- Sales reached US$55.3
million
- Bookings attained US$72.9
million
- IFRS net loss amounted to US$9.0 million
- Adjusted EBITDA totaled -US$4.9 million
- Key supplier to essential telecommunications
industry
QUEBEC CITY, April 7,
2020 /PRNewswire/ - 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 29, 2020.
"Despite the temporary shutdown of our
manufacturing operations in China,
which negatively impacted our revenues, EXFO delivered solid
bookings in the second quarter of 2020 with double-digit growth for
our Test and Measurement business," said EXFO's CEO Philippe Morin. "Throughout the coronavirus
pandemic, the safety of our employees, communities and customers
remains at the center of all our actions. All EXFO sites are fully
operational and committed to helping global network operators and
webscale companies thrive during this challenging period. More than
ever, the telecom industry is mission-critical in which network
capacity, reliability, and scalability will play a growing role in
creating real opportunities for EXFO's innovative
solutions."
Second Quarter Highlights
- Sales. Sales totaled US$55.3
million in the second quarter of fiscal 2020 mainly due to
the negative impact of the coronavirus outbreak that forced EXFO to
temporarily shut down its manufacturing operations in China. Test and Measurement (T&M) sales
accounted for 68% of revenue in the second quarter of 2020, while
Service Assurance, Systems and Services (SASS) sales represented
32%. Revenue distribution among the three main selling regions
amounted to 48% in the Americas, 31% in Europe, Middle
East and Africa (EMEA) and
21% in Asia-Pacific. EXFO's top
customer accounted for 8.2% of sales, while the top three totaled
19.5%.
- Profitability: IFRS net loss amounted to US$9.0 million, or -US$0.16 per share, in the second quarter of
fiscal 2020, while adjusted EBITDA totaled -US$4.9 million, or -8.9% of sales. The company
generated US$7.1 million in cash
flows from operations.
- Key Supplier: As the coronavirus outbreak has evolved into
a global pandemic, EXFO has become a key supplier to the essential
telecommunications industry. Several well-funded network operators
and webscale companies have increased capital spending to meet the
global trend of telecommuting from home. EXFO, with its wealth of
test and service assurance solutions, enables the deployment of
such bandwidth-intensive applications and required virtualized,
cloud-based networks. Key EXFO solutions to help customers maintain
peak performance under disruptive conditions include geolocation
analytics, virtual VPN remote monitoring, and active monitoring of
network and subscriber anomalies.
- Innovation. EXFO launched the first intelligent automation
platform, Nova A/SA, enabling mobile network operators (MNOs) to
deliver ultra-reliable and high-quality service experience in a 5G
environment. At the heart of Nova A/SA is a real-time, AI-based
automated assurance solution, Nova SensAI, acting as the central
nervous system for the platform. These combined solutions leverage
machine learning to provide MNOs with heightened visibility into
subscriber experience and network performance.
Business Outlook
Due to the uncertainty surrounding
the breadth and duration of the coronavirus pandemic, EXFO has
suspended issuing quarterly and annual guidance.
