Business Wire

ADVA

Share
ADVA announces record revenues for Q1 2022

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/

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

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

Elegen and Nutcracker Therapeutics to Pilot First Fully Cell-Free Manufacturing Process for RNA-based Personalized Cancer Therapeutics11.7.2025 14:00:00 CEST | Press release

Fully cell-free process aims to further democratize personalized cancer therapeutic manufacturing with shorter turnaround times and negligible bioburden and endotoxin risks. Elegen, a global leader in next-generation DNA manufacturing, and Nutcracker Therapeutics, a global leader in next-generation RNA design and manufacturing, today announced the launch of a pilot program to demonstrate the industry’s first fully synthetic, cell-free manufacturing platform for RNA-based personalized cancer therapeutics (PCTs). The pilot marks another step toward making PCTs more accessible, timely, and scalable. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250711152688/en/ As late-stage PCT clinical trials progress and therapy developers work to create the next generation of PCTs, the speed, reliability, scaling and cost of traditional production methods pose a major challenge. Specifically, the first step of DNA template production is hi

$MBG Token Pre-Sale Set for July 15 — Only 7 Million Tokens Available at $0.3511.7.2025 10:17:00 CEST | Press release

MultiBank Group, the world’s largest financial derivatives institution headquartered in Dubai, has confirmed that its highly anticipated $MBG Token pre-sale will go live on July 15, with demand expected to be intense. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250711737311/en/ With only 7 million $MBG tokens up for grabs at an exclusive entry price of $0.35, this is a rare opportunity to secure early access to what many are calling the year’s most powerful utility asset. With only 7 million tokens up for grabs at an exclusive entry price of $0.35, this is a rare opportunity to secure early access to what many are calling the year’s most powerful utility asset. Early participants can join simultaneously on MultiBank.io, the Group’s regulated crypto exchange, and Uniswap, the world’s leading decentralized platform. Supported by $29 billion in real assets and powered by over $35 billion in daily turnover, $MBG is engineered

Live Story Raises €2.7 Million to Revolutionize the Digital Experience11.7.2025 10:05:00 CEST | Press release

With a round led by Vertis, the next-generation CMS platform accelerates its focus onAI, performance, and European expansion. Target: surpass €10M in recurring revenueby 2027. Live Story, the tech company founded by Stefano Mocellini, has closed a €2.7 million seed round led by Vertis, one of Italy’s leading early-growth venture capital firms. The funding will support the company’s international expansion and technological development, with a clear goal: to exceed €10 million in annual recurringrevenue by 2027. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250711335560/en/ “We invested in Live Story because it addresses one of the major inefficiencies in digital commerce: the slow and rigid management of visual and narrative content,” says Alessandro Pontari, Partner at Vertis SGR. “The platform helps brands drastically reduce their time-to-market through a visual CMS that integrates seamlessly with any tech stack. In a wor

With a Score of 84 out of 100, Sagemcom Is Awarded the EcoVadis Platinum Medal: a Prestigious Recognition of its CSR Commitment11.7.2025 09:00:00 CEST | Press release

Sagemcom Group is proud to announce that it has been awarded, for the third time, the Platinum Medal by EcoVadis, the highest distinction granted by the leading global platform for assessing Corporate Social Responsibility (CSR) performance. This medal places Sagemcom in the top 1% of companies evaluated worldwide, across all industries. With a score of 84 out of 100, Sagemcom reaffirms its position as a committed leader in ecological transition, business ethics, sustainable supply chain management, and social responsibility. “The EcoVadis Platinum Medal is more than just an award — it is the recognition of our collective efforts to embed sustainable development principles at the heart of our corporate strategy and culture,” says Sylvaine Couleur, Executive Vice President, CSR & Communication. “Achieving this level demonstrates that our commitments are tangible, impactful, and internationally recognized. This distinction strengthens our determination to further advance and expand our C

IEEE Standards Commitment to Advancing AI Governance Includes Impactful Contributions to New International AI Standards Exchange11.7.2025 08:00:00 CEST | Press release

IEEE, the world’s largest technical professional organization dedicated to advancing technology for humanity, and its IEEE Standards Association (IEEE SA) announced today that its portfolio of over 100 global AI-related standards is included in the new International AI Standards Exchange. This Exchange is a centralized repository of international AI standards with the aim to foster collaboration and responsible AI development worldwide. IEEE and its AI global standards were recognized in the 2024 United Nations AI Advisory Body’s Report, Governing AI for Humanity, which created the impetus for the AI Standards Exchange. Due to its impactful AI standards and related work, IEEE, a major standards body, was included as a partner in the establishment of the Exchange. IEEE President and CEO Kathleen Kramer, who is speaking at the AI for Good Summit this year at the High-Level AI Standards Panel,shares, “IEEE’s mission of advancing technology for the benefit of humanity is foundational to ou

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