ADVA Optical beats guidance with $103 million in revenue, forecasts higher Q3
ADVA Optical Networking (XETRA: ADV.DE) reported that Q2 2013 earnings of €78.4 million ($103 million) rose 1.7 percent sequentially, slightly beating guidance of between €73 million ($96 million) and €78 million ($102 million).
The vendor's International Financial Reporting Standards (IFRS) pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, was €1.5 million ($1.96 million) or 2 percent of revenues in Q2 2013.
It attributed the quarter-on-quarter increase of pro forma operating revenue due to higher revenues and improved gross margins, while the year-on-year results were mainly due to a decline in revenues from one of largest customers that was facing "regulatory challenges."
Due to a decrease in pro forma operating revenue, IFRS income was €1.2 million ($1.6 million) in Q2 2013, down from €5.9 million ($7.7 million) in Q2 2012, and €0.4 million ($0.52 million) in Q1 2013.
"We are pleased with our Q2 2013 results which were achieved in a volatile macro-economic environment," said Jaswir Singh, chief financial officer & chief operating officer of ADVA Optical Networking, in the earnings release. "At €78.4 million, our Q2 2013 revenues are above guidance and are up 1.7 percent vs. the previous quarter."
Sing added that its "pro forma gross margin strengthened from 38.6 percent in Q1 2013 to 39.9 percent in Q2 2013," which was "due to changes in product and customer mix and also demonstrates our focus on managing operational costs."
Despite operating in a challenging economic environment, ADVA Optical Networking has forecast Q3 2013 revenues of between €76 million ($99.4 million) and €81 million ($106 million).
Shares of ADVA Optical Networking were trading at $3.97, up 27 cents, or 7.2 percent, on Thursday morning on the XETRA stock exchange.
- see the earnings release
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