- Sales increase 12.0% year-over-year to US$60.0 million
- Adjusted EBITDA reaches US$4.9
million, or 8.1% of sales
- Cash flows from operating activities total US$14.4 million
QUEBEC CITY, March 29, 2017 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO) (TSX: EXF), the global network test, data and analytics
experts, reported today financial results for the second quarter
ended February 28, 2017.
Sales reached US$60.0 million in
the second quarter of fiscal 2017 compared to US$53.6 million in the second quarter of 2016 and
US$61.8 million in the first quarter
of 2017. At the halfway mark of fiscal 2017, sales increased 11.9%
year-over-year to US$121.8
million.
Bookings attained US$55.9 million
in the second quarter of fiscal 2017 compared to US$59.7 million in the same period last year and
US$65.9 million in the first quarter
of 2017. The company's book-to-bill ratio was 0.93 in the second
quarter of 2017 and 1.00 at the half-way point of 2017, leading to
year-over-year bookings growth of 3.0% after two quarters.
Gross margin before depreciation and amortization*
amounted to 61.7% of sales in the second quarter of fiscal 2017
compared to 64.7% in the second quarter of 2016 and 63.1% in
the first quarter of 2017. After six months into fiscal 2017, gross
margin accounted for 62.4% of sales.
IFRS net earnings in the second quarter of fiscal 2017 totaled
US$1.0 million, or US$0.02 per diluted share, compared US$4.0 million, or US$0.07 per diluted share, in the same period
last year and US$3.3 million, or
US$0.06 per diluted share, in the
first quarter of 2017. IFRS net earnings in the second quarter of
2017 included US$0.6 million in
after-tax amortization of intangible assets, US$0.4 million in stock-based compensation costs
and a foreign exchange loss of US$0.3
million. IFRS net earnings totaled US$4.3 million in the first half of fiscal 2017
compared to US$5.7 million in the
first half of 2016. IFRS net earnings in the first half of 2017
included a foreign exchange gain of US$0.2
million compared to a foreign exchange gain of US$1.4 million in the first half of 2016.
Adjusted EBITDA* totaled US$4.9 million, or 8.1% of sales, in the second
quarter of fiscal 2017 compared to US$5.3 million, or 9.9% of sales, in the
second quarter of 2016 and US$6.3
million, or 10.2% of sales, in the first quarter of 2017. At
the halfway point of fiscal 2017, adjusted EBITDA totaled
US$11.2 million, or 9.2% of sales,
compared to US$10.6 million, or 9.7%
of sales, in the first half of 2016.
EXFO generated US$14.4 million in
cash flows from operating activities in the second quarter of
fiscal 2017 and closed the quarter with a cash position of
US$52.4 million and no debt.
Following the quarter-end, EXFO acquired Ontology Systems, a
technology leader in real-time network topology discovery and
service-chain mapping, for a consideration of US$7.6 million, net of cash, plus an earnout
based on future sales.
"I am particularly pleased we delivered double-digit,
year-over-year revenue growth for a third consecutive quarter, even
though bookings were softer than anticipated due to delays in new
calendar year budget approvals and deal pushouts," said
Germain Lamonde, EXFO's Founder,
Chairman and CEO. "We delivered strong sales growth in the optical
and 100 Gbit/s transport markets, both in the field and lab, and
continued strengthening our leadership position with major product
launches in the 200 Gbit/s and 400 Gbit/s test segments at the
recent Optical Fiber Conference. Earlier at Mobile World Congress,
we announced the acquisition of Ontology Systems' automated network
topology discovery technology and the introduction of accurate,
one-way latency monitoring capabilities. Once combined with our 3D
analytics platform, these technologies will significantly enhance
our real-time monitoring of VoWiFi, OTT video and VoIP services
over hybrid physical-virtual networks and strengthen our
positioning in the strategic NFV/SDN, 5G and IoT markets."
