Q3 2005 revenues up 28% on Q3 2004 and 3% on Q2 2005 to reach EUR 33.7 million Q3 2005 pro forma operating income up 3% on Q3 2004 and 13% on Q2 2005 to reach EUR 3.7 million (11% of revenues) Full year 2005 revenues forecast increased to range between EUR 129 and EUR 132 million
MUNICH and MARTINSRIED Germany and MAHWAH, N.J., Nov. 3, 2005 (PRIMEZONE) -- ADVA Optical Networking today announced third quarter financial results for the period ended September 30, 2005, and prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP). ADVA today also published key financials as per International Financial Reporting Standards (IFRS).
THIRD QUARTER 2005 financial results
In Q3 2005, revenues totaled EUR 33.7 million, compared to EUR 32.7 million in Q2 2005 and EUR 26.3 million in Q3 2004, respectively. At a record EUR 3.7 million, pro forma operating income, excluding stock-based compensation and acquisition-related charges, was up 12.7% versus Q2 2005 (EUR 3.3 million). The rise in pro forma operating income was primarily driven by higher revenues and gross margins. Pro forma quarterly net profit at EUR 2.8 million was up 6.9% versus Q2 2005, with undiluted net earnings per share at EUR 0.08, unchanged from Q2 2005.
Q3 2005 net profit amounted to EUR 1.6 million after EUR 2.2 million in Q2 2005, largely driven by higher expenses for stock-based compensation amounting to EUR 1.0 and EUR 0.3 million in Q3 2005 and Q2 2005, respectively. Undiluted net earnings per share in Q3 2005 were EUR 0.05, compared to EUR 0.06 in Q2 2005.
INFORMATION ON THIRD quarter 2005 IFRS RESULTS
Based on the same revenues figure as quoted under U.S. GAAP, ADVA's IFRS net profit for Q3 2005 was EUR 3.6 million, which exceeds the figure reported under U.S. GAAP by EUR 2.0 million. This difference is largely attributable to the capitalization under IFRS of part of the company's development costs, higher valuation of inventories and a different valuation method for stock options outstanding. Further details on key IFRS financial numbers are provided in the Nine-Month Report 2005, available in the investor relations section of the corporate web site, www.advaoptical.com.
CONFERENCE CALL AND WEBCAST
In conjunction with the release of Q3 2005 financial results, ADVA's chief executive officer, Brian L. Protiva, and chief financial officer, Andreas G. Rutsch, will host a conference call for analysts and investors at 3:00 p.m. CET/9:00 a.m. EST today, November 3, 2005. 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.
FOURTH QUARTER 2005 OUTLOOK
Based on the positive development of revenues so far this year, ADVA is projecting Q4 2005 revenues to range between EUR 34 and EUR 36 million, resulting in an increase of expected full year 2005 revenues to a range of EUR 129 to EUR 132 million. For Q4 2005, ADVA is forecasting a pro forma operating margin of between 10% and 11% of revenues, and for the full year 2005 this margin is expected to range between 10% and 11% of revenues as well. ADVA will release its Q4 and full year 2005 financial results on March 9, 2006. As announced earlier, starting with 2005 full year financial results, ADVA will prepare its financial statements in accordance with IFRS. However, U.S. GAAP key financial data will still be provided as additional information during 2006.
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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