Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q1 2014 Earnings Presentation
22 slides from Adtran Networks's earnings presentation, Apr 24, 2014
Slide 1: Q1 2014 IFRS Financial Results
Q1 2014 IFRS Financial Results April 24, 2014 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 © 2014 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: Q1 2014 in Review
Q1 2014 in Review • Revenue growth to EUR 78.1 million, at the upper end of guidance of between EUR 74 million and EUR 79 million, + 2.5% vs. Q4 2013 and + 1.4% vs. Q1 2013 driven by strong Enterprise business in the Americas and EMEA regions • Pro forma operating income at EUR 0.4 million or 0.5% o
Slide 5: Prospects for Q2 2014
Prospects for Q2 2014 • Growth in Europe remains soft. Recovery is projected to be uneven through 2015 and still heavily dependent on fiscal monetary policies • 2014 will be a transitional year for the telco industry, disruptive to the overall development, as operators are considering long-term arch
Slide 6: Radio Access Network Evolution
Radio Access Network Evolution Connectivity Requirements • TDM/ATM to IP/Ethernet • Phase synchronization • Automated provisioning • Fronthaul 1992 2003 2009 2011 2013 6 © 2014 ADVA Optical Networking. All rights reserved. Confidential.
Slide 7: AnyCell Connectivity
AnyCell™ Connectivity Small Cell Small Cell Managed Fronthaul (RRH) (RRH) Connectivity Macro Cell Hub Site Auto-Provisioned Backhaul Small Cell Evolved Synchronization Assurance Macro Cell Packet Core SON/Transport-SDN Backhaul and fronthaul efficiency for radio access networks 7 © 2014 ADVA Optical
Slide 8: Update on Oscilloquartz SA Acquisition
Update on Oscilloquartz SA Acquisition • Little overlap between Oscilloquartz and ADVA Optical Networking’s customer base; Oscilloquartz customer base providing additional momentum to ADVA Optical Networking’s synchronization business • Integration going smoothly • Full ADVA Optical Networking manag
Slide 9: Portfolio Synergies – It's About Time!
Portfolio Synergies – It‘s About Time! FSP 150 FSP 3000 Precise Timing Intelligent Ethernet Scalable Optical Transport Delivery and Assurance Access and Aggregation OSA • SyncE • SyncE • PTP 1588 • Sync OTN • Mini-GM • Boundary Clock ADVA We address all timing and synchronization areas of packet net
Slide 10: Sync Drivers in Telecom
Sync Drivers in Telecom RAN Evolution TDM Replacement GNSS GNSS PRTC • LTE-Advanced • Carrier Ethernet T-GM • TD-LTE Grandmaster • Packet-Optical Transport • Interference Coordination Assurance Distribution Source • IP Routing • Multipoint Transmission End applications demand highly precise time and
Slide 11: Secure Data Center Connectivity
Secure Data Center Connectivity Market Mission Why KeyADVA? Facts 10% of our Highest addressable performance market Lowest latency Maximum security 35% of our Primary Data Center Backup Data Center revenues • From cloud access to Terabit/s connectivity • First to market with partner qualifications (
Slide 12: 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 apps • Utilities • Fronthauling • Full plug & play • Cloud Services We add value through differentiated, customer-focused innovation 12 © 2014
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 connectivity solutions for growth markets 13 © 2014 ADVA Optic
Slide 14: Financial Performance
Financial Performance 14 © 2014 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) 79.1 76.2 78.1 77.0 78.4 29.8* 31.3* (38.6%) 31.1* (43.4%) (39.9%) (39.3%) 30.0* (45.6%) (45.2%) (39.3%) 27.6* (45.9%) Pro Forma Operating Income** (35.4%) (42.7%) (millions of
Slide 16: IFRS Profitability
IFRS Profitability EUR million Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Pro Forma Operating Income 0.8 1.5 4.0 2.3 0.4 (1.0%) (2.0%) (5.0%) (3.0%) (0.5%) Operating Income 0.4 1.2 3.5 1.9 0.1 (0.5%) (1.5%) (4.5%) (2.5%) (0.1%) Net Income 0.8 0.1 2.3 2.4 -0.4 (1.0%) (0.2%) (2.9%) (3.1%) (-0.5%) Diluted
Slide 17: Cash and Net Liquidity
Cash and Net Liquidity EUR million Cash & Cash Equivalents Financial Liabilities and Lease Obligations Net Liquidity 80 77.1 65 50 38.5 35 20 5 -10 -25 -40 -38.6 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 201
Slide 18: IFRS Balance Sheet
IFRS Balance Sheet EUR million Dec. 31, Mar. 31, EUR million Dec. 31, Mar. 31, Assets 2013 2014 Equity & liabilities 2013 2014 Cash & cash equivalents 80.9 77.1 Accounts payable 26.5 29.5 Accounts receivable 52.7 61.3 Financial liabilities 39.2 38.6 Inventories 40.1 38.9 Other liabilities 69.6 73.2
Slide 19: Revenues Per Region
Revenues Per Region Quarterly Development of Regional Revenues (millions of EUR, % of total) EMEA Americas Asia-Pacific 78.4 79.1 76.2 78.1 77.0 5% 6% 6% 6% 4% 33% 30% 26% 25% 32% 62% 64% 68% 69% 64% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 EMEA remains most significant revenue contributor 19 © 2014
Slide 20: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q4 2013 Q1 2014 Net cash provided by operating activities 7.0 4.8 Net cash used for investing activities -6.9 -7.6 Net cash provided by (used for) financing activities 0.0 -0.7 Net effect of foreign currency translation 0.2 -0.3 Net change in cash an
Slide 21: Guidance Q2 2014
Guidance Q2 2014 • Revenues between EUR 84 million and EUR 89 million • Pro forma operating margin between -2% and +2% 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 22: 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
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