Selected Financial
Information
|
|
|
|
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2017
|
|
Q1 2017
|
|
Q2 2016
|
|
|
|
|
|
|
Physical-layer
sales
|
$
|
38,038
|
|
$
|
42,016
|
|
$
|
32,582
|
Protocol-layer
sales
|
22,097
|
|
20,009
|
|
21,990
|
Foreign exchange
losses on forward exchange contracts
|
(105)
|
|
(240)
|
|
(975)
|
Total
sales
|
$
|
60,030
|
|
$
|
61,785
|
|
$
|
53,597
|
|
|
|
|
|
|
Physical-layer
bookings
|
$
|
34,031
|
|
$
|
44,090
|
|
$
|
34,874
|
Protocol-layer
bookings
|
21,992
|
|
22,009
|
|
25,804
|
Foreign exchange
losses on forward exchange contracts
|
(105)
|
|
(240)
|
|
(975)
|
Total
bookings
|
$
|
55,918
|
|
$
|
65,859
|
|
$
|
59,703
|
Book-to-bill ratio
(bookings/sales)
|
0.93
|
|
1.07
|
|
1.11
|
Gross margin before
depreciation and amortization*
|
$
|
37,041
|
|
$
|
38,972
|
|
$
|
34,693
|
|
61.7%
|
|
63.1%
|
|
64.7%
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
IFRS net
earnings
|
$
|
1,008
|
|
$
|
3,303
|
|
$
|
3,963
|
|
Amortization of
intangible assets
|
$
|
768
|
|
$
|
427
|
|
$
|
286
|
|
Stock-based
compensation costs
|
$
|
353
|
|
$
|
258
|
|
$
|
314
|
|
Net income tax effect
of the above items
|
$
|
(162)
|
|
$
|
(64)
|
|
$
|
(30)
|
|
Foreign exchange
(gain) loss
|
$
|
272
|
|
$
|
(512)
|
|
$
|
(1,101)
|
|
Adjusted
EBITDA*
|
$
|
4,875
|
|
$
|
6,321
|
|
$
|
5,280
|
Operating Expenses
Selling and administrative expenses
totaled US$21.3 million, or 35.4% of
sales in the second quarter of fiscal 2017 compared to US$19.6 million, or 36.5% of sales, in the same
period last year and US$21.6 million,
or 35.0% of sales, in the first quarter of 2017.
Net R&D expenses totaled US$11.3
million, or 18.8% of sales, in the second quarter of fiscal
2017 compared to US$10.2 million, or 19.0% of sales, in
the second quarter of 2016 and US$11.3
million, or 18.3% of sales, in the first quarter of
2017.
Second-Quarter and First-Half Highlights
- Sales and bookings. EXFO experienced strong demand for its
optical and high-speed transport test solutions, mainly in the
Americas, and continued traction of its LTB-8 rackmount platform
for lab and manufacturing floor applications in the second quarter
of 2017. Bookings decreased 6.3% year-over-year in the second
quarter primarily because the company had secured two large
monitoring and analytics orders in the second quarter of 2016, but
witnessed delays in network operator budget releases and deal
approvals in the most recent quarter. In the first half of 2017,
bookings improved 3.0% year-over-year. In terms of segmented sales,
Physical-layer sales surged 16.7% year-over-year in the second
quarter of 2017, while Protocol-layer sales were flat. On a
geographical basis, sales increased 14.5% year-over in the
Americas, 12.4% in EMEA and 6.1% in Asia
Pacific. Revenue distribution among these three regions in
the second quarter amounted to 50% from the Americas, 29% from EMEA
and 21% from Asia-Pacific. EXFO's
top customer accounted for 10.0% of sales in the second quarter and
12.0% of sales in the first half of 2017, while the top three
customers represented 16.6% and 19.2% of sales, respectively.
