Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q1 2017 Earnings Presentation
18 slides from Adtran Networks's earnings presentation, Jul 13, 2017
Slide 1: ADVA Optical Networking Analyst Presentation Q1 2017
ADVA Optical Networking Analyst Presentation Q1 2017
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, CEO 3 © 2017 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: Q1 2017 in Review
Q1 2017 in Review • Q1 revenues rose by 16.3% vs. the previous year to EUR 141.8 million; strongest Q1 in company’s history; upper half of guidance provided on Feb. 23, 2017 of between EUR 135 million and EUR 145 million • Q1 pro forma operating income* was EUR 6.6 million or 4.7 % of revenues, at t
Slide 5: Prospects for Q2 2017
Prospects for Q2 2017 • North America slowing due to customer demand coupled with the introduction of new technologies while Europe is gaining strength • Cloud access momentum building between providing further opportunities for our expanded Ethernet access portfolio • Ensemble software architecture
Slide 6: Growth Drivers Fully Intact
Growth Drivers Fully Intact Cloud & Mobility Web-Scale Network Builds … reshape optical networks around the data center paradigm 4K UHD Video … promises incremental revenue for communication service providers RAN Extension Centralizing RAN architectures (4G+/5G) will drive more ON bandwidth, incl. f
Slide 7: Embracing an Open World
Embracing an Open World 7 © 2017 ADVA Optical Networking. All rights reserved. Confidential.
Slide 8: Q1 Highlights
Q1 Highlights We give customers more choice, scalability and flexibility than ever before 8 © 2017 ADVA Optical Networking. All rights reserved. Confidential.
Slide 9: Solid Basis for Growth and Profitability
Solid Basis for Growth and Profitability 1 Open and 4 ramping 1 2 Metro core cycle 2 5 3 Renewed momentum 4 3 From POC1 to $$ 5 New wins Connecting, extending and assuring the cloud 1) Proof of Concept 9 © 2017 ADVA Optical Networking. All rights reserved. Confidential.
Slide 10: Financial Performance
Financial Performance 10 © 2017 ADVA Optical Networking. All rights reserved. Confidential.
Slide 11: Quarterly IFRS Revenues and Pro Forma Profitability
Quarterly IFRS Revenues and Pro Forma Profitability (in millions of EUR, in % of revenues) Growth Revenues and +40% +30% +15% +16% Y-o-Y Pro Forma Gross Profit 159.5 157.2 128.0 141.8 122.0 40.4 43.0 42.8 42.3 46.1 33.1% 27.3% 26.9% 33.1% 32.5% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Pro Forma Opera
Slide 12: IFRS Profitability
IFRS Profitability 2016 2017 EUR Million Q1 Q2 Q3 Q4 Q1 Pro Forma Operating Income 2.0 4.2 8.3 9.0 6.6 (1.6%) (2.7%) (5.2%) (7.0%) (4.7%) Operating Income 1.0 3.1 7.2 8.1 5.5 (0.8%) (2.0%) (4.5%) (6.3%) (3.9%) Net Income -5.2 9.8 3.3 13.6 6.2 (-4.2%) (6.2%) (2.0%) (10.6%) (4.4%) Diluted EPS in EUR -
Slide 13: Quarterly Revenues Per Region
Quarterly Revenues Per Region (in millions of EUR, in % of revenues) Growth +28% +40% +30% +15% +16% Y-o-Y Asia-Pacific 157.2 159.5 Americas EMEA 5% 7% 141.8 128.0 6% +20% 122.0 8% 5% 51% 44% 60% +22% 42% 41% 53% 44% 51% 50% +11% 33% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Note: Potential difference
Slide 14: IFRS Balance Sheet
IFRS Balance Sheet Dec. 31 Mar. 31 Dec. 31 Mar. 31 Assets 2016 2017 Equity & liabilities 2016 2017 Cash & cash equivalents 84.9 69.7 Accounts payable 73.3 64.0 Accounts receivable 78.5 94.1 Financial liabilities 59.4 54.7 Inventories 92.8 81.7 Other liabilities 96.3 100.6 Other assets 211.7 218.3 Eq
Slide 15: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement 2016 2017 EUR million Q1 Q2 Q3 Q4 Q1 Net cash provided by operating activities 2.0 22.4 15.7 21.2 5.6 Net cash used for investing activities -42.9 -11.4 -15.5 -16.6 -15.8 Net cash provided by (used for) financing 21.0 -1.9 -1.7 -1.7 -5.0 activities Net effect of
Slide 16: Guidance Q2 2017
Guidance Q2 2017 • Revenues between EUR 143 million and EUR 153 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 17: Summary
Summary • North America slowing while Europe is gaining strength • Metro core cycle picking up • Profitability returns – improved customer & product mix • FSP 3000 CloudConnect™ ramping • FSP 150 contribution rising • Turning thought leadership into revenue • More than 20 active customer engagements
Slide 18: Thank You
Thank You Investor-relations@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 information in this presentation. Any reproduction, publication or reprint, in whole or in
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