Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q3 2015 Earnings Presentation
18 slides from Adtran Networks's earnings presentation, Oct 22, 2015
Slide 1: Q3 2015 IFRS Financial Results
Q3 2015 IFRS Financial Results October 22, 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: Q3 2015 in Review
Q3 2015 in Review • Revenues rose by 40% vs. the previous year and 9% sequentially, to a record high of EUR 122.3 million. This result is in line with the guidance provided on July 23, 2015 of between EUR 120 million and EUR 125 million • Pro forma operating income* at EUR 9.6 million or 7.8% of rev
Slide 5: Prospects for Q4 2015
Prospects for Q4 2015 • Business is good for innovative connectivity solutions • Global DCI market 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 segment, slated to grow at a 12% CAGR in 2014–19 • Major network upgrad
Slide 6: The Age of the Data Center (DC)
The Age of the Data Center (DC) 70% of business users embrace cloud-based services 62% of consumers Cloud service Increase # of end nodes watch online videos adoption by orders of magnitude Consumer video & IoT app consumption DC construction VNFs hosted at the continues in major cities network edge
Slide 7: Who Builds and Owns Data Centers?
Who Builds and Owns Data Centers? 1 2 ICP Creation, storage Enterprise and dissemination of Large-scale needs for digital information storage, replication and backup Also referred to as: over-the-top (OTT), Web 2.0 and digital media companies 3 CSP Own fiber plant; experience in design, building and
Slide 8: Introduction of the FSP 3000 CloudConnect
Introduction of the FSP 3000 CloudConnect 51.2Tbit/s 16Tbit/s 5.6Tbit/s Successful trials; Volume shipment commencing end of Q1 2016 8 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 9: DCI Solution for All Applications
DCI Solution for All Applications • Integrated single-shelf solution • 5.6Tbit/s in 4RU shelf • Most cost-, space-, power- and spectrally efficient solution on the market Introducing ETSI compliant CSP variant 2H 2016 9 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 10: Ongoing Focus on Innovation
Ongoing Focus on Innovation Introduction of the FSP 3000 CloudConnect™, Expansion of our ConnectGuard™ portfolio to provide with 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
Slide 11: Financial Performance
Financial Performance 11 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 12: Quarterly IFRS Revenues and Pro Forma Profitability
Quarterly IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit +29% +40% +22% 112.3 122.3 +10% +14% 95.6 87.1 86.7 34.6 38.7 42.4 30.8 31.8 34.6% 35.3% 36.6% 36.2% 34.4% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 9.6 Pro Forma Operating Income* 7.7 5.1 3.5 3.7 4.0% 5.9% 3.9% 6.
Slide 13: IFRS Profitability
IFRS Profitability 2014 2015 EUR Million Q3 Q4 Q1 Q2 Q3 Pro Forma Operating Income 3.5 5.1 3.7 7.7 9.6 (4.0%) (5.9%) (3.9%) (6.8%) (7.8%) Operating Income 3.1 5.1 3.3 7.4 8.5 (3.5%) (5.9%) (3.5%) (6.6%) (6.9%) Net Income 4.4 4.3 4.3 5.1 8.6 (5.1%) (5.0%) (4.5%) (4.6%) (7.0%) Diluted EPS in EUR 0.09
Slide 14: Quarterly Revenues Per Region
Quarterly Revenues Per Region 122.3 112.3 12% +78% 95.6 6% 87.1 86.7 5% 6% 30% 31% +34% 9% 37% 33% 31% 64% 57% +38% 58% 63% 58% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 EMEA Americas Asia-Pacific (in millions of EUR, in % of revenues) Growth Y-o-Y Note: Potential differences due to rounding 14 © 2015
Slide 15: IFRS Balance Sheet
IFRS Balance Sheet Dec. 31 Sep. 30 Dec. 31 Sep. 30 Assets 2014 2015 Equity & liabilities 2014 2015 Cash & cash equivalents 83.9 79.3 Accounts payable 33.0 66.7 Accounts receivable 54.0 79.1 Financial liabilities 35.0 29.2 Inventories 47.0 78.5 Other liabilities 79.7 85.7 Other assets 139.9 147.7 Equ
Slide 16: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q1 2015 Q2 2015 Q3 2015 Net cash provided by operating activities -1.5 18.1 12.0 Net cash used for investing activities -9.0 -11.5 -10.1 Net cash provided by (used for) financing activities -2.4 -1.0 -1.3 Net effect of foreign currency translation 2.
Slide 17: Cash and Net Liquidity
Cash and Net Liquidity 90 79.3 75 Cash & Cash Equivalents 60 50.1 45 Net Liquidity 30 15 0 Q3 Q3 2011 2015 (in millions of EUR) High quarter-end cash and net liquidity positions at the end of Q3 2015, demonstrating financial strength and operational flexibility 17 © 2015 ADVA Optical Networking. All
Slide 18: Guidance Q4 2015
Guidance Q4 2015 • Revenues between EUR 107 million and EUR 117 million • Pro forma operating margin between 6% and 9% 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
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