- Sales increased 14.2% to US$73.9
million, high end of guidance range
- Bookings improved 16.0% to US$76.1
million, book-to-bill ratio of 1.03
- IFRS net earnings reached US$5.2
million, US$0.09 per
share
- Adjusted EBITDA totaled US$8.8
million, 11.9% of sales
- Cash flows from operations surged to US$18.7 million
QUEBEC CITY, April 2, 2019 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO) (TSX: EXF), the communications industry's test, monitoring
and analytics experts, reported today financial results for the
second quarter ended February 28,
2019.
IFRS sales increased 14.2% to US$73.9 million in the
second quarter of fiscal 2019 from US$64.7 million in the
second quarter of 2018. Second-quarter sales for 2019 included
a US$7.5 million revenue contribution from Astellia, which was
reduced by US$0.6 million
to account for acquisition-related fair value adjustment of
deferred revenue. In comparison, Astellia had generated
US$1.8 million in revenue for one
month in the second quarter 2018.
Bookings, which included a US$10.3
million contribution from Astellia, improved 16.0%
year-over-year to US$76.1 million in the second quarter of
fiscal 2019 from US$65.6 million
in the same period of 2018. In comparison, Astellia had
delivered US$2.5 million in bookings
for one month in the second quarter 2018. EXFO's book-to-bill ratio
was 1.03 in the second quarter of 2019.
Gross margin before depreciation and
amortization* amounted to 60.7% of sales in the
second quarter of fiscal 2019 compared to 60.9% in the second
quarter of 2018.
IFRS net earnings in the second quarter of fiscal 2019 totaled
US$5.2 million, or US$0.09 per share, compared to a net loss
attributable to the parent interest1 of
US$4.7 million, or US$0.08 per share, in the second quarter of 2018.
IFRS net earnings in the second quarter of 2019 included net
expenses totaling US$3.9 million:
US$1.9 million in after-tax
amortization of intangible assets, US$0.5 million in stock-based compensation costs,
US$0.5 million in after-tax
restructuring charges, US$0.6 million
for acquisition-related fair value adjustment of deferred
revenue, and a foreign exchange loss
of US$0.4 million.
These net expenses were offset by the sale of a building under
EXFO's restructuring plan that generated a gain of US$1.7 million in the second quarter of 2019. The
company also benefited from a deferred income tax recovery of
US$2.4 million in the second quarter
of 2019.
Adjusted EBITDA* totaled US$8.8 million, or 11.9% of sales, in the second
quarter of fiscal 2019 compared to US$2.5 million, or 3.9% of sales, in the
second quarter of 2018.
"EXFO delivered outstanding second quarter results with strong
revenue and bookings growth, profitability and cash flow
generation—all encouraging signs for our T&M and SASS product
families and the leverage in our operating model," said EXFO's CEO
Philippe Morin. "Our unique value
propositions resonated very well with industry executives at Mobile
World Congress and Optical Fiber Conference, as our solutions
enable fiber buildouts deep into the network edge, 5G wireless
deployments and network virtualization. Clearly, EXFO is on track
with its profitable growth strategy amid a rapidly transforming
industry."
