Sharpens focus on testing, active service assurance, fiber
monitoring and analytics
QUEBEC CITY, May 2, 2017
/PRNewswire/ - EXFO Inc. (NASDAQ: EXFO, TSX: EXF) announced
today the company has streamlined its monitoring solutions
portfolio to focus on testing, active service assurance, fiber
monitoring and analytics.
Accordingly, EXFO will significantly reduce investments in
passive wireless monitoring which represented less than 5% of total
sales. Staff reductions related to this product line and varied
go-to-market adjustments will affect approximately 5% of EXFO's
global workforce.
Following this restructuring, which should be completed in the
fourth quarter of fiscal 2017, EXFO intends to benefit from annual
cost savings of US$8.0 million. The
company will also incur one-time restructuring costs of
US$4.0 million in the third quarter
of 2017.
"EXFO has performed well overall with double-digit revenue
growth at the halfway mark of fiscal 2017, but we needed to address
an underachieving product line within our monitoring solutions
portfolio," said Philippe Morin,
EXFO's Chief Executive Officer. "By sharpening our focus on
testing, active service assurance, fiber monitoring and analytics,
we will better meet growing customer requirements for real-time
visibility on virtualized and hybrid networks and, in the process,
bolster profitability."
About EXFO
EXFO develops smarter network test,
monitoring 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.
EXFO-C
SOURCE EXFO inc.