Adva Optical Slides as Quarterly Decline Looms: Frankfurt Mover
Adva Optical Networking SE fell the most since October in Frankfurt trading after the German maker of fiber networks predicted a first-quarter sales decline and said it may have to book charges.
The stock of the Martinsried-based company dropped as much as 15 percent, and traded down 8.5 percent at 4.10 euros as of 10 a.m. Volume was more than four times the daily three-month average after an hour of trading.
Adva has seen revenue and profitability drop as phone companies cut back spending on fixed-line networks, shifting to investments in faster wireless transmission technology. The company’s largest customers are BT Group Plc (BT/A), Time Warner Cable Inc. (TWC) and Deutsche Telekom AG (DTE), according to data compiled by Bloomberg. Fourth-quarter net income dropped to 4.1 million euros ($5.4 million) from 8.7 million euros a year earlier.
Adva is performing a review of its intangible assets, which may lead to impairment charges in the first quarter and beyond, the company said today.
It forecast revenue of 72 million euros to 77 million euros in the first three months of 2013, lower than the 80.3 million euros it reported in the fourth quarter and down from 81.7 million euros a year ago.
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