Monday, April 18, 2011

ADVA Posts Q1 Revenue of EUR 70.4 Million, up 11% YoY

ADVA Optical Networking reported Q1 2011 revenue of EUR 70.4 million, up 11% year-on-year, after EUR 63.2 million in Q1 2010 and EUR 79.4 million in Q4 2010. This result is in line with guidance of between EUR 70 million and EUR 75 million. IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 0.9 million in Q1 2011 or 1.3% of revenues, also in line with guidance of between 0% and 4% of revenues.

There was an IFRS operating loss in Q1 2011, amounting to EUR 0.3 million, after an operating income of EUR 1.9 million in Q1 2010. The key driver for this unfavorable development is the above-mentioned decrease of pro forma operating income.

"At EUR 70.4 million, our Q1 2011 revenues are in line with guidance and 11% above the levels seen in Q1 2010. Quarter-on-quarter, the 11% revenue decline vs. Q4 2010 is due to weak carrier infrastructure and enterprise business, following our strong growth in H2 2010 with revenues up 21% vs. H1 2010. Our pro forma gross margin decreased from 42.5% in Q4 2010 to 41.2% in Q1 2011, due to variations in product and customer mix. In Q1 2011, our pro forma operating margin came in at 1.3%, also in line with guidance, and demonstrates our focus on managing operational costs despite major incremental investments in our development activities. To a large extent, these activities have been driven by our strategic partnership with Juniper Networks, with a clear focus on quickly integrating our new agile optical core networking functionality into Juniper Networks' recently announced PTX Series Packet Transport Switch," commented Jaswir Singh, chief financial officer & chief operating officer of ADVA Optical Networking.