Q4 2017
- Sales reach US$63.0
million, top of guidance range
- Bookings attain US$66.3
million, book-to-bill ratio of 1.05
- Adjusted EBITDA totals US$8.5
million, 13.6% of sales
Fiscal 2017
- Sales increase 4.6% to US$243.3
million
- Bookings improve 4.8% to US$251.8
million
- Adjusted EBITDA totals US$22.0
million, 9.1% of sales
QUEBEC CITY, Oct. 12, 2017 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO) (TSX: EXF), the network test, monitoring and analytics
experts, announced today financial results for the fourth quarter
and fiscal year ended August 31,
2017.
Sales in the fourth quarter of fiscal 2017 reached US$63.0 million compared to US$58.5 million in the third quarter of 2017 and
US$62.9 million in the fourth quarter
of 2016. Annual sales increased 4.6% to US$243.3 million in fiscal 2017 from US$232.6 million in 2016.
Bookings totaled US$66.3 million
for a book-to-bill ratio of 1.05 in the fourth quarter of fiscal
2017 compared to US$63.7 million in
the third quarter of 2017 and US$62.4
million in the fourth quarter of 2016. Overall for fiscal
2017, bookings increased 4.8% to US$251.8 million for a book-to-bill ratio of
1.03 from US$240.3 million
in 2016.
Gross margin before depreciation and amortization* attained
61.9% of sales in the fourth quarter of fiscal 2017 compared to
58.0% in the third quarter of 2017 and 61.6% in the fourth quarter
of 2016. Gross margin included restructuring charges of 0.2% of
sales in the fourth quarter of 2017, 2.7% of sales in the third
quarter of 2017 and nil in the fourth quarter of 2016. In fiscal
2017, gross margin reached 61.2% of sales compared to 62.6% in
2016. Gross margin included restructuring charges of 0.7% of sales
in 2017 and nil in 2016.
In the fourth quarter of fiscal 2017, IFRS net earnings amounted
to US$0.8 million, or US$0.02 per diluted share, compared to a net loss
of US$4.3 million, or US$0.08 per share, in the third quarter of 2017
and net earnings of US$2.3 million, or US$0.04 per diluted share, in the fourth quarter
of 2016. Net earnings in the fourth quarter of 2017 included net
expenses totaling US$5.3 million: US$0.9 million in after-tax amortization of
intangible assets, US$0.4 million in
stock-based compensation costs, US$1.2
million in after-tax restructuring changes, US$0.4 million for the positive change in the
fair value of the cash contingent consideration related to the
Ontology Systems acquisition, US$0.3
million in after-tax acquisition-related costs, and a
foreign exchange loss of US$2.9
million.
In fiscal 2017, IFRS net earnings totaled US$0.9 million, or US$0.02 per diluted share, compared to
US$8.9 million, or US$0.16 per diluted share, in 2016. Net earnings
in 2017 included net expenses totaling US$10.6 million: US$2.7 million in after-tax amortization of
intangible assets, US$1.4 million in
stock-based compensation costs, US$4.8
million in after-tax restructuring charges, US$0.4 million for the positive change in the
fair value of the cash contingent consideration related to the
Ontology Systems acquisition, US$1.1
million in after-tax acquisition-related costs, and a
foreign exchange loss of US$1.0
million.
Adjusted EBITDA* totaled US$8.5
million, or 13.6% of sales, in the fourth quarter of fiscal
2017 compared to US$2.3 million,
or 3.9% of sales, in the third quarter of 2017 and US$6.2 million, or 9.8% of sales, in the fourth
quarter of 2016. In fiscal 2017, adjusted EBITDA totaled
US$22.0 million compared to
US$22.0 million in 2016.
On September 8, 2017, EXFO
acquired a 33.1% stake in Astellia, a global leader in the
performance analysis of mobile networks and subscriber experience.
EXFO intends to purchase publicly traded Astellia's remaining
equity through a public tender offer. On October 2, 2017, EXFO closed the acquisition of
Yenista Optics, a supplier of high-end optical test equipment for
the laboratory and manufacturing markets.
