ADVA Reports Strong Momentum in 3rd Quarter 2000 Sales.Business Editors MARTINSRIED/MUNICH & RAMSEY Ramsey, residential borough (1990 pop. 13,228), Bergen co., NE N.J.; settled 1846, inc. 1908. Dairy and truck farms are in the area. , N.J.--(BUSINESS WIRE)--Nov. 7, 2000 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 continuing strong momentum in quarterly sales for the third quarter 2000, which ended September September: see month. 30, 2000. Sales for the third quarter 2000 reached a record 19.9 million Euro (17.6 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 193% over the same period of the prior year (Q3 1999: 6.8 million Euro / 6.0 million USD). 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 purchased in-process R&D, amortization of goodwill, and depreciation of purchased 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc acquisitions, as well as 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, totaled 0.4 million Euro (0.3 million USD) during the third quarter 2000, compared to 0.2 million Euro (0.1 million USD) during the same period of the prior year. ADVA achieved a higher pro forma operating income despite ongoing significant investments in research and development to support long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. Pro forma net profit totaled -0.5 million Euro (-0.4 million USD) in the third quarter 2000, compared to 0.2 million Euro (0.2 million USD) during the same period of the prior year. 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 totaled -0.01 Euro (-0.01 USD) in the third quarter 2000, compared to 0.01 Euro (0.01 USD) during the same period of the prior year. During the third quarter 2000, ADVA successfully completed the acquisitions of First Fibre Ltd. ("First Fibre") and the Siemens Norway Telecom R&D Team for a combined purchase price of approximately 94 million Euro, and took significant one-time charges as write-offs of purchased in-process R&D under U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Actual net profit for the third quarter 2000 therefore was -30.9 million Euro (-27.3 million USD), compared to -0.4 million Euro (-0.3 million USD) during the same period of the prior year. Diluted earnings per share equaled -0.92 Euro (-0.81 USD) for the third quarter 2000, compared to -0.01 Euro (-0.01 USD) during the same period of the prior year. Andreas G. Rutsch, ADVA's Chief Financial Officer, said, "The third quarter 2000 financial results mark the seventh straight quarter of growth and the delivery of top-line results since our IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. in March of 1999. Metro optical networking is a reality today, proven by our latest customer win with Swisscom, and expanding customer base of more than 26 service providers and 451 enterprises. Future growth will be driven by our solid product pipeline in development for the coming quarters, and particularly the FSP FSP - File Service Protocol 3000, a system designed specifically for service providers in the metro area This article is about the music production team. For the article about population centers, see metropolitan area. Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. ." Sales for the first nine months of 2000 reached 47.4 million Euro (41.8 million USD), an increase of 213% over the same period of the prior year (first nine months of 1999: 15.1 million Euro / 13.3 million USD). Pro forma operating income totaled 1.1 million Euro (1.0 million USD) during the first nine months of 2000, compared to 0.8 million Euro (0.7 million USD) during the same period of the prior year. Pro forma net profit totaled 1.1 million Euro (1.0 million USD) during the first nine months of 2000, compared to 0.1 million Euro (0.1 million USD) during the same period of the prior year. Actual net income for the first nine months of 2000 was -44.1 million Euro (-38.9 million USD) compared to -1.3 million Euro (-1.1 million USD) during the same period of the prior year. Diluted earnings per share equaled -1.32 Euro (-1.17 USD) for the first nine months of 2000, compared to -0.04 Euro (-0.04 USD) during the same period of the prior year. Third quarter sales momentum The strong third quarter sales were the result of continued high demand for ADVA's Fiber Service Platform (FSP)-II product, further penetration of ADVA's Fortune 1,000 enterprise customer target group, growing sales to service provider customers and the addition of new sales channels. FSP-II was the top-selling product during the first nine months of 2000. Sales in both the Europe/Middle East/Africa ("EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ") region and the Americas were strong during the first nine months of 2000, reaching 49% and 48% of sales, respectively. Sales in the EMEA region were particularly strong during the third quarter of 2000, reflecting growing demand by service providers. Sales in Asia-Pacific totaled 3%. ADVA continues to heighten height·en v. height·ened, height·en·ing, height·ens v.tr. 1. To raise or increase the quantity or degree of; intensify. 2. To make high or higher; raise. v.intr. its geographic reach as part of its sales strategy, establishing a presence in China, Mexico and Chile. Net One Systems Co., Ltd. joined ADVA's growing global network of value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. . Other third quarter highlights
- ADVA announced a three-year contract won for the Swisscom tender together
with Siemens in October. Swisscom provides high-quality services for enterprise
LAN and SAN applications to its customers with the FSP-I and FSP-II.
- ADVA publicized the breakthrough of over 10,000 channel cards deployed in
metro area networks, presenting its customer COLT Telecom with the 10,000th WDM
channel card. COLT has deployed more than 500 FSP systems to provide customized
and cost-effective metro area solutions to enterprise customers throughout its
networks.
- Strategic marketing partnerships were announced with Brocade, Compaq and EMC
during the third quarter 2000, emphasizing important product certification and
system interoperability. These enhance ADVA's branding and visibility among its
Fortune 1,000 enterprise customer target group.
