Business Wire

ADVA posts quarterly revenues of EUR 146.7 million for Q3 2020

Share

ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported final financial results for Q3 2020 ended on September 30, 2020. 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/20201021006074/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)

Q3 2020 financial summary1

(in thousands of EUR)

Q3

Q3

Change

Q2

Change

2020

2019

2020

Revenues

146,676

144,310

1.6%

145,024

1.1%

Pro forma gross profit

51,930

49,086

5.8%

50,204

3.4%

in % of revenues

35.4%

34.0%

1.4pp

34.6%

0.8pp

Pro forma operating income

11,053

7,393

49.5%

10,107

9.4%

in % of revenues

7.5%

5.1%

2.4pp

7.0%

0.5pp

Operating income2

9,768

3,200

205.3%

8,658

12.8%

Net income2

6,671

2,190

204.6%

7,629

-12.6%

(in thousands of EUR)

Sep. 30

2020

Sep. 30

2019

Change

Jun. 30

2020

Change

Cash and cash equivalents

68,293

38,396

77.9%

67,586

1.0%

Net debt

35,009

74,873

-53.2%

44,928

-22.1%

Net working capital

124,043

137,789

-10.0%

127,917

-3.0%

1

Potential difference due to rounding

2

Q3 2019 including EUR 2.5 million one-off expenses

Q3 2020 IFRS financial results

Revenues increased by 1.1% to EUR 146.7 million in Q3 2020 from EUR 145.0 million in Q2 2020 and grew by 1.6% compared to EUR 144.3 million in the same year-ago period.

Pro forma gross profit in Q3 2020 increased by 3.4% reaching EUR 51.9 million (35.4% of revenues) compared to EUR 50.2 million (34.6% of revenues) in Q2 2020 and by 5.8% compared to EUR 49.1 million (34.0% of revenues) in the year-ago quarter. The increase was mainly due to the stronger euro compared to the US dollar. Furthermore, the relocation of production facilities out of China resulted in lower US tariffs compared to the year-ago quarter.

Pro forma operating income for Q3 2020 was EUR 11.1 million (7.5% of revenues) and increased by 9.4% compared to EUR 10.1 million (7.0% of revenues) in Q2 2020. Compared to the year-ago quarter, pro forma operating income improved substantially by 49.5% from EUR 7.4 million (5.1% of revenues). In addition to the effects on gross profit, this substantial margin improvement is mainly due to the cost improvement measures introduced in 2019 and reduced discretionary spending.

Consequently, operating income for Q3 2020 of EUR 9.8 million increased by 12.8% from EUR 8.7 million reported for Q2 2020 and significantly increased by 205.3% from EUR 3.2 million income in the same year-ago quarter. While Q3 2019 was negatively impacted by one-off expenses of EUR 2.5 million resulting from the introduced cost improvement measures, Q3 2020 was positively impacted by the renewed cost basis.

Net income was EUR 6.7 million in Q3 2020, 12.6% down from EUR 7.6 million in Q2 2020 but grew significantly by 204.6% from a net income of EUR 2.2 million in Q3 2019. The decrease compared to Q2 2020 is mainly due to the negative effects from currency translation.

Despite a voluntary partial repayment of EUR 5.0 million of the revolving credit facility, the company’s cash and cash equivalents totaled at EUR 68.3 million, representing a slight increase of EUR 0.7 million compared to EUR 67.6 million at the end of Q2 2020. Year-over-year cash and cash equivalents significantly increased by EUR 29.9 million from EUR 38.4 million. While Q3 2019 was impacted by the before mentioned one-off expenses and the inventory build-up due to the US trade tariffs, Q3 2020 benefited from higher profitability and further working capital improvements.

Consequently, net debt in Q3 2020 decreased by EUR 9.9 million to EUR 35.0 million from EUR 44.9 million at the end of Q2 2020 and improved by EUR 39.9 million compared to Q3 2019.

Net working capital at quarter-end was EUR 124.0 million and improved by EUR 3.9 million compared to EUR 127.9 million at the end of Q2 2020.

Management commentary

“Having already delivered very positive figures in the second quarter, we were able to further increase both revenue and profitability in Q3. Once again, we were able to demonstrate that our solutions are very competitive and have won numerous new customers,” commented Brian Protiva, CEO, ADVA. “This expansion of our footprint in the global network infrastructure is of long-term importance. Our active cost management, reduced travel and a comparatively weaker US dollar provide additional positive effects. We are generating cash and reduced our net debt significantly. As such, we feel well prepared to master the challenges ahead.”

“Despite the current challenges, we were again able to achieve solid financial results and further strengthen our balance sheet. We improved our cash position by EUR 30 million year-over-year. This is an extremely important financial outcome and shows that our team can achieve something excellent even in difficult times,” commented Uli Dopfer, CFO, ADVA. “However, due to the rising infection rates in many parts of the world, the risk of new restrictions or even lockdown scenarios is increasing and we must continue to devote a lot of attention to mitigating these changing circumstances. Our focus is on maintaining our procurement and supply chains, strict cost control, but above all, ensuring the safety and health of our employees.”

The latest news of a second wave with infection rates again increasing in many countries is worrying. The further course of our business for the full year 2020 heavily depends on how the currently increasing number of infections develop and whether this creates further regional lockdown scenarios. Against the background of the outlined influencing factors for the further course of the 2020 financial year, the management board now expects revenues between EUR 565 million and EUR 580 million and a pro forma operating income of between 5% and 6% in relation to revenues for the full year 2020. The revised guidance assumes that the impact of the pandemic on the company’s business will not significantly worsen beyond the levels we have already experienced and that no material supply bottlenecks will arise due to new lockdowns.

The company will publish its 9M quarterly statement on October 22, 2020 as planned. The financial results for Q4 and the full fiscal year 2020 will be published on February 25, 2021.

Conference call details

ADVA will hold a conference call for analysts and investors tomorrow, October 22, 2020, to discuss these results and management’s outlook. 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.

Register here for ADVA's third quarter 2020 IFRS financial results.

Once registered, you will receive the dial-in details via e-mail.

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 9M 2020 (January – September) 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, expenses related to 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:
Stephan Rettenberger
t +49 89 890 665 854
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

Logitech Delivers Strong Start to Fiscal Year 202227.7.2021 03:00:00 CEST | Press release

SIX Swiss Exchange Ad hoc announcement pursuant to Art. 53 LR — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the first quarter of Fiscal Year 2022. Q1 sales were $1.31 billion, up 66 percent in US dollars and 58 percent in constant currency, compared to Q1 of the prior year. Q1 GAAP operating income grew 143 percent to $203 million, compared to $83 million in the same quarter a year ago. Q1 GAAP earnings per share (EPS) grew 160 percent to $1.09, compared to $0.42 in the same quarter a year ago. Q1 non-GAAP operating income grew 100 percent to $235 million, compared to $117 million in the same quarter a year ago. Q1 non-GAAP EPS grew 91 percent to $1.22, compared to $0.64 in the same quarter a year ago. “We’ve started strong in Fiscal Year 2022, with Q1 sales up 58% in constant currency and profits doubling versus last year,” said Bracken Darrell, Logitech president and chief executive officer. “Our key categories grew high double digits. This

Adagio Therapeutics Partners with Biocon Biologics to Bring Potent and Broadly Neutralizing COVID-19 Antibody Treatment to Patients in India and Select Emerging Markets26.7.2021 22:05:00 CEST | Press release

Adagio Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of antibody-based solutions for infectious diseases with pandemic potential, today announced a partnership agreement with Biocon Biologics Ltd., to combat the ongoing COVID-19 crisis in southern Asia. Biocon Biologics Ltd. is a fully integrated biosimilars company and a subsidiary of Biocon Ltd., a global biopharmaceuticals company, (BSE code: 532523, NSE: BIOCON). Under the terms of the agreement, Adagio will provide Biocon with materials and know-how to manufacture and commercialize an antibody treatment based on ADG20 in India and additional select emerging markets. ADG20, Adagio’s lead product candidate, is designed to be a potent, long-acting and broadly neutralizing antibody for both the treatment and prevention of COVID-19 as either a single or combination agent. Unlike other antibody-based therapies specifically targeting SARS-CoV-2, ADG20 has demons

SpeeDx Launch Solution for SARS-CoV-2 Variant Analysis26.7.2021 18:40:00 CEST | Press release

