Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q1 2013 Earnings Presentation
23 slides from Adtran Networks's earnings presentation, Apr 25, 2013
Slide 1: Q1 2013 IFRS Financial Results
Q1 2013 IFRS Financial Results April 25, 2013 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 © 2013 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: Q1 2013 in Review
Q1 2013 in Review • Revenues totaled EUR 77.0 million, at the upper end of guidance of between EUR 72 million and EUR 77 million • Pro forma operating income at EUR 0.8 million or 1.0% of revenues, in the upper half of guidance of between -2% and +2% of revenues, showing ongoing commitment to mainta
Slide 5: Prospects for Q2 2013
Prospects for Q2 2013 • Uncertain macro-economic conditions, carriers have been restricting investment in their networks for some time • Optical network market is poised for growth in H2 2013:* • Optical network spending is benefiting from a rise in investment in coherent core networks; service prov
Slide 6: What Macro Environment Do We Face?
What Macro Environment Do We Face? Financial sector and Fiscal consolidation Reduced growth rates governmental debt in high-income in the developing restructuring countries countries “Telecommunications is a facilitator of socio- economic advancement and is a critical utility for economic developmen
Slide 7: What Is The State Of Our Industry?
What Is The State Of Our Industry? Content Cloud high Service Services Providers Profitability Carrier IP Routing medium Relative Component Transport technological low Systems differentiation Transport Systems Transport is the foundation – without the recognition it deserves 7 © 2013 ADVA Optical Ne
Slide 8: Competitive Landscape Evolution
Competitive Landscape Evolution „Giants“ „Niche“ Profitability „Mainstream“ Relative technological differentiation Very few players have the critical R&D power to innovate (scale) with a lean enough overhead to be fast and profitable 8 © 2013 ADVA Optical Networking. All rights reserved. Confidentia
Slide 9: Technology Update (Mobile Backhaul): Live Demo of Caching Technology
Technology Update (Mobile Backhaul): Live Demo of Caching Technology FSP 150CC-GE206 CachejackTM CODS* Cell site gateway media Base station router FSP 150CC-GE206 CachejackTM Backhaul network Dashboard Cell site gateway Evolved packet core Base station * Saguna Content Optimization Delivery System™
Slide 10: Customer Update: Kabel Deutschland – Nationwide Core
Customer Update: Kabel Deutschland – Nationwide Core Agile Core Transport Cable Operator Hamburg • Applications Bremen • Digital TV Berlin • High-speed Internet Hannover • Telephony Düssel- • Services Leipzig Dresden dorf • 10GE Frankfurt • 100G • Infrastructure Kaiserslautern • Meshed network Saarl
Slide 11: Go-To-Market Update: Launch of Partner Ecosphere Program
Go-To-Market Update: Launch of Partner Ecosphere Program For PARTNERs For ADVA Optical Networking • More business thanks to: • Revenue growth • Joint marketing • Special supplier relationship in a • More professional channels help to strategic market • save resources for direct touch • Better standi
Slide 12: Outlook: Why Software-Defined Networking (SDN)?
Outlook: Why Software-Defined Networking (SDN)? Programmable application- • Dynamic services aware networking • Customer apps • Full plug & play • Virtualized network resources Network Open source agents and controller • Extendible control & virtualization framework Open northbound FSP SW Suite appl
Slide 13: Outlook: Where Do We Go from Here?
Outlook: Where Do We Go from Here? Scalable, efficient capacity 1 Centralized intelligence towards network apps 7 2 Service assurance Network functions virtualization 6 3 High energy efficiency Network optimization 5 4 Application-aware networks The future is wide open! 13 © 2013 ADVA Optical Networ
Slide 14: 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 network solutions for growth markets 14 © 2013 ADVA Optical Ne
Slide 15: Financial Results
Financial Results Jaswir Singh Chief Financial Officer & Chief Operating Officer 15 © 2013 ADVA Optical Networking. All rights reserved. Confidential.
Slide 16: 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) 81.7 85.9 82.3 80.3 77.0 32.3* 35.1* (39.5%) (40.9%) 32.3* 33.6* (43.6%) (39.3%) (45.4%) (44.5%) (41.8%) 29.8* (46.7%) (38.6%) Pro Forma Operating Income ** (43.4%) (millions of
Slide 17: IFRS Profitability
IFRS Profitability EUR million Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Pro Forma Operating Income 4.5 6.8 5.6 4.8 0.8 (5.5%) (8.0%) (6.8%) (6.0%) (1.0%) Operating Income 3.5 5.9 5.1 4.3 0.4 (4.3%) (6.9%) (6.2%) (5.3%) (0.5%) Net Income 4.0 5.1 3.5 4.1 0.8 (5.0%) (5.9%) (4.2%) (5.1%) (1.0%) Diluted E
Slide 18: Cash and Net Liquidity
Cash and Net Liquidity EUR million Cash & Cash Equivalents Financial Liabilities and Lease Obligations Net Liquidity 80 65 65.3 50 35 36.3 20 5 -10 -25 -29.0 -40 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2
Slide 19: IFRS Balance Sheet
IFRS Balance Sheet EUR million Dec. Mar. EUR million Dec. Mar. Assets 31, 31, Equity & liabilities 31, 31, 2012 2013 2012 2013 Cash & cash equivalents 70.6 65.3 Accounts payable 38.1 37.6 Accounts receivable 55.5 60.2 Financial liabilities 29.0 29.0 Inventories 41.3 39.3 Other liabilities 63.1 64.1
Slide 20: Revenues Per Region
Revenues Per Region Quarterly Development of Regional Revenues (millions of EUR, % of total) EMEA Americas Asia-Pacific 85.9 81.7 82.3 80.3 77.0 6% 6% 4% 6% 5% 38% 31% 30% 38% 33% 65% 64% 56% 56% 62% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 EMEA remains most significant revenue contributor 20 © 2013
Slide 21: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q4 2012 Q1 2013 Net cash provided by operating activities 9.7 1.7 Net cash used for investing activities -9.0 -6.8 Net cash provided by (used for) financing activities -0.3 -0.3 Net effect of foreign currency translation -0.1 +0.1 Net change in cash
Slide 22: Guidance Q2 2013
Guidance Q2 2013 • Revenues between EUR 73 million and EUR 78 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 23: Thank you
Thank you Investor Relations Wolfgang Guessgen t +49 89 89 06 65 940 [email protected] www.advaoptical.com
ADVA Optical Networking — Q1 2013 Earnings Presentation on 6ix