21.10.2020 ADVA Optical Networking SE  DE0005103006

DGAP-News: ADVA Optical Networking SE: ADVA posts quarterly revenues of EUR 146.7 million for Q3 2020


 

DGAP-News: ADVA Optical Networking SE / Key word(s): Quarter Results/Forecast
ADVA Optical Networking SE: ADVA posts quarterly revenues of EUR 146.7 million for Q3 2020

21.10.2020 / 22:13
The issuer is solely responsible for the content of this announcement.


ADVA posts quarterly revenues of EUR 146.7 million for Q3 2020

* Quarterly revenues up 1.6% year-over-year to EUR 146.7 million
* Pro forma operating income up 49.5% year-over-year to EUR 11.1 million (7.5% of revenues)

Munich, Germany. October 21, 2020. ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported final financial results for Q3 2020 ended on September 30, 2020. The results have been prepared in accordance with International Financial Reporting Standards (IFRS).

Q3 2020 financial summary1

(in thousands of EUR) Q3 Q3 Change Q2 Change        
  2020 2019   2020          
 
Revenues 146,676 144,310 1.6% 145,024 1.1%        
Pro forma gross profit 51,930 49,086 5.8% 50,204 3.4%        
in % of revenues 35.4% 34.0% 1.4pp 34.6% 0.8pp        
Pro forma operating income 11,053 7,393 49.5% 10,107 9.4%        
in % of revenues 7.5% 5.1% 2.4pp 7.0% 0.5pp        
Operating income2 9,768 3,200 205.3% 8,658 12.8%        
Net income2 6,671 2,190 204.6% 7,629 -12.6%        
         
(in thousands of EUR) Sep. 30
2020
Sep. 30
2019
Change Jun. 30
2020
Change        
Cash and cash equivalents 68,293 38,396 77.9% 67,586 1.0%        
Net debt 35,009 74,873 -53.2% 44,928 -22.1%        
Net working capital 124,043 137,789 -10.0% 127,917 -3.0%        
 

1 Potential difference due to rounding
2 Q3 2019 including EUR 2.5 million one-off expenses


Q3 2020 IFRS financial results
Revenues increased by 1.1% to EUR 146.7 million in Q3 2020 from EUR 145.0 million in Q2 2020 and grew by 1.6% compared to EUR 144.3 million in the same year-ago period.

Pro forma gross profit in Q3 2020 increased by 3.4% reaching EUR 51.9 million (35.4% of revenues) compared to EUR 50.2 million (34.6% of revenues) in Q2 2020 and by 5.8% compared to EUR 49.1 million (34.0% of revenues) in the year-ago quarter. The increase was mainly due to the stronger euro compared to the US dollar. Furthermore, the relocation of production facilities out of China resulted in lower US tariffs compared to the year-ago quarter.

Pro forma operating income for Q3 2020 was EUR 11.1 million (7.5% of revenues) and increased by 9.4% compared to EUR 10.1 million (7.0% of revenues) in Q2 2020. Compared to the year-ago quarter, pro forma operating income improved substantially by 49.5% from EUR 7.4 million (5.1% of revenues). In addition to the effects on gross profit, this substantial margin improvement is mainly due to the cost improvement measures introduced in 2019 and reduced discretionary spending.

Consequently, operating income for Q3 2020 of EUR 9.8 million increased by 12.8% from EUR 8.7 million reported for Q2 2020 and significantly increased by 205.3% from EUR 3.2 million income in the same year-ago quarter. While Q3 2019 was negatively impacted by one-off expenses of EUR 2.5 million resulting from the introduced cost improvement measures, Q3 2020 was positively impacted by the renewed cost basis.

Net income was EUR 6.7 million in Q3 2020, 12.6% down from EUR 7.6 million in Q2 2020 but grew significantly by 204.6% from a net income of EUR 2.2 million in Q3 2019. The decrease compared to Q2 2020 is mainly due to the negative effects from currency translation.

Despite a voluntary partial repayment of EUR 5.0 million of the revolving credit facility, the company's cash and cash equivalents totaled at EUR 68.3 million, representing a slight increase of EUR 0.7 million compared to EUR 67.6 million at the end of Q2 2020. Year-over-year cash and cash equivalents significantly increased by EUR 29.9 million from EUR 38.4 million. While Q3 2019 was impacted by the before mentioned one-off expenses and the inventory build-up due to the US trade tariffs, Q3 2020 benefited from higher profitability and further working capital improvements.

