Wednesday, October 20, 2010

ADVA Posts Q3 Revenues of EUR 80.5 million

ADVA Optical Networking reported Q3 2010 revenues of EUR 80.5 million, slightly above guidance of between EUR 75 million and EUR 80 million, up a significant 38.6% vs. Q3 2009 at EUR 58.1 million and up 17.4% vs. EUR 68.6 million reported in Q2 2010. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 4.4 million or 5.5% of revenues in Q3 2010, at the upper end of guidance of between 2% and 6% of revenues.

"We are extremely pleased with our Q3 2010 revenues of EUR 80.5 million, which slightly exceed guidance and are up strongly, 17.4% vs. the previous quarter and a significant 38.6% vs. Q3 2009. The quarter-on-quarter development is driven by higher sales in the enterprise business, specifically in the North American region, and the year-on-year progress also by a pick-up in our Ethernet access and carrier infrastructure businesses. Q3 2010 pro forma gross margin at 40.0% of revenues came in below the 41.0% seen in the previous quarter. This reduction is largely due to the strategic investments in new customers and market segments with lingering impact on our foreign exchange exposure," commented Jaswir Singh, chief financial officer & chief operating officer of ADVA Optical Networking.