Adtran Networks Se · XETR:ADV
Adtran Networks — ADVA Optical Networking — FY2010 Earnings Presentation
24 slides from Adtran Networks's earnings presentation, Feb 24, 2011
Slide 1: Q4 and FY 2010 IFRS Financial Results
Q4 and FY 2010 IFRS Financial Results February 24, 2011 Martinsried/Munich, Germany
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements with words such as “believes”, “anticipates” and “expects” about expected revenues and earnings, anticipated demand for optical networking solutions, internal estimates and liquidity. These forward-looking st
Slide 3: Business Update and Outlook
Business Update and Outlook Brian Protiva Chief Executive Officer 3 © 2011 ADVA Optical Networking. All rights reserved.
Slide 4: 2010 in Review
2010 in Review The Company‟s revenues rose to a record high of EUR 291.7 million in 2010, up 25.3% vs. 2009, well above our addressable market and many of our peers. We consistently met or exceeded our guidance quarter on quarter and were in line with expectations in Q4 2010 with EUR 79.4 million of
Slide 5: Prospects for 2011
Prospects for 2011 Stability in the telecommunications industry will be driven by consolidation and growth in data-centric services, particularly in those associated with higher bandwidth/speeds both in wireless and wireline, and will lead to continued revenue growth for telecommunications equipment
Slide 6: Business Overview
Business Overview Revenues 2010:* EUR 291.7 million 30% 30% 40% + 25.3% vs. 2009 Market Growth 2010-2013:** + 14% + 23% +14% 14-18% CAGR Addressable 14% 29% 57% Market 2010:** EUR 2.5 billion ENTERPRISE ETHERNET CARRIER NETWORKS ACCESS INFRASTRUCTURE Well-Balanced and Diversified Mix of Market Segme
Slide 7: Focus on Growth Markets
Focus on Growth Markets “The industry is poised for “Global mobile “IPTV Service Revenue will strong growth through 2014, data bandwidth usage grow from US$17.5 when worldwide cloud increased 68% billion to US$46 billion services revenue is projected in H1 2010 alone.” in 2014.” to reach $148.8 bill
Slide 8: Innovation for Growth Markets
Innovation for Growth Markets High-Performance Intelligent Automated Enterprise Networks Carrier Ethernet Access Carrier Network Infrastructure Best Data Center Mobile Agile Connectivity Backhaul Core Transport Highest Availability Integrated Approach Capacity and Reach – Build, Maintain, Assure 100
Slide 9: Agile, Scalable Core
Innovation Example: Agile Core Transport Static Wavelength Layer Web 2.0 Dynamic High-Capacity Demand Agile , Scalable Core Support of Optical and POT* Ethernet Services Fixed and Blocking AAA** WDM X WDM Layer Optical Switching Distortion-Tolerant Extended Reach Limited Scalability High Capacit
Slide 10: Pushing the Competitive Edge of our Strategic Customers
Pushing the Competitive Edge of our Strategic Customers Beyond 100 G E-Infrastructure Transmission Solutions Spectrally Specialty Efficient 400 & Networks for 1,000 Gbit/s New Transport Applications Software- Intelligent Defined Optics Packet Edge Service & Con- Programmable Beyond 100G transmission
Slide 11: Adding Value via Software and Service
Adding Value via Software and Service Planning Layout and Diagram Deployment Diagram Stage Stage and Create Layout Create Production NETWORK Detect and Predict Visualize AUTOMATION Detect Optimization Alert Predict Verify and Audit Audit Verify Assurance Alert and Visualize Focus on Software and Ser
Slide 12: Management Software Innovation
Management Software Innovation Crypto Manager Enables Managed Encrypted Services Syncjack™ Manager Visualizes / Enables Syncjack™ Service Level Agreement Suite Bandwidth Manager Hotspot Monitor Availability Monitor Stranded Resource Monitor Rem Differentiated and Unique Applications Increase Value o
Slide 13: Efficient Sales Organization
Operational Excellence Example: Efficient Sales Organization > Regional Sales – > Life Cycle Management > New CRM Tool Centralized Global Support > Funnel Management > New Customer Portal > Strong Regional Focus > Complaint Handling > Advanced Content (APAC, Emerging Markets) > Go-To-Market Process
Slide 14: How we ADd VAlue
How we ADd VAlue Profitable Growth OPERATIONAL EXCELLENCE THOUGHT Loyal LEADERSHIP Customers FOCUS ON GROWTH MARKETS Differentiated Technology Expanding Opportunities ADVA Optical Networking is a Thought Leader in Developing Intelligent Network Infrastructure for High-Growth Markets 14 © 2011 ADVA O
Slide 15: Financial Results
Financial Results Jaswir Singh Chief Financial Officer & Chief Operating Officer 15 © 2011 ADVA Optical Networking. All rights reserved.
