ADVA Optical Networking SE

Earnings Release • Aug 28, 2017

News Details

Ad-hoc | 28 August 2017 23:17

ADVA Optical Networking SE: ADVA Optical Networking Updates Q3 Guidance

ADVA Optical Networking SE / Key word(s): Change in Forecast

28-Aug-2017 / 23:17 CET/CEST

Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP – a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

---

Ad hoc-announcement pursuant to Article 17 of the Market Abuse Regulation

ADVA Optical Networking Updates Q3 Guidance

Munich, Germany, August 28, 2017. The management board of ADVA Optical Networking SE (FSE: ADV) resolved today to adjust the Q3 2017 revenue and profitability guidance.

Q3 2017 Revenue Guidance

Revenues in Q3 2017 (including acquisition of MRV Communications, Inc. (“ MRV “) completed on 14 August 2017) are forecasted to be between EUR 110 million and EUR 125 million. Revenues in Q3 2017, excluding acquisition of MRV, are forecasted to be between EUR 104 million and EUR 114 million, down from previous guidance of between EUR 120 million and EUR 130 million. The reduction is largely due to weaker than expected orders.

Q3 2017 Pro Forma Operating Income Guidance

IFRS pro forma operating income in Q3 2017 (including acquisition of MRV) is forecasted to be between -4% and 2% of revenues. IFRS pro forma operating income in Q3 2017, excluding acquisition of MRV, is forecasted to range between -3% and 2% of revenues. The previous guidance was between 2% and 5% of revenues. IFRS pro forma operating income excludes stock-based compensation, non-recurring restructuring costs, amortization and impairment of goodwill, and acquisition-related intangible assets.

The aforementioned figures also exclude non-recurring restructuring costs in connection with headcount reductions. To maximize the value of the MRV acquisition and enhance profitability throughout the combined company, ADVA Optical Networking will reduce the combined workforce. While the combined workforce will decrease, management expects that these decreases will lead to enhanced operating efficiencies and synergies throughout the company. Based on the information presented to the management board today the non-recurring restructuring costs in 2017 are expected to amount to EUR 9 million. Management expects that the reductions will lead to cost savings of EUR 15 million per year on a run rate basis, with the initial effect of these savings being realized in late Q4.

Q4 2017 Outlook

ADVA Optical Networking will publish its Q3 2017 financial results in late October, 2017. It will also release revenue and IFRS pro forma operating profitability guidance for Q4 2017 on the same date.

# # #

---

28-Aug-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Archive at www.dgap.de

---

Language:	English
Company:	ADVA Optical Networking SE
	Märzenquelle 1-3
	98617 Meiningen-Dreissigacker
	Germany
Phone:	+49 89 890 665 0
Fax:	+49 89 890 665 199
E-mail:	IRelation@advaoptical.com
Internet:	www.advaoptical.com
ISIN:	DE0005103006
WKN:	510300
Indices:	TecDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

End of Announcement	DGAP News Service