& cplSiteName &

ADVA Reports Record Annual Revenues

Light Reading
News Wire Feed
Light Reading
2/23/2017
50%
50%

MUNICH -- ADVA Optical Networking (ISIN: DE0005103006, WKN 510300) today announced financial results for Q4 2016 and full year 2016 ended on December 31, 2016. The results have been prepared in accordance with International Financial Reporting Standards (IFRS).

Q4 2016 IFRS Financial Results
Quarterly revenues amounted to EUR 128.0 million. This represents a growth of 14.6% compared to the fourth quarter of the previous year (Q4 2015: EUR 111.8 million) and is within the guidance forecast on October 27, 2016.

The pro forma operating result in Q4 2016 was EUR 9.0 million or 7.0% of sales (Q4 2015: EUR 9.0 million or 8.1% of sales) and was at the top end of guidance. The operating result was EUR 8.1 million (Q4 2015: EUR 7.5 million), while cash and cash equivalents reached EUR 84.9 million. Net liquidity amounted to EUR 25.5 million, while net working capital was EUR 98.0 million.

2016 IFRS Annual Results
For the full year 2016, revenues climbed to a record level of EUR 566.7 million, 28.2% above the EUR 441.9 million achieved in 2015. The increase in revenues mainly resulted from improved enterprise business specifically driven by internet content providers (ICPs) and the related business in the Americas.

"After a record year in 2015, which gave us revenue growth of over 30% compared to the previous year, we once again showed significant top-line growth in 2016," said Brian Protiva, CEO, ADVA Optical Networking. "For the first time in the history of our company, we recorded annual revenues of more than half a billion euros. According to the industry analysts at Ovum, these record sales have given us global market leadership in several areas of the rapidly growing data center interconnect (DCI) market and made us one of the fastest growing companies in this space worldwide."

The pro forma operating income amounted to EUR 23.4 million or 4.1% of revenues in 2016 compared to EUR 30.0 million or 6.8% of revenues in 2015. Operating profit amounted to EUR 19.4 million compared to EUR 26.8 million in 2015. The decline compared to the previous year reflects the integration costs resulting from the acquisition of Overture in 2016 and the comparatively low margins in ICP sales.

The net profit for the year amounted to EUR 21.5 million in 2016 compared to EUR 26.9 million in 2015. This decline is mainly due to the lower operating result, which was partly offset by an income tax benefit of EUR 2.5 million in 2016 versus an income tax expense of EUR -1.2 million in 2015. Basic earnings per share amounted to EUR 0.44 in 2016 and diluted earnings per share to EUR 0.43.

"Cloud and mobility continue to be major growth drivers for us and are fully intact. Globally, bandwidth demand is growing rapidly, and the economic power of most network operators is developing positively," continued Brian Protiva. "After the investments of the past years in long-haul networks, there is now a need to introduce 100G technology in the metro - an area of the network infrastructure that we serve very well. Furthermore, the trend towards network functions virtualization (NFV) is gaining momentum. Cloud services are the fastest growing business for communication service providers and through NFV these services can be deployed more quickly, flexibly and cost-effectively. In 2016, we carried out extensive tests with more than 20 network operators and positioned ourselves well for a successful 2017."

Q1 2017 Outlook
In Q1 2017, ADVA Optical Networking expects revenues to be in the range of EUR 135 million and EUR 145 million and anticipates a pro forma operating income of between 3% and 5% of revenues. ADVA Optical Networking performs quarterly reviews of expected business development with respect to all intangible assets, including capitalized development expenses. In case of adverse business prospects, these reviews may result in non-cash impairment charges in Q1 2017 and beyond, which are excluded from the above guidance. The company will publish its Q1 2017 financial results on April 27, 2017.

ADVA Optical Networking (Frankfurt: ADV)

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
BT Tech Chief Makes Plea to 5G Chip Vendors
Ray Le Maistre, International Group Editor, 6/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.