Consequently, net debt in Q3 2020 decreased by EUR 9.9 million to EUR 35.0 million from EUR 44.9 million at the end of Q2 2020 and improved by EUR 39.9 million compared to Q3 2019.

Net working capital at quarter-end was EUR 124.0 million and improved by EUR 3.9 million compared to EUR 127.9 million at the end of Q2 2020.

Management commentary
"Having already delivered very positive figures in the second quarter, we were able to further increase both revenue and profitability in Q3. Once again, we were able to demonstrate that our solutions are very competitive and have won numerous new customers," commented Brian Protiva, CEO, ADVA. "This expansion of our footprint in the global network infrastructure is of long-term importance. Our active cost management, reduced travel and a comparatively weaker US dollar provide additional positive effects. We are generating cash and reduced our net debt significantly. As such, we feel well prepared to master the challenges ahead."

"Despite the current challenges, we were again able to achieve solid financial results and further strengthen our balance sheet. We improved our cash position by EUR 30 million year-over-year. This is an extremely important financial outcome and shows that our team can achieve something excellent even in difficult times," commented Uli Dopfer, CFO, ADVA. "However, due to the rising infection rates in many parts of the world, the risk of new restrictions or even lockdown scenarios is increasing and we must continue to devote a lot of attention to mitigating these changing circumstances. Our focus is on maintaining our procurement and supply chains, strict cost control, but above all, ensuring the safety and health of our employees."

The latest news of a second wave with infection rates again increasing in many countries is worrying. The further course of our business for the full year 2020 heavily depends on how the currently increasing number of infections develop and whether this creates further regional lockdown scenarios. Against the background of the outlined influencing factors for the further course of the 2020 financial year, the management board now expects revenues between EUR 565 million and EUR 580 million and a pro forma operating income of between 5% and 6% in relation to revenues for the full year 2020. The revised guidance assumes that the impact of the pandemic on the company's business will not significantly worsen beyond the levels we have already experienced and that no material supply bottlenecks will arise due to new lockdowns.

The company will publish its 9M quarterly statement on October 22, 2020 as planned. The financial results for Q4 and the full fiscal year 2020 will be published on February 25, 2021.

Conference call details
ADVA will hold a conference call for analysts and investors tomorrow, October 22, 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:
Register here for ADVA Optical Networking's third quarter 2020 IFRS financial results

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 quarterly statement 9M 2020 (January - September) 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

For press:
Gareth Spence
t +44 1904 699 358
[email protected]

For investors:
Stephan Rettenberger
t +49 89 890 665 854
[email protected]



21.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: ADVA Optical Networking SE
Märzenquelle 1-3
98617 Meiningen-Dreissigacker
Germany
Phone: +49 89 890 665 0
Fax: +49 89 890 665 199
E-mail: [email protected]
Internet: www.advaoptical.com
ISIN: DE0005103006
WKN: 510300
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1142345

 
End of News DGAP News Service

1142345  21.10.2020 

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Die wichtigsten Finanzdaten auf einen Blick
  2015 2016 2017 2018 2019 2020 2021e
Umsatzerlöse1 441,94 566,69 514,47 501,98 556,82 564,96 603,00
EBITDA1,2 64,06 58,94 51,27 64,36 74,19 92,53 0,00
EBITDA-Marge3 14,50 10,40 9,97 12,82 13,32 16,38 0,00
EBIT1,4 26,76 19,37 4,40 14,99 12,00 27,47 55,50
EBIT-Marge5 6,06 3,42 0,86 2,99 2,16 4,86 9,20
Jahresüberschuss1 26,85 21,53 -0,19 7,05 7,05 20,31 0,00
Netto-Marge6 6,08 3,80 -0,04 1,40 1,27 3,59 0,00
Cashflow1,7 39,42 61,35 27,13 60,36 66,89 97,14 0,00
Ergebnis je Aktie8 0,55 0,43 -0,09 0,19 0,14 0,40 0,75
Dividende8 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2020 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

INVESTOR-INFORMATIONEN
©boersengefluester.de
ADVA Optical Networking
WKN Kurs in € Einschätzung Börsenwert in Mio. €
510300 12,520 Kaufen 634,20
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
14,90 21,05 0,72 44,56
KBV KCV KUV EV/EBITDA
2,41 6,53 1,12 6,92
Dividende '19 in € Dividende '20e in € Div.-Rendite '20e
in %
Hauptversammlung
0,00 0,00 0,00 19.05.2021
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
22.04.2021 22.07.2021 21.10.2021 25.02.2021
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
8,04% 33,96% 77,34% 77,34%
    
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