"I am very pleased with EXFO's financial results in the fourth
quarter of 2017, highlighted by revenue at the top of our guidance
range, even stronger bookings and our best adjusted EBITDA margin
in recent memory," said EXFO's CEO Philippe
Morin. "Overall in fiscal 2017, we delivered 5% revenue
growth and healthy profitability amid a competitive environment.
Equally important, we established a solid foundation for future
growth with investments—both internally and through acquisitions—in
key technology areas like fiber, the Cloud, network virtualization
and 5G. These growth initiatives, combined with heightened
sales efficiency and recent restructuring measures, should enhance
profitability in 2018."
Selected Financial
Information (unaudited)
|
(In thousands of
US dollars)
|
|
|
Q4
2017
|
|
Q3
2017
|
|
Q4
2016
|
|
FY
2017
|
|
FY
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
sales
|
$
|
40,802
|
|
$
|
41,007
|
|
$
|
39,777
|
|
$
|
161,864
|
|
$
|
151,910
|
Protocol-layer
sales
|
|
22,122
|
|
|
17,678
|
|
|
23,445
|
|
|
81,905
|
|
|
83,324
|
Foreign exchange
gains (losses) on forward exchange contracts
|
|
57
|
|
|
(180)
|
|
|
(364)
|
|
|
(468)
|
|
|
(2,651)
|
Total
Sales
|
$
|
62,981
|
|
$
|
58,505
|
|
$
|
62,858
|
|
$
|
243,301
|
|
$
|
232,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
bookings
|
$
|
39,322
|
|
$
|
47,157
|
|
$
|
39,826
|
|
$
|
165,886
|
|
$
|
155,320
|
Protocol-layer
bookings
|
|
26,943
|
|
|
16,691
|
|
|
22,969
|
|
|
86,348
|
|
|
87,631
|
Foreign exchange
gains (losses) on forward exchange contracts
|
|
57
|
|
|
(180)
|
|
|
(364)
|
|
|
(468)
|
|
|
(2,651)
|
Total
Bookings
|
$
|
66,322
|
|
$
|
63,668
|
|
$
|
62,431
|
|
$
|
251,766
|
|
$
|
240,300
|
Book-to-bill ratio
(Bookings/Sales)
|
|
1.05
|
|
|
1.09
|
|
|
0.99
|
|
|
1.03
|
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin before
depreciation and amortization*
|
$
|
39,009
|
|
$
|
33,950
|
|
$
|
38,713
|
|
$
|
148,972
|
|
$
|
145,517
|
|
|
61.9%
|
|
|
58.0%
|
|
|
61.6%
|
|
|
61.2%
|
|
|
62.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss)
|
$
|
844
|
|
$
|
(4,304)
|
|
$
|
2,252
|
|
$
|
851
|
|
$
|
8,900
|
|
Amortization of
intangible assets
|
$
|
1,048
|
|
$
|
1,046
|
|
$
|
292
|
|
$
|
3,289
|
|
$
|
1,172
|
|
Stock-based
compensation costs
|
$
|
431
|
|
$
|
372
|
|
$
|
302
|
|
$
|
1,414
|
|
$
|
1,378
|
|
Restructuring
charges
|
$
|
1,266
|
|
$
|
3,813
|
|
$
|
−
|
|
$
|
5,079
|
|
$
|
−
|
|
Change in fair value
of cash contingent consideration
|
$
|
(383)
|
|
$
|
−
|
|
$
|
−
|
|
$
|
(383)
|
|
$
|
−
|
|
Net income tax effect
of the above items
|
$
|
(275)
|
|
$
|
(357)
|
|
$
|
(31)
|
|
$
|
(858)
|
|
$
|
(120)
|
|
Foreign exchange
(gain) loss
|
$
|
2,943
|
|
$
|
(1,725)
|
|
$
|
293
|
|
$
|
978
|
|
$
|
(161)
|
|
Adjusted
EBITDA*
|
$
|
8,545
|
|
$
|
2,300
|
|
$
|
6,172
|
|
$
|
22,041
|
|
$
|
22,039
|
Operating Expenses
Selling and administrative expenses
totaled US$20.8 million, or 33.1% of
sales, in the fourth quarter of fiscal 2017 compared to
US$22.6 million, or 38.6% of sales,
in the third quarter of 2017 and US$21.6
million, or 34.3% of sales, in the fourth quarter of 2016.