Selected Financial
Information
|
(In thousands of
US dollars)
|
|
|
Q2
2020
|
|
|
Q2
2019
|
|
|
H1
2020
|
|
|
H1
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Test and Measurement
sales
|
$
|
37,477
|
|
$
|
50,407
|
|
$
|
93,424
|
|
$
|
100,171
|
Service Assurance,
Systems and Services sales
|
|
17,935
|
|
|
23,701
|
|
|
35,684
|
|
|
43,117
|
Foreign exchange
losses on forward exchange contracts
|
|
(99)
|
|
|
(181)
|
|
|
(244)
|
|
|
(160)
|
Total
sales
|
$
|
55,313
|
|
$
|
73,927
|
|
$
|
128,864
|
|
$
|
143,128
|
|
|
|
|
|
|
|
|
|
|
|
|
Test and Measurement
bookings
|
$
|
52,003
|
|
$
|
45,320
|
|
$
|
107,012
|
|
$
|
109,316
|
Service Assurance,
Systems and Services bookings
|
|
20,963
|
|
|
30,953
|
|
|
36,012
|
|
|
48,174
|
Foreign exchange
gains (losses) on forward exchange contracts
|
|
(99)
|
|
|
(181)
|
|
|
(244)
|
|
|
(160)
|
Total
bookings
|
$
|
72,867
|
|
$
|
76,092
|
|
$
|
142,780
|
|
$
|
157,330
|
Book-to-bill ratio
(bookings/sales)
|
|
1.32
|
|
|
1.03
|
|
|
1.11
|
|
|
1.10
|
Gross margin before
depreciation and amortization*
|
$
|
31,517
|
|
$
|
44,865
|
|
$
|
74,827
|
|
$
|
85,169
|
|
|
57.0%
|
|
|
60.7%
|
|
|
58.1%
|
|
|
59.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss)
|
$
|
(9,021)
|
|
$
|
5,193
|
|
$
|
(9,084)
|
|
$
|
(2,274)
|
Amortization of
intangible assets
|
$
|
1,695
|
|
$
|
2,130
|
|
$
|
3,327
|
|
$
|
5,070
|
Stock-based
compensation costs
|
$
|
436
|
|
$
|
461
|
|
$
|
923
|
|
$
|
879
|
Restructuring
charges
|
$
|
-
|
|
$
|
577
|
|
$
|
-
|
|
$
|
3,318
|
Acquisition-related
deferred revenue fair value adjustment
|
$
|
-
|
|
$
|
571
|
|
$
|
-
|
|
$
|
1,435
|
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
|
$
|
(254)
|
|
$
|
(348)
|
|
$
|
(503)
|
|
$
|
(771)
|
Foreign exchange
loss
|
$
|
382
|
|
$
|
416
|
|
$
|
508
|
|
$
|
201
|
Adjusted
EBITDA*
|
$
|
(4,916)
|
|
$
|
8,784
|
|
$
|
2,628
|
|
$
|
11,512
|
Quarterly Overview
Sales reached US$55.3
million in the second quarter of fiscal 2020 compared
to US$73.9 million in the second quarter of
2019.
Bookings attained US$72.9
million in the second quarter of fiscal 2020 compared to
US$76.1 million for the same
period in 2019 in which the company had received a
multi-million-dollar SASS-related order. The company's book-to-bill
ratio was 1.32 in the second quarter of 2020.
Gross margin before depreciation and amortization* amounted to
57.0% of sales in the second quarter of fiscal 2020 compared to
60.7% in the second quarter of 2019.
Selling and administrative expenses totaled US$24.3 million, or 44.0% of sales in the second
quarter of fiscal 2020 compared to US$25.5
million, or 34.4% of sales, in the second quarter
of 2019.
Net R&D expenses attained US$12.6
million, or 22.7% of sales, in the second quarter of fiscal
2020 compared to US$12.2 million, or 16.5% of sales, in the
same period last year.
IFRS net loss totaled US$9.0
million, or -US$0.16 per share, in the second quarter of
fiscal 2020 compared to net earnings of US$5.2 million, or US$0.09 per share, in the second quarter of
2019. IFRS net loss in the second quarter of 2020 included
US$1.5 million in after-tax
amortization of intangible assets, US$0.4 million in stock-based compensation
costs and US$0.4 million
in foreign exchange loss.
Adjusted EBITDA* amounted to -US$4.9
million, or -8.9% of sales, in the second quarter of fiscal
2020 compared to US$8.8 million,
or 11.9% of sales, in the second quarter of 2019.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review second-quarter results for fiscal 2020. 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: 4132437.
Executive Chairman Germain Lamonde,
CEO Philippe Morin and Pierre Plamondon, CPA, Chief Financial Officer
and Vice-President of Finance, will participate in the call. An
audio replay of the conference call will be available two hours
after the event until 8 p.m. on
April 14, 2020. The replay number is
1-719-457-0820 and the participant passcode is 4132437. 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.
