Business Wire

ADVA announces record revenues for Q1 2022

Share

ADVA (ISIN: DE0005103006, FSE: ADV), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported financial results for Q1 2022 ended on March 31, 2022. The results have been prepared in accordance with International Financial Reporting Standards (IFRS).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220427005984/en/

To view this piece of content from mms.businesswire.com, please give your consent at the top of this page.

Uli Dopfer, CFO, ADVA (Photo: Business Wire)

Q1 2022 financial summary 1

(in thousands of EUR)

Q1 2022

Q1 2021

Change

Q4 2021

Change

Revenues

170,498

144,473

18.0 %

157,713

8.1%

Pro forma gross profit

53,405

55,345

(3.5)%

56,072

(4.8)%

in % of revenues

31.3%

38.3%

(7.0) pp

35.6%

(4.3) pp

Pro forma EBIT

7,812

12,860

(39.3)%

14,362

(45.6)%

in % of revenues

4.6%

8.9%

(4.3) pp

9.1%

(4.5) pp

Operating income 2

5,976

11,573

(48.4)%

11,190

(46.6)%

Net income

6,179

11,228

(45.0)%

17,511

(64.7)%

(in thousands of EUR)

Mar. 31, 2022

Mar. 31, 2021

Change

Dec. 31, 2021

Change

Cash and cash equivalents

73,002

79,060

(7.7)%

108,987

(33.0)%

Net cash (+)/net debt (-)

763

(10,626)

n/a

36,166

(97.9)%

Net working capital

164,402

125,785

30.7%

128,954

27.5%

1 Potential inconsistencies in the table values are based on rounding differences.
2 Q1 2022 including EUR 0.5 million and Q4 2021 including EUR 1.6 million extraordinary expenses.

Q1 2022 IFRS financial results
Revenues in Q1 2022 reached EUR 170.5 million, up by 8.1% from EUR 157.7 million in Q4 2021, also considerably up by 18.0% compared to EUR 144.5 million in Q1 2021. The increase in revenues for Q1 2022 is predominantly driven by a growth in demand from communication service providers (CSPs) and internet content providers (ICPs).

Pro forma gross profit in Q1 2022 decreased by 4.8%, reaching EUR 53.4 million (31.3% of revenues) compared to EUR 56.1 million (35.6% of revenues) in Q4 2021 and decreased by 3.5% compared to EUR 55.3 million (38.3% of revenues) reported in Q1 2021. The reduction in gross profit in relation to revenues is mainly attributable to increased purchasing costs due to the semiconductor crisis and a stronger US Dollar.

Pro forma EBIT for Q1 2022 was EUR 7.8 million (4.6% of revenues) and decreased by 45.6% compared to EUR 14.4 million (9.1% of revenues) reported in Q4 2021 and declined by 39.3% from EUR 12.9 million (8.9% of revenues) in Q1 2021.

Operating income for Q1 2022 of EUR 6.0 million decreased by 46.6% from EUR 11.2 million reported for Q4 2021 and decreased by 48.4% from EUR 11.6 million in Q1 2021. Operating income for Q1 2022 was impacted by extraordinary expenses in connection with the announced merger with Adtran, amounting to EUR 0.5 million (Q4 2021: EUR 1.6 million and Q1 2021: EUR 0).

Net income reached EUR 6.2 million in Q1 2022 and significantly decreased by 64.7% from EUR 17.5 million in Q4 2021 and decreased by 45.0% from EUR 11.2 million in Q1 2021.

The company’s cash and cash equivalents totaled EUR 73.0 million, representing a significant decrease of EUR 36.0 million compared to EUR 109.0 million at the end of Q4 2021. Year-over-year cash and cash equivalents decreased by EUR 6.1 million from EUR 79.1 million at the end of Q1 2021. The company invested non-operating cash in measures to secure delivery.

Net cash at the end of Q1 2022 stood at EUR 0.8 million compared to a net cash position of EUR 36.2 million at the end of Q4 2021 and a net debt position of EUR 10.6 million at the end of Q1 2021.

At quarter-end, net working capital totaled EUR 164.4 million and increased by EUR 35.4 million compared to EUR 129.0 million at the end of Q4 2021 and increased by EUR 38.6 million compared to EUR 125.8 million at the end of Q1 2021. The higher net working capital compared to the year-ago quarter is mainly attributable to increased inventory levels to secure the supply chain.

