Citing growth in demand from communication service providers (CSPs), particularly in the cloud access solution area, ADVA reported Q4 revenue of EUR 157.7 million, up by 3.9% from EUR 151.8 million in Q3 2021, also considerably up by 12.2% compared to EUR 140.6 million in Q4 2020. Net income reached EUR 17.5 million in Q4 2021 and decreased by 5.2% from EUR 18.5 million in Q3 2021, but increased significantly by 32.2% from EUR 13.2 million in Q4 2020.
“Our business transformation strategy will remain our focus in 2022. Profitability, liquidity and expanding our sales in new industries are top priorities,” said Brian Protiva, CEO of ADVA. “Technologically, our solutions are extremely well aligned to the transformation of networks with cloud, mobility, 5G, automation and security. In addition to the high-value performance features of our optical data transmission, precise network synchronization technology and programmable cloud access solutions, our service portfolio also delivers increasing value. Furthermore, our strategic move to join forces with ADTRAN will create a global leader in a quickly expanding market opportunity around the network edge. Together, we can offer a comprehensive portfolio of solutions from the access part of the network, through the network edge, to the metro core, which goes well beyond the offerings of most other Western manufacturers.”
“Today, we report on a great financial year with solid growth and a significant increase in profitability. The consistent implementation of our business transformation strategy enables us to compensate for higher procurement costs due to the global shortage of components and still expand our margins. High cash flow generation combined with consistent debt reduction has led to a significant increase in our net cash position, which we were able to expand by more than EUR 60 million compared to 2020,” commented Uli Dopfer, CFO of ADVA. However, global inflationary tendencies and the resulting higher material costs, as well as the global shortage of materials, pose challenges for us in 2022. We start the year again with an order-backlog at record levels and are confident that we will once again overcome the ongoing challenges and grow profitably in 2022.”
