ots Ad hoc-Service: ADVA AG <DE0005103006> ADVA OPTICAL NETWORKING REPORTS 2000 FINANCIAL RESULTS
Ad hoc-announcement. The sender is solely responsible for the contents of this announcement.
Martinsried/Munich, Germany / Ramsey/New Jersey, USA (ots Ad hoc-Service) - ADVA Optical Networking (German Neuer Markt: ADV), a leading global provider of optical networking solutions, today announced consolidated 2000 financial results and restated consolidated 1999 financial results for the periods ended December 31 and prepared in accordance with U.S. generally accepted accounting principles.
2000 financial results Sales for 2000 reached EUR 60.7 million, an increase of 194% over sales in 1999 of EUR 20.6 million. Pro forma operating income, excluding purchased in- process R&D, amortization of goodwill, and depreciation of purchased intangible assets relating to acquisitions, as well as non-cash charges related to the stock option programs, decreased to EUR -11.7 million during 2000, compared to EUR 0.9 million during 1999. These results reflect in particular the significant investments made by the company to expand its product portfolio and build up the critical resources necessary to secure long-term growth.
Pro forma net loss totaled EUR -11.8 million in 2000, compared to EUR 1.1 million in 1999. Pro forma diluted earnings per share totaled EUR -0.37 in 2000, compared to EUR 0.21 in 1999.
Actual net loss for 2000 was EUR -95.6 million Euro, compared to EUR -4.6 million for 1999. Diluted earnings per share equaled EUR -2.98 for 2000, compared to EUR -0.92 for 1999.
During 2000, ADVA successfully completed four acquisitions and accounted for one-time charges of EUR 18.2 million as write-offs of purchased in-process R&D, EUR 32.5 million of amortization of goodwill, and EUR 9.5 million of amortization of purchased intangible assets. In conjunction with its stock option programs, ADVA incurred non-cash charges of EUR 23.7 million in 2000.
The 1999 and 2000 financial results presented here have been finalized by the company's auditors, with the exception of the goodwill amortization of ADVA's four acquisitions during 2000 and non-cash charges resulting from stock option programs.
Issuer's information/explanation remarks concerning this ad hoc announcement:
Revenue breakdown ADVA's FSP-II was the top-selling product for the company in 2000, generating a total of 77% of sales. FSP-I comprised 11% of sales in 2000, and FSP 500 comprised 5%. CELL-ACE and CELL-ACE-PLUS together generated 4% of sales. OCM 4/8/16, ADVA's second-generation product, comprised 1% of sales and was phased out during the first quarter of 2000. DiskLink generated minimal sales in 2000. FSP 3000 was launched in March 2000 and first prototype shipments were delivered to service providers in October 2000.
Geographically, demand from enterprise and service provider customers was particularly strong in the Americas, comprising 59% of sales. Sales in Europe comprised 38% of 2000 sales, and Asia-Pacific 3%.
As a result of the deferral of sales, up to EUR 7 million in 2000 sales will be accounted for in the first and second quarters of 2001.
Gross profit and operating expenses Pro forma gross profit increased from EUR 9.0 million in 1999 to EUR 20.2 million in 2000, an increase of 125%. Pro forma gross profit comprised 43.4% of sales in 1999 and 33.3% of sales in 2000. This decrease in gross profit as a percentage of sales is due to a significant one-time write-off in inventory, increased warranty accruals, sales deferrals, as well as a larger influence of OEM orders on the total sales volume.
Pro forma selling, general and administrative ("SG&A") expenses
increased from EUR 5.4 million in 1999 to EUR 19.6 million in 2000,
an increase of 265%. Pro forma SG&A expenses comprised 26.1% of sales
in 1999 and 32.3% of sales in 2000. ADVA continued to increase its
level of sales and marketing activity expenditures in 2000, focusing
on driving opportunities with end-customers. In addition, significant
one-time write-offs were incurred in conjunction with product loan
units.Pro forma research and development ("R&D") expenses increased from
EUR 2.7 million in 1999 to EUR 12.2 million in 2000. Pro forma R&D
expenses comprised 13.2% of sales in 1999, and 20.1% of sales in
2000. The rise in pro forma R&D expenses was associated with the
addition of new personnel in conjunction with the acquisitions, the
ongoing development of features for existing products and new
products, and significant one-time write-offs of inventory.Business outlook ADVA continues to maintain earlier financial guidance for sales of between EUR 110 to 120 million in 2001, as given on March 26, 2001.
Q1 2001 earnings results ADVA has rescheduled announcement of Q1 2001 financial results for the period ending March 31, 2001, on Tuesday, May 29, 2001. ADVA's consolidated financial statements for the years 1999 and 2000 can be found on the company's website at www.advaoptical.com.
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.
Published by: ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Ramsey/New Jersey, USA http://www.advaoptical.com
WKN: 510300; Index: NEMAX 50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, München, Hannover und Stuttgart
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