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 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, namely the impact of the coronavirus
pandemic on our employees, customers and global operations,
including the ability of our suppliers to fulfil raw material
requirements and services and our ability to manufacture and
deliver our products and services to our customers; the effects of
emergency measures related to isolation periods for individuals in
affected areas, lockdown restrictions imposed by national
governments on businesses in countries where we operate and have
employees, and limitations on travel to attract new customers and
serve existing ones; deteriorating financial and market conditions
as well as a potential recession; trade wars, and our ability to
successfully integrate businesses that we acquire; capital spending
and network deployment levels in the communications 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 communications
test, monitoring 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. This discussion and analysis should be read in
conjunction with the consolidated financial statements.
*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) before
interest and other income/expense, income taxes, depreciation and
amortization, stock-based compensation costs, restructuring
charges, acquisition-related deferred revenue fair value
adjustment, and foreign exchange loss.
These non-IFRS measures eliminate the effect on IFRS results of
non-cash statement of earnings elements, restructuring charges 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 used by financial analysts to evaluate and compare EXFO's
performance against that of 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 that of
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), in thousands
of US dollars:
Adjusted
EBITDA
|
|
|
Q2
2020
|
|
|
Q2
2019
|
|
|
H1
2020
|
|
|
H1
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) for the period
|
$
|
(9,021)
|
|
$
|
5,193
|
|
$
|
(9,084)
|
|
$
|
(2,274)
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,973
|
|
|
3,520
|
|
|
7,899
|
|
|
7,889
|
Interest and other
(income) expense
|
|
285
|
|
|
(1,514)
|
|
|
684
|
|
|
(1,137)
|
Income
taxes
|
|
(971)
|
|
|
(440)
|
|
|
1,698
|
|
|
1,201
|
Stock-based
compensation costs
|
|
436
|
|
|
461
|
|
|
923
|
|
|
879
|
Restructuring
charges
|
|
–
|
|
|
577
|
|
|
–
|
|
|
3,318
|
Acquisition-related
deferred revenue fair value adjustment
|
|
–
|
|
|
571
|
|
|
–
|
|
|
1,435
|
Foreign exchange
loss
|
|
382
|
|
|
416
|
|
|
508
|
|
|
201
|
Adjusted EBITDA for
the period
|
$
|
(4,916)
|
|
$
|
8,784
|
|
$
|
2,628
|
|
$
|
11,512
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
percentage of sales
|
|
(8.9)%
|
|
|
11.9%
|
|
|
2.0%
|
|
|
8.0%
|
EXFO
Inc.
|
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
As
at
February
29,
2020
|
|
As
at
August
31,
2019
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
19,126
|
|
$
|
16,518
|
Short-term
investments
|
|
1,755
|
|
|
2,918
|
Accounts
receivable
|
|
|
|
|
|
Trade
|
|
33,221
|
|
|
51,517
|
Other
|
|
3,083
|
|
|
3,396
|
Income taxes and tax
credits recoverable
|
|
5,833
|
|
|
3,159
|
Inventories
|
|
41,530
|
|
|
38,017
|
Prepaid
expenses
|
|
4,994
|
|
|
6,510
|
Other
assets
|
|
3,669
|
|
|
3,083
|
|
|
113,211
|
|
|
125,118
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
45,574
|
|
|
46,704
|
Property, plant
and equipment
|
|
39,156
|
|
|
39,364
|
Right-of-use
assets
|
|
9,634
|
|
|
–
|
Intangible
