ADVA
28.7.2022 07:02:06 CEST | Business Wire | Press release
ADVA (ISIN: DE0005103006, FSE: ADV), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported final financial results for Q2 2022 ended on June 30, 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/20220727005735/en/
Q2 2022 financial summary 1
(in thousands of EUR) |
|
Q2 2022 |
|
Q2 2021 |
|
Change |
|
Q1 2022 |
|
Change |
||
Revenues |
|
166,320 |
|
149,354 |
|
11.4% |
|
170,498 |
|
(2.5)% |
||
Pro forma gross profit |
|
54,336 |
|
57,274 |
|
(5.1)% |
|
53,405 |
|
1.7% |
||
in % of revenues |
|
32.7% |
|
38.3% |
|
(5.6) pp |
|
31.3 % |
|
1.4 pp |
||
Pro forma EBIT |
|
6,435 |
|
14,415 |
|
(55.4)% |
|
7,812 |
|
(17.6)% |
||
in % of revenues |
|
3.9% |
|
9.7% |
|
(5.8) pp |
|
4.6% |
|
(0.7) pp |
||
Operating income 2 |
|
4,655 |
|
13,036 |
|
(64.3)% |
|
5,976 |
|
(22.1)% |
||
Net income |
|
7,291 |
|
12,001 |
|
(39.2)% |
|
6,179 |
|
18.0% |
||
|
|
|
|
|
|
|
|
|
|
|
||
(in thousands of EUR) |
|
Jun. 30, 2022 |
|
Jun. 30, 2021 |
|
Change |
|
Mar. 31, 2022 |
|
Change |
||
Cash and cash equivalents |
|
63,187 |
|
85,023 |
|
(25.7)% |
|
73,002 |
|
(13.4)% |
||
Net cash (+)/net debt (-) |
|
(946) |
|
3,876 |
|
(124.4)% |
|
763 |
|
(224.0)% |
||
Net working capital |
183,030 |
|
132,767 |
|
37.9% |
|
164,402 |
|
11.3% |
|||
1
Potential inconsistencies in the table values are based on rounding differences.
2
Q2 2022 including EUR 0.4 million and Q1 2022 including EUR 0.5 million extraordinary expenses.
Q2 2022 IFRS financial results
Revenues in Q2 2022 reached EUR 166.3 million, down by 2.5% from EUR 170.5 million in Q1 2022 and up by 11.4% compared to EUR 149.4 million in Q2 2021. The increase in revenues for Q2 2022 is predominantly driven by a growth in demand from network operators and internet content providers (ICPs). In addition, the stronger US dollar led to higher revenues in North America.
Pro forma gross profit in Q2 2022 increased by 1.7%, reaching EUR 54.3 million (32.7% of revenues) compared to EUR 53.4 million (31.3% of revenues) in Q1 2022 and decreased by 5.1% compared to EUR 57.3 million (38.3% of revenues) reported in Q2 2021. Gross profit was impacted by increased purchasing costs caused by the semiconductor crisis and a stronger US Dollar.
Pro forma EBIT for Q2 2022 was EUR 6.4 million (3.9% of revenues) and decreased by 17.6% compared to EUR 7.8 million (4.6% of revenues) reported in Q1 2022 and substantially declined by 55.4% from EUR 14.4 million (9.7% of revenues) in Q2 2021.
Operating income for Q2 2022 of EUR 4.7 million decreased by 22.1% from EUR 6.0 million reported for Q1 2022 and significantly decreased by 64.3% from EUR 13.0 million in Q2 2021. Operating income for Q2 2022 was impacted by extraordinary expenses in connection with the announced merger with Adtran amounting to EUR 0.4 million (Q1 2022 EUR 0.5 million and Q2 2021 EUR 0).
Net income reached EUR 7.3 million in Q2 2022, increased by 18.0% from EUR 6.2 million in Q1 2022, and considerably decreased by 39.2% from EUR 12.0 million in Q2 2021.
The company’s cash and cash equivalents totaled EUR 63.2 million, representing a decrease of EUR 9.8 million compared to EUR 73.0 million at the end of Q1 2022. Year-over-year cash and cash equivalents decreased by EUR 21.8 million from EUR 85.0 million at the end of Q2 2021. The company invested non-operating cash in measures to secure delivery.
Net debt at the end of Q2 2022 stood at EUR 0.9 million compared to a net cash position of EUR 0.8 million at the end of Q1 2022 and a net cash position of EUR 3.9 million at the end of Q2 2021.
At quarter-end, net working capital totaled EUR 183.0 million and increased by EUR 18.6 million compared to EUR 164.4 million at the end of Q1 2022 and increased significantly by EUR 50.3 million compared to EUR 132.8 million at the end of Q2 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
“The recent months were very exciting for us as a company,” said Brian Protiva, CEO of ADVA. “We reached several important milestones on our journey of joining forces with Adtran and advanced our operational business. Our revenues in the first half of 2022 were at a record level, and our order books are nicely filled. We still see strong customer demand paired with a high level of complexity and costs in the areas of procurement, production and logistics. This environment will continue for the foreseeable future. Our teams work tirelessly on solutions to meet market demand, and we work closely with our customers every day to provide the best possible support for their network development. So far, we’ve mastered the challenges very well and look positively towards the remainder of the year.”
“In the past quarter, we again grew compared to the year-ago quarter. This underlines the positive market environment and the tailwind we are experiencing on the demand side,” said Uli Dopfer, CFO of ADVA. “However, in the second half of the year, we will also have to deal with the challenges resulting from increased procurement costs and stressed supply chains. Despite increased inventories, our liquidity is at a satisfying EUR 63 million. Against the background of a continued strong order intake and a strengthening dollar in combination with persistently higher costs in the supply chains, we have decided to adjust the outlook for the fiscal year accordingly, which we announced in an ad-hoc notification on July 15th. We are raising our revenue guidance to between EUR 680 and 730 million and reducing our pro forma EBIT margin guidance by one percentage point to between 5% and 9%.”