- Profitability. EXFO generated adjusted EBITDA of US$4.9 million, or 8.1% of sales, in the second
quarter of 2017 and US$11.2 million,
or 9.2% of sales, after six months into fiscal 2017. EXFO also
delivered US$14.4 million in
cash flows from operating activities in the second quarter of 2017
to raise its cash position to US$52.4
million at the quarter end.
- Innovation. EXFO launched several new products during the
second quarter and following the quarter-end while taking part in
two key industry events: Mobile World Congress and Optical Fiber
Conference. Major product introductions included a 400 Gbit/s
optical transport test solution, 200 Gbit/s optical spectrum
analyzer and FTB-4 test platform—all focused on optical high-speed
networking applications in the lab and field; an automated
inspection probe for testing multifiber connectors in data centers
and radio access networks (RANs); optical RF over OBSAI (open base
station architecture initiative) link test capabilities
to complement recently acquired optical RF over CPRI (common
public radio interface) test technology for C-RAN deployments; and
the company integrated Ookla's Speedtest technology into its
MaxTester residential broadband test solution. Finally, EXFO
received Frost & Sullivan's Market Share Leadership Award for
the sixth consecutive year by building on its No. 1 position in the
portable fiber-optic test equipment market.
Business Outlook
EXFO forecasts sales between
US$58.0 million and US$63.0 million
for the third quarter of fiscal 2017, while IFRS net results are
expected to range between a loss of US$0.02 per share and earnings of US$0.02 per share. IFRS net results include
US$0.02 per share in after-tax
amortization of intangible assets and stock-based compensation
costs as well as an anticipated foreign exchange gain of
US$0.01 per share.
This guidance was established by management based on existing
backlog as of the date of this press release, seasonality, expected
bookings for the remaining of the quarter, as well as exchange
rates as of the day of this press release.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review second-quarter results for fiscal 2017.
To listen to the conference call and participate in the
question period via telephone, dial 1-719-457-1036. Please
take note the following participant passcode will be required:
6277231. Germain Lamonde, Executive
Chairman, Philippe Morin, Chief
Operating Officer, and Pierre
Plamondon, CPA, Vice-President of Finance and Chief
Financial Officer, will participate in the call. An audio replay of
the conference call will be available two hours after the event
until 8:00 p.m. on April 5,
2017. The replay number is 1-719-457-0820 and the required
participant passcode is 6277231. 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 develops smarter network test, data
and analytics solutions for the world's leading communications
service providers, network equipment manufacturers and web-scale
companies. Since 1985, we've worked side by side with our clients
in the lab, field, data center, boardroom and beyond to pioneer
essential technology and methods for each phase of the network
lifecycle. Our portfolio of test orchestration and real-time 3D
analytics solutions turn complex into simple and deliver
business-critical insights from the network, service and subscriber
dimensions. Most importantly, we help our clients flourish in a
rapidly transforming industry where "good enough" testing and data
analytics just isn't good enough anymore—it never was for us,
anyway. For more information, visit 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.
*NON-IFRS MEASURES
EXFO provides non-IFRS measures (gross margin before
depreciation and amortization and adjusted EBITDA) as supplemental
information regarding its operational performance. The company uses
these measures for the purpose of evaluating historical and
prospective financial performance, as well as its performance
relative to competitors. These measures also help the company
to plan and forecast for future periods as well as to make
operational and strategic decisions. EXFO believes that providing
this information, in addition to IFRS measures, allows investors to
see the company's results through the eyes of management, and to
better understand its historical and future financial
performance.
The presentation of this additional information is not prepared
in accordance with IFRS. Therefore, the information may not
necessarily be comparable to that of other companies and should be
considered as a supplement to, not a substitute for,
the corresponding measures calculated in accordance with IFRS.
Gross margin before depreciation and amortization represents
sales less cost of sales, excluding depreciation and
amortization.
Adjusted EBITDA represents net earnings before interest, income
taxes, depreciation and amortization, stock-based compensation
costs and foreign exchange gain or loss.