Selected Financial
Information
|
(In thousands of
US dollars)
|
|
Q2
2019
|
|
Q2
2018
|
|
|
H1
2019
|
|
|
H1
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Test and Measurement
sales
|
$
|
50,407
|
|
$
|
49,884
|
|
$
|
100,171
|
|
$
|
100,070
|
Service Assurance,
Systems and Services sales
|
|
23,701
|
|
|
14,457
|
|
|
43,117
|
|
|
27,425
|
Foreign exchange
gains (losses) on forward exchange contracts
|
|
(181)
|
|
|
381
|
|
|
(160)
|
|
|
618
|
Total
sales
|
$
|
73,927
|
|
$
|
64,722
|
|
$
|
143,128
|
|
$
|
128,113
|
|
|
|
|
|
|
|
|
|
|
|
|
Test and Measurement
bookings
|
$
|
45,320
|
|
$
|
47,386
|
|
$
|
109,316
|
|
$
|
100,240
|
Service Assurance,
Systems and Services bookings
|
|
30,953
|
|
|
17,819
|
|
|
48,174
|
|
|
30,607
|
Foreign exchange
gains (losses) on forward exchange contracts
|
|
(181)
|
|
|
381
|
|
|
(160)
|
|
|
618
|
Total
bookings
|
$
|
76,092
|
|
$
|
65,586
|
|
$
|
157,330
|
|
$
|
131,465
|
Book-to-bill ratio
(bookings/sales)
|
|
1.03
|
|
|
1.01
|
|
|
1.10
|
|
|
1.03
|
Gross margin before
depreciation and amortization*
|
$
|
44,865
|
|
$
|
39,396
|
|
$
|
85,169
|
|
$
|
79,498
|
|
|
60.7%
|
|
|
60.9%
|
|
|
59.5%
|
|
|
62.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) attributable to the parent interest
|
$
|
5,193
|
|
$
|
(4,660)
|
|
$
|
(2,274)
|
|
$
|
(1,981)
|
Amortization of
intangible assets
|
$
|
2,130
|
|
$
|
3,056
|
|
$
|
5,070
|
|
$
|
4,175
|
Stock-based
compensation costs
|
$
|
461
|
|
$
|
438
|
|
$
|
879
|
|
$
|
840
|
Restructuring
charges
|
$
|
577
|
|
$
|
-
|
|
$
|
3,318
|
|
$
|
-
|
Change in fair value
of cash contingent consideration
|
$
|
-
|
|
$
|
(561)
|
|
$
|
-
|
|
$
|
(716)
|
Acquisition-related
deferred revenue fair value adjustment
|
$
|
571
|
|
$
|
309
|
|
$
|
1,435
|
|
$
|
309
|
Income tax expense for
US tax reform
|
$
|
-
|
|
$
|
1,528
|
|
$
|
-
|
|
$
|
1,528
|
Gain on disposal of
capital assets
|
$
|
(1,732)
|
|
$
|
-
|
|
$
|
(1,732)
|
|
$
|
-
|
Deferred income tax
recovery
|
$
|
(2,383)
|
|
$
|
-
|
|
$
|
(2,383)
|
|
$
|
-
|
Net income tax effect
of the above items
|
$
|
(348)
|
|
$
|
(394)
|
|
$
|
(771)
|
|
$
|
(566)
|
Foreign exchange
(gain) loss
|
$
|
416
|
|
$
|
(8)
|
|
$
|
201
|
|
$
|
(1,226)
|
Adjusted
EBITDA*
|
$
|
8,784
|
|
$
|
2,492
|
|
$
|
11,512
|
|
$
|
8,551
|
Operating Expenses
Selling and administrative expenses
reached US$25.5 million, or 34.4% of
sales in the second quarter of fiscal 2019 compared to
US$24.9 million, or 38.5% of sales,
in the same period last year.
Net R&D expenses attained US$12.2
million, or 16.5% of sales, in the second quarter of fiscal
2019 compared to US$13.1 million, or 20.2% of sales, in
the second quarter of 2018.
Second-Quarter Highlights
- Growth. Sales increased 14.2% year-over-year mainly due to a
full-quarter contribution from the Astellia acquisition, compared
to one month for the same period in 2018, and revenue recognition
of a US$4.9 million order for EXFO's
real-time network topology software. Test and measurement sales
accounted for 68% of total revenue in the second quarter of 2019,
while SASS sales totaled 32%. Revenue breakdown among the three
main selling regions amounted to 50% in the Americas, 34% in
Europe, Middle East and Africa (EMEA) and 16% in Asia-Pacific. EXFO's top customer accounted
for 14.9% of sales, while the top three represented 24.7%.
- Profitability. IFRS net earnings totaled US$5.2 million in the second quarter of 2019,
while adjusted EBITDA amounted to US$8.8
million, or 11.9% of sales. The company also generated
US$18.7 million in cash flows from
operations in the second quarter.
