Martin stepped down as ADVA's chief marketing and strategy officer and head of its North American operations on June 30, the company announced last night along with its second-quarter earnings. (See ADVA Reports Q2; Martin Departs.)
It would seem to be a big deal considering Martin was hired to push ADVA into Tier 1 North American accounts. He was one of a flurry of hires by CEO Brian Protiva late in 2007 -- and back in the Cisco days, he was once named a Light Reading top Mover and Shaker. (See ADVA Exec Shakeup Continues, ADVA Hires for RBOC Opportunity, and Top Ten Movers and Shakers in Telecom.)
ADVA is characterizing the decision as mutual but is offering no other details. "Ron Martin and I decided ADVA Optical Networking did not represent the right opportunity for Ron at this point in his career," Protiva said on this morning's earnings call.
Martin isn't being replaced. His job will be divided among the four remaining members of ADVA's management board.
As for the call itself, ADVA reported second-quarter net income of 1 cent per share on revenues of €58.2 million.
Table 1: ADVA's Q2
|Net Income (�M)||-2.7||0.5|
|EPS (�, per IFRS)||-0.06||0.01|
But a profit isn't enough to make Protiva happy.
"Our results of the last two quarters have not met my expectations," he said, adding that ADVA is ready to undergo more cost-cutting if revenues and gross margins don't continue to improve. "We are not going to be patient."
Protiva noted he's not seeing the sales weakness in Europe that larger equipment vendors have reported. (See Services Save Ericsson in Q2 and Asset Sale Helps AlcaLu to Q2 Profit.)
"We have shown nice, steady growth in Europe. We do not see what Alcatel-Lucent (NYSE: ALU) and Ericsson AB (Nasdaq: ERIC) have seen in Europe, but maybe because we're very targeted," Protiva said.
Specifically, he said ADVA might be benefiting from "bandwidth band-aids" that European carriers need in order to satisfy bandwidth demand. "Carriers and service providers in Europe have been underinvesting. None of them invested like AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) and the MSOs in America."
— Craig Matsumoto, West Coast Editor, Light Reading