ADVA Optical Networking SE : Ad hoc: ADVA Optical Networking Reports Audited 2012 IFRS Financial Results In Line with

 ADVA Optical Networking SE : Ad hoc: ADVA Optical Networking Reports Audited
            2012 IFRS Financial Results In Line with Expectations

ADVA Optical Networking SE / Annual accounts / Ad hoc: ADVA Optical Networking
Reports Audited 2012 IFRS Financial Results In Line with Expectations .
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responsible for the content of this announcement.

                    Q42012 revenues at EUR80.3 million,
    IFRS pro forma operating income of EUR4.8 million (6.0% of revenues)

                    FY2012 revenues at EUR330.1 million,
    IFRS pro forma operating income of EUR21.8 million (6.6% of revenues)

                      Q12013 revenues expected to range
                between EUR72 million and EUR77 million with
       IFRS pro forma operating income between -2% and +2% of revenues

Martinsried/Munich,  Germany.  February28,  2013.  ADVA  Optical   Networking 
announced Q4 and audited full-year 2012 financial results for the period ended
December31, 2012,  and prepared  in accordance  with International  Financial 
Reporting Standards (IFRS).


Revenues totaledEUR80.3 million  in Q42012 and  were in the  upper half  of 
guidance of between EUR77 million and EUR82 million. Revenues are down  3.8% 
vs. Q42011 at EUR83.4 million and down 2.4% vs. Q32012 at EUR82.3 million.
IFRS pro  forma  operating  income,  excluding  stock-based  compensation  and 
amortization & impairment of goodwill & acquisition-related intangible assets,
amounted to EUR4.8 million in Q42012 or  6.0% of revenues, at the upper  end 
of guidance of between 2%  and 6% of revenues.  This compares to Q42011  IFRS 
pro forma operating  income of  EUR7.4 million or  8.9% of  revenues, and  to 
Q32012 IFRS  pro  forma  operating  income of  EUR5.6  million  or  6.8%  of 
revenues. These developments are largely  due to lower revenues and  increased 
selling and marketing expenses.

The IFRS operating income  in Q42012 was EUR4.3  million, down from  EUR6.7 
million in Q42011. This is due  to the above-mentioned reasons for lower  pro 
forma operating income.

The IFRS  net income  in Q42012  amounted to  EUR4.1 million  after  EUR8.7 
million in Q42011. Beyond the reduced operating income, net foreign  currency 
exchange losses of EUR0.1 million in  Q42012 after gains of EUR1.9  million 
in Q42011 contributed to this decrease.  Basic and diluted IFRS net  earnings 
per share were EUR0.09 and EUR0.08, respectively, down from EUR0.18 each in

Driven by increased Ethernet access business,  revenues rose to a record  high 
of EUR330.1 million  in 2012, 6.2%  above the EUR310.9  million reported  in 
2011. IFRS pro forma operating income increased from EUR17.3 million or  5.6% 
of revenues in  2011 to EUR21.8  million or  6.6% of revenues  in 2012.  This 
improvement is largely due to revenue and gross margin growth.

2012 IFRS operating  income at EUR18.8  million also increased  significantly 
from EUR13.2 million in 2011. The  main reason for this positive  development 
is the above-mentioned increase in pro forma operating income and a  reduction 
in amortization of intangible assets from acquisitions from EUR2.5 million in
2011 to EUR1.6 million in 2012.

Finally, IFRS net income amounted to  EUR16.7 million in 2012, slightly  down 
vs. EUR16.9 million in  2011. The positive  operating income development  was 
mostly compensated by income tax expenses of EUR1.8 million after income  tax 
benefits of  EUR2.9  million  in  2011.  Furthermore,  net  foreign  currency 
exchange gains of EUR0.8 million in2012 were lower than the EUR2.3  million 
recorded in 2011. Basic and diluted IFRS net earnings per share were  EUR0.35 
and EUR0.34 in 2012, slightly down from EUR0.36 and EUR0.35,  respectively, 
in 2011.


In conjunction with the release of  its full-year 2012 audited IFRS  financial 
results on February28, 2013, ADVA  Optical Networking will host a  conference 
call  for   analysts  and   investors   at  3:00p.m.CET   /   9:00a.m.EST. 
Participating in the call  will be ADVA  Optical Networking's chief  executive 
officer, Brian Protiva, and chief financial officer & chief operating officer,
Jaswir  Singh.  Interested  parties  may  dial  in  at  +4969201744210   or 
+18774230830,  pin   code  997   939#,  and   download  the   corresponding 
presentation from  ADVA  Optical  Networking's  website,, 
located in  the "About  Us /  Investor Relations"  section on  the  "Financial 
Results" page under "Conference Calls".

