ADVA reported quarterly revenues of EUR 144.3 million, up 14.4% year-over-year, and pro forma operating income of EUR 7.4 million (5.1% of revenues).
Revenues for Q3 2019 were in the upper range of the guidance corridor the company provided on July 25, 2019, of between EUR 135 million and EUR 145 million.
“In the third quarter of the fiscal year, our revenues continued to develop very positively, and we are satisfied with the overall order entry,” 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 14.4%. Somewhat challenging, on the other hand, are the negative effects of US trade policy on our business. As such, we’ve taken several measures to counteract the impact of this trade conflict. These include the relocation of production from China, proactive material purchasing and rapid transfer of pre-engineered subsystems, as well as tightening the control of operational costs. These measures are partly associated with one-time costs but will sustainably support us in terms of the positive development of our profitability.”
“We’ve made significant progress across all of our strategic product groups in Q3. As a result, customer demand for our technology continues to accelerate,” said Brian Protiva, CEO, ADVA. “Our new FSP 3000 TeraFlex™ terminal is truly industry-leading. It provides open, scalable and programmable optical transmission technology that delivers the lowest cost per bit. With these features, it’s no surprise that this product is testing so strongly with our customers. Our FSP 150 packet edge solutions combined with our Ensemble software suite is also drawing strong customer reaction and is playing a pivotal role in the development of new open networking concepts such as edge computing. What’s more, our NFV software continues to grow in strength and customer wins are rapidly accelerating. And last but not least, the positive revenue development of our Oscilloquartz synchronization solutions continues to gather momentum. So much so, we expect to exceed our good 2018 results in this area in the current financial year.”
