ADVA reported Q4 2019 revenues of EUR 151.1 million, up by 4.7% from EUR 144.3 million in Q3 2019 and up by 14.9% from EUR 131.5 million in the same year-ago period. Revenues for Q4 2019 were at the upper end of the guidance corridor the company provided on October 24, 2019, of between EUR 142 million and EUR 152 million.
Pro forma operating income for Q4 2019 was EUR 10.3 million (6.8% of revenues), up from EUR 7.4 million (5.1% of revenues) in Q3 2019 and above EUR 8.1 million (6.2% of revenues) in the same year-ago period. Pro forma operating income for Q4 2019 was also at the upper end of the company’s guidance range of between 5% and 7% of revenues. At quarter-end, the company’s cash and cash equivalents totaled EUR 54.3 million, representing a substantial increase of 41.3% compared to EUR 38.4 million at the end of Q3 2019.
“Today, we report one of the best results in our 25-year company history,” commented Uli Dopfer, CFO, ADVA. “Both of our two key metrics were at the upper end of our guidance range, and year-over-year we increased revenues significantly by 14.9%. On an annualized basis our revenue grew by more than 10% – an excellent result that even exceeded our self-imposed goals and was supported by satisfactory profitability. We are finalizing our restructuring and preparing for the uncertainty caused by COVID-19. It is currently difficult for us to assess what impact the crisis in China will have on our 2020 results. The city of Wuhan is an important center for photonic components and subsystems, and the isolation of the region will lead to delays in the global supply chain. We expect that despite the healthy order backlog, some of the order fulfillment and revenue recognition will shift from Q1 2020 to later quarters. However, in light of the positive order entry and strong demand, we are very confident of further increasing annual revenues and profitability compared to 2019.”
“Numerous factors that caused market uncertainty and tension in the past year will continue to be relevant in 2020. However, we adjusted very well to the new boundary conditions and once again showed that the DNA of our company guarantees stable and reliable results even in difficult times,” said Brian Protiva, CEO, ADVA. “Despite the trade tensions, we held our course and developed our business with great discipline. Throughout the year we were able to sequentially increase our revenues and gain market share in certain segments. ADVA is in an excellent position for the coming years. We have created a solid basis in all three technology areas and see interesting growth scenarios as a result of transformational change disrupting our markets.”
