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ADVA Optical Networking SE

ots Ad hoc-Service: ADVA AG <DE0005103006> ADVA Reports Record 2000 with Strong Growth in Fourth Quarter

Martinsried/Munich, Ramsey/New Jersey, USA (ots Ad hoc-Service) -

Ad hoc-announcement edited and sent by DGAP. The sender is solely
responsible for the contents of this announcement.
ADVA Optical Networking (German Neuer Markt: ADV), a leading
global provider of optical networking solutions, today announced
preliminary results for the fourth quarter and full-year 2000, which
ended December 31, 2000.
Sales for the fourth quarter 2000 reached 20.7 million Euro (19.5
million USD), an increase of 165% over the same period of the prior
year (Q4 1999: 7.8 million Euro / 7.4 million USD). Sales for the
full-year 2000 reached 68.1 million Euro (64.2 million USD), an
increase of 197% over the full-year 1999 (full-year 1999: 22.9
million Euro / 21.6 million USD).
"2000 was a tremendous year of growth for ADVA as we executed on
all fronts to increase sales 197% and strategically position
ourselves as a dominant player in the metro market," said Brian L.
Protiva, ADVA's Chief Strategy Officer. "We are expanding our product
range to offer the broadest portfolio in the market, specifically
meeting customer requirements for end-to-end metro solutions. Our
focus on expanding our global reach is reflected in the 138% increase
in customers, accomplished through both a greater number of
distributors and the growing direct sales force targeted toward
service providers. We are developing a full pipeline of provisioning
features and expanded software capabilities to launch in the current
year which expand the depth and breadth of end-to-end metro solutions
for service providers and enterprises. We are well-positioned to take
full advantage of the strong growth in this marketplace."
Strong performance by Fiber Service Platform (FSP) portfolio
ADVA's FSP-II was the largest growth driver in 2000. Products from
the acquisitions contributed 7% of sales. The FSP 3000, ADVA's
flagship metro product, began initial shipments in the fourth
quarter. The product is performing well and receiving excellent
feedback from three service provider customers today.
Expanding enterprise and service provider customer base
Geographically, enterprise and service provider demand in Europe was
particularly strong in the fourth quarter 2000, and comprised 58% of
full-year 2000 sales. ADVA's heightened sales efforts through its
regional offices resulted in 38% of sales in the Americas and 4% in
Asia-Pacific during the full-year 2000.
ADVA more than doubled its customer base in 2000 from 209 to 498.
Metro service providers, including telecommunication carriers,
internet service providers, and application service providers
increased from 12 to 28. The number of enterprise customers,
including Fortune 1,000 financial institutions, insurance companies,
automobile manufacturers/ universities and government agencies
increased from 197 at year-end 1999 to 470 at year-end 2000.
Business outlook "We see continued strong customer demand in our
target market segments and no sign of a slowdown in our customers'
projections for purchasing storage or metro optical equipment. We
confirm our guidance within the previous range of EUR 125 to 135
million of revenue for 2001. For the first quarter 2001 we expect
revenues of EUR 21 to 22 million and EUR 26 to 27 million in the
second quarter of this year. The company further expects to achieve
break-even ebit for 2001 (excluding stock plan compensation charges,
depreciation from intangible assets from acquisitions and goodwill
amortization), as we move toward an increasingly direct distribution
model and continue to invest in service provider sales and service
professionals," says Andreas G. Rutsch, ADVA's Chief Financial
Officer.
The economic projections and forward-looking statements contained
in this document relate to future facts. Such projections and
forward- looking statements are subject to risks which cannot be
foreseen and which are beyond the control of ADVA AG Optical
Networking. ADVA AG Optical Networking is therefore not in a position
to make any representation as to the accuracy of economic projections
and forward- looking statements or their impact on the financial
situation of adva AG Optical Networking or the market in the shares
of ADVA AG Optical Networking.
For Investors and Financial Press:        
Alexa M. Schmidt                          
Tel. +49 89 89 577 161 (Europe)               
Tel. +1 201 995 0080 (U.S.)               
Email:         
investor-relations@advaoptical.com
For Trade Press:
Elizabeth Sayer
Tel. +44 1904 699 328
(Europe) 
Tel. +1 201 995 0080 (U.S.) 
Email:public-relations@advaoptical.com
End
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