Second quarter trading up on previous quarter, but year on year quarter figures tumble.
Adva, a provider of open networking solutions for the delivery of cloud and mobile services, has reported mixed financial results for its Q2 2019, which ended on June 30, 2019.
Revenues for Q2 2019 increased by 3.9% to €133.2M from €128.2M in Q1 2019 and increased by 7.6% from €123.8M in the same year-ago period. Revenues for Q2 2019 were within the guidance forecast the company provided in April, of between €130M and €140M.
Operating income for Q2 2019 of €2.5M increased significantly, compared to €0.9M reported for Q1 2019 and decreased compared to €4.1M in the same year-ago quarter. Net income for Q2 2019 increased by 25.2% to €1.3M from €1.0M in Q1 2019 but was down from €4.6M in Q2 2018.
At quarter-end, the company’s cash and cash equivalents totalled €48.3M, representing a decrease of 2.1% compared to €49.3M at the end of Q1 2019.
The company’s net debt decreased by €5.6M to €68.1M from €73.7M at the end of Q1 2019. Net working capital at quarter-end was €127.6M compared to €132.0M at the end of Q1 2019.
Uli Dopfer, CFO at Adva (pictured left), commented, “Despite growing global political uncertainties, the second quarter of 2019 developed largely as planned. Both revenue and profitability were within our guidance range that we provided on April 18.
“Overall, our order intake was very good, and we are entering the third quarter with well-filled order books. We see promising projects and activities in all regions and among all customer groups.”
Brian Protiva, CEO, (pictured right) added, “There’s no question that the strong US dollar and international trade tensions are putting pressure on our margins and operating costs. However, we achieved some great customer success in Q2 with a strong win rate. Our achievements here further underscore our confidence in the market and our growth opportunities. Moving forward, we have an exciting portfolio of new and differentiated products that we believe will drive additional growth and stronger margins.”
For Q3 2019, the company expects revenues to be in the range of €135M and €145M with an operating income of between 3% and 6% of revenues. The company will publish its financial results for Q3 2019 on October 24, 2019.
For more information, visit www.advaoptical.com