ADVA Optical Networking updated its Q3 2017 revenue and profitability guidance.
Citing weaker than expected orders, ADVA said it now expects revenues in Q3 2017 (including acquisition of MRV Communications) are forecasted to be between EUR 110 million and EUR 125 million. Revenues in Q3 2017, excluding acquisition of MRV, are forecasted to be between EUR 104 million and EUR 114 million, down from previous guidance of between EUR 120 million and EUR 130 million.
ADVA Optical Networking also said IFRS pro forma operating income in Q3 2017 (including acquisition of MRV) is forecasted to be between -4% and 2% of revenues. IFRS pro forma operating income in Q3 2017, excluding acquisition of MRV, is forecasted to range between -3% and 2% of revenues. The previous guidance was between 2% and 5% of revenues. IFRS pro forma operating income excludes stock-based compensation, non-recurring restructuring costs, amortization and impairment of goodwill, and acquisition-related intangible assets.
ADVA Optical Networking also plans to reduce its workforce in orde to maximize the value of the MRV acquisition and enhance profitability throughout the combined company. The company expects non-recurring restructuring costs in 2017 to amount to EUR 9 million. Management expects that the reductions will lead to cost savings of EUR 15 million per year on a run rate basis, with the initial effect of these savings being realized in late Q4.
http://www.advaoptical.com/en/about-us/investor-relations/financial-results/ad-hoc-releases/170828