- ADVA further expanded its worldwide team, increasing the number of employees
from 132 in December 1999 to 389 as of November 1, 2000, including 151 R&D
engineers located at six competence centers in Europe and a sales, service and
marketing team of more than 71 staff.
- Underscoring its aggressive organic and acquisition-oriented growth strategy,
ADVA successfully completed two acquisitions during the third quarter 2000.
First Fibre is a leading U.K.-based designer and manufacturer of optical
networking systems whose solutions expand ADVA's presence to the edge of
metropolitan access networks. The Siemens Norway Telecom R&D team is a leading
group of telecommunication R&D engineers who provide ADVA with significant
protocol and software management knowledge. In addition, a strategic investment
in OptXCon Inc. ("OptXCon") was completed on July 10, 2000. OptXCon is a
U.S.-based start-up focusing on developing optical cross-connects for
metropolitan area and enterprise networks.
Conference call In conjunction with the release of its third quarter and nine-month 2000 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, November 7. Investors may listen to the call live via Webcast on ADVA's website. Participating in the call will be ADVA's Chief Financial Officer, Andreas G. Rutsch, and Chief Strategy Officer, Brian L. Protiva. To listen to the Webcast, interested investors are encouraged to log onto the broadcast at least 15 minutes prior to call, 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 under presentations in the investor relations section of ADVA's website. ADVA's complete financial statements and report for the first nine months of 2000, as well as the 1999 annual report, can be found on its website at www.advaoptical.com. Full-year 2000 financial results will be published on March 26, 2000. About ADVA Optical Networking ADVA Optical Networking is a leading global provider of optical networking solutions to deploy, manage and deliver communication networks and high-speed services See broadband. for the metropolitan area and enterprise markets. ADVA's product family is used by 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. and metro area service providers as well as enterprises to provide high-performance connectivity and delivery of high-speed data, storage, voice and video services. ADVA sells its products through a global network of distributors, value added resellers 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). , and original equipment manufacturers including Alcatel, Cisco, and Siemens. As of October 2000, over 451 enterprises and more than 26 service providers have deployed ADVA's equipment. ADVA is headquartered in Munich (Germany), with R&D centers in Cambridge and York York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. (UK); Berlin, Meiningen and Munich (Germany); and Oslo (Norway). Worldwide offices are located in Berlin, Hannover and Munich (Germany); Cambridge and York (UK); Paris (France), Chicago/Illinois and Ramsey/New Jersey (USA); and Tokyo (Japan). Visit www.advaoptical.com for more information about ADVA Optical Networking. 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.
Pro forma condensed consolidated financial results
The pro forma income statement has been calculated to illustrate
ADVA's operating performance prior to the effects of purchased
in-process R&D, amortization of goodwill, depreciation of purchased
intangible assets, and non-cash charges related to the Company's stock
option programs. The following statements are prepared according to
U.S. GAAP for the fiscal period ending September 30, and are
unaudited.
(in thousands of Euro, Q3 2000 Q3 1999 9M 2000 9M 1999
except per-share amounts) ------- ------- ------- -------
Sales 19,890 6,800 47,370 15,116
Gross margin 8,133 2,846 19,700 6,257
Selling, general and
administrative expenses 5,637 2,045 11,862 3,601
Research and development
expenses 2,104 639 6,658 1,886
Operating income (EBIT) 361 163 1,148 770
Net profit -475 239 1,146 59
Diluted earnings per share (EPS) -0.01 0.01 0.03 0
=====================================
The above pro forma amounts for the quarter and nine months ended
September 30, 1999, exclude non-cash charges relating to the Company's
stock option program. The above pro forma amounts for the quarter and
nine months ended September 30, 2000, exclude write-off of purchased
in-process R&D, goodwill amortization, depreciation of purchased
intangible assets, and non-cash charges relating to the Company's
stock option program.
Actual condensed consolidated financial results
Actual condensed consolidated financial results includes purchased
in-process R&D and amortization of goodwill and intangible assets
resulting from acquisitions, as well as non-cash charges related to
the Company's stock option program. The following statements are
prepared according to U.S. GAAP for the fiscal period ending September
30, and are unaudited.
(in thousands of Euro, Q3 2000 Q3 1999 9M 2000 9M 1999
except per-share amounts) ------- ------- ------- -------
Sales 19,890 6,800 47,370 15,116
Gross margin 8,133 2,846 19,700 6,257
Selling, general and
administrative expenses 8,516 2,658 17,163 4,934
Research and development
expenses 19,355 639 30,301 1,886
Goodwill amortization 10,007 0 16,949 0
Operating income (EBIT)(1) -29,744 -451 -44,712 -563
Net profit -30,908 -375 -44,106 -1,274
Diluted earnings per share (EPS) -0.92 -0.01 -1.32 -0.04
Total assets 242,253 35,729 242,253 35,729
Total shareholders' equity 214,980 31,809 214,980 31,809
=====================================
(1) Operating income is calculated as earnings before interest and
taxes including purchased in-process R&D, amortization of goodwill,
depreciation of purchased intangible assets, and non-cash charges
related to the stock option program.
Published by: ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Ramsey/New Jersey, USA www.advaoptical.com (c)ADVA AG Optical Networking 2000 |
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