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings, in thousands
of US dollars:
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2017
|
|
Q1
2017
|
|
Q2 2016
|
|
|
|
|
|
|
IFRS net earnings for
the period
|
$
|
1,008
|
|
$
|
3,303
|
|
$
|
3,963
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
962
|
|
903
|
|
924
|
Amortization of
intangible assets
|
768
|
|
427
|
|
286
|
Interest (income)
expense
|
(9)
|
|
(20)
|
|
(470)
|
Income
taxes
|
1,521
|
|
1,962
|
|
1,364
|
Stock-based
compensation costs
|
353
|
|
258
|
|
314
|
Foreign exchange
(gain) loss
|
272
|
|
(512)
|
|
(1,101)
|
Adjusted EBITDA for
the period
|
$
|
4,875
|
|
$
|
6,321
|
|
$
|
5,280
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
8.1%
|
|
10.2%
|
|
9.9%
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
|
As
at
February
28,
2017
|
|
As
at
August
31,
2016
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
48,343
|
|
$
|
43,208
|
Short-term
investments
|
|
|
4,074
|
|
|
4,087
|
Accounts
receivable
|
|
|
|
|
|
|
|
Trade
|
|
|
36,818
|
|
|
42,993
|
|
Other
|
|
|
5,435
|
|
|
2,474
|
Income taxes and tax
credits recoverable
|
|
|
4,131
|
|
|
4,208
|
Inventories
|
|
|
33,039
|
|
|
33,004
|
Prepaid
expenses
|
|
|
2,971
|
|
|
3,099
|
|
|
|
134,811
|
|
|
133,073
|
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
|
34,159
|
|
|
34,594
|
Property, plant
and equipment
|
|
|
36,843
|
|
|
35,978
|
Intangible
assets
|
|
|
7,034
|
|
|
3,391
|
Goodwill
|
|
|
26,094
|
|
|
21,928
|
Deferred income
tax assets
|
|
|
7,078
|
|
|
8,240
|
Other
assets
|
|
|
435
|
|
|
589
|
|
|
|
|
|
|
|
|
|
$
|
246,454
|
|
$
|
237,793
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
37,803
|
|
$
|
37,174
|
Provisions
|
|
|
258
|
|
|
299
|
Income taxes
payable
|
|
|
545
|
|
|
971
|
Deferred
revenue
|
|
|
11,335
|
|
|
9,486
|
|
|
|
49,941
|
|
|
47,930
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
6,433
|
|
|
5,530
|
Deferred income
tax liabilities
|
|
|
2,441
|
|
|
2,857
|
Other
liabilities
|
|
|
30
|
|
|
75
|
|
|
|
58,845
|
|
|
56,392
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Share
capital
|
|
|
89,841
|
|
|
85,516
|
Contributed
surplus
|
|
|
17,843
|
|
|
18,150
|
Retained
earnings
|
|
|
130,620
|
|
|
126,309
|
Accumulated other
comprehensive loss
|
|
|
(50,695)
|
|
|
(48,574)
|
|
|
|
|
|
|
|
|
|
|
187,609
|
|
|
181,401
|
|
|
|
|
|
|
|
|
|
$
|
246,454
|
|
$
|
237,793
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six
months
|
|
Three
months
|
|
Six
months
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
|
February
28,
|
|
February
28,
|
|
February
29,
|
|
February
29,
|
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
60,030
|
|
$
|
121,815
|
|
$
|
53,597
|
|
$
|
108,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
|
22,989
|
|
|
45,802
|
|
|
18,904
|
|
|
39,041
|
Selling and
administrative
|
|
|
21,255
|
|
|
42,850
|
|
|
19,565
|
|
|
39,817
|
Net research and
development
|
|
|
11,264
|
|
|
22,578
|
|
|
10,162
|
|
|
20,095
|
Depreciation of
property, plant and equipment
|
|
|
962
|
|
|
1,865
|
|
|
924
|
|
|
1,899
|
Amortization of
intangible assets
|
|
|
768
|
|
|
1,195
|
|
|
286
|
|
|
586
|
Interest and other
income
|
|
|
(9)
|
|
|
(29)
|
|
|
(470)
|
|
|
(407)
|
Foreign exchange
(gain) loss
|
|
|
272
|
|
|
(240)
|
|
|
(1,101)
|
|
|
(1,411)
|
Earnings before
income taxes
|
|
|
2,529
|
|
|
7,794
|
|
|
5,327
|
|
|
9,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
1,521
|
|
|
3,483
|
|
|
1,364
|
|
|
3,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
1,008
|
|
$
|
4,311
|
|
$
|
3,963
|
|
$
|
5,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
|
$
|
0.02
|
|
$
|
0.08
|
|
$
|
0.07
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net
earnings per share
|
|
$
|
0.02
|
|
$
|
0.08
|
|
$
|
0.07
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
|
54,506
|
|
|
54,195
|
|
|
53,927
|
|
|
53,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
|
55,681
|
|
|
55,341
|
|
|
54,615
|
|
|
54,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The cost of sales
is exclusive of depreciation and amortization, shown
separately.
