DVA Optical Networking announces preliminary 2005 revenues and earnings and expects continued growth in 2006

February 9, 2006, Martinsried/Munich, Germany; Mahwah, New Jersey, USA.


* Q4 2005 revenues and pro forma operating income targets achieved
* 2006 revenues forecasted to increase 20% to 30%
* 2006 pro forma operating income expected between 10% and 12% of revenues in 2006


PRELIMINARY 2005 FINANCIAL RESULTS
ADVA announced sequentially growing revenues of EUR 35.8 million in Q4 2005, equaling full-year 2005 growth of about 29% to revenues of EUR 131.3 million. Pro forma operating income amounted to EUR 4.0 million in Q4 2005 and EUR 14.0 million for the full year 2005, representing both about 11% of respective revenues.

“We are extremely pleased to end the year 2005 by delivering continued sequential revenues growth since Q1 2004 and pro forma operating income at the upper end of our guidance. ADVA is driving growth in our market segment, while balancing an aggressive pricing strategy with ongoing optimization of our cost structure,” commented Andreas G. Rutsch, Chief Financial Officer of ADVA.

As required for all companies listed in a member country of the European Union, ADVA will start publishing its audited financial statements in accordance with IFRS beginning with the annual report 2005 to be released on Thursday, March 9, 2006. The Company will announce audited IFRS financial results for Q4 and full-year 2005 that day and at the same time provide a transition to U.S. GAAP numbers. For the foreseeable future, in addition to IFRS financial results, ADVA will continue to provide key financial information in accordance with U.S. GAAP.


In conjunction with the release of its full-year 2005 audited IFRS financial results on March 9, 2006, ADVA will host a tour for analysts and investors at its CeBIT booth C69 in hall 12 at 2:00 p.m. CET in Hannover, Germany, and provide an update on its technology solutions and product portfolio. At this location, ADVA will thereafter also host a conference call for analysts and investors at 3:00 p.m. CET/9:00 a.m. EST. Participating in the call will be ADVA’s Chief Executive Officer, Brian L. Protiva, and Chief Financial Officer, Andreas G. Rutsch. Investors may listen live via webcast on ADVA’s website, located on the ‘earnings webcasts’ page under ‘financial results’ in the investor relations section of ADVA’s website at www.advaoptical.com.

2006 OUTLOOK
ADVA anticipates sequential revenues growth to between EUR 36 and 38 million in Q1 2006 and full-year 2006 revenues growth of 20% to 30%. A clear strategy to continue aggressively pursuing new market opportunities and investing to expand ADVA’s global presence and research and development organization is expected to result in U.S. GAAP pro forma operating income margins between 10% and 12% for the full-year 2006. For Q1 2006, due to the first-time consolidation of Covaro Networks, ADVA expects respective margins of 9% to 10%.

“Although players in the telecommunications equipment sector tend to experience declining sequential revenues in Q1, ADVA demonstrated solid growth in the Optical+Ethernet space. Carrier customers are demanding our solutions at increasing levels for backhauling residential “Triple Play” (data, voice and video) traffic, and more and more enterprises are building and expanding their storage and Ethernet local area connectivity. Ethernet-based access solutions exhibit the strongest growth rates. With our innovative and cost-effective Ethernet access platform that features enhanced traffic management and control functionalities over any media, we are extremely well positioned to take full advantage of multiple market opportunities that require advanced solutions to complex network issues,” stated Brian L. Protiva, Chief Executive Officer of ADVA.

Visit ADVA Optical Networking
at CeBIT 2005 in Hannover, Germany!
We will be in hall 12, booth C69 from March 9 to March 15, 2006.

Contact Information

Christine Keck

ADVA Optical Networking

Contact via E-mail