Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q1 2019 Earnings Presentation
15 slides from Adtran Networks's earnings presentation, Apr 18, 2019
Slide 1: Financial analyst presentation Q1 2019
Financial analyst presentation Q1 2019 Q1 2019 earnings call April 18th, 2019
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, CEO 3 © 2019 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: Q1 2019 in review
Q1 2019 in review Revenues (m€) Good start to the new fiscal year +6.3% Guidance • Revenues and pro forma EBIT within guidance 128.2 120.5 • Continue to invest aggressively in innovation • FSP 3000 CloudConnect™ growing in all major customer segments and geographies Q1 18 Q1 19 • We are winning tend
Slide 5: Industry macro environment positive
Industry macro environment positive Digitization of all ecosystems Network transformation ADVA IoT 5G open edge networking Smart workspace Cloud & Network 3.0 Connected home Disaggregation Machine learning Scalable bandwidth Smart robots Instant service creation White box solutions Autonomous drivin
Slide 6: Portfolio: Technology tripod delivering returns
Portfolio: Technology tripod delivering returns Approximate revenue contribution rolling four quarters Cloud access Packet edge with NFV Cloud interconnect Open optical transport Accelerate revenue contribution from Aggressively pursue DCI opportunities with edge cloud solutions and win new new Tera
Slide 7: Financial performance
Financial performance Ulrich Dopfer, CFO © 2019 ADVA Optical Networking. All rights reserved. Confidential.
Slide 8: Impact on 2019 financials according to IFRS 16
Impact on 2019 financials according to IFRS 16 Financial items IFRS 16 impact Assets • Increase in total assets due to the capitalization of lease assets (right-of-use assets) Financial liabilities • Increase in financial liabilities due to recognition of lease liabilities Balance Sheet (Net) debt •
Slide 9: Q1 2019 key financials
Q1 2019 key financials Revenues (m€) Gross profit (m€) Pro forma operating income (%) +6.3% +2.0% +0.2PP 128.2 44.3 45.1 120.5 1.9% 2.1% Q1 18 Q1 19 Q1 18 Q1 19 Q1 18 Q1 19 Net income (m€) Diluted EPS (€) Net debt (+) / Net liquidty (-) (m€)* +66.8% 1.0 0.02 73.7 44.2 -2.4 -0.05 Q1 18 Q1 19 Q1 18 Q1
Slide 10: Quarterly IFRS revenue and pro forma profitability
Quarterly IFRS revenue and pro forma profitability (in millions of EUR, in % of revenues) Revenue & gross margin Pro forma operating income & margin 131.5 128.2 123.8 126.2 120.5 8.1 6.8 6.1 36.7% 36.7% 37.5% 37.0% 35.2% 2.7 2.2 6.2% 5.0% 5.4% 1.9% 2.1% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q1 18 Q2 18 Q3 1
Slide 11: Quarterly revenues per region
Quarterly revenues per region Revenue by region Q1 2019 vs. Q1 2018 9% EMEA + 5.7% 53% 38% Americas + 16.9% Asia-Pacific - 20.8% EMEA Americas Asia-Pacific 11 11 © 2019 ADVA Optical Networking. All rights reserved. Confidential.
Slide 12: Healthy balance sheet ratios
Healthy balance sheet ratios (In millions of EUR) 516.4 516.4 Working capital development Cash & cash equivalents 49.3 52.0 Trade account payables 25.1% 24.5% 26.2% 23.1% 25.4% Trade account receivables 86.2 122.5 121.8 131.0 120.5 132.0 99.4 Liabilities to banks* 36.8 Lease liabilities* Inventories
Slide 13: Seasonality of operating cash flow
Seasonality of operating cash flow (In millions of EUR) +12% 27.1 18.1 9.5 6.3 5.6 Q 1 18 Q 2 18 Q 3 18 Q 4 18 Q 1 19 13 13 © 2019 ADVA Optical Networking. All rights reserved. Confidential.
Slide 14: Guidance Q2 2019
Guidance Q2 2019 Revenues between EUR 130 million and EUR 140 million Summary • Good start to the new fiscal year: y-o-y 140.0 growth in EMEA and Americas, we are winning tenders and new customers in our core markets; 128.2 130.0 • Digitization is changing the networks and Q1 19 Q2 19 bringing the i
Slide 15: Thank you
Thank you [email protected] IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in
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