In fiscal 2017, selling and administrative expenses amounted to
US$86.3 million, or 35.5% of sales,
compared to US$82.2 million, or 35.3%
of sales, in 2016.
Net R&D expenses amounted to US$11.3
million, or 17.9% of sales, in the fourth quarter of fiscal
2017 compared to US$13.3 million, or
22.7% of sales, in the third quarter of 2017 and US$11.3 million, or 18.0% of sales, in the fourth
quarter of 2016. In fiscal 2017, net R&D expenses totaled
US$47.2 million, or 19.4% of sales,
compared to US$42.7 million, or
18.4% of sales, in 2016.
Fiscal 2017 Highlights
- Sales. Total sales increased 4.6% to US$243.3 million in fiscal 2017 mainly due to
EXFO's leadership in optical testing, ongoing 100G investment cycle
among communications service providers and the company's growing
business with web-scale operators. Sales of Physical-layer
solutions (optical and copper access) increased 6.6%
year-over-year, while sales of Protocol-layer solutions (transport,
datacom, service assurance, analytics and wireless products) dipped
1.7%.
Annual sales in the Americas as well as Europe, Middle
East and Africa (EMEA)
increased by 5.6% and 8.6%, respectively, while sales in the
Asia-Pacific region dropped
2.9%.
EXFO's largest customer accounted for 10.1% of sales in fiscal
2017, while the company's top-three customers represented 18.4%. In
comparison, EXFO's largest customer accounted for 7.1% of sales in
2016, while the company's top-three customers represented
15.6%.
- Profitability. EXFO generated adjusted EBITDA of
US$22.0 million, or 9.1% of sales, in
fiscal 2017 compared to US$22.0
million, or 9.5% of sales, in 2016. The company also
delivered US$12.9 million in cash
flows from operating activities in 2017 compared to US$24.4 million in 2016.
- Innovation. EXFO launched 16 new products and/or
major enhancements in fiscal 2017, addressing four key technology
areas: fiber, Cloud, network virtualization and 5G. New product
introductions included a 400 Gbit/s optical transport test solution
for the lab and manufacturing markets; an automated inspection
probe for testing multi-fiber connectors in data centers and radio
access networks; a software-based solution, Universal Virtual
Synch, enabling communications service providers to accurately and
cost-effectively measure network latency; and optical RF over OBSAI
(open base station architecture initiative) link test capabilities
to complement optical RF over CPRI (common public radio interface)
test technology for centralized radio access networks.
Business Outlook
EXFO forecasts sales between
US$60 million and US$65 million for
the first quarter of fiscal 2018, while IFRS net results are
expected to range between a net loss of US$0.01 per share and net earnings of
US$0.03 per share.
IFRS net results include US$0.02
per share in after-tax amortization of intangible assets and
stock-based compensation costs.
This guidance was established by management based on existing
backlog as of the date of this news release, seasonality, expected
bookings for the remaining of the quarter, as well as exchange
rates as of the day of this release.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review fourth quarter and year-end financial
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 conference ID
number will be required: 6482663. EXFO's Executive Chairman
Germain Lamonde, CEO Philippe Morin, 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 October 19, 2017. The replay number is
