ADVA reported revenues in Q4 2020 of EUR 140.6 million, down by 4.2% from EUR 146.7 million in Q3 2020 and down by 7.0% compared to EUR 151.1 million in the same year-ago period. Pro forma gross profit in Q4 2020 increased by 5.2%, reaching EUR 54.6 million (38.9% of revenues) compared to EUR 51.9 million (35.4% of revenues) in Q3 2020. Compared to EUR 54.6 million reported in the year-ago quarter, pro forma gross profit remained stable in absolute terms. Net income reached EUR 13.2 million in Q4 2020, substantially up by 98.6% from EUR 6.7 million in Q3 2020 and significantly up by 425.3% from EUR 2.5 million in Q4 2019.
The company said its decrease in revenues is primarily due to the devaluation of the US dollar compared to the euro. In addition, due to lockdown tightening again, some orders had to be postponed to the following quarter.
“Today’s communication infrastructure is critical to solving some of the biggest challenges facing our global society. And we are a key part of this process. We are the only remaining optical networking and synchronization specialist in Europe. Growing safety concerns, specifically around the major Chinese equipment suppliers, create new opportunities and unique selling points for us that further strengthen our market position,” said Brian Protiva, CEO, ADVA. “Technologically, our solutions are perfectly aligned with the network transformation that’s taking place, including a focus on cloud, mobility, 5G, network automation and security. With our investments, we’ve created a foundation for transforming our business model towards higher margins. This transformation includes growing revenue contributions from software and services, expansion into new industries and further verticalization of our business.”
Financial results and analyst presentation are available here:
https://www.adva.com/en/about-us/investors/financial-results/conference-calls