- Innovation. EXFO showcased its new product introductions at
Mobile World Congress (MWC) and Optical Fiber Conference (OFC),
high-profile tradeshows held during and after the quarter-end. At
MWC, EXFO provided an overview of its highly differentiated service
assurance and analytics platform, including automated assurance,
diagnostics and troubleshooting of 5G networks. At OFC, EXFO
demonstrated the breadth and depth of its market-leading optical
test offering, including its recently released Open Transceiver
System for 400G testing, to allow for successful, high-speed
network transformations. The company also presented its latest
field test automation, cloud reporting and remote testing
capabilities.
On the recognition front, EXFO received Frost & Sullivan's 2018
Customer Value Leadership Award for Global Data Analytics
Solutions. This fifth award for EXFO's Service Assurance, Systems
and Services (SASS) portfolio during the past year recognizes the
company's ability to optimize subscriber experience and maximize
benefits for communications service providers at every level of
these organizations, from engineering to customer care.
1 Represents net loss excluding share of the
net loss attributable to Astellia's minority shareholders.
Business Outlook
EXFO forecasts IFRS sales between
US$70.0 million and US$75.0 million for the third quarter of fiscal
2019. IFRS net loss is expected to range between US$0.04 and US$0.00
per share in the third quarter of 2019. IFRS net loss includes
US$0.05 per share in after-tax
amortization of intangible assets and stock-based compensation
costs.
This guidance, which is a forward-looking statement, 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 news 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 2019.
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:
8906152. Germain Lamonde, founder
and Executive Chairman, Philippe
Morin, Chief Executive Officer, and Pierre Plamondon, 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 9,
2019. The replay number is 1-719-457-0820 and the required
participant passcode is 8906152. 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 (NASDAQ: EXFO) (TSX: EXF) develops
smarter test, monitoring and analytics solutions for fixed and
mobile network operators, webscale companies and equipment
manufacturers in the global communications industry. Our customers
count on us to deliver superior network performance, service
reliability and subscriber insights. They count on our unique blend
of equipment, software and services to accelerate digital
transformations related to fiber, 4G/LTE and 5G deployments. They
count on our expertise with automation, real-time troubleshooting
and big data analytics, which are critical to their business
performance. We've spent over 30 years earning this trust, and
today 1,900 EXFO employees in over 25 countries work side by side
with our customers in the lab, field, data center and beyond. For
more information, visit EXFO.com and follow us on the EXFO
Blog.
Forward-Looking Statements
This news 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 statements that refer to
expectations, projections or other characterizations of future
events and circumstances are considered forward-looking statements.
They are not guarantee 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, including
trade wars; our ability to successfully integrate businesses that
we acquire; capital spending and network deployment levels in the
telecommunications industry (including our ability to quickly adapt
cost structures to 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, service
assurance and analytics solutions markets and increased competition
among vendors; capacity to adapt our future product offering to
future technological changes; limited visibility with regard to the
timing and nature of customer orders; delay in revenue recognition
due to longer sales cycles for complex systems involving customers'
acceptance; 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 to conduct business internationally; 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 you 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. Gross margin before depreciation and amortization
represents sales, less cost of sales, excluding depreciation and
amortization. Adjusted EBITDA represent net earnings (loss)
attributable to the parent interest before interest and other
income/expense, income taxes, depreciation and amortization,
stock-based compensation costs, restructuring charges, change
in fair value of cash contingent consideration,
acquisition-related deferred revenue fair value adjustment, and
foreign exchange gain or loss.
These non-IFRS measures eliminate the effect on IFRS results of
non-cash and/or non-operating statement of earnings elements, as
well as elements subject to significant volatility such as foreign
exchange gain or loss. EXFO uses these measures for evaluating
historical and prospective financial performance, as well as its
performance relative to competitors. These non-IFRS measures are
also the financial measures used by financial analysts to evaluate
and compare EXFO's performance against competitors and industry
players in the company's sector.
Finally, these measures help EXFO plan and forecast future
periods as well as make operational and strategic decisions. EXFO
believes that providing this information, in addition to the IFRS
measures, allows investors to see the company's results through the
eyes of management, and to better understand historical and future
financial performance. More importantly, it enables the comparison
of EXFO's performance on a relatively similar basis against other
public and private companies in the industry worldwide.