1-719-457-0820 and the conference ID number is 6482663. 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; our ability to successfully
integrate businesses that we acquire; 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; 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
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, change in fair value of
cash contingent consideration, 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
|
|
|
|
|
|
|
Q4
2017
|
|
Q3
2017
|
|
Q4
2016
|
|
FY
2017
|
|
FY
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) for the period
|
$
|
844
|
|
$
|
(4,304)
|
|
$
|
2,252
|
|
$
|
851
|
|
$
|
8,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
1,008
|
|
|
1,029
|
|
|
957
|
|
|
3,902
|
|
|
3,814
|
Amortization of
intangible assets
|
|
1,048
|
|
|
1,046
|
|
|
292
|
|
|
3,289
|
|
|
1,172
|
Interest and other
(income) expenses
|
|
275
|
|
|
57
|
|
|
(112)
|
|
|
303
|
|
|
(828)
|
Income
taxes
|
|
1,113
|
|
|
2,012
|
|
|
2,188
|
|
|
6,608
|
|
|
7,764
|
Stock-based
compensation costs
|
|
431
|
|
|
372
|
|
|
302
|
|
|
1,414
|
|
|
1,378
|
Restructuring
charges
|
|
1,266
|
|
|
3,813
|
|
|
–
|
|
|
5,079
|
|
|
–
|
Change in fair value
of cash contingent consideration
|
|
(383)
|
|
|
–
|
|
|
–
|
|
|
(383)
|
|
|
–
|
Foreign exchange
(gain) loss
|
|
2,943
|
|
|
(1,725)
|
|
|
293
|
|
|
978
|
|
|
(161)
|
Adjusted EBITDA for
the period
|
$
|
8,545
|
|
$
|
2,300
|
|
$
|
6,172
|
|
$
|
22,041
|
|
$
|
22,039
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
13.6%
|
|
|
3.9%
|
|
|
9.8%
|
|
|
9.1%
|
|
|
9.5%
|
EXFO-F
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
As at August
31,
|
|
|
2017
|
|
|
2016
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
38,435
|
|
$
|
43,208
|
Short-term
investments
|
|
775
|
|
|
4,087
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
41,130
|
|
|
42,993
|
|
Other
|
|
3,907
|
|
|
2,474
|
Income taxes and tax
credits recoverable
|
|
4,955
|
|
|
4,208
|
Inventories
|
|
33,832
|
|
|
33,004
|
Prepaid
expenses
|
|
4,202
|
|
|
3,099
|
|
|
|
|
|
|
|
|
127,236
|
|
|
133,073
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
38,111
|
|
|
34,594
|
Property, plant
and equipment
|
|
40,132
|
|
|
35,978
|
Intangible
assets
|
|
11,183
|
|
|
3,391
|
Goodwill
|
|
35,077
|
|
|
21,928
|
Deferred income
tax assets
|
|
6,555
|
|
|
8,240
|
Other
assets
|
|
947
|
|
|
589
|
|
|
|
|
|
|
|
$
|
259,241
|
|
$
|
237,793
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
36,776
|
|
$
|
37,174
|
Provisions
|
|
3,889
|
|
|
299
|
Income taxes
payable
|
|
663
|
|
|
971
|
Deferred
revenue
|
|
11,554
|
|
|
9,486
|
|
|
|
|
|
|
|
|
52,882
|
|
|
47,930
|
|
|
|
|
|
|
Deferred
revenue
|
|
6,257
|
|
|
5,530
|
Deferred income
tax liabilities
|
|
3,116
|
|
|
2,857
|
Other
liabilities
|
|
196
|
|
|
75
|
|
|
|
|
|
|
|
|
62,451
|
|
|
56,392
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
90,411
|
|
|
85,516
|
Contributed
surplus
|
|
18,184
|
|
|
18,150
|
Retained
earnings
|
|
127,160
|
|
|
126,309
|
Accumulated other
comprehensive loss
|
|
(38,965)
|
|
|
(48,574)
|
|
|
|
|
|
|
|
|
196,790
|
|
|
181,401
|
|
|
|
|
|
|
|
$
|
259,241
|
|
$
|
237,793
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Earnings
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
Three
months
ended
August 31,
2017
|
|
Twelve
months
ended
August 31,
2017
|
|
Three
