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ADVA Optical Networking Reports Profitability Above Guidance in Q3 2007



    Q3 2007 Revenues Up 16 Percent On Q3 2006 to Reach EUR 61.5 million

      IFRS Q3 2007 Pro Forma Operating Income of EUR 4.0 Million
                        (6.5 Percent of revenues)

                  FY 2007 Revenues Forecasted to be
             Between EUR 258 Million and EUR 263 Million
         With Pro Forma Operating Margin of 6 Percent to 7 Percent

MAHWAH, N.J. and MARTINSRIED/MUNICH, Germany, Nov. 5, 2007 (PRIME NEWSWIRE) -- ADVA Optical Networking (Other OTC:ADVOF) today announced Q3 2007 financial results for the quarter ended September 30, 2007, and prepared in accordance with International Financial Reporting Standards (IFRS).

Q3 2007 IFRS FINANCIAL RESULTS

Revenues in Q3 2007 totaled EUR 61.5 million, up 16% when compared to EUR 53.1 million in Q3 2006. In USD terms, revenues rose 25% year-on-year, from USD 67.6 million in Q3 2006 to USD 84.4 million in Q3 2007. IFRS pro forma operating income, excluding stock-based compensation and amortization and impairment of goodwill and acquisition-related intangible assets, was at EUR 4.0 million in Q3 2007 after EUR 0.9 million in Q3 2006. These results were primarily driven by higher gross margins and less pronounced increases in selling & marketing expenses, when compared to revenue growth. IFRS pro forma quarterly net profit was EUR 1.5 million in Q3 2007, up significantly from EUR 0.4 million in Q3 2006, largely driven by higher pre-tax income. Diluted pro forma net earnings per share were EUR 0.03 and EUR 0.01 in Q3 2007 and in Q3 2006, respectively.

ADVA Optical Networking reported an IFRS actual net loss of EUR 1.2 million in Q3 2007, down from an IFRS actual net loss of EUR 4.3 million in Q3 2006. This development was due to the factors described above, as well as decreased amortization of acquisition-related intangible assets excluding goodwill related to the acquisition of Movaz in July 2006. Diluted net earnings per share were EUR -0.03 in Q3 2007 and EUR -0.10 in Q3 2006.

CONFERENCE CALL AND WEBCAST

In conjunction with the release of its Q3 2007 IFRS financial results, November 6, 2007, ADVA Optical Networking will host a conference call for analysts and investors at 3:00 p.m. CET/9:00 a.m. EST. Participating in the call will be ADVA Optical Networking's Chief Executive Officer, Brian Protiva, and Chief Financial Officer, Andreas Rutsch. Interested parties may dial in at +49 69 2711 3400 or +1 877 527 5884, and listen live via webcast on ADVA Optical Networking's website, located on the 'financial results' page in the investor relations section of ADVA Optical Networking's website at www.advaoptical.com.

Q4 AND FULL-YEAR 2007 OUTLOOK

Due to a temporary uncertainty from ADVA Optical Networking's largest customers, full-year 2007 revenue guidance is reduced from previously at least EUR 267 million to now between EUR 258 million and EUR 263 million, implying Q4 2007 revenues of between EUR 60 million and EUR 65 million. This will provide ADVA Optical Networking with at least 34% growth year-on-year. As for IFRS pro forma operating margins, ADVA Optical Networking is adjusting its full-year 2007 guidance to 6% to 7% of revenues, implying Q4 2007 IFRS pro forma operating margins of 3.5% to 7.0% of revenues. ADVA Optical Networking will release its Q4 and full-year 2007 financial results on March 18, 2008.

PUBLISHED BY:



 ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany
 ADVA Optical Networking Inc., Mahwah, New Jersey, USA 
 ADVA Optical Networking Corp., Tokyo, Japan 
 www.advaoptical.com
CONTACT:  ADVA AG Optical Networking
          For Press: 
          Christine Keck
            +1 201 258 8293 (U.S.)
            +44 1904 699 358 (Europe) 
            +81 3 6667 5830 (Asia) 
            public-relations@advaoptical.com
          For Investors: 
          Wolfgang Guessgen
            +1 201 258 8300 (U.S.) 
            +49 89 89 0665 940 (Europe) 
            +81 3 6667 5830 (Asia) 
            investor-relations@advaoptical.com
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