ADVA's Ethernet focus drives up Q4 2011 revenue

ADVA Optical Networking's (XETRA: ADV.DE) bets on Ethernet and carrier infrastructure helped drive up the German company's Q4 2011 revenues to €83.4 million ($112.2 million) from €79.4 million ($106.9 million) in Q4 2010 and from €79.3 million ($106.8 million) in Q3 2011.

These results were at the upper end of its Q4 2011 guidance of €79 million ($106.4 million) and €84 million ($113 million).

The vendor reported that IFRS pro forma operating income, excluding stock-based compensation and amortization and impairment of goodwill and acquisition-related intangible assets, was €7.4 million ($9.9 million) in Q4 2011 or 8.9 percent of revenues.

ADVA's IFRS operating income in Q4 2011 was €6.7 million ($9.0 million), up from €3.1 million ($4.1 million) in Q4 2010. The key drivers for this development are the above-mentioned reasons for the increase in pro forma operating income.

On a fiscal 2011 year basis, revenues rose to €310.9 million ($418.5 million) in 2011, 6.6 percent higher than the €291.7 million ($392.7 million) it reported in 2010.

During the quarter, the vendor announced a number of key customer wins for its optical gear, including Hawaii's Wavecom Solutions, Syringa Networks and Iowa Communications Network.

Looking toward Q1 2012, the company has forecast revenues between €79 million ($106.3 million) and €83 million ($111.7 million).

Despite a challenging macro-economic environment, Brian Protiva, chief executive officer of ADVA Optical Networking, said that by adding a number of enhancements to its product and service offerings, it is "beginning to address opportunities in the WDM long-haul and Ethernet switching markets, which will enable us to address a nearly 40 percent bigger market in 2014 than we would be able to address without this expansion."

For more:
- see the earnings release

Special report: Wireline in the fourth quarter 2011

Related articles:
ADVA helps Hawaii's Wavecom Solutions to advance enterprise services drive
Syringa Networks lights up new optical route with ADVA
Iowa Communications Network employs ADVA for middle mile network project
ADVA Optical's wireless backhaul focus boosts Q3 2011 results
OIF puts Ethernet over OTN on display at Interoperability 2012 event

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