ADVA's Q3 revenues decline to EUR 111.2 Mill

Citing a drop in revenues from two major customers during the acquisition process of MRV Communications, ADVA Optical Networking reported a drop in revenues in Q3 2017 to EUR 111.2 million, down from EUR 144.2 in Q2 2017, and down 30.3% year-on-year (YoY) (Q3 2016: EUR 159.5 million). The figure was within the adjusted guidance announced on August 28, 2017.

Pro forma operating income in Q3 2017 stood at EUR -0.8 million or -0.7% of revenues, down from EUR 9.2 million or 6.4% of revenues in Q2 2017. This number is also within the adjusted guidance.

ADVA recorded one-time restructuring costs of EUR 8.4 million due to the integration of MRV and the related restructuring measures, as well as the consolidation of the product portfolios.

Regional revenues during Q3
Americas - 60%
EMEA - 33%
Asia-Pacific - 7%

"Q3, 2017 was one of the most challenging quarters in our company's history," commented Brian Protiva, CEO of ADVA Optical Networking. "We had to lower our guidance within a financial quarterly period for the first time since Q2, 2008. Nevertheless, the integration of MRV Communications is progressing very well. We have implemented much of the planned restructuring measures, updated our roadmaps and aligned our product portfolios, development teams and sales focus. All this provides us with a solid basis for a return to growth and profitability in 2018."