Martinsried/Munich, Germany; Mahwah/New Jersey, USA. February 15, 2005. ADVA Optical Networking today confirmed previous financial guidance according to U.S. GAAP accounting standards for the fourth quarter and year 2004 and provided an outlook for the first quarter and year 2005.
2004 FINANCIAL RESULTS
ADVA confirmed revenue guidance of sequential growth to between EUR 27 and 28 million in the fourth quarter 2004, equalling full-year 2004 growth of ca. 13% to revenues of between EUR 102 and 103 million. Based on the respective average exchange rate during these periods, fourth quarter 2004 revenues grew to between $35 and $36 million USD and full-year 2004 revenues to between $127 and $128 million USD. The pro forma operating income margin decreased as expected to ca. 7% of revenues, as a result of strategic pricing for several large, key customer projects, and resulting in a full-year 2004 pro forma operating margin of ca. 12%.
The Company will announce audited financial results according to U.S. GAAP for the fourth quarter and full-year 2004 for the period ended December 31, 2004, on Thursday, March 10, 2005. In conjunction with the release of its full-year 2004 audited financial results, ADVA will host a tour for analysts and investors at its CeBIT booth at 4:00 pm CET in Hannover, Germany, and provide an update on its technology solutions and product portfolio. ADVA will thereafter host a conference call for analysts and investors at 5:00 pm CET/11:00 a.m. EST in Room 104 at the CeBIT Conference Center. 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 'earnings webcasts' page under 'financial results' in the investor relations section of ADVA's website at www.advaoptical.com.
2005 OUTLOOK
ADVA anticipates sequential revenue growth to between EUR 27 and 30 million in the first quarter 2005 and full-year 2005 revenue growth of 13% to 23%. A clear strategy to continue aggressively competing for customer projects, pursuing new market opportunities, and investing to expand ADVA's global presence are expected to result in pro forma operating income margins according to U.S. GAAP between 5% to 8% in the first quarter 2005 and 7% to 10% for the full-year 2005.