In Q12013, ADVA Optical Networking  expects revenues to range between  EUR72 
million and  EUR77 million,  and anticipates  pro forma  operating income  of 
between -2%  and  +2%  of revenues.  As  a  matter of  caution,  ADVA  Optical 
Networking notes that  it will continue  to perform quarterly  reviews of  the 
expected business development with respect to all intangible assets, including
capitalized  development  expenses.  In   case  of  highly  adverse   business 
prospects, these reviews may result in non-cash impairment charges in  Q12013 
and beyond. The pro  forma operating income  guidance provided above  excludes 
any such potential  impairment charges. ADVA  Optical Networking will  publish 
its Q12013 financial results on April25, 2013.


(in thousands of EUR,                             Q4      Q4       FY       FY
except earnings per share)                      2012    2011     2012     2011
Revenues                                      80,268  83,432  330,069  310,945
Pro forma cost of goods sold^*               -46,711 -50,099 -196,820 -191,560
Pro forma gross profit^*                      33,557  33,333  133,249  119,385
Pro forma
selling and marketing expenses               -12,995 -11,296  -46,259  -43,411
Pro forma
general and administrative expenses           -6,114  -5,465  -25,725  -24,007
Pro forma
research and development expenses            -15,515 -16,848  -65,055  -60,083
Income from capitalization of development
expenses^*                                     5,064   7,397   23,529   23,648
Other operating income and expenses, net         840     291    2,059    1,751
Pro forma operating income                     4,837   7,412   21,798   17,283
Amortization of
intangible assets from acquisitions             -145    -640   -1,620   -2,493
Stock compensation expenses                     -404     -98   -1,344   -1,583
Operating income                               4,288   6,674   18,834   13,207
Interest income and expenses, net               -298    -378   -1,163   -1,531
Other financial gains and losses, net           -138   1,937      834    2,328
Income before tax                              3,852   8,233   18,505   14,004
Income tax benefit (expense), net                249     451   -1,783    2,935
Net income                                     4,101   8,684   16,722   16,939
Earnings per share in EUR
 Basic                                        0.09    0.18     0.35     0.36
 Diluted                                      0.08    0.18   0.34    0.35 

^*           Research  and  development   expenses  include  income   from 
capitalization  of   development  expenses.   From  2012,   amortization   for 
capitalized development projects  is presented  as cost of  goods sold.  Prior 
period information  has  been  adjusted accordingly,  by  reclassification  of 
amortization from research and development expenses to cost of goods sold. The
effect on  cost  of  goods  sold amounted  to  EUR3,917/15,394  thousand  and 
EUR3,267/14,131 thousand in Q4/12M2012 and Q4/12M2011, respectively.

                                    # # #

The economic  projections and  forward-looking  statements contained  in  this 
document  relate  to  future  facts.  Such  projections  and   forward-looking 
statements are subject to risks which cannot be foreseen and which are  beyond 
the control of ADVA Optical  Networking. ADVA Optical Networking is  therefore 
not in a position to  make any representation as  to the accuracy of  economic 
projections and forward-looking  statements or their  impact on the  financial 
situation of  ADVA Optical  Networking or  the market  in the  shares of  ADVA 
Optical Networking.

ADVA Optical Networking provides consolidated  pro forma financial results  in 
this press  release  solely  as supplemental  financial  information  to  help 
investors and  the financial  community make  meaningful comparisons  of  ADVA 
Optical Networking's operating results from  one financial period to  another. 
ADVA Optical Networking believes that  these pro forma consolidated  financial 
results are helpful because they exclude non-cash charges related to the stock
option  programs   and   amortization   and   impairment   of   goodwill   and 
acquisition-related  intangible  assets,  which  are  not  reflective  of  the 
Company's  operating  results  for  the  period  presented.  This  pro   forma 
information is  not  prepared  in  accordance with  IFRS  and  should  not  be 
considered a  substitute for  historical information  presented in  accordance 
with IFRS.

Published By:
ADVA Optical Networking SE, Martinsried/Munich and Meiningen, Germany

For Press:      
Gareth Spence     
t +44 1904 699 358                   

For Investors:
Wolfgang Guessgen
t +49 89 89 0665 940


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Source: ADVA Optical Networking SE via Thomson Reuters ONE

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ADVA Optical Networking SE
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