ADVA Optical Networking Reports Pro Forma Operating Income; ADVA Reaches Pro Forma Break-even With Q1 2002 Revenues of EUR 21.6 Million.Business Editors MARTINSRIED/MUNICH, Germany & RAMSEY, N.J.--(BUSINESS WIRE)--May 7, 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 first quarter 2002 financial results for the period ended March 31, 2002, and prepared in accordance with U.S. General Accepted Accounting Principles ("U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). FIRST QUARTER 2002 FINANCIAL RESULTS Revenues in the first quarter 2002 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. 21.6 million, an increase of 19.6% over revenues in the first quarter 2001 of EUR 18.0 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 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. improved from EUR 3.6 million in the first quarter 2001 to 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. of EUR 0.1 million in the first quarter 2002. Pro forma net loss 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 improved from EUR 2.7 million in the first quarter 2001 to EUR 0.1 million in the first quarter 2002. "We made strong progress during the first months of the year to reach key 2002 objectives - delivering pro forma operating profitability and forming distribution partnerships with two of the largest equipment vendors in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Japan," said Andreas G. Rutsch, ADVA Optical Networking's Chief Financial Officer. "We delivered profitability in the first quarter - an accomplishment resulting from improved gross margins, tight cost control measures, and focused dedication from our team. We furthermore signed a strategic Original Equipment Manufacturer partnership with Fujitsu Network Communications for the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. region, and formed a Value Added Reseller See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). partnership with Fujitsu Limited for Japan." Actual net loss from continuing operations in the first quarter 2002 was EUR 1.4 million, compared to actual net income from continuing operations of EUR 14.7 million in the first quarter 2001. The decrease in actual net income was primarily the result of significantly higher positive 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 during the first quarter 2001. ADVA posted an actual net loss of EUR 1.5 million in the first quarter 2002 and EUR 5.9 million in the first quarter 2001. The decrease in actual net loss was primarily a result of the higher loss in the first quarter 2001 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. at the company's Cambridge site. Actual basic net loss per share totalled EUR 0.04 in the first quarter 2002, and actual basic net income per share totalled EUR 0.18 in the first quarter 2001. FIRST QUARTER 2002 HIGHLIGHTS - ADVA Optical Networking announced in March 2002 a total of 10 new carrier and service provider customers won with Siemens for FSP 2000 and 3000 installations since the formation of a new strategic distribution partnership in August 2001. - ADVA formed a new VAR partnership with Fujitsu Limited in the first quarter 2002. This partnership includes the FSP 3000 product and targets customers in Japan. - ADVA announced in February 2002 the selection of its FSP solutions by Brazil-based carrier Brasil Telecom. Brasil Telecom deployed FSP 2000 in one of Latin America's largest storage installations to-date, and will make future deployments to deliver high bandwidth services, which are in increasing demand by large corporate users. - ADVA announced in March 2002 the selection of its FSP solutions by Mexico-based carrier MetroNet. MetroNet has deployed FSP 3000 at multiple sites in Mexico City, and will make future deployments to offer a variety of high-speed data services to its customers in Mexico City, Guadalajara, and Monterrey. - ADVA announced in February 2002 the deployment of its FSP-I by enterprise customer University of Pennsylvania. The University of Pennsylvania deployed FSP-I in a storage network for data backup and remote disk mirroring. - ADVA launched a new add/drop capability feature for its FSP 1000 in March 2002, which enables the product to support ring topologies in metro access networks. - ADVA launched the ADVAntage Qualification Program in March 2002. The program has been designed to enable its enterprise, carrier, and service provider customers to select and implement multi-vendor storage networking solutions seamlessly over a common optical infrastructure with FSP solutions. CONFERENCE CALL AND WEBCAST In conjunction with the release of its first quarter 2002 financial results, ADVA Optical Networking 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 today, May 7, 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 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 the website. The conference call presentation will also be available on the media archives page in the investor relations section of the website. ADVA Optical Networking's complete financial statements and quarterly report for the first three months of 2002 can be found on its website. The company's 2001 annual report is now available for downloading as a .pdf file See PDF. on its website, and printed copies will be available in mid-May. To order a copy, please contact the investor relations department. SECOND QUARTER 2002 OUTLOOK AND MAY 7, 2002 EARNINGS RELEASE DATE "Recent news from telecommunications companies See telecom company. over the past weeks has not been positive: carriers and service providers have announced further CAPEX reductions for the current year, and numerous vendors continue to lower revenue guidance. ADVA Optical Networking is certainly not immune to these market conditions, but our business is also driven by consistent demand for enterprise network solutions, such as disaster recovery, data backup, and storage. In addition, demand for metro optical networking has remained relatively stable, particularly in Europe," commented Brian L. Protiva, ADVA Optical Networking's Chief Executive Officer. "We believe that we are not only positioned well to weather the continuing weak global communications market conditions, but also will gain market share from competitors as a result of two key differentiating factors. We are today a profitable company on a pro forma operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. level, an achievement which few other companies in our sector can claim; and we now have distribution partnerships with several of the major equipment vendors worldwide, specifically Siemens, Fujitsu Network Communications, and Fujitsu Limited." ADVA Optical Networking anticipates revenues in the second quarter 2002 of between EUR 20 to 25 million. ADVA Optical Networking will announce financial results for the second quarter and first six months of 2002 for the period ending June 30, 2002, on Tuesday, August 6, 2002. In conjunction with the release of its second quarter 2002 financial results, ADVA will host a conference call for investors at 3:00 p.m. CET / 9:00 a.m. EST on the same day. 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 54 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 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 that 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., Ramsey/New Jersey, USA www.advaoptical.com |
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