ADVA addresses edge scaling and improves sales

Created February 24, 2020
News and Business

ADVA has launched what it claims is the industry’s most compact demarcation and aggregation technology, bringing “cost-effective” MEF 3.0-certified 100Gbps services to the network edge.

The ADVA FSP 150-XG400 Series enables businesses and mobile network operators (MNOs) to easily scale their metro networks and tackle booming bandwidth demand, says ADVA.

Specifically engineered to deliver MEF 3.0 Carrier Ethernet 100Gbps demarcation and 10Gbps service aggregation, the new product family features the market’s only uncompromised line-rate 100Gbps activation testing.

It also supports hardware-based timing for ultra-precise frequency and phase synchronisation, “making it the ideal choice for radio access networks,” said ADVA. With its high-density and environmentally hardened design, the ADVA FSP 150-XG400 Series is also easy to deploy in space-restrictive locations with no temperature control – a key requirement for the rollout of 5G connectivity.

Stephan Rettenberger, SVP of marketing and investor relations at ADVA, said, “The arrival of 5G is bringing unprecedented data speeds, but mobile applications can only be as fast as the backhaul network. That’s why MNOs are now looking to upgrade their access infrastructure from 10Gbps to 100Gbps line rates.”

He said, “Our FSP 150-XG400 Series supports a smooth and extremely cost-effective migration to higher capacity while also enabling the distribution of precise network synchronisation that next-generation services require.”

The supplier has also just posted its full-year results, and has reported that for the full-year 2019, revenues increased by 10.9% to €556.8 million from €502 m million in 2018. The improvement was due to “solid demand from all customer groups across all technology areas”, it said. Except for Q1 2019, quarterly revenues increased sequentially in 2019.

Pro forma gross profit increased by 5.2% from €185.6 million in 2018 to €195.4 million in 2019. Pro forma gross margin, however, decreased from 37% in 2018 to 35.1% in 2019. The margin was impacted by US tariffs on Chinese-made goods in the US market and the strong US dollar, the supplier said.

Pro forma operating income for 2019 was €24.8 million (4.5% of revenues), compared to €23.3 million (4.6% of revenues) in 2018.

Operating income was €12 million compared to €15 million last time. Operating income for 2019 includes one-off expenses of €5.7 million, primarily driven by selective head count reduction and site closures.

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This article was written
by Antony Savvas

Antony Savvas is a global technology journalist covering the key trends in the communications industry, and was there at the beginning of mobile business and ICT convergence, the move to the cloud and now digital transformation