Slide 16: Annual IFRS Revenues and Pro Forma Profitability
Annual IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit (millions of EUR, % of revenues) 291.7 251.5 232.8 217.7 192.7 105.9** (42.1%) 100.4 100.0 121.2 83.1 91.9 (39.9%) (42.9%) (41.6%) (43.1%) (42.2%) 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Pro Forma Operatin
Slide 17: 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) 80.5 79.4 63.2 68.6 59.6 28.1 32.2 33.7 27.1 27.2 (42.5%) (41.0%) (40.0%) (45.4%) (43.0%) Q4 2009 Q4 2009 Q1 2010 Q1 2010 Q2 2010 Q2 2010 Q3 2010 Q3 2010 Q4 2010 Q4 2010 Pro Forma
Slide 18: IFRS Profitability
IFRS Profitability EUR million Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Pro Forma Operating Income 3.1 2.7 1.9 4.4 4.3 (5.2%) (4.3%) (2.8%) (5.5%) (5.4%) Operating Income 2.1 1.9 1.0 3.3 3.1 (3.5%) (3.0%) (1.5%) (4.1%) (3.9%) Net Income 1.4 2.4 0.6 2.4 1.6 (2.4%) (3.8%) (0.9%) (3.0%) (2.0%) EPS in EU
Slide 19: Cash and Net Liquidity
Cash and Net Liquidity EUR million Cash & Cash Equivalents Financial Liabilities and Lease Obligations 60 Net Liquidity 54.1 50 40 30 24.7 20 10 0 -10 -20 -30 -40 -29.4 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 High net liquidity positions have been demonstrating financ
Slide 20: Working Capital Metrics
Working Capital Metrics Days Sales Outstanding (DSOs) Days Payable Outstanding (DPOs) Inventory Turns 80 5.8 5.8 75 5.6 5.6 70 5.4 5.4 65 62 5.2 5.2 60 5.0 5.0 5.0 55 4.8 4.8 50 50 45 4.6 4.6 40 4.4 4.4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2009 2009 2009 2010 2010 2010 2010 Healthy working capital m
Slide 21: Revenues Per Region
Revenues Per Region Quarterly Development of Regional Revenues (millions of EUR, % of total) EMEA Americas Asia-Pacific 80.5 79.4 4% 8% 68.6 63.2 59.6 5% 4% 7% 28% 23% 22% 31% 41% 73% 71% 64% 55% 64% Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 EMEA remains most significant revenue contributor, Q4 2010 r
Slide 22: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q3 2010 Q4 2010 FY 2009 FY 2010 Net cash provided by operating activities 2.0** 6.3 29.1 21.1 Net cash used for investing activities -5.4 -7.2 -19.0 -24.0 Net cash provided by financing 15.5 -10.9 -7.2 3.3 Net effect of foreign currency translation 2
Slide 23: Guidance Q1 2011
Guidance Q1 2011 Revenues between EUR 70 million and EUR 75 million Pro forma operating margin between 0% and 4% of revenues* ADVA Optical Networking will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capitalized re
Slide 24: Thank you
Thank you INVESTOR RELATIONS Wolfgang Guessgen t +49 89 89 06 65 940 [email protected] www.advaoptical.com 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
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