Business Wire

ADVA posts strongest Q1 results in company’s history

Share

ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported record financial results for Q1 2021 ended on March 31, 2021. 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/20210421005956/en/

Brian Protiva, CEO, ADVA (Photo: Business Wire)

Brian Protiva, CEO, ADVA (Photo: Business Wire)

Q1 2021 financial summary1

(in thousands of EUR)

   

Q1

     

Q1

     

Change

     

Q4

     

Change

 

 

   

2021

     

2020

     

 

     

2020

     

 

 

 

 

Revenues

   

144,473

     

132,686

     

8.9%

     

140,572

     

2.8%

 

Pro forma gross profit

   

55,345

     

42,275

     

30.9%

     

54,641

     

1.3%

 

in % of revenues

   

38.3%

     

31.9%

     

6.4pp

     

38.9%

     

-0.6pp

 

Pro forma operating income

   

12,860

     

-1,671

     

869.6%

     

14,343

     

-10.3%

 

in % of revenues

   

8.9%

     

-1.3%

     

10.2pp

     

10.2%

     

-1.3pp

 

Operating income (loss)

   

11,573

     

-4,038

     

386.6%

     

13,085

     

-11.6%

 

Net income

   

11,228

     

-7,235

     

255.2%

     

13,249

     

-15.3%

 

 

(in thousands of EUR)

   

Mar. 31

2021

     

Mar. 31

2020

     

Change

     

Dec. 31

2020

     

Change

 

Cash and cash equivalents

   

79,060

     

52,753

     

49.9%

     

64,881

     

21.9%

 

Net debt

   

10,626

     

67,705

     

-84.3%

     

25,545

     

-58.4%

 

Net working capital

   

125,785

     

134,219

     

-6.3%

     

129,853

     

-3.1%

 

1 Potential difference due to rounding

Q1 2021 IFRS financial results
Revenues in Q1 2021 reached EUR 144.5 million, up by 2.8% from EUR 140.6 million in Q4 2020, also up by 8.9% compared to EUR 132.7 million in the same year-ago period, and are within the guidance corridor of between EUR 143 million and EUR 148 million. This success was particularly due to high order volume from network operators as well as private companies and governments.

Pro forma gross profit in Q1 2021 increased by 1.3%, reaching EUR 55.3 million (38.3% of revenues) compared to EUR 54.6 million (38.9% of revenues) in Q4 2020 and increased significantly by 30.9% compared to EUR 42.3 million reported in the year-ago quarter. Orders for network synchronization technology again developed positively in Q1. In addition, the customer mix contributed positively to the margin increase in the past quarter.

Pro forma operating income for Q1 2021 was EUR 12.9 million (8.9% of revenues) and decreased by 10.3% compared to EUR 14.3 million (10.2% of revenues) reported in Q4 2020. Compared to the year-ago quarter, pro forma operating income improved significantly by 869.6% from a loss of EUR 1.7 million (-1.3% of revenues). Hence the pro forma operating margin was at the top end of the guidance corridor of 7% to 9%. In addition to the higher gross profit, this substantial margin improvement is mainly due to improved operational expenditures.

Operating income for Q1 2021 of EUR 11.6 million decreased by 11.6% from EUR 13.1 million reported for Q4 2020 and significantly increased by 386.6% from a loss of EUR 4.0 million in the same year-ago quarter.

Net income reached EUR 11.2 million in Q1 2021, down by 15.3% from EUR 13.2 million in Q4 2020, and significantly up by 255.2% from a loss of EUR 7.2 million in Q1 2020.

The company’s cash and cash equivalents totaled EUR 79.1 million, representing an increase of EUR 14.2 million compared to EUR 64.9 million at the end of Q4 2020. Year-over-year cash and cash equivalents substantially increased by EUR 26.3 million from EUR 52.7 million at the end of Q1 2020. The higher cash balance is mainly the result of the improved profitability and lower capital expenditures, particularly compared to the prior-year quarter.

Consequently, net debt in Q1 2021 strongly decreased by EUR 14.9 million to EUR 10.6 million from EUR 25.5 million at the end of Q4 2020 and improved significantly by EUR 57.1 million compared to Q1 2020 (EUR 67.7 million).

Net working capital at quarter-end was EUR 125.8 million and decreased by EUR 4.1 million compared to EUR 129.9 million at the end of Q4 2020.

Management commentary
“Today we report the best Q1 in our long history as a publicly listed company. We’ve never posted higher revenues in the first quarter of a financial year, and we’ve never achieved higher profitability, generated more cash, or recorded a better order intake,” commented Brian Protiva, CEO, ADVA. “The speed of digitization in many countries has increased noticeably and we are seeing very good demand from all of our customer groups. At the same time, we are making good progress with the transformation of our business. Focus on growth markets with a higher proportion of software and services as well as more verticalization will bring our pro forma EBIT to around 10% of revenues.”

“Our transformation strategy combined with strict cost control showed the expected effects and have opened the door to sustainably higher margin potential. Net income of EUR 11.2 million is already over 50% of the result generated in 2020. With that, we have made an excellent start to the new financial year,” said Uli Dopfer, CFO, ADVA. “We were able to further increase cash and reduce net debt to EUR 10.6 million. This further underlines our strong financial position.”

Financial outlook 2021
For the fiscal year 2021, ADVA expects revenues to be in the range of EUR 580 million and EUR 610 million and a pro forma operating income of between 6.0% and 10.0% of revenues.

The company will publish its financial results for Q2 2021 on July 22, 2021.

Conference call details
ADVA will hold a conference call for analysts and investors today, April 22, 2021, to discuss the Q1 2021 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 2021 (January – March) is available as a PDF:
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

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

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

Vantage Data Centers Provides Renewable Energy Options to Customers at All Campuses Globally6.5.2021 15:30:00 EEST | Press release

Vantage Data Centers, a leading global provider of hyperscale data center campuses, today announced that it now provides access to renewable energy options at each of its North American and European campuses to enable customers to reduce their carbon emissions. Additionally, the company has hired two experts to lead its environmental sustainability commitments across the globe. Four of the company’s campuses are currently powered by more than 99% renewable energy (hydro, tidal and wind) for critical IT load through Vantage’s utility partners, while the other campuses provide access to green power purchases and renewable energy credits through local utility partners. Vantage actively works with energy providers, customers and industry groups to advocate and invest in additional renewable energy options globally. As part of an expanded focus on environmental goals, the company named Amanda Sutton as senior director of sustainability to lead Vantage’s global sustainability program to less

Aptorum Group Enters into an Agreement with Exeltis to Develop Aptorum’s Novel Preclinical Candidate Targeting Woman’s Gynecological Conditions6.5.2021 14:00:00 EEST | Press release

Regulatory News: Aptorum Group Limited (Nasdaq: APM, Euronext Paris: APM) (“Aptorum Group” or “Aptorum”), a clinical-stage biopharmaceutical company, has entered into an agreement with Exeltis (“Exeltis”) (a division of the global pharmaceutical group Insud Pharma) to develop, manufacture and commercialize a novel preclinical candidate from Aptorum in the following territories: the European Union and Latin America (with an option to expand the collaboration to the United States). This novel candidate is intended to target woman’s health and gynecological conditions, such as endometriosis or related conditions. Under the Agreement, Aptorum Group will retain the development rights in other jurisdictions in the world, as well as the right to develop the novel candidate into a drug product. Commercialisation of the product is subject to relevant regulatory approvals in their respective jurisdictions. Dr. Clark Cheng, Chief Medical Officer and Executive Director of Aptorum Group, commented:

FedEx Delivering Critical COVID-19 Aid to India6.5.2021 14:00:00 EEST | Press release

As India and its healthcare systems face a surge in COVID-19 infections across the country, FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, is working with organizations around the world to deliver critical medical supplies and equipment during this crisis. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210506005392/en/ Critical medical supplies and personal protective equipment departing Santa Barbara, Calf., USA, bound for healthcare facilities in Kolkata, India via FedEx. (Photo: Business Wire) FedEx is currently supporting the transportation of more than 25,000 oxygen concentrators and converters through an initiative with the U.S.-India Strategic Partnership Forum and other multinational companies. An initial shipment of 1,000 critical oxygen concentrators was delivered by FedEx to New Delhi on April 30 as part of this collective. On May 8, FedEx is donating

SoftServe Charity Fund Opens ‘Positive Room’ at Dnipro Regional Children's Hospital6.5.2021 14:00:00 EEST | Press release

SoftServe’s corporate charity fund, “Open Eyes” has opened a “Positive Room” for patients of the Dnipro Regional Children’s Clinical Hospital. The Positive Room in Dnipro, the sixth such space in Ukraine, was opened at the Department of Reconstructive Surgery thanks to charitable donations by SoftServe, its employees, and other contributors. The Department helps as many as 30 children at a time recover from the most serious, life-threatening illnesses. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210506005004/en/ “Positive Room” for patients of the Dnipro Regional Children’s Clinical Hospital. (Photo: Business Wire) “We treat children with the most serious diseases: congenital malformations, chemical burns of the esophagus, disorders of the gastrointestinal tract, and tumors requiring surgery,” said Oleksandr Gladkyi, head of the Department of Reconstructive Surgery of Dnipro Regional Children's Clinical Hospital. “The roo

RMS Unveils Significant New Event Response Innovations in ExposureIQ6.5.2021 12:26:00 EEST | Press release

RMS, the world’s leading catastrophe risk modeling and solutions company, announced new innovations to ExposureIQ™ on the Risk Intelligence platform, including real-time catastrophe event visualizations and more powerful reporting. RMS also unveiled new capabilities to allow cross-portfolio accumulations across reinsurance and insurance workflows. ExposureIQ is an innovative, cloud-based exposure management application designed to help portfolio managers gain deeper insights into their books, scaling to millions of locations, enabling easy discovery of hotspots, diversification, and portfolio re-balancing. The application provides access to exposure information which leverages events and footprints from RMS Event Response and RMS’s unique HWind real-time forecasting capabilities, to help gain a quicker and more accurate assessment of potential losses before, during, and after an event. Real-time analysis and insight into portfolios allow for alignment with a company’s risk appetite, ex

Qredo Raises $11 Million in Seed Funding to Launch Decentralized Digital Asset Management Infrastructure to Unlock New Opportunities Across DeFi6.5.2021 11:37:00 EEST | Press release

Qredo, a decentralized digital asset management infrastructure and product suite, announces an $11 million seed round led by a diverse group of investors including G1 , Gumi Cryptos, Maven 11, Spartan Group, 1kx and Kenetic. “The next generation of DeFi players will be institutions that actively look for ways to enter the crypto market in a secure and compliant manner without sacrificing their ability to respond to economic opportunities,” said Anthony Foy, CEO of Qredo. Qredo uses a novel blockchain protocol that enables users to access cryptocurrencies on Layer 1 blockchains, such as Bitcoin, and Ethereum over a Layer 2 network. This innovation allows users to securely participate in new DeFi innovations such as accessing ‘cross-chain’ liquidity pools, trading collateralized derivatives, and executing cross-chain atomic swaps. This funding will fuel the next stage of Qredo’s growth, which includes doubling its R&D team and bringing in additional world-class talent at the C-suite leve

BearingPoint client success story: Boehringer Ingelheim increases data accuracy by leveraging robotic process automation6.5.2021 11:05:00 EEST | Press release

Storage conditions play a vital role in the entire supply chain of pharmaceutical products and must comply with strict regulations. From manufacturers to patients, storage conditions are essential for the quality, safety, and efficacy of medications. In a recent client success story, BearingPoint shows how it helped Boehringer Ingelheim, one of the world’s largest pharmaceutical companies, streamline and automate its material verification workflow for much greater accuracy in determining the storage requirements for its pharmaceutical products. Boehringer Ingelheim now has a more efficient material verification process, with an automated execution and the lowest risk of human errors. Management and technology consultancy BearingPoint worked with Boehringer Ingelheim in gathering data from each manual step involved in the storage process by using UiPath’s Task Capture®. A Process Definition Document was created, with a detailed As-Is and To-Be process description. BearingPoint transferr

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