- Sales reach US$58.5
million
- Bookings attain US$63.7
million, book-to-bill ratio of 1.09
- Adjusted EBITDA totals US$2.3
million
- Cost savings from restructuring of US$8.0 million expected in FY 2018
QUEBEC CITY, June 29, 2017 /CNW Telbec/ - EXFO Inc.
(NASDAQ: EXFO, TSX: EXF), the network test, monitoring and
analytics experts, reported today financial results for the third
quarter ended May 31, 2017.
Sales reached US$58.5 million in
the third quarter of fiscal 2017 compared to US$60.9 million in the third quarter of 2016 and
US$60.0 million in the second quarter
of 2017.
Bookings attained US$63.7 million
in the third quarter of fiscal 2017 compared to US$59.7 million in the same period last year and
US$55.9 million in the second quarter
of 2017. The company's book-to-bill ratio was 1.09 in the third
quarter of 2017.
Gross margin before depreciation and amortization*
amounted to 58.0% of sales in the third quarter of fiscal 2017
compared to 60.8% in the third quarter of 2016 and 61.7% in
the second quarter of 2017. Excluding restructuring charges of
US$1.6 million or 2.7% of sales,
gross margin would have amounted to 60.7% in the third quarter of
2017.
IFRS net loss in the third quarter of fiscal 2017 totaled
US$4.3 million, or US$0.08 per share, compared to net earnings of
US$0.9 million, or US$0.02 per share, in the same period last year
and net earnings of US$1.0 million, or US$0.02 per share, in the second quarter of 2017.
IFRS net loss in the third quarter of 2017 included US$3.6 million in after-tax restructuring
expenses, US$0.9 million in
after-tax amortization of intangible assets, US$0.4 million in stock-based compensation costs
and a foreign exchange gain of US$1.7
million.
Adjusted EBITDA* totaled US$2.3 million, or 3.9% of sales, in the third
quarter of fiscal 2017 compared to US$5.3 million, or 8.7% of sales, in the
third quarter of 2016 and US$4.9
million, or 8.1% of sales, in the second quarter of
2017.
At the beginning of March, EXFO acquired UK-based Ontology
Systems for a consideration of US$7.7
million, net of cash acquired, plus an earnout estimated at
US$1.4 million based on future
sales.
In early May, EXFO announced a restructuring plan to streamline
its monitoring solutions portfolio. This plan, which resulted in
US$3.8 million of restructuring
charges in the third quarter of 2017, is expected to generate
annual cost savings of US$8.0
million.
"Although bookings were robust at US$63.7
million, the timing of orders and necessity to rebuild
backlog affected our financial results in the third quarter of
2017," said Philippe Morin, EXFO's
Chief Executive Officer. "Looking at the bigger picture, we
continued capturing market share in optical and high-speed Ethernet
testing in the field, data centers and labs as reflected by sales
and bookings growth of 6.2% and 4.2% nine months into the fiscal
year. We also addressed an underperforming product line within
our monitoring solutions portfolio and fined-tuned our go-to-market
strategy to sharpen our focus and enhance profitability. We should
begin benefitting from our restructuring efforts in the fourth
quarter, but the full impact will be felt in fiscal 2018."