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.
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings (loss) attributable to the parent
interest, in thousands of US dollars:
Adjusted
EBITDA
|
|
Q2
2019
|
|
Q2
2018
|
|
H1
2019
|
|
H1
2018
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) attributable to the parent interest for the
period
|
$
|
5,193
|
|
$
|
(4,660)
|
|
$
|
(2,274)
|
|
$
|
(1,981)
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
1,390
|
|
1,263
|
|
2,819
|
|
2,417
|
Amortization of
intangible assets
|
2,130
|
|
3,056
|
|
5,070
|
|
4,175
|
Interest and other
(income) expense
|
(1,514)
|
|
334
|
|
(1,137)
|
|
672
|
Income
taxes
|
(440)
|
|
2,321
|
|
1,201
|
|
4,061
|
Stock-based
compensation costs
|
461
|
|
438
|
|
879
|
|
840
|
Restructuring
charges
|
577
|
|
-
|
|
3,318
|
|
-
|
Change in fair value
of cash contingent consideration
|
-
|
|
(561)
|
|
-
|
|
(716)
|
Acquisition-related
deferred revenue fair value adjustment
|
571
|
|
309
|
|
1,435
|
|
309
|
Foreign exchange
(gain) loss
|
416
|
|
(8)
|
|
201
|
|
(1,226)
|
Adjusted EBITDA for
the period (1)
|
$
|
8,784
|
|
$
|
2,492
|
|
$
|
11,512
|
|
$
|
8,551
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
11.9%
|
|
3.9%
|
|
8.0%
|
|
6.7%
|
|
(1) Includes
acquisition-related costs of US$1.4 million and US$2.1 million for
the three months and six months ended February 28, 2018 (nil in
fiscal 2019)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
As
at
February
28,
2019
|
|
|
As
at
August
31,
2018
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
24,763
|
|
$
|
12,758
|
Short-term
investments
|
|
|
2,238
|
|
|
2,282
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
|
41,227
|
|
|
47,273
|
Other
|
|
|
3,490
|
|
|
4,137
|
Income taxes and tax
credits recoverable
|
|
|
5,124
|
|
|
4,790
|
Inventories
|
|
|
38,598
|
|
|
38,589
|
Prepaid
expenses
|
|
|
5,049
|
|
|
5,291
|
Other
assets
|
|
|
2,583
|
|
|
2,279
|
|
|
|
123,072
|
|
|
117,399
|
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
|
46,727
|
|
|
47,677
|
Property, plant
and equipment
|
|
|
42,036
|
|
|
44,310
|
Intangible
assets
|
|
|
24,904
|
|
|
29,866
|
Goodwill
|
|
|
39,707
|
|
|
39,892
|
Deferred income
tax assets
|
|
|
5,708
|
|
|
4,714
|
Other
assets
|
|
|
828
|
|
|
686
|
|
|
$
|
282,982
|
|
$
|
284,544
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank loan
|
|
$
|
9,001
|
|
$
|
10,692
|
Accounts payable and
accrued liabilities
|
|
|
47,560
|
|
|
47,898
|
Provisions
|
|
|
1,314
|
|
|
2,954
|
Income taxes
payable
|
|
|
687
|
|
|
873
|
Deferred
revenue
|
|
|
23,914
|
|
|
16,556
|
Other
liabilities
|
|
|
1,656
|
|
|
3,197
|
Current portion of
long-term debt
|
|
|
2,724
|
|
|
2,921
|
|
|
|
86,856
|
|
|
85,091
|
|
|
|
|
|
|
|
Provisions
|
|
|
2,517
|
|
|
2,347
|
Deferred
revenue
|
|
|
9,345
|
|
|
6,947
|
Long-term
debt
|
|
|
4,578
|
|
|
5,907
|
Deferred income
tax liabilities
|
|
|
4,572
|
|
|
5,910
|
Other
liabilities
|
|
|
327
|
|
|
421
|
|
|
|
108,195
|
|
|
106,623
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Share
capital
|
|
|
92,878
|
|
|
91,937
|
Contributed
surplus
|
|
|
18,277
