ADVA Optical Networking reported Q1 2013 revenue of EUR 77.0 million in Q1 2013, down 5.7% vs. Q1 2012 at EUR 81.7 million and down 4.0% vs. EUR 80.3 million in Q4 2012. IFRS operating income amounted to EUR 0.4 million in Q1 2013, after EUR 3.5 million in Q1 2012.
“While the temporary decline of our business related to short-term market weakness driven by adverse macro-economic conditions and temporary shifts in carrier investment priorities clearly is a disappointment, we are still pleased to report our Q1 2013 revenues of EUR 77.0 million at the upper end of guidance. Our pro forma gross margin decreased from 41.8% in Q4 2012 to 38.6% in Q1 2013, due to quarterly variations in product and customer mix. In Q1 2013, our pro forma operating margin came in at 1.0% in the upper half of guidance, demonstrating our focus on managing operational costs in this challenging environment. Also, operating cash flow at EUR 1.7 million in Q1 2013 remained positive, and our quarter-end cash & cash equivalents and net liquidity of EUR 65.3 million and EUR 36.3 million, respectively, demonstrate ongoing financial strength,” commented Jaswir Singh, chief financial officer & chief operating officer of ADVA Optical Networking.