Selected Financial Information
(In thousands of US
dollars)
|
|
|
|
|
|
|
Q3
2017
|
|
Q2
2017
|
|
Q3
2016
|
|
|
|
|
|
|
|
|
|
Physical-layer
sales
|
$
|
41,007
|
|
$
|
38,038
|
|
$
|
42,074
|
Protocol-layer
sales
|
|
17,678
|
|
|
22,097
|
|
|
19,260
|
Foreign exchange
losses on forward exchange contracts
|
|
(180)
|
|
|
(105)
|
|
|
(438)
|
Total
sales
|
$
|
58,505
|
|
$
|
60,030
|
|
$
|
60,896
|
|
|
|
|
|
|
|
|
|
Physical-layer
bookings
|
$
|
47,157
|
|
$
|
34,031
|
|
$
|
41,797
|
Protocol-layer
bookings
|
|
16,691
|
|
|
21,992
|
|
|
18,389
|
Foreign exchange
losses on forward exchange contracts
|
|
(180)
|
|
|
(105)
|
|
|
(438)
|
Total
bookings
|
$
|
63,668
|
|
$
|
55,918
|
|
$
|
59,748
|
Book-to-bill ratio
(bookings/sales)
|
|
1.09
|
|
|
0.93
|
|
|
0.98
|
Gross margin before
depreciation and amortization*
|
$
|
33,950
|
|
$
|
37,041
|
|
$
|
37,016
|
|
|
58.0%
|
|
|
61.7%
|
|
|
60.8%
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss)
|
$
|
(4,304)
|
|
$
|
1,008
|
|
$
|
919
|
|
Amortization of
intangible assets
|
$
|
1,046
|
|
$
|
768
|
|
$
|
294
|
|
Stock-based
compensation costs
|
$
|
372
|
|
$
|
353
|
|
$
|
386
|
|
Restructuring
charges
|
$
|
3,813
|
|
$
|
–
|
|
$
|
–
|
|
Net income tax effect
of the above items
|
$
|
(357)
|
|
$
|
(162)
|
|
$
|
(31)
|
|
Foreign exchange
(gain) loss
|
$
|
(1,725)
|
|
$
|
272
|
|
$
|
957
|
|
Adjusted
EBITDA*
|
$
|
2,300
|
|
$
|
4,875
|
|
$
|
5,301
|
Operating Expenses
Selling and administrative expenses
totaled US$22.6 million, or 38.6% of
sales in the third quarter of fiscal 2017 compared to US$20.8 million, or 34.2% of sales, in the same
period last year and US$21.3 million,
or 35.4% of sales, in the second quarter of 2017.
Net R&D expenses totaled US$13.3
million, or 22.7% of sales, in the third quarter of fiscal
2017 compared to US$11.3 million, or 18.6% of sales, in
the third quarter of 2016 and US$11.3
million, or 18.8% of sales, in the second quarter of
2017.
EXFO recorded US$3.8 million of
restructuring charges in the third quarter of fiscal 2017, of which
US$1.6 million (2.7% of sales) was
included in cost of sales, US$0.9
million (1.6% of sales) in selling and administrative
expenses and US$1.3 million (2.2% of
sales) in net R&D expenses.
Third-Quarter Highlights
- Sales and bookings. Sales decreased 3.9% year-over-year to
US$58.5 million in the third quarter
of 2017 mainly due to the timing of orders and necessity to rebuild
backlog as bookings improved 6.6% to US$63.7
million. After nine months into fiscal 2017, sales and
bookings increased 6.2% and 4.2%, respectively. Physical-layer
sales accounted for 70% of total revenue in the third quarter of
2017, while Protocol-layer totaled 30%. Revenue contribution among
the three main geographic regions in the third quarter amounted to
62% from the Americas, 20% from EMEA and 18% from Asia-Pacific. EXFO's top customer accounted
for 9.9% of sales in the third quarter, while the top three
customers represented 24.0%.
- Profitability. EXFO generated adjusted EBITDA of US$2.3 million, or 3.9% of sales, in the third
quarter of 2017 and US$13.5 million,
or 7.5% of sales, after nine months into the fiscal year. In early
May, the company announced a restructuring plan that is expected to
deliver annual cost savings of US$8.0
million.
- Innovation. EXFO launched seven new solutions in the third
quarter of 2017 and 15 since the beginning of the fiscal year. Key
product introductions in the third quarter included a 400G test
solution for the high-speed lab and manufacturing markets; a
four-slot, FTB-4 Pro platform for network testing in the field,
data centers and R&D labs; a software-based solution, Universal
Virtual Sync, enabling communications service providers to
accurately and cost-effectively measure network latency; a tunable
optical time domain reflectometer (OTDR) that characterizes coarse
wavelength division multiplexing (CWDM) channels in metro Ethernet
links and centralized radio access networks (C-RANs); as well as an
optical spectrum analyzer and two optical power meters for the lab
and manufacturing markets.
Business Outlook
EXFO forecasts sales between
US$58.0 million and US$63.0 million
for the fourth quarter of fiscal 2017, while IFRS net results are
expected to range between a loss of US$0.03 per share and earnings of US$0.01 per share. IFRS net results include
US$0.03 per share in after-tax
amortization of intangible assets, after-tax restructuring charges
and stock-based compensation costs as well as an anticipated
foreign exchange loss of US$0.04 per
share.