months
ended
August 31,
2016
|
|
Twelve
months
ended
August 31,
2016
|
|
Sales
|
$
|
62,981
|
|
$
|
243,301
|
|
$
|
62,858
|
|
$
|
232,583
|
|
Cost of sales
(1,2)
|
|
23,972
|
|
|
94,329
|
|
|
24,145
|
|
|
87,066
|
Selling and
administrative (2)
|
|
20,834
|
|
|
86,256
|
|
|
21,554
|
|
|
82,169
|
Net research and
development (2)
|
|
11,327
|
|
|
47,168
|
|
|
11,289
|
|
|
42,687
|
Depreciation of
property, plant and equipment
|
|
1,008
|
|
|
3,902
|
|
|
957
|
|
|
3,814
|
Amortization of
intangible assets
|
|
1,048
|
|
|
3,289
|
|
|
292
|
|
|
1,172
|
Change in fair value
of cash contingent consideration
|
|
(383)
|
|
|
(383)
|
|
|
‒
|
|
|
‒
|
Interest and other
(income) expense
|
|
275
|
|
|
303
|
|
|
(112)
|
|
|
(828)
|
Foreign exchange
(gain) loss
|
|
2,943
|
|
|
978
|
|
|
293
|
|
|
(161)
|
Earnings before
income taxes
|
|
1,957
|
|
|
7,459
|
|
|
4,440
|
|
|
16,664
|
|
Income
taxes
|
|
1,113
|
|
|
6,608
|
|
|
2,188
|
|
|
7,764
|
|
Net earnings for
the period
|
$
|
844
|
|
$
|
851
|
|
$
|
2,252
|
|
$
|
8,900
|
|
Basic net earnings
per share
|
$
|
0.02
|
|
$
|
0.02
|
|
$
|
0.04
|
|
$
|
0.17
|
|
Diluted net
earnings per share
|
$
|
0.02
|
|
$
|
0.02
|
|
$
|
0.04
|
|
$
|
0.16
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
54,708
|
|
|
54,423
|
|
|
53,769
|
|
|
53,863
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
55,784
|
|
|
55,555
|
|
|
54,709
|
|
|
54,669
|
|
(1)
|
The cost of sales is
exclusive of depreciation and amortization, shown
separately.
|
(2)
|
Restructuring charges
included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
$
|
115
|
|
$
|
1,697
|
|
$
|
‒
|
|
$
|
‒
|
|
Selling and
administrative
|
|
231
|
|
|
1,150
|
|
|
‒
|
|
|
‒
|
|
Net research and
development
|
|
920
|
|
|
2,232
|
|
|
‒
|
|
|
‒
|
|
|
$
|
1,266
|
|
$
|
5,079
|
|
$
|
‒
|
|
$
|
‒
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Comprehensive
Income
|
|
(in thousands of US
dollars)
|
|
|
Three
months ended August 31,
2017
|
|
Twelve
months ended August 31,
2017
|
|
Three
months ended August 31,
2016
|
|
Twelve
months ended August 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
$
|
844
|
|
$
|
851
|
|
$
|
2,252
|
|
$
|
8,900
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
13,028
|
|
|
8,262
|
|
|
(68)
|
|
|
707
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gains/losses on forward exchange contracts
|
|
1,765
|
|
|
1,403
|
|
|
37
|
|
|
862
|
|
Reclassification of
realized gains/losses on forward exchange contracts in net
earnings
|
|
64
|
|
|
423
|
|
|
414
|
|
|
2,797
|
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
(510)
|
|
|
(479)
|
|
|
(111)
|
|
|
(935)
|
Other comprehensive
income
|
|
14,347
|
|
|
9,609
|
|
|
272
|
|
|
3,431
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income for the period
|
$
|
15,191
|
|
$
|
10,460
|
|
$
|
2,524
|
|
$
|
12,331
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands of US
dollars)
|
|
|
Year ended August
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
|
|
(1,768)
|
|
|
217
|
|
|
–
|
|
|
–
|
|
|
(1,551)
|
Reclassification of
stock-based compensation costs
|
|
1,239
|
|
|
(1,239)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
–
|
|
|
1,394
|
|
|
–
|
|
|
–
|
|
|
1,394
|
Net earnings for the
year
|
|
–
|
|
|
–
|
|
|
8,900
|
|
|
–
|
|
|
8,900
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
–
|
|
|
–
|
|
|
–
|
|
|
707
|
|
|
707
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $935
