Germany's Adva withdraws 2020 outlook on coronavirus crisis concerns (updated)

Adtran Networks SE

23/04/2020 07:11

(Adds further details, CEO quote)
    April 23 (Reuters) - German telecommunications equipment
company Adva Optical Networking  ADAG.DE  said on Thursday it
could not predict the course of business for 2020 and withdrew
its previous outlook, citing uncertainties about the further
course of the coronavirus crisis and its effects on the
company's business.
    Adva already warned on the coronavirus crisis effects in
February, when it released its expectations for 2020, including
that revenues would grow to more than 580 million euros ($628
million) with an increased pro forma operating income of more
than 5% of revenues, as well as a negative pro forma operating
income margin.  urn:newsml:reuters.com:*:nASN00033H
    Adva makes networking solutions and telecommunications
hardware for customers providing services such as e-learning,
remote work, media streaming, and online gaming.
    The company said in its first-quarter report that it
expected private enterprise, which constitutes about 25% of
Adva's sales, to be more reluctant to make future-oriented
investments in the coming weeks and months.
    "Apart from a few minor exceptions, our production and
supply chains are intact. Clearly, this can worsen suddenly, and
that's why we have developed a strategy that enables us to
compensate for production and delivery bottlenecks due to
possible location closures," chief executive Brian Protiva said.
    The company reported a net loss of 7.2 million euros in the
first quarter, compared with a profit of 1 million euros a year
ago.

($1 = 0.9240 euros)

 (Reporting by Bartosz Dabrowski in Gdansk; Editing by Raju
Gopalakrishnan and Gerry Doyle)
 ((bartosz.dabrowski@thomsonreuters.com; +48 587720995;))