Business Wire

TX-ADVA

23.7.2020 07:02:16 CEST | Business Wire | Press release

Share
ADVA posts final Q2 2020 financial results

ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported final financial results for Q2 2020 ended on June 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/20200722006006/en/

Q2 2020 financial summary1

(in thousands of EUR)

Q2

Q2

Change

Q1

Change

 

2020

2019

 

2020

 

 

Revenues

145,024

133,216

8.9%

132,686

9.3%

Pro forma gross profit

50,204

46,513

7.9%

42,275

18.8%

in % of revenues

34.6%

34.9%

-0.3pp

31.9%

2.7pp

Pro forma operating income

10,107

4,337

133.0%

-1,671

n.a.

in % of revenues

7.0%

3.3%

3.7pp

-1.3%

8.3pp

Operating income2

8,658

2,497

246.7%

-4,038

n.a.

Net income2

7,629

1,297

488.2%

-7,235

n.a.

 

(in thousands of EUR)

Jun. 30

Jun. 30

Change

Mar. 31

Change

2020

2019

2020

Cash and cash equivalents

67,586

48,275

40.0%

52,753

28.1%

Net debt

44,928

68,117

-34.0%

67,705

-33.6%

1 Potential differences due to rounding
2 Q1 2020 including EUR 0.8 million one-off expenses

Q2 2020 IFRS financial results

As already stated in the ad hoc announcement on 16 July, 2020, revenues for Q2 2020 increased by 9.3% to EUR 145.0 million from EUR 132.7 million in Q1 2020 and grew by 8.9% from EUR 133.2 million in the same year-ago period.

Pro forma operating income for Q2 2020 was EUR 10.1 million (7.0% of revenues), significantly up from EUR 1.7 million loss (-1.3% of revenues) in Q1 2020 and also up from EUR 4.3 million income (3.3% of revenues) in the same year-ago period. The significant increase in profitability is mainly due to the operational cost improvement measures introduced in 2019.

Consequently, operating income for Q2 2020 of EUR 8.7 million significantly increased from the EUR 4.0 million loss reported for Q1 2020 and also increased from EUR 2.5 million income in the same year-ago quarter.

Net income was EUR 7.6 million in Q2 2020 and overcompensated a net loss of EUR 7.2 million in Q1 2020 and also grew substantially from a net income of EUR 1.3 million in Q2 2019.

At quarter-end, the company’s cash and cash equivalents totaled at EUR 67.6 million, representing an increase of 28.1% compared to EUR 52.8 million at the end of Q1 2020 and a significant increase of 40.0% compared to EUR 48.3 million in Q2 2019.

Consequently, net debt in Q2 2020 decreased by EUR 22.7 million to EUR 45.0 million from EUR 67.7 million at the end of Q1 2020 and improved by EUR 23.2 million compared to Q2 2019.

Net working capital at quarter-end was EUR 127.9 million compared to EUR 134.2 million at the end of Q1 2020 and decreased despite increased revenues.

Management commentary

“Our results in the second quarter of 2020 were convincing. So far, the demand for our products and services has developed positively during the Covid-19 pandemic. A recession-related slowdown in the second half of the year is still possible, but, in the meantime, we believe that we will have further revenue growth in Q3,” said Brian Protiva, CEO, ADVA. “The pandemic has made our production and supply chains more complex and our transportation costs increased. But our ability to deliver is stable and fundamentally intact. Additionally, we have a global, well-diversified and loyal customer base with which we can expand and improve the digital infrastructure that our society is so increasingly dependent on.”

”Despite the ongoing Covid-19 pandemic, we managed to increase revenues and earnings in the second quarter, both sequentially and year over year,” commented Uli Dopfer, CFO, ADVA. “Our significantly improved profitability is mainly the result of the cost improvement measures that we introduced in 2019. Furthermore, we were able to improve our cash position compared to the first quarter by around EUR 15 million to EUR 67.6 million providing a solid financial basis. Due to the ongoing risks, both on the supply and on the demand side, we have concluded a KfW back-up facility of EUR 40 million for hedging purposes should a further Covid-19-driven crisis occur. With this preventive measure, we feel prepared for all scenarios.”

The company will publish its financial results for Q3 2020 on October 22, 2020.

Conference call details

ADVA will hold a conference call for analysts and investors today, July 23, 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.

To participate, please register here . 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 half-year report 2020 (January – June) 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

Forrester Opens Nominations For Its 2026 B2B Awards In EMEA17.6.2026 10:42:00 CEST | Press release

Awards recognise organisations for delivering measurable impact through cross-functional alignment Forrester (Nasdaq: FORR) today opened nominations for its 2026 B2B Return On Integration Honours and B2B Programmes Of The Year Awards for Europe, the Middle East, and Africa (EMEA). The awards recognize organisations that are driving measurable business impact through customer-obsessed growth strategies. Winners will be honoured at Forrester’s B2B Forum EMEA, taking place in London, 28–29 September 2026. The B2B Return On Integration (ROI) Honours celebrate organisations that have successfully aligned marketing, revenue, product, and customer functions to deliver measurable outcomes and drive enterprisewide performance. The B2B Programmes Of The Year (POY) Awards recognise standout functional initiatives across areas including marketing, revenue, customer engagement, and product that demonstrate innovation and measurable results. “Today’s B2B leaders are under pressure to deliver growth

Klarna Partners With Bolt to Grow ‘Pay in Full’ for Rides and Scooters17.6.2026 10:20:00 CEST | Press release

Klarna, the global digital bank and payments provider, has partnered with Bolt, the European shared mobility platform, to bring Klarna's payment options directly into the Bolt app. Across Sweden, Germany, Finland and Norway, users can now pay for car rides and scooters with Klarna, with car rentals also available in Germany. The integration is built on tokenised payments, allowing users to pay through their stored credentials without re-entering details for each trip. In all four markets, customers can choose to pay in full or pay monthly with Klarna. The rollout is already underway, with full availability across all four markets expected by the end of June 2026. The partnership brings together two of Europe's largest consumer platforms: Bolt serves more than 200 million customers across over 50 countries, while Klarna has over 119 million active users worldwide. For Klarna, it deepens a growing presence in everyday, high-frequency spending, placing the company at the point of payment

Ohmium and Hynfra Sign Master Cooperation Agreement to Advance Large-Scale Green Hydrogen Projects in the Middle East and Africa17.6.2026 10:17:00 CEST | Press release

Ohmium International Inc., a leading manufacturer of high-efficiency, modular Proton Exchange Membrane (PEM) electrolyzers, and Hynfra P.S.A., a prominent green hydrogen and green ammonia project developer, today announced the signing of a master cooperation agreement to advance green hydrogen projects in Mauritania, Jordan, and Oman. The cooperation agreement covers the projects’ Front-End Engineering and Design (FEED) stage and establishes the framework for ongoing collaboration. Ohmium also will provide technical support and PEM electrolyzer expertise throughout the FEED and development stages for the three hydrogen projects mentioned. These projects are designed to produce green hydrogen for green ammonia applications, advancing energy security and long-term resilience in host countries by building domestically sourced clean energy capacity and reducing dependence on imported fossil fuels, while also supplying RFNBO-compliant green ammonia for export, including to European markets.

ID UNLIMITED Strengthens European Platform With Acquisition of Denmark’s Jet Sport17.6.2026 10:00:00 CEST | Press release

ID UNLIMITED, a European leader in premium equipment personalisation and embellishment services for sports clubs, leagues and global sports brands, has signed an agreement to acquire Jetsport A/S (“Jet Sport”), a provider of personalisation and customisation services headquartered in Viborg, Denmark, specialised in sportswear and workwear. Jet Sport marks the first acquisition under ID UNLIMITED's international expansion strategy since partnering with TowerBrook Capital Partners in April this year. The transaction is expected to close by the end of June 2026, subject to customary conditions. Founded in 1971, Jet Sport is a family-owned business with over five decades of experience in textile embellishment. The company serves sports clubs, sporting goods retailers, workwear suppliers and industrial clients, providing high-quality screen prints, heat transfers and embroideries with approximately 140 employees. Jet Sport has built a reputation for quality, fast turnaround and technical in

Reply Achieves the AWS Business Value Realization Competency17.6.2026 10:00:00 CEST | Press release

Reply [EXM, STAR: REY] announced today that it has achieved the Amazon Web Services (AWS) Business Value Realization Competency. This specialization recognizes Reply as an AWS Partner that helps customers deliver measurable, post-sales business outcomes from their AWS investments. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260617874809/en/ Reply achieves the Amazon Web Services (AWS) Business Value Realization Competency that recognizes an AWS Partner that helps customers deliver measurable, post-sales business outcomes from their AWS investments. Achieving the AWS Business Value Realization Competency differentiates Reply as an AWS Partner that excels at helping customers define, measure, and achieve business outcomes from their cloud and AI investments. It signals to customers that a Partner has the commitment, trained and certified teams, and a proven track record of delivering measurable outcomes, not just technical

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