ADVA Optical Networking Generates Stable Revenues and Higher Profitability in Third Quarter 2002.Business Editors/High-Tech Writers MARTINSRIED/MUNICH, Germany & MAHWAH, N.J.--(BUSINESS WIRE)--Nov. 5, 2002 ADVA's revenues remain consistent at EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 22.0 million and pro forma forma, adj/n minor elements between the members of a botanical species. operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. significantly increases to EUR 1.6 million despite continuing weak market conditions in Q3 2002 ADVA ADVA American Deaf Volleyball Association ADVA Advanced Soviet Optical Networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. (German Neuer Markt: ADV ADV Advertisement ADV Adverb ADV Advance/Advanced ADV Advantage (tennis) ADV Advise ADV Advocate ADV Advancement ADV Advent ADV Arbeitsgemeinschaft für Datenverarbeitung ADV Adversus (Latin: Against) ), a leading global provider of optical networking solutions, today announced third quarter and nine-month 2002 financial results for the period ended September 30, 2002, and prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. General Accepted Accounting Principles ("U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). THIRD QUARTER 2002 FINANCIAL RESULTS Revenues in the third quarter 2002 totaled EUR 22.0 million, a decrease of 5.2% compared to revenues in the third quarter 2001 of EUR 23.2 million. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating income increased to EUR 1.6 million in the third quarter 2002, a large improvement over pro forma operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of EUR 0.6 million in the third quarter 2001, due to operating efficiencies, cost-reduction measures, and higher gross margins. Pro forma net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the increased to EUR 1.2 million in the third quarter 2002, compared to pro forma net loss from continuing operations of EUR 1.3 million in the third quarter 2001. Andreas G. Rutsch, Chief Financial Officer at ADVA, remarked, "General market conditions did not change during the third quarter 2002. We continued to see interest by both carriers and enterprises in investing at customer premise sites and in metro access networks, which led to our ability to generate a sixth consecutive quarter of stable revenues at EUR 22.0 million. Higher gross margins, as a result of improved inventory management, greater operating efficiencies, and several quarter-specific positive effects from variations in regional distribution and product mix, enabled us to deliver a significantly higher pro forma operating income of EUR 1.6 million." "Disaster recovery, storage area network connectivity, and local area network extension remain the most sought-after applications in the investor-market today," commented Brian L. Protiva, Chief Executive Officer at ADVA. "We have focused intensely on revenue opportunities like these, delivering advanced technology solutions with the lowest total cost of ownership which meet and exceed customer requirements." ADVA posted an actual net loss of EUR 0.1 million in the third quarter 2002, compared to EUR 93.2 million in the third quarter 2001. The improvement in actual net loss was primarily due to the loss from discontinuing operations at the company's Cambridge site in the third quarter 2001. Actual basic net earnings per share totaled EUR 0.00 in the third November 5, 2002 quarter 2002 and EUR -2.81 in the third quarter 2001. ADVA has included charges for stock option compensation in its actual financial results since the company first issued options in 1999. NINE-MONTH 2002 FINANCIAL RESULTS Revenues during the first nine months of 2002 remained at a relatively similar level to the first nine months of 2001, totaling 65.8 million. Pro forma operating results improved from a loss of EUR 5.4 million during the first nine months of 2001 to pro forma operating income of EUR 1.9 million during the first nine months of 2002. The improvement from an operating loss to operating income resulted from greater operating efficiencies, cost-reduction measures, and higher gross margins. Pro forma net loss from continuing operations improved from EUR 6.1 million during the first nine months of 2001 to pro forma net income from continuing operations of EUR 0.9 million during the first nine months of 2002. ADVA posted an actual net loss of EUR 5.3 million during the first nine months of 2002, compared to EUR 104.6 million during the first nine months of 2001. Actual basic net earnings per share totaled EUR -0.16 during the first nine months of 2002 and EUR -3.23 during the first nine months of 2001. THIRD QUARTER 2002 HIGHLIGHTS -- ADVA won 8 new carrier and service provider customers in the third quarter 2002, predominantly city carriers and alternative service providers in Europe and Japan. These new customers included U.K.