Martinsried/Munich, Germany; Ramsey/New Jersey, USA. August 6, 2002. ADVA Optical Networking (German Neuer Markt: ADV), a leading global provider of optical networking solutions, today announced second quarter and six-month 2002 financial results for the period ended June 30, 2002, and prepared in accordance with U.S. General Accepted Accounting Principles (“U.S. GAAP”).
SECOND quarter 2002 FINANCIAL RESULTS
Revenues in the second quarter 2002 reached EUR 22.3 million, a sequential increase of 3.3% over revenues in the first quarter 2002 of EUR 21.6 million. Pro forma operating income increased from EUR 0.1 million in the first quarter 2002 to EUR 0.2 million in the second quarter 2002, and furthermore improved from a pro forma operating loss of EUR 1.2 million in the second quarter 2001, due to improved gross margins and cost-reduction measures. Pro forma net loss from continuing operations improved from EUR 2.1 million in the second quarter 2001 to EUR 0.2 million in the second quarter 2002.
Andreas G. Rutsch, Chief Financial Officer at ADVA Optical Networking (“ADVA”), remarked, “We generated a fifth consecutive quarter of stable revenues between EUR 21 and 25 million, and more importantly, succeeded in considerably lowering our pro forma operating break-even point during that time period. We furthermore achieved a pro forma operating income of EUR 0.2 million in the second quarter 2002. These are major achievements which have been reached by few other communication equipment companies in recent quarters.”
“ADVA has significantly differentiated itself through superior execution in an ongoing weak market and continually built market share, whilst many competitors have struggled with deterioriating revenue levels and massive restructuring efforts,” commented Brian L. Protiva, Chief Executive Officer at ADVA. “We have accomplished this by developing best-of-breed, feature-rich products which provide lowest total cost of ownership and return on investment in fewer than 12 months. We have furthermore targeted revenue opportunities which are currently being driven by carriers’ customer-specific network capex and enterprise IT budgets. These two differentiating factors have enabled us to continually expand our customer base and thus generate stable revenue levels.”
ADVA posted an actual net loss of EUR 3.7 million in the second quarter 2002, compared to EUR 17.4 million in the second quarter 2001. The improvement in actual net loss was primarily a result of the loss in the second quarter 2001 from discontinued operations at the company’s Cambridge site and the elimination of goodwill amortization as of January 1, 2002, according to new U.S. GAAP standards.
Actual basic net loss per share totalled EUR 0.11 in the second quarter 2002 and EUR 0.54 in the second quarter 2001. ADVA has included charges for stock option compensation in its actual financial results since the company first issued options in 1999.
SIX-MONTH 2002 FINANCIAL RESULTS
Revenues during the first six months of 2002 reached EUR 43.8 million, an increase of 3.0% over revenues during the first six months of 2001 of EUR 42.6 million. Pro forma operating loss improved from EUR 4.8 million during the first six months of 2001 to pro forma operating income of EUR 0.3 million during the first six months of 2002. The improvement from an operating loss to operating income resulted from higher gross margins and operating efficiencies, as well as the cost-reduction measures implemented in the second half of 2001. Pro forma net loss from continuing operations improved from EUR 4.8 million during the first six months of 2001 to EUR 0.3 million during the first six months of 2002.
ADVA posted an actual net loss of EUR 5.2 million during the first six months of 2002, compared to EUR 11.5 million during the first six months of 2001. Actual basic net loss per share totalled EUR 0.16 during the first six months of 2002 and EUR 0.36 during the first six months of 2001.
SECOND quarter 2002 HIGHLIGHTS
conference call and webcast
In conjunction with the release of its second quarter and six-month 2002 financial results, ADVA will host a conference call for investors at 3:00 p.m. CET / 9:00 a.m. EST today, August 6, 2002. Investors may listen live via Webcast on ADVA’s website. Participating in the call will be ADVA’s Chief Executive Officer, Brian L. Protiva, and Chief Financial Officer, Andreas G. Rutsch.
To listen to the Webcast, interested investors are encouraged to log onto the broadcast at least 15 minutes prior to the call, located on the con calls and presentations page in the investor relations section of ADVA’s website at www.advaoptical.com. The call will be 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 report for the first six months of 2002 can be found on its website.
THIRD QUARTER 2002 outlook and earnings release date
“Our team’s strong execution capabilities will continue to distinguish ADVA as a clear leader amongst peers and deliver positive results to our shareholders. In light of the ongoing weak market conditions, we continue to tightly control our cost structure and review further potential cost savings measures. We believe that we are well positioned to continue gaining market share in the currently weak environment due to our stable and growing customer base, which will allow us to benefit greatly when sizable market growth resumes,” commented Brian L. Protiva.
ADVA anticipates its sixth consecutive quarter of revenues between EUR 20 to 25 million in the third quarter 2002.
ADVA will announce financial results for the third quarter and first nine months of 2002 for the period ending September 30, 2002, on Tuesday, November 5, 2002. In conjunction with the release of its nine-month 2002 financial results, ADVA will host a conference call for investors at 3:00 p.m. CET / 9:00 a.m. EST on the same day.
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 portfolio is comprised of the Fiber Service Platform family of products - explicitly designed to ensure the lowest total cost of ownership. ADVA’s solutions have been deployed at over 60 carriers and service providers (including PTTs, RBOCs, LECs, and IXCs) and more than 500 enterprises worldwide. ADVA’s products are sold through an international network of blue-chip distribution partners in addition to its own direct sales force. Further information about ADVA Optical Networking: 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.
ADVA Optical Networking provides consolidated pro forma financial results in this press release solely as supplemental financial information to help investors and the financial community make meaningful comparisons of ADVA Optical Networking’s operating results from one financial period to another. ADVA Optical Networking believes that these pro forma consolidated financial results are helpful because they exclude non-cash charges related to the stock option programs, purchased in-process R&D, amortization and impairment of goodwill and intangible assets, as well as loss from discontinued operations of the component, which are not reflective of the company’s operating results for the period presented. This pro forma information is not prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for historical information presented in accordance with U.S. GAAP.
Published by:
ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany
ADVA Optical Networking Inc., Ramsey/New Jersey, USA
ADVA Optical Networking Corp., Tokyo, Japan
Please click on the follow link to see the complete report of second quarter and six-month 2002 financial results:
