Business Wire

ADVA posts quarterly revenues of EUR 132.7 million for Q1 2020

Share

ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported financial results for Q1 2020 ended on March 31, 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/20200422005933/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 2020 financial summary1

(in thousands of EUR)

 

Q1

 

Q1

 

Change

 

Q4

 

Change

 

 

2020

 

2019

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

132,686

 

128,160

 

3.5%

 

151,135

 

-12.2%

Pro forma gross profit

 

42,275

 

45,132

 

-6,3%

 

54,633

 

-22.6%

in % of revenues

 

31.9%

 

35.2%

 

-3.3pp

 

36.1%

 

-4.2pp

Pro forma operating income

 

-1,671

 

2,748

 

n.a.

 

10,333

 

n.a.

in % of revenues

 

-1,3%

 

2.1%

 

-3.4pp

 

6.8%

 

-8.1pp

Operating income2

 

-4,038

 

868

 

n.a.

 

5,438

 

n.a.

Net income2

 

-7,235

 

1,036

 

n.a.

 

2,522

 

n.a.

 

 

 

 

 

 

 

 

 

 

 

(in thousands of EUR)

 

Mar. 31

2020

 

Mar. 31

2019

 

Change

 

Dec. 31

2019

 

Change

Cash and cash equivalents

 

52,753

 

49,323

 

7.0%

 

54,263

 

-2.8%

Net debt3

 

67,705

 

73,702

 

-8.1%

 

61,146

 

10.7%

1

Potential differences due to rounding

2

Q1 2020 including EUR 0.8 million and Q4 2019 including EUR 3.2 million one-off expenses

3

Q1 2020 including EUR 32.5 million, Q4 2019 including EUR 34.4 million and Q1 2019 including EUR 36.8 million lease liabilities due to IFRS 16

Q1 2020 IFRS financial results

Revenues for Q1 2020 decreased by 12.2% to EUR 132.7 million from EUR 151.1 million in Q4 2019 and grew by 3.5% from EUR 128.2 million in the same year-ago period.

Pro forma operating income for Q1 2020 was negative EUR 1.7 million (-1.3% of revenues), substantially down from EUR 10.3 million (6.8% of revenues) in Q4 2019 and also down from EUR 2.7 million (2.1% of revenues) in the same year-ago period. The decline in profitability is mainly due to the lockdown in Wuhan at the beginning of the first quarter and to significant project-related shifts in the product and customer mix in Q1 2020.

Consequently, operating income for Q1 2020 of negative EUR 4.0 million significantly decreased from EUR 5.4 million reported for Q4 2019 and decreased from EUR 0.9 million in the same year-ago quarter. One-off expenses are primarily driven by selective head count reduction and site closures and amounted to EUR 0.8 million in Q1 2020.

ADVA reported a net loss of EUR 7.2 million in Q1 2020 that decreased significantly from a net income of EUR 2.5 million in Q4 2019 and declined from a net income of EUR 1.0 million in Q1 2019.

At quarter-end, the company’s cash and cash equivalents totaled at EUR 52.8 million, representing a decrease of 2.8% compared to EUR 54.3 million at the end of Q4 2019 and an increase of 7.0% compared to EUR 49.3 million in Q1 2019.

The company’s net debt in Q1 2020 increased by EUR 6.6 million to EUR 67.7 million from EUR 61.1 million at the end of Q4 2019 and improved by EUR 6.0 million compared to Q1 2019.

Net working capital at quarter-end was EUR 134.2 million compared to EUR 128.2 million at the end of Q4 2019. Trade account receivables decreased from EUR 96.2 million to EUR 88.2 million and inventories decreased from EUR 105.4 million to 91.5 million, respectively. At the same time trade account payables declined to EUR 45.5 million compared to EUR 73.4 million in the previous quarter.

While demand in Q1 2020 developed positively, there are still increased risks in maintaining the ability to supply. A recession-related decline in demand can also have a negative impact on the business performance of ADVA. Due to the current uncertainties about the further course of the crisis and its effects on ADVA's business, it is not possible to reliably predict further implications for the company. Therefore, the management board has concluded that the guidance of February 20, 2020, outlined in the 2019 annual report cannot be upheld and therefore withdraws the previous outlook for the 2020 financial year. Originally, the company had forecasted increasing revenues to more than EUR 580 million with an increased pro forma operating income of more than 5% of revenues. Additionally, the management board expected an improvement in net debt in the single-digit percentage range and a net promoter score of at least 40%.

Management commentary

“We are currently experiencing a crisis that is unprecedented in the history of the modern, industrialized world. Covid-19 knows no national borders, affects all continents and creates severe challenges for all of us,” said Brian Protiva, CEO, ADVA. “As a network equipment supplier, we serve some of the world’s most critical communications infrastructures. As such, we’re doing everything humanly possible to remain fully operational, while protecting the safety and health of our employees, partners and customers. Order entry from a few large customers was strong in the first quarter, and our main focus is on maintaining our ability to deliver. We have developed a very agile and flexible supply chain, and our development and distribution centers have so far largely avoided the crisis. Apart from a few minor exceptions, our production and supply chains are intact. Clearly, this can worsen suddenly, and that’s why we have developed a strategy that enables us to compensate for production and delivery bottlenecks due to possible location closures.”