SpeeDx Pty. Ltd., a developer of innovative molecular diagnostic solutions, have launched a new product line of research reagents to support reflex variant analysis for circulating SARS-CoV-2 variants of concern (VOC). The rapid development of PlexPrime® SARS-CoV-2 Genotyping* tests will support investigations and monitoring of the range of emerging and circulating SARS-CoV-2 VOC that have been linked to increased transmissibility, reduced vaccine efficacy, or other characteristics that may require specific public health actions.1 This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210726005313/en/ SpeeDx unique technology excels in mutation detection applications and can readily be applied to variants reported in the SARS-CoV-2 sequence databases. Compatible with standard qPCR instrumentation, the PlexPrime® SARS-CoV-2 Genotyping research reagents can reduce the manual process of preparing positive samples for sequence analysis

V-Square Appoints Erik Norland as Head of Distribution26.7.2021 17:00:00 CEST | Press release

V-Square Quantitative Management (V-Square) has announced the hiring of Erik Norland as its Head of Distribution. A 20-year industry veteran with asset management, custody, and global markets expertise, Erik’s addition to the team bolsters our strong client-centric approach to deliver customized ESG solutions as we continue to build our reputation as a specialized global asset manager. He will lead the firm's sales, consultant relationship and client service functions across institutional, insurance and wholesale. Mr. Norland, based in Stockholm, will report to Mamadou-Abou Sarr, co-founder and President and will join the global leadership team. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210726005571/en/ Erik Norland, Head of Distribution (Photo: Business Wire) "Erik is a results-focused leader who brings excellent experience in distribution strategy and execution, sales management and client relationship roles. I had th

Private and Public Sector Join Forces Under the Umbrella of the kENUP Foundation: BioNTech Announces Project to Develop the First mRNA-Based Prophylactic Malaria vaccine, and the set-up of Manufacturing Infrastructures in Africa26.7.2021 16:10:00 CEST | Press release

Today, BioNTech SE (“BioNTech”) announced the start of its Malaria project which aims at the development of a safe and highly effective malaria vaccine and the implementation of sustainable vaccine supply solutions on the African continent. The company’s project is part of a programme by the kENUP Foundation to accelerating the eradication of Malaria. This goal was out of reach so far, despite enormous financial and public health efforts of the global community. The scientific and entrepreneurial progress made during the COVID-19 pandemic raise hopes that a highly efficacious vaccine could soon help to eradicate Malaria. BioNTech aims to develop a safe and highly effective mRNA vaccine with durable protective immunity for prevention of malaria and disease associated mortality. To this end, BioNTech will assess multiple vaccine candidates featuring known Malaria targets such as the circumsporozoite protein (CSP), as well as new antigens discovered in the pre-clinical research phase. The

PPG to Expand Production Capacity for PPG ISENSE Gloss Beverage Can Coatings at Delaware, Ohio, Plant26.7.2021 15:02:00 CEST | Press release

PPG (NYSE:PPG) today announced that it is currently adding capacity for the production of overvarnish coatings for beverage can exteriors, including PPG ISENSE™ Gloss coatings, at its Delaware, Ohio, plant. PPG expects the addition of the Delaware plant’s new volume to existing overvarnish capacity at its Oak Creek, Wisconsin, packaging coatings facility will increase the company’s overall production of overvarnish coatings in the U.S. by 40%. “Beverage can manufacturers around the world are facing unprecedented demand for their products,” said Todd White, PPG general manager, U.S. and Canada, and global strategic accounts, packaging coatings. “With this added capacity, we are committed to helping them meet that demand while adding more security to their supply chain for beverage can coatings.” In addition to increasing supply chain security for its customers and the packaging industry, the Delaware plant will provide in-line analytical capabilities for enhanced batch consistency. “PPG

NET ZERO Leaders Summit (Japan Business Conference 2021) - Online Event From Wednesday, July 28 : Latest Information26.7.2021 15:00:00 CEST | Press release

Japan’s Ministry of Economy, Trade and Industry (METI) and the Japan External Trade Organization (JETRO) are pleased to announce the jointly organized “NET ZERO Leaders Summit (Japan Business Conference 2021)” to accelerate innovation in green investment and the realization of carbon neutrality. The event will take place from Wednesday, July 28, and will be held online. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210726005389/en/ Entrance_Lobby_Image (Graphic: Business Wire) Main Program In the main program, panel discussions will be held between 15 leaders of global companies and organizations. In addition, Mr. SASAKI Nobuhiko, Chairman and CEO of the Japan External Trade Organization (JETRO), will present the opening remarks, Mr. TOKURA Masakazu, Chairman of KEIDANREN (Japan Business Federation), will present the keynote speech and Prime Minister SUGA Yoshihide and Minister of Economy, Trade and Industry KAJIYAMA Hirosh

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