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Comprehensive
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six
months
|
|
Three
months
|
|
Six
months
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
|
February
28,
|
|
February
28,
|
|
February
29,
|
|
February
29,
|
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
1,008
|
|
$
|
4,311
|
|
$
|
3,963
|
|
$
|
5,729
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
2,019
|
|
|
(2,198)
|
|
|
(2,204)
|
|
|
(4,713)
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gains/losses on forward exchange contracts
|
|
|
326
|
|
|
(235)
|
|
|
50
|
|
|
(220)
|
|
Reclassification of
realized gains/losses on forward exchange contracts in net
earnings
|
|
|
139
|
|
|
320
|
|
|
839
|
|
|
1,717
|
|
Deferred income tax
effect of gains (losses) on forward exchange contracts
|
|
|
(100)
|
|
|
(8)
|
|
|
(242)
|
|
|
(390)
|
Other comprehensive
income (loss)
|
|
|
2,384
|
|
|
(2,121)
|
|
|
(1,557)
|
|
|
(3,606)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income for the period
|
|
$
|
3,392
|
|
$
|
2,190
|
|
$
|
2,406
|
|
$
|
2,123
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
February 29, 2016
|
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2015
|
|
$
|
86,045
|
|
$
|
17,778
|
|
$
|
118,933
|
|
$
|
(52,005)
|
|
$
|
170,751
|
Redemption of share
capital
|
|
|
(244)
|
|
|
57
|
|
|
–
|
|
|
–
|
|
|
(187)
|
Reclassification of
stock-based compensation costs
|
|
|
1,230
|
|
|
(1,230)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
681
|
|
|
–
|
|
|
–
|
|
|
681
|
Net earnings for the
period
|
|
|
–
|
|
|
–
|
|
|
5,729
|
|
|
–
|
|
|
5,729
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(4,713)
|
|
|
(4,713)
|
|
Changes in unrealized
losses on forward exchange contracts, net of deferred income taxes
of $390
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,107
|
|
|
1,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
February 29, 2016
|
|
$
|
87,031
|
|
$
|
17,286
|
|
$
|
124,662
|
|
$
|
(55,611)
|
|
$
|
173,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
February 28, 2017
|
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2016
|
|
$
|
85,516
|
|
$
|
18,150
|
|
$
|
126,309
|
|
$
|
(48,574)
|
|
$
|
181,401
|
Issuance of share
capital
|
|
|
3,490
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
3,490
|
Reclassification of
stock-based compensation costs
|
|
|
835
|
|
|
(835)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
528
|
|
|
–
|
|
|
–
|
|
|
528
|
Net earnings for the
period
|
|
|
–
|
|
|
–
|
|
|
4,311
|
|
|
–
|
|
|
4,311
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(2,198)
|
|
|
(2,198)
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $8