“Despite elevated levels of uncertainty on the demand and supply side, we operate in a framework of financial resilience,” commented Uli Dopfer, CFO, ADVA. “We were able to improve our operating cash flow compared to the year-ago quarter while our cash balance of EUR 52.8 million remained on a comfortable level. We have a strong order backlog and are confident that we will grow sequentially in Q2 2020. So far, we haven’t utilized any of the Covid-19-related government loans. However, we are reviewing all meaningful opportunities and actively manage our working capital to ensure balance sheet stability and financial flexibility.”

The company will publish its financial results for Q2 2020 on July 23, 2020.

Conference call details

ADVA will hold a conference call for analysts and investors today, April 23, 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.

To participate, please register here. 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 3M 2020 (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, 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

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

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

SCENTMATIC's AI "KAORIUM" Debuts at THAMEEN Fragrance Launch in London's Selfridges4.7.2025 12:13:00 EEST | Press release

SCENTMATIC Inc., a leader in scent digitalization, introduced its AI-powered scent-to-language system, KAORIUM, at the THAMEEN Fragrance new product launch event. This pivotal event took place from June 5 to 11, 2025, at Selfridges department store in London, UK. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250703662207/en/ State of exhibition Global Expansion: KAORIUM Establishes UK Presence Europe leads the global fragrance market, with the UK projected to reach US$2.82 billion by 2033. Recognizing this, SCENTMATIC is rapidly expanding its international footprint. In May 2024, SCENTMATIC established its overseas subsidiary, KAORIUM, in London, appointing industry expert Ben Yanoushek as CEO. Official UK operations commenced on February 1, 2025, with the launch of its dedicated website: www.kaorium.com. KAORIUM Trialed at "Florentine Diamond" Launch Event The "Florentine Diamond" launch event for luxury brand THAMEEN Frag

Global Tourism Surging Ahead of Economic Growth, With Visits to Hit 30 Billion by 20344.7.2025 02:00:00 EEST | Press release

The World Economic Forum has today published a new report forecasting that the travel and tourism industry is projected to serve 30 billion tourist trips by 2034. Travel and Tourism at a Turning Point: Principles for Transformative Growth, produced in collaboration with Kearney and the Ministry of Tourism Saudi Arabia, reveals a projected $16 trillion contribution to global GDP by the same year—representing more than 11% of the total world economy, according to World Travel & Tourism Council estimates. The report also found that the sector is expanding 1.5 times faster than the global economy, generating significant commercial opportunities as long as the mounting challenges of climate change, labour shortages and infrastructure gaps are addressed. Inbound and outbound trips increasing fast Asia is on track to become the world’s fastest-growing tourism economy, with the direct travel and tourism GDP contribution expected to exceed 7% across the region by 2034. Notably, India and China

The 2025-2026 World Branding Awards Animalis Edition Honouring Leading Pet and Animal Brands Globally3.7.2025 22:00:00 EEST | Press release

The 2025-2026 World Branding Awards Animalis Edition marked its fifth instalment, bringing together leading pet and animal brands from all around the world. These brands were celebrated for their outstanding achievements, earning recognition as National, Regional, and Global Winners. The awards ceremony, held at Vienna's prestigious Hofburg Palace, welcomed winners across diverse categories, including pet food, retail, wellness, pet exhibitions, and aquatic products. Mounia Berrada-Gouzi expertly hosted the evening, which culminated in a grand celebration of brand excellence. “The Animalis Edition of the World Branding Awards recognises brands that have achieved the highest distinction—genuine recognition in the hearts and minds of consumers. Tonight, we honour those whose names resonate globally, whose values inspire loyalty, and whose presence defines excellence in the pet and animal industry,” said Richard Rowles, Chairman of the World Branding Forum. Out of over 950 brands nominate

Venture Global Announces 20-Year Sales and Purchase Agreement with PETRONAS3.7.2025 15:59:00 EEST | Press release

Today, Venture Global, Inc. (NYSE: VG) announced the execution of a new 20-year Sales and Purchase Agreement (SPA) with PETRONAS LNG Ltd. (PLL), a subsidiary of the Malaysian state-owned oil and gas company, PETRONAS. Under the terms of the SPA, PETRONAS will purchase 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from Venture Global’s third facility, CP2 LNG, for 20 years. This builds upon Venture Global’s existing agreement with PETRONAS for 1 MTPA of LNG supply from Plaquemines LNG. PETRONAS, a world-class partner in the LNG industry, joins other CP2 LNG customers in Europe, Asia and the rest of the world in a strategically important project to global energy supply and security. To date, approximately 10.75 MTPA of the 14.4 MTPA nameplate capacity for CP2 Phase One has been sold. About Venture Global Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. Venture Global’s business includes assets ac

Frost & Sullivan Recognizes Novotech as 2025 Global Biotech CRO Company of the Year3.7.2025 15:05:00 EEST | Press release

In recognition of its innovation, client-focused delivery, and global impact, Novotech has been awarded the 2025 Global Biotechnology Contract Research Organization (CRO) Company of the Year by Frost & Sullivan. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250703950144/en/ Novotech Wins Global CRO Award Novotech is a globally recognized full-service clinical CRO and scientific advisory firm, trusted by biotech and small- to mid-sized pharmaceutical companies to advance their drug development programs at every phase. With a global footprint spanning Asia-Pacific, North America, and Europe, Novotech supports over 5,000 clinical trial sites and a distributed team of experts delivering seamless, end-to-end solutions across geographies. “Novotech is redefining biotech-focused clinical research through AI-driven innovation, global expansion, and a client-embedded partnership model. With a clear vision to be the CRO of choice for

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
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye