Tuesday, July 20, 2010

ADVA Optical Posts Revenue of EUR 68.6 million, Ahead of Expectations

ADVA Optical Networking announced Q2 2010 revenues of EUR 68.6 million, slightly above guidance of between EUR 63 million and EUR 68 million, up a significant 18.0% vs. Q2 2009 at EUR 58.2 million and up 8.6% vs. EUR 63.2 million reported in Q1 2010.

IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill &
acquisition-related intangible assets, amounted to EUR 1.9 million or 2.8% of revenues in Q2 2010, within guidance of between 1% and 5% of revenues. This compares to EUR 1.1 million or 1.9% of revenues in Q2
2009 and EUR 2.7 million or 4.3% of revenues in Q1 2010.

"ADVA Optical Networking's revenues developed well in Q2 2010, due to incremental carrier infrastructure business in the Americas. While this clearly increases the robustness of our business mix, our growth in H2 2010 will very likely be driven by additional enterprise and Ethernet access business, resulting in a corresponding pick-up in profitability. Our Q2 2010 book-to-bill ratio is very strong, with significant order back-log for our industry-leading and highly innovative low-latency optical transport solution for the financial services industry. Additionally, the massive increase in mobile backhauling traffic driven by 3G and 4G mobile phones will have a major positive impact on our Ethernet access business. We create value for our customers - this will continue to translate into profitable growth," stated Brian Protiva, chief executive officer of ADVA Optical Networking.