ADVA Optical Networking Reports Continued Growth With Q1 2001 Financial Results May 29, 2001.Business Editors MARTINSRIED/MUNICH, Germany/RAMSEY, N.J.--(BUSINESS WIRE)--May, 29, 2001 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 first quarter 2001 financial results for the period ending March 31, 2001, and 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 . First quarter 2001 financial results Sales for the first quarter 2001 reached 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. 18.1 million, an increase of 75.3% over sales in the first quarter 2000 of EUR 10.3 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 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. , excluding amortization of goodwill and purchased intangible assets relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc acquisitions, as well as non-cash charges related to the stock option programs, decreased to EUR -4.5 million during the first quarter 2001, compared to EUR 0.6 million during the first quarter 2000. These results reflect in particular lower margins from aggressive pricing given to customers and continued conservative inventory valuation, further expansion of ADVA's sales and tech support team, and significant investments in research & development associated with on-going product development and a larger R&D team. Pro forma net loss totalled EUR -3.5 million in the first quarter 2001, compared to EUR 0.4 million in the first quarter 2000. Pro forma diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of totalled EUR -0.11 in the first quarter 2001, compared to EUR 0.01 in the first quarter 2000. "We are pleased to report continued top-line growth despite continued economic uncertainty and capital constraints in the first quarter 2001. We have recently seen the first positive indications in the buying patterns of our enterprise end customers, and remain on track for EUR 110 to 120 million in revenue for 2001," said Andreas G. Rutsch, Chief Financial Officer. "Significant and necessary investments in all areas led to an expected pro forma EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). loss of EUR -4.5 million during the first quarter 2001. Tight cost-control measures have been implemented throughout all business areas to reach break-even for the full-year 2001." "As a company, we have made some important steps since the beginning of 2001," said Brian L. Protiva, Chief Executive Officer. "The FSP FSP - File Service Protocol 3000, our flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. for 2001 targeted at metro service providers, has been well-received by the markets since its introduction in the fourth quarter 2000. A total of eight customers have purchased and trialed the product to-date and numerous others are currently evaluating it. We continue to successfully scale our sales, business development, and tech support team with top-quality new hires. Our R&D team made significant progress in the development of the FSP 1000, which was launched May 29, 2001 in March 2001, as well as in the further development of our network management suite. As a company, we continue to execute on all fronts and are focused on delivering best-of-breed end-to-end metro optical networking solutions to our customers." Actual net profit for the first quarter 2001 was EUR 5.9 million, compared to EUR -37.6 million for the first quarter 2000. This increase in actual net profit was due to positive non-cash charges related to ADVA's stock option and other compensation programs, and resulted from negative stock price development during the first quarter 2001. Diluted earnings per share equaled EUR 0.18 for the first quarter 2001, compared to EUR -1.25 for the first quarter 2000. First quarter 2001 highlights ADVA started the year 2001 by making important advancements in the market, as it pursued its strategy of being a leading global provider of metro optical networking solutions. -- Metro service provider end customers increased from 14 in the first quarter 2000 to 33 in the first quarter 2001. A total of 4 service providers purchased and trialed the FSP 3000, although no revenue was booked in the first quarter 2001 according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). accounting principles. -- BT Ignite, a division of UK-based British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. , selected the FSP-II in February 2001 to enable it to provide services for enterprise Local Area Network (LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. ) and Storage Area Network (SAN) applications. -- Hannoversche Telekommunikations- und Netzgesellschaft mbH, a German city carrier, selected the FSP 3000 in March 2001 for field trials to implement in metro-area networks. -- Enterprise end customers increased from 200 in the first quarter 2000 to 480 in the first quarter 2001 according to ADVA's estimations, although the Company experienced anticipated slower demand and a delay in installation of large data center storage projects due to weakening macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. conditions. -- ADVA further strengthened its relationship with existing VAR partner, INRANGE Technologies, by entering a more strategic and comprehensive partnership agreement in March 2001 to deliver best-of-breed storage networking solutions to customers. The new partnership incorporates ADVA's end-to-end FSP product portfolio and INRANGE's worldwide field service and tech support organization. -- The FSP 1000 product was launched in March 2001 and further broadened ADVA's offering of end-to-end metro optical networking solutions. Targeted at metro service providers and enterprises, the product incorporates ADVA's FSP network management software platform and is fully interoperable with other FSP systems. -- A new corporate profile campaign, "Turning metro visions into value", was introduced to independently brand ADVA as a leading optical networking solutions provider. -- ADVA's worldwide team continued to expand through organic hiring to reach 432 May 29, 2001 employees at the end of the first quarter 2001 and 443 at May 1, 2001, with an emphasis on growing the sales, business development, and tech support team to manage key customer accounts. Business outlook ADVA confirms previous guidance of sales of EUR 110 to 120 for the full-year 2001 and pro forma operating income of break-even. Conference call and Webcast In conjunction with the release of its first quarter 2001 financial results, ADVA will host a conference call for investors at 3:00 p.m. CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr / 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Tuesday, May 29, 2001. 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 media archives page in the investor relations Investor relations The process by which the corporation communicates with its investors. section of ADVA's website at http://www.advaoptical.com. The call will be archived as an audio file on ADVA's website. The conference call presentation will also be available on the media archives page in the investor relations section of ADVA's website at http://www.advaoptical.com. Second quarter 2001 earnings results ADVA will announce second quarter 2001 financial results for the period ending June 30, 2001, on Tuesday, August 7, 2001. ADVA's complete financial statements and quarterly report for the first quarter 2001 can be found on its website at www.advaoptical.com. About ADVA Optical Networking ADVA Optical Networking is a leading global provider of optical networking solutions for the deployment, management, and delivery of high-speed services within the metropolitan area and enterprise markets. ADVA is leveraging its core technologies and expertise in the enterprise market to maximize growth opportunities in the exploding metro market. Key services include high-speed data, storage, and video applications. The ADVA product portfolio is sold through an international network of distributors, value-added resellers, and original equipment manufacturers, in coordination with ADVA's own regional sales offices and direct service-provider sales force. As of May 2001, over 35 metro service providers and 490 enterprises have deployed ADVA's systems. Founded in 1994 and headquartered in Munich, Germany, ADVA has ten sites worldwide. The economic projections and forward-looking statements contained in this document relate to future facts. Such projections and forward-looking statements are subject to risks which cannot be foreseen 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. Published by: ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Ramsey/New Jersey, USA www.advaoptical.com |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion