Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q2 2015 Earnings Presentation
20 slides from Adtran Networks's earnings presentation, Jul 23, 2015
Slide 1: Q2 2015 IFRS Financial Results
Q2 2015 IFRS Financial Results July 23, 2015 Martinsried/Munich, Germany
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements with words such as “believes”, “anticipates” and “expects” to describe expected revenues and earnings, anticipated demand for optical networking solutions, internal estimates and liquidity. These forward-look
Slide 3: Business Update and Outlook
Business Update and Outlook Brian Protiva Chief Executive Officer 3 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: Q2 2015 in Review
Q2 2015 in Review • Revenues rose by 29% vs. the previous year and 17% sequentially, to a record high of EUR 112.3 million. This result is at the upper end of the revised guidance provided on June 16, 2015 of between EUR 109 million and EUR 113 million • Pro forma operating income* at EUR 7.7 millio
Slide 5: Prospects for Q3 2015
Prospects for Q3 2015 • Ongoing strong market for innovative connectivity solutions: • The global DCI market is projected to grow at a 10.5% CAGR for the next five years, surpassing USD 4.2bn in 2019. DCI growth will be strongest in the ICP/CNP segment, which is slated to grow at a 12% CAGR in 2014–
Slide 6: Ongoing Focus on Innovation
Ongoing Focus on Innovation Launch of the FSP 3000 CloudConnect™, with Expansion of our ConnectGuard™ portfolio to provide the industry’s first 400Gbit/s single line card. encrypted Ethernet connectivity, enabling secure A fundamental shift in technology cloud access for both fixed and mobile users,
Slide 7: A Tale of Two Cloud Service Providers
A Tale of Two Cloud Service Providers Customer Customer #1 #2 • Two customers, the same size, same business segment: • Customer #1: I really only need about 1 Terabit between my Data Centers • Customer #2: I want 400 Terabits between my Data Centers, and I want it today • Why the difference? • #1 us
Slide 8: Data Center Interconnect Needs
Data Center Interconnect Needs NET REST CLI REST CONF CONF Mega Data Center Open APIs Open Line System High Channel Count Small Form Factor Security Co-Lo Sites Big Capacity Smaller Edge Sites Highest Efficiency Scalability from 10G to 100T DCI re-imagined – Introducing the FSP 3000 CloudConnect™ 8
Slide 9: FSP 3000 CloudConnect
FSP 3000 CloudConnect The Industry‘s First Open Optical Line System Terminal OOLS 51.2Tbit/s Equipment w/Integrated Transponders RTR XPR Packet TeraScale Optical Grey or Colored Switch AMP Networks Alien Wavelengths 16Tbit/s Wave Services 5.6Tbit/s Equipment Density – Power Efficiency – Fiber Capaci
Slide 10: The Industry Benchmark – Again
The Industry Benchmark – Again 100Gbit/s 5.6Tbit/s • 100G on a dual-slot line card • 400G on a single slot line card • 2.4Tbit/s per fiber • 25.6 Tbit/s per fiber • 1Watt per 1Gbit/s • 0.5Watt per 1Gbit/s Equipment Density – Scalability – Energy-Efficiency – Programmability 10 © 2015 ADVA Optical Ne
Slide 11: In Summary, How We ADd VAlue
In Summary, How We ADd VAlue Profitable growth Focus on Thought Operational growth leadership excellence markets Expanding Differentiated Loyal opportunities technology customers ADVA Optical Networking is a thought leader in developing innovative connectivity solutions for cloud and mobile services
Slide 12: Financial Performance
Financial Performance 12 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 13: Quarterly IFRS Revenues and Pro Forma Profitability
Quarterly IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit +29% +22% +11% +10% +14% 95.6 112.3 87.2 87.1 86.7 34.6 38.7 28.6 30.8 31.8 34.4% 35.3% 36.6% 36.2% 32.8% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 7.7 Pro Forma Operating Income* 5.1 3.5 3.7 0.4 0.5% 4.0% 5.9% 3.9
Slide 14: IFRS Profitability
IFRS Profitability 2014 2015 EUR Million Q2 Q3 Q4 Q1 Q2 Pro Forma Operating Income 0.4 3.5 5.1 3.7 7.7 (0.5%) (4.0%) (5.9%) (3.9%) (6.8%) Operating Income 0.0 3.1 5.1 3.3 7.4 (0.0%) (3.5%) (5.9%) (3.5%) (6.6%) Net Income 0.0 4.4 4.3 4.3 5.1 (0.0%) (5.1%) (5.0%) (4.5%) (4.6%) Diluted EPS in EUR* 0.00
Slide 15: Quarterly Revenues Per Region
Quarterly Revenues Per Region 112.3 6% -29% 95.6 87.2 87.1 86.7 5% 9% 6% 30% 11% +14% 37% 33% 31% 34% +49% 64% 55% 58% 63% 58% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 EMEA Americas Asia-Pacific (in millions of EUR, in % of revenues) Growth Y-o-Y Note: Potential differences due to rounding 15 © 2015
Slide 16: IFRS Balance Sheet
IFRS Balance Sheet Dec. 31 Jun. 30 Dec. 31 Jun. 30 Assets 2014 2015 Equity & liabilities 2014 2015 Cash & cash equivalents 83.9 78.8 Accounts payable 33.0 52.2 Accounts receivable 54.0 73.3 Financial liabilities 35.0 31.3 Inventories 47.0 65.9 Other liabilities 79.7 85.6 Other assets 139.9 146.6 Equ
Slide 17: Cash and Net Liquidity
Cash and Net Liquidity 90 78.8 75 Cash & Cash Equivalents 60 47.5 45 Net Liquidity 30 15 0 Q2 Q2 2012 2015 (in millions of EUR) High quarter-end cash and net liquidity positions at the end of Q2 2015, demonstrating financial strength and operational flexibility 17 © 2015 ADVA Optical Networking. All
Slide 18: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q1 2015 Q2 2015 Net cash provided by operating activities -1.5 18.1 Net cash used for investing activities -9.0 -11.5 Net cash provided by (used for) financing activities -2.4 -1.0 Net effect of foreign currency translation 2.4 -0.1 Net change in cas
Slide 19: Guidance Q3 2015
Guidance Q3 2015 • Revenues between EUR 120 million and EUR 125 million • Pro forma operating margin between 5% and 8% of revenues* • ADVA Optical Networking will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capita
Slide 20: Thank You
Thank You Karin Tovar Director Investor Relations t +1 201 940 7212 t +49 89 89 06 65 940 ktovar@advaoptical.com www.advaoptical.com IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and in
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