ADVA Optical Networking SE increases revenue for Q2 2022 – Yahoo Eurosport Germany | Region & Cash

DGAP-News: ADVA Optical Networking SE / Key word(s): Quarterly / Interim Statement
ADVA Optical Networking SE increases revenues for Q2 2022
07/28/2022 / 07:00
The issuer is solely responsible for the content of this announcement.

ADVA increases revenue for Q2 2022

Munich, Germany. July 28, 2022. ADVA (ISIN: DE0005103006, FWB: ADV), a leading provider of open network solutions for the delivery of cloud and mobile services, announced its final financial results for the Q2 2022 ended June 30, 2022. The results have been prepared in accordance with International Financial Reporting Standards (IFRS).

Financial Overview Q2 2022 1

(in thousand EUR)

Q2 2022

Q2 2021

change

Q1 2022

change

revenues

166,320

149,354

11.4%

170,498

(2.5)%

Pro Forma Gross Profit

54,336

57,274

(5.1)%

53,405

1.7%

in % of sales

32.7%

38.3%

(5.6) p

31.3%

1.4p

Pro forma EBIT

6,435

14,415

(55.4)%

7,812

(17.6)%

in % of sales

3.9%

9.7%

(5.8) p

4.6%

(0.7)pp

operating result 2

4,655

13,036

(64.3)%

5,976

(22.1)%

net income

7,291

12,001

(39.2)%

6.179

18.0%

(in thousand EUR)

June 30, 2022

June 30, 2021

change

March 31, 2022

change

Cash and cash equivalents

63,187

85,023

(25.7)%

73,002

(13.4)%

Net Liquidity (+)/Net Debt (-)

(946)

3,876

(124.4)%

763

(224.0)%

working capital

183,030

132,767

37.9%

164,402

11.3%

1 Possible discrepancies in the table values ​​are due to rounding differences.

2 Q2 2022 incl. EUR 0.4 million and Q1 2022 incl. EUR 0.5 million special expenses.

Q2 2022 IFRS financial results

Revenue in Q2 2022 reached EUR 166.3 million, down 2.5% from EUR 170.5 million in Q1 2022 and up 11.4% from EUR 149.4 million in Q2 2021 corresponds to network operators and internet content providers (ICPs). In addition, the stronger US dollar led to higher sales in North America.

Pro forma gross profit increased by 1.7% to EUR 54.3 million (32.7% of sales) in Q2 2022 compared to EUR 53.4 million (31.3% of sales) in the same period Q1 2022 and decreased by 5.1% compared to EUR 57.3 million (38.3% of sales revenue) reported in Q2 2021. Gross profit was impacted by increased purchasing costs due to the semiconductor crisis and a stronger US dollar.

Pro forma EBIT for the second quarter of 2022 was €6.4 million (3.9% of sales), down 17.6% compared to €7.8 million (4.6% of sales) in the same period Q1 2022, and declined significantly by 55.4% from €14.4 million (9.7% of sales revenue) in Q2 2021.

Operating profit for Q2 2022 of EUR 4.7 million decreased by 22.1% from EUR 6.0 million for Q1 2022 and significantly by 64.3% from EUR 13.0 million in Q2 2022. Q2 2021. Operating profit for Q2 2022 was impacted by extraordinary expenses related to the announcement merger with Adtran of EUR 0.4 million (Q1 2022 EUR 0.5 million and Q2 2021 EUR 0).

Net profit reached EUR 7.3 million in the second quarter of 2022, increased by 18.0% from EUR 6.2 million in the first quarter of 2022 and fell significantly by 39.2% from EUR 12.0 million in the second quarter of 2021 return.

The company’s cash and cash equivalents amounted to EUR 63.2 million, a decrease of EUR 9.8 million compared to EUR 73.0 million at the end of the first quarter of 2022. Cash and cash equivalents decreased by EUR 21.8 million year-on-year from EUR 85.0 million at the end of Q2 2021. The company invested non-operating cash in supply assurance measures.

Net debt at the end of the second quarter of 2022 was €0.9 million compared to a net cash position of €0.8 million at the end of the first quarter of 2022 and a net cash position of €3.9 million at the end of the second quarter of 2021.

At the end of the quarter, net working capital totaled EUR 183.0 million, increasing by EUR 18.6 million compared to EUR 164.4 million at the end of Q1 2022 and significantly by EUR 50.3 million compared to 132.8 EUR million at the end of Q2 2021. The higher net working capital compared to the same quarter last year is mainly due to increased inventory levels to secure the supply chain.

