10.4 million during the first nine months of 2004. Pro forma net income from continuing operations increased 57.0% to EUR 10.0 million during the first nine months of 2004 (EUR 0.30 pro forma basic net earnings per share), compared to EUR 6.4 million during the first nine months of 2003 (EUR 0.19 pro forma basic net earnings per share). Actual net income increased from EUR 2.2 million during the first nine months of 2003 to EUR 5.6 million during the first nine months of 2004, impacted by stock-based compensation and acquisition-related expense charges totalling EUR 4.2 million and EUR 4.4 million, respectively. Actual basic net earnings per share improved from EUR 0.07 during the first nine months of 2003 to EUR 0.17 during the first nine months of 2004.
CONFERENCE CALL AND WEBCAST
In conjunction with the release of its third quarter and nine-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, October 28, 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 nine-month 2004 report can be found on its website.
FOURTH QUARTER 2004 OUTLOOK
ADVA anticipates revenues of between EUR 26 to 30 million in the fourth quarter 2004 and EUR 101 to 105 million for the full-year 2004. In line with efforts to strengthen the Americas and Asia-Pacific sales regions, ADVA has won several large key projects that will be deployed in the fourth quarter; due to the strategic pricing of these projects, a temporary decrease in pro forma operating income margin to between 7% and 12% in the fourth quarter is expected. These margins are expected to increase in 2005; however, ADVA is making conscious and calculated decisions to sacrifice margins in an increasing number of carrier infrastructure projects in order to win customers and market share and ultimately secure higher top-line growth rates above 20%.
http://hugin.info/130141/R/966055/140362.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
FOR PRESS AND INVESTORS: Alexa M. Schmidt / Christina Friedrich t +49(0)89 89 0665 -240 /-201 (Europe) t +1 201 258 8293 (U.S.) t +81 3 5408 5891 (Asia) investor-relations@advaoptical.com public-relations@advaoptical.com