Business Wire

ADVA

Share
ADVA increases revenues for Q2 2022

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

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

Transition Industries Signs Strategic Agreements for the Pacifico Mexinol Project, the Largest Standalone Ultra-Low Carbon Chemical Production Facility in the World30.6.2025 20:30:00 CEST | Press release

Pacifico Mexinol project, a 6,130 MT per day ultra-low carbon methanol production facility worth more than US$3.3b will be located near Topolobampo, Ahome, Sinaloa. Once operational in 2029, Pacifico Mexinol is poised to be the largest standalone ultra-low carbon chemical production facility in the world. Transition Industries LLC, a developer of world-scale, net-zero carbon emissions methanol and green hydrogen projects in North America, held a signing event for an Engineering, Procurement, and Construction (EPC) contract with the consortium of Samsung E&A Co., Ltd. (Samsung E&A), Grupo Samsung E&A Mexico, S.A. de C.V., and Techint Engineering and Construction for the Pacifico Mexinol project located in Ahome, Sinaloa, Mexico, which is contingent upon the fulfillment of customary conditions precedent and obtainment of all required approvals. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250630940954/en/ MAIRE group’s techn

Westinghouse and ITER Sign a $180M Contract to Advance Nuclear Fusion30.6.2025 15:45:00 CEST | Press release

The contract includes the assembly of the fusion reactor’s vacuum vessel, a key milestone which gets the project closer to replicating fusion energy on Earth Westinghouse Electric Company and ITER signed a contract for $180 million for the assembly of the vacuum vessel for the fusion reactor. This is a key milestone in the construction of the ITER reactor, leading the way toward the use of fusion as a practical future source of reliable carbon-free energy. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250630497810/en/ The ITER Tokamak pit with the two vacuum vessel sector modules installed. Westinghouse has participated in the fabrication of the sectors of the vacuum vessel, as part of the Fusion for Energy (F4E) Consortium with its partners Ansaldo Nucleare and Walter Tosto. Westinghouse will be responsible for completing the vacuum vessel which is ITER’s most critical component: a hermetically sealed, double-walled steel

Monetate Acquires SiteSpect to Deliver AI-Native Personalization and Testing at Enterprise Scale30.6.2025 15:00:00 CEST | Press release

Monetate’s Real-Time Personalization Unites with SiteSpect’s Zero-Flicker Testing to Optimize Digital Experiences with Unmatched Speed, Precision, and SecurityNow Global Ecommerce and Digital Experience Leaders Can Access a Best-in-Class, Enterprise-Grade Personalization, Testing, and Optimization Platform Monetate, the leading AI-driven personalization platform, today announced it has acquired SiteSpect, a leader in A/B testing, to drive next-generation digital experience optimization. This acquisition accelerates Monetate’s vision to deliver intelligent, intentional, and individualized experiences at scale, powered by agentic AI and backed by the industry’s most advanced, enterprise-grade infrastructure. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250630514541/en/ The combination of Monetate’s real-time personalization and SiteSpect’s zero-flicker testing will yield an industry-first solution for enterprise-grade person

SS&C Blue Prism Recognized as a Gartner® Magic Quadrant™ RPA Leader for the Seventh Consecutive Year30.6.2025 15:00:00 CEST | Press release

SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that SS&C Blue Prism has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Robotic Process Automation (RPA). “We’re delighted SS&C Blue Prism has been named a Leader in the Gartner Magic Quadrant for Robotic Process Automation for the seventh year running,” said Bill Stone, CEO and Chairman of SS&C Technologies. “SS&C Blue Prism combines market-leading RPA and orchestration technologies with the latest artificial intelligence so organizations can tackle more complex tasks and dynamic business processes. We’ve scaled to more than 2,700 digital workers and AI agents across our own operations, resulting in over $200 million in annual savings. With SS&C leading the charge on deployment, customers can be confident in rolling out SS&C’s automation solutions securely, effectively, and responsibly.” More than 2,800 companies worldwide leverage SS&C Blue Prism for AI-powered automation, helping organizations delive

Takeda Announces U.S. FDA Approval of GAMMAGARD LIQUID ERC, the Only Ready-to-Use Liquid Immunoglobulin Therapy with Low Immunoglobulin A (IgA) Content130.6.2025 14:00:00 CEST | Press release

GAMMAGARD LIQUID ERC [immune globulin infusion (human)] with Less Than or Equal to 2 µg/mL IgA in a 10% Solution is Approved for Intravenous or Subcutaneous Use in People Aged Two and Older with Primary Immunodeficiency1U.S. Commercialization of GAMMAGARD LIQUID ERC Projected to Begin in 2026Company Announces Future Manufacturing Discontinuation End Date for Takeda's First-Generation Low-IgA Product, A Freeze-Dried Formulation in Company’s Differentiated Immunoglobulin Portfolio of Ready-to-Use Liquids2 Takeda(TSE:4502/NYSE:TAK) today announced that the U.S. Food and Drug Administration (FDA) has approved GAMMAGARD LIQUID ERC [immune globulin infusion (human)] with less than or equal to 2 µg/mL IgA in a 10% solution, the only ready-to-use liquid immunoglobulin (IG) therapy with low immunoglobulin A (IgA) content, as replacement therapy for people two years of age and older with primary immunodeficiency (PI). As a ready-to-use liquid, GAMMAGARD LIQUID ERC may help ease the administratio

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