This outlook was established by management based on existing
backlog as of the date of this news release, expected bookings for
the remaining of the quarter, exchange rates as of the day of this
news release, as well as the preliminary allocation of the fair
value of the total consideration for the acquisition of Ontology
Partners Limited.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review third quarter results for fiscal 2017. To
listen to the conference call and participate in the question
period via telephone, dial 1-323-794-2093. Please take note
the following participant passcode will be required: 1063188.
Germain Lamonde, Executive Chairman,
Philippe Morin, Chief Executive
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 July 6,
2017. The replay number is 1-719-457-0820 and the required
participant passcode is 1063188. 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,
monitoring and analytics solutions for the world's leading
communications service providers, network equipment manufacturers
and webscale companies. Since 1985, we've worked side by side with
our customers 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 customers
flourish in a rapidly transforming industry where "good enough"
testing, monitoring and analytics just aren't good enough
anymore—they never were 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 (loss) before interest,
income taxes, depreciation and amortization, stock-based
compensation costs, restructuring charges, and foreign exchange
gain or loss.
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings (loss), in thousands
of US dollars:
Adjusted EBITDA
|
Q3
2017
|
|
Q2
2017
|
|
Q3
2016
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) for the period
|
$
|
(4,304)
|
|
$
|
1,008
|
|
$
|
919
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
1,029
|
|
|
962
|
|
|
958
|
Amortization of
intangible assets
|
|
1,046
|
|
|
768
|
|
|
294
|
Interest (income)
expense
|
|
57
|
|
|
(9)
|
|
|
(309)
|
Income
taxes
|
|
2,012
|
|
|
1,521
|
|
|
2,096
|
Stock-based
compensation costs
|
|
372
|
|
|
353
|
|
|
386
|
Restructuring
charges
|
|
3,813
|
|
|
–
|
|
|
–
|
Foreign exchange
(gain) loss
|
|
(1,725)
|
|
|
272
|
|
|
957
|
Adjusted EBITDA for
the period
|
$
|
2,300
|
|
$
|
4,875
|
|
$
|
5,301
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
3.9%
|
|
|
8.1%
|
|
|
8.7%
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
As at
May 31,
2017
|
|
|
As at
August 31,
2016
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
34,373
|
|
$
|
43,208
|
Short-term
investments
|
|
3,337
|
|
|
4,087
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
41,358
|
|
|
42,993
|
|
Other
|
|
2,107
|
|
|
2,474
|
Income taxes and tax
credits recoverable
|
|
5,090
|
|
|
4,208
|
Inventories
|
|
32,124
|
|
|
33,004
|
Prepaid
expenses
|
|
3,781
|
|
|
3,099
|
|
|
122,170
|
|
|
133,073
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
33,718
|
|
|
34,594
|
Property, plant
and equipment
|
|
36,718
|
|
|
35,978
|
Intangible
assets
|
|
11,969
|
|
|
3,391
|
Goodwill
|
|
32,756
|
|
|
21,928
|
Deferred income
tax assets
|
|
6,705
|
|
|
8,240
|
Other
assets
|
|
455
|
|
|
589
|
|
|
|
|
|
|
|
$
|
244,491
|
|
$
|
237,793
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
41,966
|
|
$
|
37,174
|
Provisions
|
|
296
|
|
|
299
|
Income taxes
payable
|
|
610
|
|
|
971
|
Deferred
revenue
|
|
11,556
|
|
|
9,486
|
|
|
54,428
|
|
|
47,930
|
|
|
|
|
|
|
Deferred
revenue
|
|
6,211
|
|
|
5,530
|
