ADVA Optical Networking Reports Record 1999 Results, 2000 Forecasts and 5-for-1 Stock Split.Business & High Tech Editors RAMSEY, N.J.--(BUSINESS WIRE)--March 28, 2000 1999 Sales up 106%, 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. up 201%, Net Profit up 316% 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. (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 record sales and earnings results for the fourth quarter and the full-year 1999 (ended December 31, 1999). ADVA also expects significant increases in sales in 2000 based on today's projections, as the strong momentum in optical networking will continue. Sales for the full-year 1999 reached to 23.6 million Euro ($22.9 million USD USD In currencies, this is the abbreviation for the U.S. Dollar. 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. ), an increase of 106% over the same period of the prior year (1998: 11.4 million Euro / $11.1 million USD). Operating income 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). totaled 1.9 million Euro ($1.9 million USD), an increase of 201% over the same period of the prior year (1998: 0.6 million Euro / $0.6 million USD). Net income according to U.S. GAAP totaled 2.2 million Euro ($2.1 million USD), an increase of 316% over the same period of the prior year (Q4 1998: 0.5 million Euro / $0.5 million USD). Earnings per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis were 0.42 Euro ($0.41 USD) for the full-year 1999 compared with 0.10 Euro ($0.10 USD) for the full-year 1998. Sales in the fourth quarter of 1999 reached 8.4 million Euro ($8.2 million USD), an increase of 155% over the same period of the prior year (Q4 1998: 3.3 million Euro / $3.2 million USD). Operating income according to U.S. GAAP totaled 1.1 million Euro ($1.1 million USD) (Q4 1998: 0.0 million Euro / $0.0 million USD). Net income according to U.S. GAAP totaled 1.2 million Euro ($1.2 million USD) (Q4 1998: 0.2 million Euro / $0.2 million USD). Earnings per share on a diluted basis were 0.24 Euro ($0.23 USD) in the fourth quarter of 1999 compared with 0 Euro ($0 USD) in the fourth quarter of 1998. ADVA's consistently solid sales growth during 1999 was primarily attributable to the successful introduction of its Fiber Service Platform (FSP FSP - File Service Protocol ) -I and -II, which were launched in February and September of 1999. The FSP-I and FSP-II accounted for a total of 44% of sales during 1999 and were sold to both enterprise customers and telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. carriers. Remaining sales were comprised of Optical Channel Multiplexer See multiplexor and multiplexing. multiplexer - multiplexor (OCM OCM Oracle Certified Master (database administrator certification) OCM Organization for Competitive Markets OCM Onondaga Cortland Madison (counties in New York) OCM Olympic Council of Malaysia ) products, an earlier product generation sold entirely to enterprise customers. Sales throughout all geographic regions exhibited strong performance during 1999, with Europe comprising 62% of total sales, the Americas 31% and Asia-Pacific 7%. During 1999, ADVA expanded its customer base to 197 end-user customers, including 12 telecommunication carriers. The ADVA team worldwide continued to grow, reaching 132 as of December 31, 1999. As of March 1, 2000, the team totaled 144. Andreas G. Rutsch, ADVA's Chief Financial Officer, said, "We are extremely pleased to report the most successful year of sales growth and profitable operations to our shareholders and the financial community. These results are confirmation of our high-growth model and winning strategy, and the management team joins me in thanking and congratulating our outstanding ADVA team. We continue to be excited about the phenomenal growth opportunities in the optical networking market and are confident that we can continue to deliver this type of solid performance." 2000 Financial Forecasts ADVA Optical Networking reports that its forecasted organic sales are expected to grow at a rate of approximately 100% for 2000 and 2001, anticipated to reach ca. 50 million Euro ($48 million USD) in 2000 and 102 million Euro ($99 million USD) in 2001. Operating income is expected to be ca. 10% of sales in 2000 and 12% of sales in 2001, based on today's projections. On February 28, 2000, ADVA announced the acquisition of Storage Area Networks, Ltd., a leading UK-based provider of storage area network routing solutions, and Cellware GmbH, a leading Berlin-based provider of integrated access devices An IAD is a customer premises device that provides access to wide area networks and the Internet. Specifically, it aggregates multiple channels of information including voice and data across a single shared access link to a carrier or service provider PoP (Point of Presence). . These acquisitions are subject to closing conditions and are anticipated to close during the second quarter of 2000. Assuming that ADVA will successfully close both transactions, the full financial results of both acquisitions will be consolidated together with ADVA's starting in the second quarter of 2000. These consolidated results will be retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a to reflect all activities since January 1, 2000. SAN's sales are anticipated to reach ca. 5 million Euro ($5 million USD) in 2000 and 11 million Euro ($11 million USD) in 2001, and operating income will be -28% of sales in 2000 and 2% of sales in 2001. Cellware's sales are anticipated to reach ca. 5 million Euro ($5 million USD) in 2000 and 11 million Euro ($11 million USD) in 2001, and operating income will be ca. -74% of sales in 2000 and 2% of sales in 2001. Pro-forma consolidated ADVA sales are expected to reach ca. 62 million Euro ($60 million USD) in 2000 and 124 million Euro ($120 million USD) in 2001. ADVA will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. goodwill costs of approximately 1.5 million Euro ($1.5 million USD) annually over the next 15 years for the acquisition of Cellware. Operating income prior to goodwill is anticipated to be ca. 0% in 2000, and operating income after goodwill is anticipated ca. -2% in 2000. Operating income prior to goodwill is expected to be ca. 10% in 2001, and operating income after goodwill is expected to be ca. 9% in 2001. A majority of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. will be invested into research and development; SAN's next product will be ready for general availability during mid-2000 and Cellware's next product generation will be ready for general availability during the first half of 2001. Andreas G. Rutsch said, "We have committed to making a significant investment in R&D in ADVA, Cellware and SAN in order to quickly bring new technologies and products to market and expand our leading market position in the enterprise and metro access space. It is ADVA's firm belief that the first to market in a rapidly growing environment captures the most market share, thus increasing shareholder value." Stock Split ADVA Optical Networking also announced a split of the company's common stock on a five-for-one basis, contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent shareholder approval at the annual shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. on May 24, 2000. Following shareholder approval, the split will be executed on the Neuer Markt stock exchange after the necessary adjustment in ADVA's commercial register in late May.
Financial Highlights
1999 (Euro) 1998 (Euro)1999 (USD)1998 (USD)
Sales 23,558 11,441 22,908 11,125
Operating income
(EBIT) 1,925 639 1,872 621
Profit before
tax (EBT) 2,184 596 2,124 580
Net profit 2,165 521 2,105 507
Diluted earnings
per share (EPS) 0.42 0.10 0.41 0.10
Number of employees 132 75 132 75
Total assets 40,351 5,435 39,237 5,285
Total shareholders'
equity 33,412 725 32,490 705
- audited according to U.S. GAAP for years ending December 31
- thousands of Euro and USD, except per share amounts and number of employees
ADVA's complete financial statements and annual report for 1999 can be found on its website at www.advaoptical.com. The annual shareholder's meeting will take place on May 24, 2000 at the Hilton Park Hilton Park has a number of different meanings:
About ADVA Optical Networking ADVA Optical Networking is a global leader in optical networking. Since its foundation in 1994, ADVA has specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. in the design, development and delivery of cost-effective optical networking solutions. Its products are implemented in both private and public networks, including Data Centers, Storage Area Networks (SAN), and Metropolitan Area Networks (MAN) for fiber-based data services to the enterprise. Products and services are distributed via a global network of strategic business partners. The company currently has an installed base of more than 200 service providers and private enterprise customers. ADVA is headquartered in Munich, Germany, with a production and R&D facility in Meiningen and sales offices in Bristol, United Kingdom; Paris, France; Ramsey, New Jersey Ramsey is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 14,351. Ramsey was incorporated as a borough by an Act of the New Jersey Legislature on March 10, 1908, from portions of Hohokus Township (now , USA; and Tokyo, Japan. Visit www.advaoptical.com for more information about ADVA Optical Networking. The statements contained in this press release that are not purely historical are 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. . Such forward-looking statements include, but are not limited to, the statements regarding the likelihood of the closing of the acquisition of Storage Area Networks Ltd. and Cellware GmbH, and the accuracy of ADVA's, SAN's, and Cellware's forecasted 2000 and 2001 financial results. Such forward-looking statements involve risks that could cause actual results to differ significantly from anticipated results. Risks that could cause actual results to differ significantly from such forward-looking statements include, but are not limited to, those contained in ADVA's 1999 annual report. Published by: ADVA Optical Networking AG, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Ramsey, New Jersey, USA |
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