MUNICH, Germany and MAHWAH, N.J., Feb. 10, 2004 (PRIMEZONE) -- ADVA Optical Networking (FSE:ADV), a leading global provider of optical networking solutions, today confirmed previous guidance for the fourth quarter 2003 and provided an outlook for the first quarter 2004.
2003 FINANCIAL RESULTS
ADVA confirmed revenue guidance of single digit sequential growth between EUR 23 and 24 million in the fourth quarter 2003. The operating profitability level is anticipated to remain stable to slightly higher compared to the third quarter 2003.
"We achieved slight revenue growth on a Euro basis in the fourth quarter 2003 as a result of our strong, well-balanced approach to addressing both carrier and enterprise requirements in the metro area. On a U.S. dollar basis, which is commonly used amongst our industry peer group, our year-on-year growth was greater than 20% due to the stronger Euro. Demand for storage and Ethernet solutions remained our primary revenue drivers, while large-scale metro core infrastructure investments from carrier customers continued to be postponed. Strong gross margins resulted in a stable to slightly higher operating profitability level in comparison to the prior quarter," commented Andreas G. Rutsch, Chief Financial Officer of ADVA.
The Company will announce audited financial results for the fourth quarter and full-year 2003 for the period ended December 31, 2003, on Thursday, March 11, 2004. In conjunction with the release of its full-year 2003 audited financial results, ADVA will host a press conference at 10:00 a.m. CET at its offices in Martinsried/Munich, Germany. ADVA will also host a conference call for investors at 3:00 p.m. CET / 9:00 a.m. EST on the same day. 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 con calls and presentations page in the investor relations section of ADVA's website at www.advaoptical.com.
2004 OUTLOOK
ADVA anticipates revenues of between EUR 22 to 24 million in the first quarter 2004. The operating profitability level is anticipated to remain stable to slightly lower compared to the fourth quarter 2003.
"We expect to generate revenues in the first quarter 2004 which are stable to slightly lower compared to the fourth quarter 2003, but higher than the first quarter 2003. We are making selective strategic investments in the business to proactively pursue the growth opportunities that we see ahead, and therefore anticipate a stable to slightly lower operating profitability level. We are optimistic about the metro market opportunities in 2004, and are expanding our addressable market beyond WDM-based solutions for storage and network infrastructure deployments to now address growing Ethernet demand in metro access networks. The metro market started to pick up momentum in the second half of 2003, driven primarily by increased carrier spending in North America. Due to ADVA's smaller presence in this market, we are not yet able to fully benefit from this, but intend to increase investments to build our team and activities in this strategic market. On a full-year basis, we expect to achieve revenue growth of 10% to 20%," stated Brian L. Protiva, Chief Executive Officer of ADVA.
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ABOUT ADVA OPTICAL NETWORKING
ADVA Optical Networking is a leading global provider of optical networking solutions for rapid and cost-effective provisioning of high-speed data, storage, voice, and video services in the metropolitan area. ADVA's carrier-class Fiber Service Platform (FSP) product portfolio is explicitly designed to enhance services, simplify networks, and reduce the total cost of ownership. ADVA's solutions have been deployed at over 80 carriers and several thousand enterprises worldwide. ADVA's products are sold through an international network of blue-chip distribution partners in addition to its own direct sales force. For further information about ADVA, please visit our website at www.advaoptical.com.
The economic projections and forward-looking statements contained in this document relate to future facts. Such projections and forward-looking statements are subject to risks which cannot be foreseen and which are beyond the control of ADVA AG Optical Networking. ADVA AG Optical Networking is therefore not in a position to make any representation as to the accuracy of economic projections and forward-looking statements or their impact on the financial situation of ADVA AG Optical Networking or the market in the shares of ADVA AG Optical Networking.
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