IFRS pro forma operating income, excluding stock-based compensation and amortization & impairment of goodwill & acquisition-related intangible assets, amounted to EUR 5.6 million or 6.8% of revenues, at the upper half of guidance of between 4% and 8% of revenues. This compares to Q3 2011 IFRS pro forma operating income of EUR 5.5 million or 6.9% of revenues, and to Q2 2012 IFRS pro forma operating income of EUR 6.8 million or 8.0% of revenues.
“Albeit a weaker demand environment in H2 2012 than anticipated, ADVA Optical Networking has neither lost customers nor market share with existing customers. We continue to be a leader in innovation and have a broad and deep customer base. ADVA Optical Networking won several new customers over the last months which we believed would lead to stronger short-term growth. In review, operators’ business models remain challenged due to intense competition and regulation. In order to pave the way to generating new revenue streams, major mobile broadband upgrades, especially LTE rollouts, are absorbing much of the available capital and are fundamental to sustaining a profitable business model. Thus, network providers are currently under-investing and delaying project roll-outs in wireline activities based on capital market pressures. Nonetheless, due to further broadband growth, a rebound in wireline capital spending is inevitable. ADVA Optical Networking continues to weather the spending slowdown due to our increasing exposure to mobile backhauling wins, while many of our peers are experiencing a significant top-line squeeze,” stated Brian Protiva, chief executive officer of ADVA Optical Networking.