Deferred income
tax liabilities
|
|
2,720
|
|
|
2,857
|
Other
liabilities
|
|
31
|
|
|
75
|
|
|
63,390
|
|
|
56,392
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
90,376
|
|
|
85,516
|
Contributed
surplus
|
|
17,721
|
|
|
18,150
|
Retained
earnings
|
|
126,316
|
|
|
126,309
|
Accumulated other
comprehensive loss
|
|
(53,312)
|
|
|
(48,574)
|
|
|
|
|
|
|
|
|
181,101
|
|
|
181,401
|
|
|
|
|
|
|
|
$
|
244,491
|
|
$
|
237,793
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
|
Nine
months
|
|
|
Three
months
|
|
|
Nine
months
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
ended
|
|
|
May 31,
2017
|
|
|
May 31,
2017
|
|
|
May 31,
2016
|
|
|
May 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
58,505
|
|
$
|
180,320
|
|
$
|
60,896
|
|
$
|
169,725
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
24,555
|
|
|
70,357
|
|
|
23,880
|
|
|
62,921
|
Selling and
administrative
|
|
22,572
|
|
|
65,422
|
|
|
20,798
|
|
|
60,615
|
Net research and
development
|
|
13,263
|
|
|
35,841
|
|
|
11,303
|
|
|
31,398
|
Depreciation of
property, plant and equipment
|
|
1,029
|
|
|
2,894
|
|
|
958
|
|
|
2,857
|
Amortization of
intangible assets
|
|
1,046
|
|
|
2,241
|
|
|
294
|
|
|
880
|
Interest and other
(income) expense
|
|
57
|
|
|
28
|
|
|
(309)
|
|
|
(716)
|
Foreign exchange
(gain) loss
|
|
(1,725)
|
|
|
(1,965)
|
|
|
957
|
|
|
(454)
|
Earnings (loss)
before income taxes
|
|
(2,292)
|
|
|
5,502
|
|
|
3,015
|
|
|
12,224
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
2,012
|
|
|
5,495
|
|
|
2,096
|
|
|
5,576
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
$
|
(4,304)
|
|
$
|
7
|
|
$
|
919
|
|
$
|
6,648
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings (loss) per share
|
$
|
(0.08)
|
|
$
|
0.00
|
|
$
|
0.02
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000s)
|
|
54,593
|
|
|
54,328
|
|
|
53,940
|
|
|
53,894
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000s)
|
|
54,593
|
|
|
55,479
|
|
|
54,813
|
|
|
54,655
|
|
(1) The cost of sales is exclusive of depreciation and
amortization, shown separately.
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Comprehensive Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Nine
months
|
|
Three
months
|
|
Nine
months
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
May 31,
2017
|
|
May 31,
2017
|
|
May 31,
2016
|
|
May 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
$
|
(4,304)
|
|
$
|
7
|
|
$
|
919
|
|
$
|
6,648
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(2,568)
|
|
|
(4,766)
|
|
|
5,488
|
|
|
775
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gains/losses on forward exchange contracts
|
|
(127)
|
|
|
(362)
|
|
|
1,045
|
|
|
825
|
|
Reclassification of
realized gains/losses on forward exchange contracts in net
earnings
|
|
39
|
|
|
359
|
|
|
666
|
|
|
2,383
|
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
39
|
|
|
31
|
|
|
(434)
|
|
|
(824)
|
Other comprehensive
income (loss)
|
|
(2,617)
|
|
|
(4,738)
|
|
|
6,765
|
|
|
3,159
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
$
|
(6,921)
|
|
$
|
(4,731)
|
|
$
|
7,684
|
|
$
|
9,807
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
May 31, 2016
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2015
|
$
|
86,045
|
|
$
|
17,778
|
|
$
|
117,409
|
|
$
|
(52,005)
|
|
$
|
169,227
|
Redemption of share
capital
|
|
(457)
|
|
|
55
|
|
|
–
|
|
|
–
|
|
|
(402)
|
Reclassification of
stock-based compensation costs
|
|
1,238
|
|
|