assets
|
|
18,830
|
|
|
21,654
|
Goodwill
|
|
38,728
|
|
|
38,648
|
Deferred income
tax assets
|
|
5,126
|
|
|
4,821
|
Other
assets
|
|
1,110
|
|
|
1,293
|
|
$
|
271,369
|
|
$
|
277,602
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank loan
|
$
|
13,650
|
|
$
|
5,000
|
Accounts payable and
accrued liabilities
|
|
41,410
|
|
|
50,790
|
Provisions
|
|
834
|
|
|
1,065
|
Income taxes
payable
|
|
128
|
|
|
704
|
Deferred
revenue
|
|
21,904
|
|
|
24,422
|
Other
liabilities
|
|
1,600
|
|
|
1,606
|
Current portion of
lease liabilities
|
|
2,925
|
|
|
–
|
Current portion of
long-term debt
|
|
2,158
|
|
|
2,449
|
|
|
84,609
|
|
|
86,036
|
|
|
|
|
|
|
Provisions
|
|
2,544
|
|
|
2,737
|
Deferred
revenue
|
|
8,453
|
|
|
9,056
|
Lease
liabilities
|
|
6,665
|
|
|
–
|
Long-term
debt
|
|
2,252
|
|
|
3,293
|
Deferred income
tax liabilities
|
|
3,130
|
|
|
3,598
|
Other
liabilities
|
|
570
|
|
|
318
|
|
|
108,223
|
|
|
105,038
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
93,827
|
|
|
92,706
|
Contributed
surplus
|
|
18,780
|
|
|
19,196
|
Retained
earnings
|
|
103,089
|
|
|
112,173
|
Accumulated other
comprehensive loss
|
|
(52,550)
|
|
|
(51,511)
|
|
|
163,146
|
|
|
172,564
|
|
|
|
|
|
|
|
$
|
271,369
|
|
$
|
277,602
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
February
29,
2020
|
|
Six
months
ended
February
29,
2020
|
|
Three
months
ended
February
28,
2019
|
|
Six
months
ended
February
28,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
55,313
|
|
$
|
128,864
|
|
$
|
73,927
|
|
$
|
143,128
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales (1)
|
|
23,796
|
|
|
54,037
|
|
|
29,062
|
|
|
57,959
|
Selling and
administrative
|
|
24,303
|
|
|
48,807
|
|
|
25,474
|
|
|
51,849
|
Net research and
development
|
|
12,566
|
|
|
24,315
|
|
|
12,216
|
|
|
27,440
|
Depreciation of
property, plant and equipment
|
|
1,424
|
|
|
2,867
|
|
|
1,390
|
|
|
2,819
|
Depreciation of
right-of-use assets
|
|
854
|
|
|
1,705
|
|
|
–
|
|
|
–
|
Amortization of
intangible assets
|
|
1,695
|
|
|
3,327
|
|
|
2,130
|
|
|
5,070
|
Interest and other
(income) expense
|
|
285
|
|
|
684
|
|
|
(1,514)
|
|
|
(1,137)
|
Foreign exchange
loss
|
|
382
|
|
|
508
|
|
|
416
|
|
|
201
|
Earnings (loss)
before income taxes
|
|
(9,992)
|
|
|
(7,386)
|
|
|
4,753
|
|
|
(1,073)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
(971)
|
|
|
1,698
|
|
|
(440)
|
|
|
1,201
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
$
|
(9,021)
|
|
$
|
(9,084)
|
|
$
|
5,193
|
|
$
|
(2,274)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings (loss) per share
|
$
|
(0.16)
|
|
$
|
(0.16)
|
|
$
|
0.09
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
55,603
|
|
|
55,521
|
|
|
55,343
|
|
|
55,263
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
55,603
|
|
|
55,521
|
|
|
56,160
|
|
|
55,263
|
|
|
(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
29,
2020
|
|
Six
months
ended
February
29,
2020
|
|
Three
months
ended
February
28,
2019
|
|
Six
months
ended
February
28,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
$
|
(9,021)
|
|
$
|
(9,084)
|
|
$
|
5,193
|
|
$
|
(2,274)
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(1,319)
|
|
|
(758)
|
|
|
1,807
|
|
|
(1,549)
|
Unrealized
gains/losses on forward exchange contracts
|
|
(718)
|
|
|
(753)
|
|
|
496
|
|
|
(191)
|
Reclassification of
realized gains/losses on forward exchange contracts
|
|
173
|
|
|
356
|
|
|
210
|
|
|
301
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
146
|
|
|
116
|
|
|
(167)
|
