Quarterly revenues up 7.6% year-over-year to EUR 133.2 million
Pro forma operating income of EUR 4.3 million (3.3% of revenues)
Q3 2019 outlook: revenues EUR 135 – 145 million; Pro forma operating income 3% - 6% of revenues
ADVA (ISIN: DE0005103006), a leading provider of open networking solutions for the delivery of cloud and mobile services, reported financial results for Q2 2019 ended on June 30, 2019. The results have been prepared in accordance with International Financial Reporting Standards (IFRS).
Q2 figures table
Q2 2019 IFRS financial results
Revenues for Q2 2019 increased by 3.9% to EUR 133.2 million from EUR 128.2 million in Q1 2019 and increased by 7.6% from EUR 123.8 million in the same year-ago period. Revenues for Q2 2019 were within the guidance forecast the company provided on April 18, 2019, of between EUR 130 million and EUR 140 million.
Pro forma operating income for Q2 2019 was EUR 4.3 million (3.3% of revenues), compared to EUR 2.7 million (2.1% of revenues) in Q1 2019 and compared to a pro forma operating income of EUR 6.1 million (5.0% of revenues) in the same year-ago period. Pro forma operating income for Q2 2019 was at the mid-point of the company’s guidance range of between 2% and 5% of revenues.
Operating income for Q2 2019 of EUR 2.5 million increased significantly, compared to EUR 0.9 million reported for Q1 2019 and decreased compared to EUR 4.1 million in the same year-ago quarter.
Net income for Q2 2019 increased by 25.2% to EUR 1.3 million from EUR 1.0 million in Q1 2019 and was down from EUR 4.6 million in Q2 2018.
At quarter-end, the company’s cash and cash equivalents totaled EUR 48.3 million, representing a decrease of 2.1% compared to EUR 49.3 million at the end of Q1 2019.
The company’s net debt decreased by EUR 5.6 million to EUR 68.1 million from EUR 73.7 million at the end of Q1 2019.
Net working capital at quarter-end was EUR 127.6 million compared to EUR 132.0 million at the end of Q1 2019.
“Despite growing global political uncertainties, the second quarter of 2019 developed largely as planned. Both revenue and profitability were within our guidance range that we provided on April 18,” said Uli Dopfer, CFO, ADVA. “Overall, our order intake was very good, and we are entering the third quarter with well-filled order books. We see promising projects and activities in all regions and among all customer groups.”
“There's no question that the strong US dollar and international trade tensions are putting pressure on our margins and operating costs. However, we achieved some great customer success in Q2 with a strong win rate. Our achievements here further underscore our confidence in the market and our growth opportunities,” commented Brian Protiva, CEO, ADVA. “Moving forward, we have an exciting portfolio of new and differentiated products that we believe will drive additional growth and stronger margins.”