Management commentary
“We have good momentum and started well in this new business year. The expansion of communications networks is progressing rapidly and is fueled by public funding programs in many regions and countries. This environment should continue to positively impact demand for our products for the foreseeable future,” said Brian Protiva, CEO of ADVA. “Our investments in innovation in recent years have provided us with an outstanding, differentiated portfolio of solutions with which we will gain market share. The transformation of our business towards growth markets with a higher proportion of software and services and more verticalization is progressing well. In addition, the merger with Adtran will open up completely new opportunities for us in the USA, Europe and the global market.”

“Considering the extremely difficult external conditions, the past quarter was a strong start to the new 2022 financial year. We were able to increase our revenues by an exceptional 18% compared to the year-ago quarter; unfortunately, however, our success was limited by the ongoing semiconductor crisis. We certainly feel the, in parts, extreme cost increase of components as well as the global inflation in general. Nevertheless, we were able to achieve comparatively good profitability with a pro forma EBIT margin of 4.6%,” commented Uli Dopfer, CFO of ADVA. “Our exceptional solid balance sheet has enabled us to invest non-operating cash in our inventories, securing the supply chain. Further component shortages and higher costs are expected as the year progresses. However, we are confident that we also will master this challenge well.

2022 financial outlook
For the fiscal year 2022, ADVA expects revenues to be in the range of EUR 650 million and 700 million and a pro forma EBIT of between 6.0% and 10.0% of revenues.

The company will publish its financial results for Q2 2022 on July 28, 2022.

Conference call details
ADVA will hold a conference call for analysts and investors today, April 28, 2022, to discuss the Q1 2022 results. The company’s CEO, Brian Protiva, and CFO, Uli Dopfer, will host the call at 3:00 p.m. CEST (9:00 a.m. EDT). A question and answer session will follow management presentations.

A corresponding presentation is available on ADVA’s website:
https://www.adva.com/en/about-us/investors/financial-results/conference-calls

The complete quarterly statement 3M 2022 (January – March) is available as a PDF here:
https://www.adva.com/en/about-us/investors/financial-results/financial-statements

A replay of the call will be available here:
https://www.adva.com/en/about-us/investors/financial-results/conference-calls

Forward-looking statements
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 that cannot be foreseen and that are beyond the control of ADVA. ADVA 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 or the market in the shares of ADVA.

Use of pro forma financial information
ADVA 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’s operating results from one financial period to another. ADVA believes that these pro forma consolidated financial results are helpful because they exclude non-cash charges related to the stock option programs and amortization and impairment of goodwill and acquisition-related intangible assets, which are not reflective of the company’s operating results for the period presented. Additionally, non-recurring expenses related to M&A and restructuring measures are not included. This pro forma information is not prepared in accordance with IFRS and should not be considered a substitute for the historical information presented in accordance with IFRS.

About ADVA
ADVA is a company founded on innovation and focused on helping our customers succeed. Our technology forms the building blocks of a shared digital future and empowers networks across the globe. We’re continually developing breakthrough hardware and software that leads the networking industry and creates new business opportunities. It’s these open connectivity solutions that enable our customers to deliver the cloud and mobile services that are vital to today’s society and for imagining new tomorrows. Together, we’re building a truly connected and sustainable future. For more information on how we can help you, please visit us at www.adva.com.

Published by:
ADVA Optical Networking SE, Munich, Germany
www.adva.com

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

For press:
Gareth Spence
t +44 1904 699 358
public-relations@adva.com

For investors:
Steven Williams
t +49 89 890 66 59 18
investor-relations@adva.com

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Biognosys Announces Appointment of Beat Lüthi, Ph.D., as independent Board Director19.5.2022 14:00:00 CEST | Press release

Biognosys, a leader in next-generation proteomics solutions for life science research and drug development, announced today the appointment of Beat Lüthi, Ph.D., as Board Director. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220519005079/en/ Beat Lüthi, Ph.D. – Biognosys' Newly Appointed Board Director. (Photo: Business Wire) Dr. Lüthi is Chief Executive Officer of CTC Analytics AG, a privately owned Swiss company leading in automation and advanced laboratory sample handling solutions for the pharmaceutical, life science, chemical, environmental, and food & flavor industries. Additionally, he holds several Board of Directors mandates in public firms, including Chairman of Inficon Group, Vice Chairman of Straumann Group, and Board Member of Skan AG. Dr. Lüthi holds an M.Sc. in Electrical Engineering and a Ph.D. in Business Administration from ETH Zurich and completed an International Executive Program at the INSEAD Busines

