• Q2 2017 Revenues of €144.2 million, up 1.7% From Q1 2017
• Q2 2017 Pro Forma Operating Income: €9.2 million (6.4% of revenues)
• Q3 2017 Outlook: revenues €120-130 million; pro forma operating income 2%-5% of revenues
Adva Optical Networking has announced financial results for its second quarter of 2017, which ended on June 30, 2017. Quarterly revenues increased to €144.2 million from €141.8 in Q1 2017. This marks a decrease of 8.3% year-on-year (Q2 2016: €157.2 million) and is within in the guidance announced in April, 2017.
Pro forma operating income in Q2 2017 stood at €9.2 million or 6.4% of revenues, up from €6.6 million or 4.7% of revenues in Q1 2017. This number represents a €5.0 million YoY increase (Q2 2016: € 4.2 million) and is also within previously announced guidance. Operating income amounted to €8.1 million (Q2 2016: €3.1 million). Cash and cash equivalents totaled € 80.8 million. Net liquidity reached €30.8 million and net working capital €100.3 million.
Brian Protiva, CEO, commented, “These are exciting and turbulent times for our industry. It’s a time of incredible contrasts. On one side, cloud and mobility continue to be mega growth drivers driving demand for more bandwidth. On the other hand, our industry continues to face pricing pressure and fierce competition creating the need for further consolidation.
“Our bid to acquire MRV Communications will enable us to expand our customer footprint, expand our market leadership in Ethernet access devices and expand our portfolio of packet optical solutions. The combined product portfolio will be supported by our continued commitment to operational excellence.”
Portico continued, “Our revenues are currently developing in a non-uniform way,” commented Uli Dopfer, Adva’s CFO. “With the FSP 3000 CloudConnect, we are attracting new customers from different regions and customer segments. However, the current demand from one of our top customers in the ICP segment is still weak and we have not yet been able to design in our FSP 3000 CloudConnect.
“As a result, the revenue outlook for the remainder of the fiscal year is subdued. Only via a fast and efficient integration of MRV Communications will we be able to stabilize revenues close to last year’s level. Owing to the weakened revenue development and the expected takeover of MRV Communications, we will be revising our cost structures and cut back on operating costs.”
In Q3 2017, Adva said it expects revenues to range between € 120 million and € 130 million and anticipates a pro forma operating income of between 2% and 5% of revenues.