2022 financial outlook
For the fiscal year 2022, ADVA expects revenues to be in the range of EUR 680 million and 730 million and a pro forma EBIT of between 5.0% and 9.0% of revenues.
The company will publish its financial results for Q3 2022 on October 27, 2022.
Conference call details
ADVA will hold a conference call for analysts and investors today, July 28, 2022, to discuss the Q2 2022 results. The company’s CEO, Brian Protiva, CTO, Christoph Glingener, 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 half-year report 2022 (January – June) is available as a PDF here:
https://www.adva.com/en/about-us/investors/financial-results/financial-reports
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005735/en/
Social Media:
About 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
LTM Launches BlueVerse™ RightLogic to Address Cyber Risk in AI Era6.7.2026 11:12:00 CEST | Press release
New assessment and risk assurance framework helps enterprises gain unified visibility, prioritise remediation and scale AI securely LTM, the Business Creativity partner to the world’s largest enterprises, has launched BlueVerse™ RightLogic, a cybersecurity assessment and risk assurance framework designed to help enterprises identify, assess and remediate cyber exposure as they accelerate AI adoption. AI is now capable of autonomously identifying and exploiting vulnerabilities, while exposure across infrastructure, applications and supply chains continue to expand. This has elevated cyber risk from a technology concern to a board-level priority, with enterprises struggling to maintain visibility and respond at the speed of emerging threats. BlueVerse RightLogic addresses this gap by providing a unified, business-aligned view of enterprise exposure and enabling a shift from fragmented, point-in-time assessments to continuous, evidence-led risk management. The framework combines an end-to
Media Release: Financial Worries Rise and Match Health Concerns as Cost-of-Living Pressures Mount in 20266.7.2026 10:00:00 CEST | Press release
Globally, people are united in their top personal worries: Financial and health issues rank at the top in 2026, averaging 13 percentage points ahead of other concerns.Financial pressure is prominent across Europe, rising in France, Germany, and U.K., and emerging as a top concern in newly measured markets, Spain and Switzerland.Allianz published these results in “The Allianz 3am Report 2026,” which surveyed 10,000 people across 10 countries worldwide about what keeps them awake at night.Addressing financial concerns requires accessible, targeted financial and risk education. To support this, Allianz has launched the “Allianz School For Life” learning platform. Households around the world are feeling the strain of the rising cost of living, with financial pressure increasingly shaping everyday choices and long-term confidence. Finances and health are now tied as the top global worries, at 48% each, followed by concerns about the future at 35%, according to consumer surveys in 10 countri
HAZAMA ANDO Becomes an Official Partner in Helical Fusion’s Commercial Fusion Initiative and Signs MoU Toward Construction of the Fusion Pilot Plant6.7.2026 08:40:00 CEST | Press release
A long-established Japanese general contractor will contribute construction expertise to advance Fusion Pilot Plant development toward commercially viable fusion power. Helical Fusion Co., Ltd. (“Helical Fusion”), a Japan-based fusion energy startup developing fusion power plants, and HAZAMA ANDO CORPORATION (“HAZAMA ANDO”), a long-established Japanese general contractor, today announced that HAZAMA ANDO has become an Official Partner in the Helix Program, Helical Fusion’s commercial fusion initiative. The two companies have also signed a memorandum of understanding (“MoU”) to collaborate toward the construction of Helix KANATA, Helical Fusion’s Fusion Pilot Plant targeted for the 2030s. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260706176052/en/ (L-R) Kazuhiko Kuniya (Representative Director and President, HAZAMA ANDO CORPORATION) and Takaya Taguchi (Co-Founder and CEO, Helical Fusion Co., Ltd.) at a press conference in
Sofinnova Partners Announces Myricx Bio Agrees to Be Acquired by Novartis6.7.2026 07:15:00 CEST | Press release
Sofinnova Partners co-led the seed investment in 2019 and has supported the company from founding through to exitThe proposed acquisition combines the oncology expertise of Novartis with Myricx Bio’s novel ADC assets and platform having broad potential across multiple solid tumor typesMyricx Bio's first-in-class NMTi payload platform is designed to improve the therapeutic index of ADCs, offering the potential for more effective and better-tolerated treatment options for cancer patientsThe transaction valued at up to $1.5 billion including $1.1 billion cash upfront Sofinnova Partners, a leading European life sciences venture capital firm, today announced that its portfolio company Myricx Bio (“Myricx”) has reached agreement to be acquired by Novartis, for up to $1.5 billion including $1.1 billion cash upfront plus potential milestone payments. This marks Sofinnova Partners' seventh exit in three years. Myricx Bio is a UK-headquartered transatlantic biotech company focused on the discove
Global New Material International Wins Technology Innovation Best Practice Award at Sino-European ESG Conference6.7.2026 05:59:00 CEST | Press release
Global New Material International Holdings Ltd. has received the Technology Innovation Best Practice Award at the Third Sino-European Corporate ESG Best Practice Conference recently in Mainz, Germany, in recognition of its efforts to advance sustainable development through material innovation. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260705533555/en/ Thorsten Giehler (L), Director of the Economic, Social Development and Employment Division of The German Society for International Cooperation (GIZ), delivered the award to Zhou Fangchao, Executive Director and Vice President of Global New Material International. The annual conference, initiated by the Chinese Consulate General in Frankfurt and jointly organized with Chinese and European partners, recognizes corporate best practices in environmental, social and governance (ESG) performance. This year's event brought together government officials, business leaders and exper
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