|
|
|
18,428
|
Retained
earnings
|
|
|
112,379
|
|
|
114,906
|
Accumulated other
comprehensive loss
|
|
|
(48,747)
|
|
|
(47,350)
|
|
|
|
174,787
|
|
|
177,921
|
|
|
|
|
|
|
|
|
|
$
|
282,982
|
|
$
|
284,544
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
February
28,
2019
|
|
|
Six
months
ended
February
28,
2019
|
|
|
Three
months
ended
February
28,
2018
|
|
|
Six
months
ended
February
28,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
73,927
|
|
$
|
143,128
|
|
$
|
64,722
|
|
$
|
128,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
|
29,062
|
|
|
57,959
|
|
|
25,326
|
|
|
48,615
|
Selling and
administrative
|
|
|
25,474
|
|
|
51,849
|
|
|
24,916
|
|
|
48,109
|
Net research and
development
|
|
|
12,216
|
|
|
27,440
|
|
|
13,087
|
|
|
24,339
|
Depreciation of
property, plant and equipment
|
|
|
1,390
|
|
|
2,819
|
|
|
1,263
|
|
|
2,417
|
Amortization of
intangible assets
|
|
|
2,130
|
|
|
5,070
|
|
|
3,056
|
|
|
4,175
|
Change in fair value
of cash contingent consideration
|
|
|
‒
|
|
|
‒
|
|
|
(561)
|
|
|
(716)
|
Interest and other
(income) expense
|
|
|
(1,514)
|
|
|
(1,137)
|
|
|
334
|
|
|
672
|
Foreign exchange
(gain) loss
|
|
|
416
|
|
|
201
|
|
|
(8)
|
|
|
(1,226)
|
Share in net loss of
an associate
|
|
|
‒
|
|
|
‒
|
|
|
2,080
|
|
|
2,080
|
Gain on the deemed
disposal of the investment in an associate
|
|
|
‒
|
|
|
‒
|
|
|
(2,080)
|
|
|
(2,080)
|
Earnings (loss)
before income taxes
|
|
|
4,753
|
|
|
(1,073)
|
|
|
(2,691)
|
|
|
1,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
(440)
|
|
|
1,201
|
|
|
2,321
|
|
|
4,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
|
|
5,193
|
|
|
(2,274)
|
|
|
(5,012)
|
|
|
(2,333)
|
Net loss for the
period attributable to non-controlling interest
|
|
|
‒
|
|
|
‒
|
|
|
(352)
|
|
|
(352)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period attributable to parent
interest
|
|
$
|
5,193
|
|
$
|
(2,274)
|
|
$
|
(4,660)
|
|
$
|
(1,981)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings (loss) attributable to parent interest
per share
|
|
$
|
0.09
|
|
$
|
(0.04)
|
|
$
|
(0.08)
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
|
55,343
|
|
|
55,263
|
|
|
54,975
|
|
|
54,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
|
56,160
|
|
|
55,263
|
|
|
54,975
|
|
|
54,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
ended
February
28,
2019
|
|
|
Six
months
ended
February
28,
2019
|
|
|
Three
months
ended
February
28,
2018
|
|
|
Six
months
ended
February
28,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
|
$
|
5,193
|
|
$
|
(2,274)
|
|
$
|
(5,012)
|
|
$
|
(2,333)
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
1,807
|
|
|
(1,549)
|
|
|
2,286
|
|
|
(1,844)
|
Unrealized
gains/losses on forward exchange contracts
|
|
|
496
|
|
|
(191)
|
|
|
39
|
|
|
(485)
|
Reclassification of
realized gains/losses on forward exchange contracts
in net earnings
|
|
|
210
|
|
|
301
|
|
|
(225)
|
|
|
(608)
|
Deferred income taxes
on gains/losses on forward exchange contracts
|
|
|
(167)
|
|
|
42
|
|
|
48
|
|
|
263
|
Other comprehensive
income (loss)
|
|
|
2,346
|
|
|
(1,397)
|
|
|
2,148
