Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q3 2013 Earnings Presentation
22 slides from Adtran Networks's earnings presentation, Oct 24, 2013
Slide 1: Q3 2013 IFRS Financial Results
Q3 2013 IFRS Financial Results October 24, 2013 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 © 2013 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: Q3 2013 in Review
Q3 2013 in Review • Revenues totaled EUR 79.1 million, in the upper half of guidance of between EUR 76 million and EUR 81 million, and up 1% vs. Q2 2013 • Pro forma operating income at EUR 4.0 million or 5.0% of revenues, at the upper end of guidance of between 1% and 5% of revenues, showing ongoing
Slide 5: Prospects for Q4 2013
Prospects for Q4 2013 • Macro-economic environment sends mixed signals • While optical networking market should grow overall in 2013, there is very little visibility at current • 2013 is poised to be a better year due to 100G deployments and a return of carrier capex spending • Still, many promising
Slide 6: We Continue to Invest in Innovation
We Continue to Invest in Innovation Mobility Cloud & SDN New Verticals • Sync • Dynamic • Media architectures services • Health Care • Resiliency • Customer • Utilities • Fronthauling apps • Cloud Services • Full plug & play We add value through differentiated, customer-focused innovation 6 © 2013 A
Slide 7: Mobile Data Growth
Mobile Data Growth “Many of the folks who built fiber-optic backbones are now trying to get fiber to the tower as fast as possible to capture what they see as their largest future market” AT&T, Verizon and DTAG fiberize Carol Wilson, Light Reading, August 2013 90% of their owned cell sites FSP 150 F
Slide 8: Where Is the Fixed Net Opportunity?
Where Is the Fixed Net Opportunity? Fronthaul Backhaul Network Network BBU BBU BBU BBU BBU BBU BBU BBU BBU BBU BBU Edge Router/ BBU Security Gateway Pool of BaseBand Units Base station to Base station to remote radio heads network edge Fronthaul: delay/jitter sensitive; Backhaul: time/phase accuracy
Slide 9: Cloud and Data Center (DC) Growth
Cloud and Data Center (DC) Growth Cloud DC traffic will grow 6-fold from 2011 to 2016 1 reaching ca. 5 Zettabytes per year* Intra-DC traffic: 5.0 ZB / 76% 2 DC-to-User: 1.2 ZB / 17% 3 Inter-DC: 0.5 ZB / 7% *Source: Global Cloud Index 2012 Growth, security and resource consumption are primary pain po
Slide 10: Where Is the Cloud Opportunity?
Where Is the Cloud Opportunity? Highest Availability Lowest Latency Maximum Security Automated Provisioning FSP 3000 Secure Business Ethernet Encrypted Leased Lines Secure Backbone & SDN Trusted cloud connectivity: inter-data center and cloud access 10 © 2013 ADVA Optical Networking. All rights rese
Slide 11: New Verticals
New Verticals Health • Connecting applications with mega centralized data center • Immediate access to large amounts of hi-definition files • Stringent security standards have to be met Content Service Provider • Virtualization: one network for any application • Synchronizing high data volumes at th
Slide 12: New Verticals
New Verticals Media • From SD- to HD- and 3G-SDI • Uncompressed transport provides uncompromised quality • Resilient network delivers highest service availability Utilities • Transition from TDM to Carrier Ethernet • Critical infrastructures rely on secure communication • Precise time-stamping for a
Slide 13: How We Add Value
How We ADd VAlue Sustainable growth Focus on Thought Operational growth leadership excellence markets Expanding Differentiated Loyal opportunities technology customers ADVA Optical Networking is a thought leader in developing intelligent network solutions for growth markets 13 © 2013 ADVA Optical Ne
Slide 14: Financial Results
Financial Results Jaswir Singh Chief Financial Officer & Chief Operating Officer 14 © 2013 ADVA Optical Networking. All rights reserved. Confidential.
Slide 15: Quarterly IFRS Revenues and Pro Forma Profitability
Quarterly IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit** (millions of EUR, % of revenues) 78.4 79.1 82.3 80.3 77.0 32.3* 33.6* (39.3%) 29.8* (44.5%) (41.8%) (38.6%) 31.3* (46.7%) (43.4%) (39.9%) 31.1* (45.6%) (39.3%) Pro Forma Operating Income ** (45.2%) (millions of
Slide 16: IFRS Profitability
IFRS Profitability EUR million Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Pro Forma Operating Income 5.6 4.8 0.8 1.5 4.0 (6.8%) (6.0%) (1.0%) (2.0%) (5.0%) Operating Income 5.1 4.3 0.4 1.2 3.5 (6.2%) (5.3%) (0.5%) (1.5%) (4.5%) Net Income 3.5 4.1 0.8 0.1 2.3 (4.2%) (5.1%) (1.0%) (0.2%) (2.9%) Diluted E
Slide 17: Cash and Net Liquidity
Cash and Net Liquidity EUR million Cash & Cash Equivalents Financial Liabilities and Lease Obligations Net Liquidity 80 80.6 65 50 41.4 35 20 5 -10 -25 -40 -39.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2
Slide 18: IFRS Balance Sheet
IFRS Balance Sheet EUR million Dec. Jun. Sep. EUR million Dec. Jun. Sep. Assets 31, 30, 30, Equity & liabilities 31, 30, 30, 2012 2013 2013 2012 2013 2013 Cash & cash equivalents 70.6 80.3 80.6 Accounts payable 38.1 33.0 33.0 Accounts receivable 55.5 52.8 51.5 Financial liabilities 29.0 39.7 39.2 In
Slide 19: Revenues Per Region
Revenues Per Region Quarterly Development of Regional Revenues (millions of EUR, % of total) EMEA Americas Asia-Pacific 82.3 80.3 79.1 77.0 78.4 4% 6% 5% 6% 6% 31% 30% 26% 33% 30% 65% 64% 64% 68% 62% Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 EMEA remains most significant revenue contributor 19 © 2013
Slide 20: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q2 2013 Q3 2013 Net cash provided by operating activities 12.8 9.8 Net cash used for investing activities -8.2 -8.1 Net cash provided by (used for) financing activities +10.2 -0.8 Net effect of foreign currency translation +0.2 -0.6 Net change in cas
Slide 21: Guidance Q4 2013
Guidance Q4 2013 • Revenues between EUR 71 million and EUR 76 million • Pro forma operating margin between 1% and 5% of revenues* • ADVA Optical Networking will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capitali
Slide 22: Thank you
Thank you Wolfgang Guessgen Vice President Investor Relations & Treasury t +49 89 89 06 65 940 wguessgen@advaoptical.com Karin Tovar Manager Investor Relations t +1 201 940 7212 ktovar@advaoptical.com www.advaoptical.com
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