-based THUS, who is deploying ADVA's FSP 500 throughout metropolitan areas in England and Scotland. -- ADVA announced a total of 26 new enterprise and carrier customers won together with partner INRANGE Technologies during the first eight months of 2002. -- ADVA's FSP 2000 successfully completed interoperability testing with Brocade's fabric switches, including their new 2 Gigabit Fibre Channel interface, and induction into Brocade's Fabric Aware program. FOURTH QUARTER 2002 OUTLOOK AND FULL-YEAR 2002 EARNINGS RELEASE DATE "The challenges presented over the past several years in the optical networking market -- from exponential growth Extremely fast growth. On a chart, the line curves up rather than being straight. Contrast with linear. to an unprecedented downturn -- have tested the character and strength of every management team," commented Brian L. Protiva further. "While we at ADVA have not been isolated from such developments, we balanced our marketing approach on both enterprise and carrier business opportunities and thereby created two solid legs to stand on. This stable business model combined with superior execution capability distinguishes us from all other companies in our space." ADVA anticipates consistent revenues between EUR 20 to 25 million in the fourth quarter 2002. ADVA will announce audited financial results for the fourth quarter and November 5, 2002 full-year 2002 for the period ending December 31, 2002, on Wednesday, March 19, 2003. In conjunction with the release of its full-year 2002 audited financial results, ADVA will host a conference call for investors at 3:00 p.m. CET/9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on the same day. CONFERENCE CALL AND WEBCAST In conjunction with the release of its third quarter and nine-month 2002 financial results, ADVA will host a conference call for investors at 3:00 p.m. CET/9:00 a.m. EST today, November 5, 2002. Investors may listen live via Webcast on ADVA's website. Participating in the call will be ADVA's Chief Executive Officer, Brian L. Protiva, and Chief Financial Officer, Andreas G. Rutsch. To listen to the Webcast, interested investors are encouraged to log onto the broadcast at least 15 minutes prior to the call, located on the con calls and presentations page in the investor relations Investor relations The process by which the corporation communicates with its investors. section of ADVA's website at www.advaoptical.com. The call will be archived as an audio file and the conference call presentation will also be available in the investor relations section of ADVA's website. ADVA's complete financial statements and report for the first nine months 2002 can be found on its website. ABOUT ADVA OPTICAL NETWORKING ADVA Optical Networking is a leading global provider of optical networking solutions for rapid and cost-effective provisioning of high-speed data, storage, voice, and video services in the metropolitan area. ADVA's carrier-class portfolio is comprised of the Fiber Service Platform family of products -- explicitly designed to ensure the lowest total cost of ownership. ADVA's solutions have been deployed at over 68 carriers and service providers (including PTTs, RBOCs, LECs, and IXCs) and more than 500 enterprises worldwide. ADVA's products are sold through an international network of blue-chip distribution partners in addition to its own direct sales force. Further information about ADVA Optical Networking: www.advaoptical.com. The economic projections and forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. contained in this document relate to future facts. Such projections and forward-looking statements are subject to risks which cannot be foreseen fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. and which are beyond the control of ADVA AG Optical Networking. ADVA AG Optical Networking is therefore not in a position to make any representation as to the accuracy of economic projections and forward-looking statements or their impact on the financial situation of ADVA AG Optical Networking or the market in the shares of ADVA AG Optical Networking. ADVA Optical Networking provides consolidated pro forma financial results in this press release solely as supplemental financial information to help investors and the financial community make meaningful comparisons of ADVA Optical Networking's operating results from one financial period to another. ADVA Optical Networking believes that these pro forma consolidated financial results are helpful because they exclude non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to the stock option programs, purchased in-process R&D, amortization and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , as well as loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of the component, which are not reflective of the company's operating results for the period presented. This pro forma information is not prepared in accordance with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("U.S. GAAP") and should not be considered a substitute for historical information presented in accordance with U.S. GAAP. PUBLISHED BY: ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Mahwah/New Jersey, USA ADVA Optical Networking Corp., Tokyo, Japan www.advaoptical.com |
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