|
|
|
(2,674)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
|
|
7,539
|
|
|
(3,671)
|
|
|
(2,864)
|
|
|
(5,007)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
for the period attributable to non-controlling
interest
|
|
|
‒
|
|
|
‒
|
|
|
(352)
|
|
|
(352)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period attributable to parent
interest
|
|
$
|
7,539
|
|
$
|
(3,671)
|
|
$
|
(2,512)
|
|
$
|
(4,655)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
Six months ended
February 28, 2018
|
|
|
|
Share
capital
|
|
|
Contributed
surplus
|
|
|
Retained
earnings
|
|
|
Accumulated other
comprehensive loss
|
|
|
Non-controlling
interest
|
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2017
|
|
$
|
90,411
|
|
$
|
18,184
|
|
$
|
127,160
|
|
$
|
(38,965)
|
|
$
|
‒
|
|
$
|
196,790
|
Reclassification of
stock-based compensation costs
|
|
|
1,273
|
|
|
(1,273)
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
Stock-based
compensation costs
|
|
|
‒
|
|
|
856
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
856
|
Business
combination
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(3,662)
|
|
|
(3,662)
|
Acquisition of
non-controlling interest
|
|
|
‒
|
|
|
‒
|
|
|
(352)
|
|
|
‒
|
|
|
4,014
|
|
|
3,662
|
Net loss for the
period
|
|
|
‒
|
|
|
‒
|
|
|
(1,981)
|
|
|
‒
|
|
|
(352)
|
|
|
(2,333)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(1,844)
|
|
|
‒
|
|
|
(1,844)
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $263
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(830)
|
|
|
‒
|
|
|
(830)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,007)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
February 28, 2018
|
|
$
|
91,684
|
|
$
|
17,767
|
|
$
|
124,827
|
|
$
|
(41,639)
|
|
$
|
‒
|
|
$
|
192,639
|
|
|
Six months ended
February 28, 2019
|
|
|
|
Share
capital
|
|
|
Contributed
surplus
|
|
|
Retained
earnings
|
|
|
Accumulated other
comprehensive loss
|
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2018
|
|
$
|
91,937
|
|
$
|
18,428
|
|
$
|
114,906
|
|
$
|
(47,350)
|
|
$
|
177,921
|
Adoption of IFRS
9
|
|
|
‒
|
|
|
‒
|
|
|
(253)
|
|
|
‒
|
|
|
(253)
|
Adjusted balance as
at September 1, 2018
|
|
|
91,937
|
|
|
18,428
|
|
|
114,653
|
|
|
(47,350)
|
|
|
177,668
|
Reclassification of
stock-based compensation costs
|
|
|
1,067
|
|
|
(1,067)
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
Redemption of share
capital
|
|
|
(126)
|
|
|
21
|
|
|
‒
|
|
|
‒
|
|
|
(105)
|
Stock-based
compensation costs
|
|
|
‒
|
|
|
895
|
|
|
‒
|
|
|
‒
|
|
|
895
|
Net loss for the
period
|
|
|
‒
|
|
|
‒
|
|
|
(2,274)
|
|
|
‒
|
|
|
(2,274)
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(1,549)
|
|
|
(1,549)
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $42
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
152
|
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,671)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
February 28, 2019
|
|
$
|
92,878
|
|
$
|
18,277
|
|
$
|
112,379
|
|
$
|
(48,747)
|
|
$
|
174,787
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
February
28,
2019
|
|
|
Six
months
ended