Management Comment

“The last few months have been very exciting for us as a company,” said Brian Protiva, ADVA CEO. “We have reached several important milestones on our journey to join forces with Adtran and advance our operations. Our sales in the first half of 2022 were at a record level and our order books are well filled. We continue to see strong customer demand paired with high complexity and costs in the areas of procurement, production and logistics. This environment will remain in place for the foreseeable future. Our teams work tirelessly to find solutions to meet market demands and we work closely with our customers every day to best support their network evolution. So far we have mastered the challenges very well and are positive about the rest of the year.”

“In the past quarter we grew again compared to the same quarter of the previous year. This underscores the positive market environment and the tailwind we are experiencing from the demand side,” said Uli Dopfer, CFO of ADVA. “However, in the second half of the year we will also have to deal with the challenges posed by increased procurement costs and stressed supply chains. Despite increased inventories, our liquidity is a pleasing EUR 63 million. Against the background of continued strong order intake and a strengthening dollar in combination with persistently higher costs in the supply chains, we have decided to adjust the outlook for the financial year accordingly, which we announced on July 15 in an ad hoc release. We are raising our revenue guidance to EUR 680-730 million and reducing our pro forma EBIT margin guidance by one percentage point to 5-9%.”

Financial Outlook 2022

For the 2022 financial year, ADVA expects revenues of between EUR 680 and 730 million and a pro forma EBIT of between 5.0% and 9.0% of revenues.

The company will release its Q3 2022 financial results on October 27, 2022.

Conference call details

ADVA will host a conference call for analysts and investors today, July 28, 2022, to discuss its second quarter 2022 results. The company’s CEO, Brian Protiva, CTO, Christoph Glingener, and CFO, Uli Dopfer, will moderate the conference call at 3:00 p.m. CEST (9:00 a.m. EDT). Management presentations are followed by a question and answer session.

A related presentation is available on ADVA’s website:

https://www.adva.com/en/about-us/investors/financial-results/conference-calls

The complete half-year report 2022 (January – June) can be found here as a PDF:

https://www.adva.com/en/about-us/investors/financial-results/financial-reports

A recording of the call will be available here:

https://www.adva.com/en/about-us/investors/financial-results/conference-calls

Forward-Looking Statements

The economic forecasts and forward-looking statements contained in this document relate to future facts. Such projections and forward-looking statements are subject to risks that cannot be foreseen and are beyond ADVA’s control. ADVA is therefore not in a position to represent or represent the accuracy of economic forecasts and forward-looking statements or their impact on ADVA’s financial position or the market for ADVA shares.

Use of Pro Forma Financial Information

ADVA is providing consolidated pro forma financial results in this press release solely as supplemental financial information to assist investors and the financial community in making meaningful comparisons of ADVA’s operating results from one financial period to another. ADVA believes these pro forma consolidated financial results are helpful as they exclude non-cash charges related to the stock option programs and amortization and impairment of goodwill and acquisition-related intangible assets, which do not reflect the Company’s results of operations for the period presented. In addition, one-off expenses related to M&A and restructuring measures are not included. This pro forma information is not prepared in accordance with IFRS and should not be considered a substitute for historical information presented in accordance with IFRS.

About ADVA

ADVA is an innovation-based company focused on helping our customers succeed. Our technology forms the building blocks of a shared digital future and strengthens networks around the world. We continuously develop breakthrough hardware and software that lead the networking industry and create new business opportunities. It is these open connectivity solutions that enable our customers to deliver the cloud and mobile services that are critical to today’s society and imagining a new future. Together we are building a truly connected and sustainable future. Visit www.adva.com for more information on how we can help you.

Published by:

ADVA Optical Networking SE, Munich, Germany

www.adva.com

For the press:

Gareth Spence

t +44 1904 699 358

public-relations@adva.com

For investors:

Steven Williams

t +49 89 890 665 854

investor-relations@adva.com

Published by:

ADVA Optical Networking SE, Munich, Germany

www.adva.com

For the press:

Gareth Spence

t +44 1904 699 358

public-relations@adva.com

For investors:

Steven Williams

t +49 89 890 66 59 18

investor-relations@adva.com

07/28/2022 Release of a Corporate News/Financial News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP Distribution Services include Regulatory Notices, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Leave a Comment