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
77
|
|
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
February 28, 2017
|
|
$
|
89,841
|
|
$
|
17,843
|
|
$
|
130,620
|
|
$
|
(50,695)
|
|
$
|
187,609
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
February
28,
2017
|
|
Six
months
ended
February
28,
2017
|
|
Three
months
ended
February
29,
2016
|
|
Six
months
ended
February
29,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for the
period
|
|
$
|
1,008
|
|
$
|
4,311
|
|
$
|
3,963
|
|
$
|
5,729
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
353
|
|
|
611
|
|
|
314
|
|
|
690
|
|
Depreciation and
amortization
|
|
|
1,730
|
|
|
3,060
|
|
|
1,210
|
|
|
2,485
|
|
Deferred
revenue
|
|
|
3,022
|
|
|
2,947
|
|
|
2,162
|
|
|
3,673
|
|
Deferred income
taxes
|
|
|
312
|
|
|
459
|
|
|
101
|
|
|
674
|
|
Changes in foreign
exchange gain/loss
|
|
|
107
|
|
|
(431)
|
|
|
(615)
|
|
|
(959)
|
|
|
|
6,532
|
|
|
10,957
|
|
|
7,135
|
|
|
12,292
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
5,160
|
|
|
2,602
|
|
|
11,305
|
|
|
9,281
|
|
Income taxes and tax
credits
|
|
|
(46)
|
|
|
(390)
|
|
|
1,211
|
|
|
933
|
|
Inventories
|
|
|
924
|
|
|
(324)
|
|
|
(2,642)
|
|
|
(5,868)
|
|
Prepaid
expenses
|
|
|
(156)
|
|
|
102
|
|
|
(20)
|
|
|
34
|
|
Other
assets
|
|
|
(37)
|
|
|
(24)
|
|
|
10
|
|
|
203
|
|
Accounts payable,
accrued liabilities and provisions
|
|
|
2,011
|
|
|
586
|
|
|
(1,644)
|
|
|
1,731
|
|
Other
liabilities
|
|
|
1
|
|
|
1
|
|
|
(26)
|
|
|
(54)
|
|
|
|
14,389
|
|
|
13,510
|
|
|
15,329
|
|
|
18,552
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
(20)
|
|
|
(316)
|
|
|
‒
|
|
|
(21)
|
Proceeds from
disposal and maturity of short-term investments
|
|
|
298
|
|
|
298
|
|
|
501
|
|
|
501
|
Purchases capital
assets
|
|
|
(1,656)
|
|
|
(2,893)
|
|
|
(927)
|
|
|
(2,236)
|
Business
combination
|
|
|
–
|
|
|
(5,000)
|
|
|
‒
|
|
|
‒
|
|
|
|
(1,378)
|
|
|
(7,911)
|
|
|
(426)
|
|
|
(1,756)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
|
–
|
|
|
–
|
|
|
153
|
|
|
468
|
Redemption of share
capital
|
|
|
–
|
|
|
–
|
|
|
(186)
|
|
|
(187)
|
|
|
|
–
|
|
|
–
|
|
|
(33)
|
|
|
281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
|
|
271
|
|
|
(464)
|
|
|
674
|
|
|
477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
|
13,282
|
|
|
5,135
|
|
|
15,544
|
|
|
17,554
|
Cash – Beginning
of the period
|
|
|
35,061
|
|
|
43,208
|
|
|
27,874
|
|
|
25,864
|
Cash – End of the
period
|
|
$
|
48,343
|
|
$
|
48,343
|
|
$
|
43,418
|
|
$
|
43,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
603
|
|
$
|
1,561
|
|
$
|
508
|
|
$
|
1,116
|
Additions to capital
assets
|
|
$
|
2,483
|
|
$
|
3,662
|
|
$
|
1,066
|
|
$
|
2,375
|
EXFO-F
SOURCE EXFO inc.