(1,238)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
–
|
|
|
1,040
|
|
|
–
|
|
|
–
|
|
|
1,040
|
Net earnings for the
period
|
|
–
|
|
|
–
|
|
|
6,648
|
|
|
–
|
|
|
6,648
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
–
|
|
|
–
|
|
|
–
|
|
|
775
|
|
|
775
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $824
|
|
–
|
|
|
–
|
|
|
–
|
|
|
2,384
|
|
|
2,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2016
|
$
|
86,826
|
|
$
|
17,635
|
|
$
|
124,057
|
|
$
|
(48,846)
|
|
$
|
179,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May 31,
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
|
|
1,370
|
|
|
(1,370)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
–
|
|
|
941
|
|
|
–
|
|
|
–
|
|
|
941
|
Net earnings for the
period
|
|
–
|
|
|
–
|
|
|
7
|
|
|
–
|
|
|
7
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(4,766)
|
|
|
(4,766)
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $31
|
|
–
|
|
|
–
|
|
|
–
|
|
|
28
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,731)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2017
|
$
|
90,376
|
|
$
|
17,721
|
|
$
|
126,316
|
|
$
|
(53,312)
|
|
$
|
181,101
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
May 31, 2017
|
|
Nine months
ended
May 31, 2017
|
|
Three months
ended
May 31, 2016
|
|
Nine months
ended
May 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
for the period
|
$
|
(4,304)
|
|
$
|
7
|
|
$
|
919
|
|
$
|
6,648
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
372
|
|
|
983
|
|
|
386
|
|
|
1,076
|
|
Depreciation and
amortization
|
|
2,075
|
|
|
5,135
|
|
|
1,252
|
|
|
3,737
|
|
Deferred
revenue
|
|
79
|
|
|
3,026
|
|
|
1,203
|
|
|
4,876
|
|
Deferred income
taxes
|
|
704
|
|
|
1,163
|
|
|
611
|
|
|
1,285
|
|
Changes in foreign
exchange gain/loss
|
|
(524)
|
|
|
(955)
|
|
|
626
|
|
|
(333)
|
|
|
(1,598)
|
|
|
9,359
|
|
|
4,997
|
|
|
17,289
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(901)
|
|
|
1,701
|
|
|
(5,887)
|
|
|
3,394
|
|
Income taxes and tax
credits
|
|
(842)
|
|
|
(1,232)
|
|
|
(301)
|
|
|
632
|
|
Inventories
|
|
315
|
|
|
(9)
|
|
|
(759)
|
|
|
(6,627)
|
|
Prepaid
expenses
|
|
(863)
|
|
|
(761)
|
|
|
(452)
|
|
|
(418)
|
|
Other
assets
|
|
(103)
|
|
|
(127)
|
|
|
–
|
|
|
203
|
|
Accounts payable,
accrued liabilities, provisions and other liabilities
|
|
1,169
|
|
|
1,756
|
|
|
4,670
|
|
|
6,347
|
|
|
(2,823)
|
|
|
10,687
|
|
|
2,268
|
|
|
20,820
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
(2,571)
|
|
|
(2,887)
|
|
|
(3,109)
|
|
|
(3,130)
|
Proceeds from
disposal and maturity of short-term investments
|
|
3,298
|
|
|
3,596
|
|
|
–
|
|
|
501
|
Purchases of capital
assets
|
|
(2,555)
|
|
|
(5,448)
|
|
|
(1,138)
|
|
|
(3,374)
|
Business
combinations, net of cash acquired
|
|
(7,479)
|
|
|
(12,479)
|
|
|
‒
|
|
|
‒
|
|
|
(9,307)
|
|
|
(17,218)
|
|
|
(4,247)
|
|
|
(6,003)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
–
|
|
|
–
|
|
|
–
|
|
|
468
|
Repayment of
long-term debt
|
|
(1,480)
|
|
|
(1,480)
|
|
|
–
|
|
|
–
|
Redemption of share
capital
|
|
–
|
|
|
–
|
|
|
(215)
|
|
|
(402)
|
|
|
(1,480)
|
|
|
(1,480)
|
|
|
(215)
|
|
|
66
|
Effect of foreign
exchange rate changes on cash
|
|
(360)
|
|
|
(824)
|
|
|
1,049
|
|
|
1,526
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
(13,970)
|
|
|
(8,835)
|
|
|
(1,145)
|
|
|
16,409
|
Cash – Beginning
of the period
|
|
48,343
|
|
|
43,208
|
|
|
43,418
|
|
|
25,864
|
Cash – End of the
period
|
$
|
34,373
|
|
$
|
34,373
|
|
$
|
42,273
|
|
$
|
42,273
|
SOURCE EXFO inc.