Inversago Pharma Presents Data on INV-202 in Diabetic Nephropathy at the ERA 2022 Congress19.5.2022 14:00:00 CEST | Press release

Inversago Pharma Inc. (“Inversago”), a clinical stage biotech company with a unique portfolio of CB1 inverse agonists, announces the presentation of preclinical data at the 59th Congress of the European Renal Association (ERA), the largest annual nephrology meeting in Europe, currently held in Paris, France. These data show that INV-202, the company’s lead peripheral CB1 blocker, reduced renal injury in a murine model of Streptozotocin (STZ)-induced Diabetes. More specifically, INV-202 reduced glomerular injury, renal fibrosis and injury to proximal tubular epithelial cells, and also preserved podocyte structure and function. In particular, there was a marked, dose-dependent reduction in albuminuria in this model of diabetes and associated kidney injury. “The study showed that treatment with INV-202 reduced the progression of nephropathy in STZ-induced diabetic mice. Improvements in kidney size, function, and renal matrix remodeling, with corresponding gene expression were noted with b

Grovara Partners with Dubai Global Connect, Establishes Middle East HQ and Showroom19.5.2022 13:00:00 CEST | Press release

Grovara, the easy global wholesale experience, announces it has signed a lease agreement and become formally incorporated to do business in Dubai as part of a partnership with Dubai Global Connect (DGC), a permanent wholesale market that facilitates business between international buyers and sellers. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220519005017/en/ Grovara and Dubai Global Connect cemented their partnership on April 26, 2022 at DGC's new Visitor Centre in Dubai. Standing, from left are Grovara Sales Director Eugenia Schlitter, Grovara Executive Chairman David Pottruck, Grovara Chief Innovation Officer/Co-founder Peter Groverman, Dubai Global Connect Food Business Development Lead Badreddine Soukarie, and Grovara VP of Global Supply Chain Juliana Rogenski; Seated, from left are Dubai Global Connect Head of Business Development Paul Boots and Grovara CEO/Co-founder Abu Kamara. (Photo: Business Wire) The partnersh

Zilliant Launches Quick Start Program to Speed Time to Value and First Quick Start Package, Transforming How Companies Manage Pricing in Response to Inflation19.5.2022 13:00:00 CEST | Press release

Zilliant, the industry leader in intelligent end-to-end pricing solutions and sales guidance software, today announced its Zilliant Quick Start Program, which enables significantly faster deployment times for its software and faster time-to-value for customers. The first Quick Start package of this transformative program is Zilliant Quick Start for Global and Country Price Lists, which is available beginning today. In the past, deploying price optimization and management software may have seemed time intensive or difficult to implement. As a direct result, pricing and commercial teams rely on spreadsheets to manage pricing, sales operations and commercial functions, a method that is insufficient to respond to today’s volatile market conditions. The Zilliant Quick Start program flips this paradigm, offering packaged solutions to address specific pricing and sales challenges, each of which can be up and running within the span of three to eight weeks, work seamlessly with each other on t

Eaton Introduces DC-DC Converters for 48-Volt Commercial Vehicle Architectures19.5.2022 12:30:00 CEST | Press release

Power management company Eaton today introduced a family of 48-volt DC-DC converters for diesel-powered commercial vehicles that can be used to power accessories such as antilock brakes and lighting. Unlike competitive offerings, Eaton’s DC-DC converters are operational in ambient temperatures up to 85 degrees Celsius and boast 97% design efficiency. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220519005093/en/ Eaton’s family of 48-volt DC-DC converters can be used to power accessories such as antilock brakes and lighting and are operational in ambient temperatures up to 85 degrees Celsius. (Graphic: Business Wire) “DC-DC converters are an essential part of our eMobility product portfolio and are used in a variety of vehicle applications,” said Ben Karrer, director, Technology Development, Eaton’s eMobility business. “Many commercial vehicle manufacturers are transitioning to 48-volt architectures, so having the ability to

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom