Business Wire

ADVA

Share
ADVA posts quarterly revenues of EUR 146.7 million for Q3 2020

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/

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

Social Media:

https://www.facebook.com/ADVAOpticalNetworking

About Business Wire

Business Wire
Business Wire
101 California Street, 20th Floor
CA 94111 San Francisco

http://businesswire.com

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

The Coca-Cola Company Names New Leader for Europe Operating Unit18.7.2025 21:00:00 CEST | Press release

The Coca-Cola Company today announced that Luisa Ortega will become president of the Europe operating unit effective Sept. 1, succeeding Nikos Koumettis, who will retire in 2026 after a 25-year career with the company. Koumettis will remain with the company through Feb. 28, 2026, as a senior advisor. He will also serve on the board of directors of Hindustan Coca-Cola Beverages Pvt. Ltd., a company-owned bottler in India. Ortega joined Coca-Cola in 2019 and currently serves as president of the Africa operating unit. In this role, she leads a complex business that operates across 54 markets. Koumettis has led the Europe operating unit since it was created in 2021. “Luisa has done an outstanding job leading our African business, where our system has continued to make major investments to serve growing markets on the continent,” said Henrique Braun, Executive Vice President and Chief Operating Officer of The Coca-Cola Company. “As head of Europe, she will bring great international experien

NFL Running Back Derrick Henry Joins Amazfit as Athlete Ambassador18.7.2025 15:00:00 CEST | Press release

Henry to utilize Amazfit products to optimize health, recovery and performance as he enters his 10th NFL season Amazfit, a leading global smart wearables brand owned by Zepp Health (NYSE: ZEPP), announced Baltimore Ravens running back Derrick Henry as the newest elite athlete to join its growing roster of ambassadors. Known for his rare combination of speed and strength, Henry will utilize Amazfit wearables to power every phase of his training, recovery and sleep as he prepares for his 10th NFL season. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250718322498/en/ Derrick Henry is the newest elite athlete to join Amazfit's growing roster of ambassadors. As one of the most prolific running backs of his generation, Henry has amassed an impressive array of accolades during his career, including NFL Offensive Player of the Year, two rushing titles, and five Pro Bowl selections. With Amazfit as his official smart wearable partne

Qualcomm Announces Quarterly Cash Dividend18.7.2025 15:00:00 CEST | Press release

Qualcomm Incorporated (NASDAQ: QCOM) today announced a quarterly cash dividend of $0.89 per common share, payable on September 25, 2025, to stockholders of record at the close of business on September 4, 2025. About Qualcomm Qualcomm relentlessly innovates to deliver intelligent computing everywhere, helping the world tackle some of its most important challenges. Building on our 40 years of technology leadership in creating era-defining breakthroughs, we deliver a broad portfolio of solutions built with our leading-edge AI, high-performance, low-power computing, and unrivaled connectivity. Our Snapdragon® platforms power extraordinary consumer experiences, and our Qualcomm Dragonwing™ products empower businesses and industries to scale to new heights. Together with our ecosystem partners, we enable next-generation digital transformation to enrich lives, improve businesses, and advance societies. At Qualcomm, we are engineering human progress. Qualcomm Incorporated includes our licensin

MultiBank Group Confirms $MBG Token Listings on MEXC and Gate.io on TGE Day in Addition to MultiBank.io and Uniswap18.7.2025 14:34:00 CEST | Press release

MultiBank Group, the world’s largest & most regulated financial derivatives institution, is proud to announce that its highly anticipated $MBG Token will be listed on two new major global cryptocurrency exchanges — MEXC and Gate.io — on the day of its official Token Generation Event (TGE), July 22, 2025, in addition to MultiBank.io and Uniswap. The $MBG Token will go live on: MultiBank.ioGate.ioMEXCUniswap This new dual listing will allow millions of users across both exchanges to seamlessly access and trade $MBG using their existing accounts, ensuring immediate market participation at launch. The Token Generation Event (TGE) is now approaching following the successful completion of two pre-sale rounds, where MultiBank Group issued 7 million tokens in Round 1 and 3 million tokens in Round 2 — both of which sold out within minutes. Naser Taher, Chairman and Founder of MultiBank Group said “With $MBG, we’re introducing a utility token built to deliver real-world value, transparency, and

SLB Announces Second-Quarter 2025 Results18.7.2025 12:50:00 CEST | Press release

Revenue of $8.55 billion increased 1% sequentially and decreased 6% year on year GAAP EPS of $0.74 increased 28% sequentially and decreased 4% year on year EPS, excluding charges and credits, of $0.74 increased 3% sequentially and decreased 13% year on year Net income attributable to SLB of $1.01 billion increased 27% sequentially and decreased 9% year on year Adjusted EBITDA of $2.05 billion increased 2% sequentially and decreased 10% year on year Cash flow from operations was $1.14 billion and free cash flow was $622 million Board approved quarterly cash dividend of $0.285 per share SLB (NYSE: SLB) today announced results for the second-quarter 2025. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250716727689/en/ The exterior of the SLB headquarters in Houston, Texas. Second-Quarter Results(Stated in millions, except per share amounts)Three Months EndedChangeJun. 30, 2025Mar. 31, 2025Jun. 30, 2024SequentialYear-on-yearReve

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