All Stories
Follow
Subscribe to ADVA Optical Networking SE

ADVA Optical Networking SE

ots Ad hoc-Service: ADVA AG <DE0005103006> 1999 Sales up 106%, Operating Income up 201%, Net Profit up 316%

The sender is solely responsible for the contents of this
announcement.
Martinsried/Munich, Germany; Ramsey, New Jersey (ots Ad
hoc-Service) - ADVA Optical Networking (Neuer Markt: ADV), 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), 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 U.S. 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 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) -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 carriers. Remaining sales were comprised of Optical
Channel Multiplexer (OCM) 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. 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 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 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 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
shareholder approval at the annual shareholders' meeting 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.
End
Internet: http://recherche.newsaktuell.de

Original content of: ADVA Optical Networking SE, transmitted by news aktuell

More stories: ADVA Optical Networking SE
More stories: ADVA Optical Networking SE