- Absolute Analysis is a technology leader in real-time
optical RF over CPRI protocol analysis
- Given EXFO's leadership in fiber testing, acquisition
combines the only complete solution for optical, Ethernet and RF
analysis for next-generation wireless fronthaul
networks
QUEBEC CITY, Oct. 31, 2016 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO, TSX: EXF), the trusted partner to communications service
providers (CSPs) for test automation and real-time 3D analytics
solutions, announced today it has acquired the majority of the
assets of Absolute Analysis Inc., including technology,
expertise and solutions in the area of radio frequency (RF) testing
for fiber-based radio access networks (RANs).
This acquisition is driven by EXFO's commitment to provide
market-leading solutions to mobile network operators (MNOs) in
their quest to deploy next-generation, fiber-based fronthaul
networks and RAN architectures. In a market where subscriber
quality of experience is a profitability game changer, MNOs have
little room for error while pressure is increasing to deploy faster
and minimize operating expenses.
To address these challenges, EXFO is combining its cutting-edge
optical and Ethernet test technologies with those of Absolute
Analysis, a privately held company in Newbury Park, California. Absolute Analysis'
solutions are critical for identifying and analyzing RF
interference issues in fiber to the antenna (FTTA), distributed
antenna systems (DAS), remote radio heads (RRHs) and baseband units
(BBUs) that support 4G/LTE and, soon, 5G wireless mobility and
Internet of Things (IoT). Absolute Analysis' technology delivers
highly efficient CPRI (Common Public Radio Interface) protocol
analysis and emulation as well as RF over CPRI spectrum
analysis.
This unique combination of RF analysis over CPRI with EXFO's
market-leading fiber and Ethernet test technologies significantly
accelerates service delivery and troubleshooting, which reduces
operating expenses for MNOs.
EXFO has already integrated a portion of Absolute Analysis'
technology into the recently launched OpticalRFTM
application for its FTB-1 Pro test platform, a compact, lightweight
and powerful solution that allows MNOs to quickly and easily locate
all RF interference issues in fiber-based mobile networks.
"Mobile network operators are transforming their architectures
and deploying fiber deeper into radio access networks to add new
services and much-needed capacity, while preparing for 5G mobility
and IoT," said Germain Lamonde,
EXFO's Chairman, President and CEO. "This small, synergistic and
strategic acquisition allows EXFO to strengthen its leadership
position with a unique, all-in-one optical, Ethernet and RF test
solution to help MNOs greatly enhance their productivity and
network reliability."
EXFO will leverage its global sales organization to maximize
Absolute Analysis' technologies integrated into its portfolio, and
EXFO will also integrate the team's engineering talent and
expertise to develop additional solutions.
This cash and stock transaction is valued at approximately
US$8.25 million, including
US$5 million in cash and the
remaining amount in EXFO shares. No material impact from the
acquisition is expected for EXFO's first quarter of fiscal 2017
ending on November 30, 2016.
Conference Call and Webcast
EXFO will host a
conference call Tuesday at 8 a.m. (Eastern
time) to review the highlights of this transaction. To
listen to the conference call and participate in the question
period via telephone, dial 704-288-0432. Please take note the
following conference ID number will be required: 12080223. An audio
replay of the conference call will be available two hours after the
event until 11:59 p.m. on
November 8, 2016. The replay number
is 855-859-2056 and the conference ID number is 12080223. The
audio Webcast and replay of the conference call will also be
available on EXFO's Website at www.EXFO.com, under the
Investors section.
About EXFO
EXFO is the trusted partner to
communications service providers (CSPs) globally with leadership in
test automation and 3D analytics solutions to ensure the smooth
deployment, maintenance and management of next-generation,
physical, virtual, fixed and mobile networks. The company has also
forged strong relationships with network equipment manufacturers
(NEMs) to develop deep expertise that migrates from the lab to the
field and beyond. EXFO's key differentiation comes from combining
intelligent, automated and cloud-based test and monitoring
solutions with real-time analytics to deliver unmatched end-to-end
visibility and assurance—from a network, services and end-user
level. EXFO is no. 1 in portable optical testing and boasts the
largest active service assurance deployment worldwide. For more
information, visit www.EXFO.com and follow us on the EXFO Blog.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, and we intend that such
forward-looking statements be subject to the safe harbors created
thereby. Forward-looking statements are statements other than
historical information or statements of current condition. Words
such as may, expect, believe, plan, anticipate, intend, could,
estimate, continue, or similar expressions or the negative of such
expressions are intended to identify forward-looking statements. In
addition, any statement that refers to expectations, projections or
other characterizations of future events and circumstances are
considered forward-looking statements. They are not guarantees of
future performance and involve risks and uncertainties. Actual
results may differ materially from those in forward-looking
statements due to various factors including, but not limited to,
macroeconomic uncertainty as well as capital spending and network
deployment levels in the telecommunications industry (including our
ability to quickly adapt cost structures with anticipated levels of
business and our ability to manage inventory levels with market
demand); future economic, competitive, financial and market
conditions; consolidation in the global telecommunications test and
service assurance industry and increased competition among vendors;
capacity to adapt our future product offering to future
technological changes; limited visibility with regards to timing
and nature of customer orders; longer sales cycles for complex
systems involving customers' acceptances delaying revenue
recognition; fluctuating exchange rates; concentration of sales;
timely release and market acceptance of our new products and other
upcoming products; our ability to successfully expand international
operations; our ability to successfully integrate businesses that
we acquire; and the retention of key technical and management
personnel. Assumptions relating to the foregoing involve judgments
and risks, all of which are difficult or impossible to predict and
many of which are beyond our control. Other risk factors that may
affect our future performance and operations are detailed in our
Annual Report, on Form 20-F, and our other filings with the U.S.
Securities and Exchange Commission and the Canadian securities
commissions. We believe that the expectations reflected in the
forward-looking statements are reasonable based on information
currently available to us, but we cannot assure that the
expectations will prove to have been correct. Accordingly, you
should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this
document. Unless required by law or applicable regulations, we
undertake no obligation to revise or update any of them to reflect
events or circumstances that occur after the date of this
document.
EXFO-C
SOURCE EXFO inc.