|
|
–
|
|
|
–
|
|
|
–
|
|
|
2,724
|
|
|
2,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2016
|
$
|
85,516
|
|
$
|
18,150
|
|
$
|
126,309
|
|
$
|
(48,574)
|
|
$
|
181,401
|
|
|
|
Year ended August
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
|
|
1,405
|
|
|
(1,405)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
–
|
|
|
1,439
|
|
|
–
|
|
|
–
|
|
|
1,439
|
Net earnings for the
year
|
|
–
|
|
|
–
|
|
|
851
|
|
|
–
|
|
|
851
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
–
|
|
|
–
|
|
|
–
|
|
|
8,262
|
|
|
8,262
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $479
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,347
|
|
|
1,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2017
|
$
|
90,411
|
|
$
|
18,184
|
|
$
|
127,160
|
|
$
|
(38,965)
|
|
$
|
196,790
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
(in thousands of US
dollars)
|
|
|
Three
months
ended
August 31,
2017
|
|
Twelve
months
ended
August 31,
2017
|
|
Three
months
ended
August 31,
2016
|
|
Twelve
months
ended
August 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for the
period
|
$
|
844
|
|
$
|
851
|
|
$
|
2,252
|
|
$
|
8,900
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
494
|
|
|
1,477
|
|
|
302
|
|
|
1,378
|
|
Depreciation and
amortization
|
|
2,056
|
|
|
7,191
|
|
|
1,249
|
|
|
4,986
|
|
Change in fair value
of cash contingent consideration
|
|
(383)
|
|
|
(383)
|
|
|
‒
|
|
|
‒
|
|
Deferred
revenue
|
|
(1,303)
|
|
|
1,723
|
|
|
(638)
|
|
|
4,238
|
|
Deferred income
taxes
|
|
(109)
|
|
|
1,054
|
|
|
293
|
|
|
1,578
|
|
Changes in foreign
exchange gain/loss
|
|
2,051
|
|
|
1,096
|
|
|
1
|
|
|
(332)
|
|
|
3,650
|
|
|
13,009
|
|
|
3,459
|
|
|
20,748
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
2,254
|
|
|
3,955
|
|
|
(712)
|
|
|
2,682
|
|
Income taxes and tax
credits
|
|
(1,154)
|
|
|
(2,386)
|
|
|
307
|
|
|
939
|
|
Inventories
|
|
920
|
|
|
911
|
|
|
1,914
|
|
|
(4,713)
|
|
Prepaid
expenses
|
|
(157)
|
|
|
(918)
|
|
|
138
|
|
|
(280)
|
|
Other
assets
|
|
6
|
|
|
(121)
|
|
|
(33)
|
|
|
170
|
|
Accounts payable,
accrued liabilities and provisions
|
|
(3,501)
|
|
|
(1,745)
|
|
|
(1,524)
|
|
|
4,882
|
|
Other
liabilities
|
|
165
|
|
|
165
|
|
|
(6)
|
|
|
(65)
|
|
|
2,183
|
|
|
12,870
|
|
|
3,543
|
|
|
24,363
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
(23)
|
|
|
(2,910)
|
|
|
(416)
|
|
|
(3,546)
|
Proceeds from disposal
and maturity of short-term investments
|
|
2,778
|
|
|
6,374
|
|
|
372
|
|
|
873
|
Purchases of capital
assets
|
|
(1,727)
|
|
|
(7,175)
|
|
|
(982)
|
|
|
(4,356)
|
Business
combinations, net of cash acquired
|
|
(313)
|
|
|
(12,792)
|
|
|
‒
|
|
|
‒
|
|
|
715
|
|
|
(16,503)
|
|
|
(1,026)
|
|
|
(7,029)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
‒
|
|
|
‒
|
|
|
(468)
|
|
|
‒
|
Repayment of
long-term debt
|
|
‒
|
|
|
(1,480)
|
|
|
‒
|
|
|
‒
|
Redemption of share
capital
|
|
‒
|
|
|
‒
|
|
|
(1,149)
|
|
|
(1,551)
|
|
|
‒
|
|
|
(1,480)
|
|
|
(1,617)
|
|
|
(1,551)
|
Effect of foreign
exchange rate changes on cash
|
|
1,164
|
|
|
340
|
|
|
35
|
|
|
1,561
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
4,062
|
|
|
(4,773)
|
|
|
935
|
|
|
17,344
|
Cash – Beginning
of the period
|
|
34,373
|
|
|
43,208
|
|
|
42,273
|
|
|
25,864
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash – End of the
period
|
$
|
38,435
|
|
$
|
38,435
|
|
$
|
43,208
|
|
$
|
43,208
|
SOURCE EXFO inc.