ADVA posts revenue of EUR 123.8 million, up 2.7% sequentially

ADVA Optical Networking reported Q2 2018 revenue of EUR 123.8 million up 2.7% sequentially from EUR 120.5 million in Q1 2018 and down by 14.2% from EUR 144.2 million in the same year-ago period. Revenues for Q2 2018 were within the guidance forecast the company provided on April 26, 2018 of between EUR 120 million and EUR 135 million.

Pro forma operating income for Q2 2018 was EUR 6.1 million (5.0% of revenues), compared to EUR 2.2 million (1.9% of revenues) in Q1 2018 and EUR 9.2 million (6.4% of revenues) in the same year-ago period. Therefore, pro forma operating income for Q2 2018 was at the upper end of the company's guidance of between 1% and 6%.

Operating income for Q2 2018 increased to EUR 4.1 million, compared to an operating loss of EUR 0.4 million reported for Q1 2018, and down from EUR 8.1 million in the same year-ago period.

Net profit for Q2 2018 was EUR 4.6 million compared with EUR 4.5 million in the same year-ago period.

"Q2 2018 marked the third consecutive quarter of sequential revenue growth along with increasing profitability," said Ulrich Dopfer, CFO, ADVA. "Although the market for optical transmission technology remains highly competitive, our broad and growing customer base and diversification into different network applications provide us with a stable business foundation. Our acquisition of MRV, which we completed in August 2017 and have now fully integrated into our business, has delivered the anticipated revenue contributions and synergies. Coupling this with our continued financial discipline and strategic focus, we believe ADVA is on track towards increasing profitability and sustainable growth."

"Our Q2 2018 financial results underscore yet again the positive effects of our strategic investments over the past three years," commented Brian Protiva, CEO, ADVA. "Our open, programmable, optical transmission technology offers significant value in terms of capacity, flexibility and automation to network operators, large enterprises, and internet content providers. Our technological advantage in cloud access solutions and network synchronization is growing, and we are developing a strategic presence with Tier 1 network operators. Both technology pillars are delivering increasing revenue contributions and opening doors to new customers. Altogether, we expect continued positive business development in the second half of the year."