February
28,
2019
|
|
|
Three
months
ended
February
28,
2018
|
|
|
Six
months
ended
February
28,
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
for the period
|
|
$
|
5,193
|
|
$
|
(2,274)
|
|
$
|
(5,012)
|
|
$
|
(2,333)
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
461
|
|
|
879
|
|
|
438
|
|
|
840
|
Depreciation and
amortization
|
|
|
3,520
|
|
|
7,889
|
|
|
4,319
|
|
|
6,592
|
Gain on disposal of
capital assets
|
|
|
(1,732)
|
|
|
(1,732)
|
|
|
‒
|
|
|
‒
|
Write-off of capital
assets
|
|
|
261
|
|
|
261
|
|
|
124
|
|
|
248
|
Change in fair value
of cash contingent consideration
|
|
|
‒
|
|
|
‒
|
|
|
(561)
|
|
|
(716)
|
Deferred
revenue
|
|
|
6,021
|
|
|
9,943
|
|
|
3,016
|
|
|
2,234
|
Deferred income
taxes
|
|
|
(2,124)
|
|
|
(2,153)
|
|
|
2,384
|
|
|
2,144
|
Share in net loss of
an associate
|
|
|
‒
|
|
|
‒
|
|
|
2,080
|
|
|
2,080
|
Gain on deemed
disposal of the investment in an associate
|
|
|
‒
|
|
|
‒
|
|
|
(2,080)
|
|
|
(2,080)
|
Changes in foreign
exchange gain/loss
|
|
|
76
|
|
|
(453)
|
|
|
611
|
|
|
364
|
|
|
|
11,676
|
|
|
12,360
|
|
|
5,319
|
|
|
9,373
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
9,871
|
|
|
5,819
|
|
|
4,255
|
|
|
5,340
|
Income taxes and tax
credits
|
|
|
1,031
|
|
|
33
|
|
|
(3,018)
|
|
|
(2,959)
|
Inventories
|
|
|
999
|
|
|
(362)
|
|
|
779
|
|
|
(1,174)
|
Prepaid
expenses
|
|
|
22
|
|
|
205
|
|
|
(129)
|
|
|
189
|
Other
assets
|
|
|
(327)
|
|
|
(339)
|
|
|
(528)
|
|
|
(524)
|
Accounts payable,
accrued liabilities and provisions
|
|
|
(3,114)
|
|
|
18
|
|
|
(447)
|
|
|
(1,816)
|
Other
liabilities
|
|
|
(1,470)
|
|
|
(1,521)
|
|
|
22
|
|
|
210
|
|
|
|
18,688
|
|
|
16,213
|
|
|
6,253
|
|
|
8,639
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
(292)
|
|
|
(292)
|
|
|
(248)
|
|
|
(482)
|
Proceeds from
disposal of short-term investments
|
|
|
‒
|
|
|
342
|
|
|
234
|
|
|
234
|
Purchases of capital
assets
|
|
|
(1,797)
|
|
|
(4,679)
|
|
|
(2,258)
|
|
|
(4,249)
|
Proceeds from
disposal of capital assets
|
|
|
3,318
|
|
|
3,318
|
|
|
‒
|
|
|
‒
|
Investment in an
associate
|
|
|
‒
|
|
|
‒
|
|
|
(2,219)
|
|
|
(12,530)
|
Business
combinations, net of cash acquired
|
|
|
‒
|
|
|
‒
|
|
|
(9,580)
|
|
|
(19,120)
|
|
|
|
1,229
|
|
|
(1,311)
|
|
|
(14,071)
|
|
|
(36,147)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
|
(12,501)
|
|
|
(1,244)
|
|
|
2,064
|
|
|
2,066
|
Repayment of
long-term debt
|
|
|
(735)
|
|
|
(1,452)
|
|
|
(200)
|
|
|
(270)
|
Redemption of share
capital
|
|
|
(105)
|
|
|
(105)
|
|
|
‒
|
|
|
‒
|
|
|
|
(13,341)
|
|
|
(2,801)
|
|
|
1,864
|
|
|
1,796
|
Effect of foreign
exchange rate changes on cash
|
|
|
100
|
|
|
(96)
|
|
|
56
|
|
|
(170)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash
during the period
|
|
|
6,676
|
|
|
12,005
|
|
|
(5,898)
|
|
|
(25,882)
|
Cash – Beginning
of the period
|
|
|
18,087
|
|
|
12,758
|
|
|
18,451
|
|
|
38,435
|
Cash – End of the
period
|
|
$
|
24,763
|
|
$
|
24,763
|
|
$
|
12,553
|
|
$
|
12,553
|
EXFO-F
View original
content:http://www.prnewswire.com/news-releases/exfo-reports-second-quarter-results-for-fiscal-2019-300823365.html
SOURCE EXFO Inc.