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
(1,718)
|
|
|
(1,039)
|
|
|
2,346
|
|
|
(1,397)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
$
|
(10,739)
|
|
$
|
(10,123)
|
|
$
|
7,539
|
|
$
|
(3,671)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands Cof US
dollars)
|
|
|
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
of 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
February 29, 2020
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2019
|
$
|
92,706
|
|
$
|
19,196
|
|
$
|
112,173
|
|
$
|
(51,511)
|
|
$
|
172,564
|
Reclassification of
stock-based compensation costs
|
|
1,333
|
|
|
(1,333)
|
|
|
–
|
|
|
–
|
|
|
–
|
Redemption of share
capital
|
|
(212)
|
|
|
(13)
|
|
|
–
|
|
|
–
|
|
|
(225)
|
Stock-based
compensation costs
|
|
–
|
|
|
930
|
|
|
–
|
|
|
–
|
|
|
930
|
Net loss for the
period
|
|
–
|
|
|
–
|
|
|
(9,084)
|
|
|
–
|
|
|
(9,084)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(758)
|
|
|
(758)
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred
income taxes of $116
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(281)
|
|
|
(281)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,123)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
February 29, 2020
|
$
|
93,827
|
|
$
|
18,780
|
|
$
|
103,089
|
|
$
|
(52,550)
|
|
$
|
163,146
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
(in thousands of US
dollars)
|
|
|
Three
months
ended
February
29,
2020
|
|
Six
months ended February 29, 2020
|
|
Three
months
ended
February
28,
2019
|
|
Six
months
ended
February
28,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
for the period
|
$
|
(9,021)
|
|
$
|
(9,084)
|
|
$
|
5,193
|
|
$
|
(2,274)
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
436
|
|
|
923
|
|
|
461
|
|
|
879
|
Depreciation and
amortization
|
|
3,973
|
|
|
7,899
|
|
|
3,520
|
|
|
7,889
|
Gain on disposal of
capital assets
|
|
–
|
|
|
–
|
|
|
(1,732)
|
|
|
(1,732)
|
Write-off of capital
assets
|
|
–
|
|
|
216
|
|
|
261
|
|
|
261
|
Deferred
revenue
|
|
1,557
|
|
|
(2,815)
|
|
|
6,021
|
|
|
9,943
|
Deferred income
taxes
|
|
(212)
|
|
|
(654)
|
|
|
(2,124)
|
|
|
(2,153)
|
Changes in foreign
exchange gain/loss
|
|
902
|
|
|
881
|
|
|
76
|
|
|
(453)
|
|
|
(2,365)
|
|
|
(2,634)
|
|
|
11,676
|
|
|
12,360
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
18,539
|
|
|
18,611
|
|
|
9,871
|
|
|
5,819
|
Income taxes and tax
credits
|
|
(3,178)
|
|
|
(2,662)
|
|
|
1,031
|
|
|
33
|
Inventories
|
|
(458)
|
|
|
(3,951)
|
|
|
999
|
|
|
(362)
|
Prepaid
expenses
|
|
610
|
|
|
988
|
|
|
22
|
|
|
205
|
Other
assets
|
|
(491)
|
|
|
(456)
|
|
|
(327)
|
|
|
(339)
|
Accounts payable,
accrued liabilities and provisions
|
|
(5,580)
|
|
|
(9,273)
|
|
|
(3,114)
|
|
|
18
|
Other
liabilities
|
|
58
|
|
|
42
|
|
|
(1,470)
|
|
|
(1,521)
|
|
|
7,135
|
|
|
665
|
|
|
18,688
|
|
|
16,213
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
–
|
|
|
(147)
|
|
|
(292)
|
|
|
(292)
|
Disposal of
short-term investments
|
|
701
|
|
|
1,264
|
|
|
–
|
|
|
342
|
Purchases of capital
assets
|
|
(2,146)
|
|
|
(4,186)
|
|
|
(1,797)
|
|
|
(4,679)
|
Proceeds from
disposal of capital assets
|
|
–
|
|
|
–
|
|
|
3,318
|
|
|
3,318
|
|
|
(1,445)
|
|
|
(3,069)
|
|
|
1,229
|
|
|
(1,311)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
16
|
|
|
8,370
|
|
|
(12,501)
|
|
|
(1,244)
|
Repayment of lease
liabilities
|
|
(846)
|
|
|
(1,690)
|
|
|
–
|
|
|
–
|
Repayment of
long-term debt
|
|
(639)
|
|
|
(1,315)
|
|
|
(735)
|
|
|
(1,452)
|
Redemption of share
capital
|
|
–
|
|
|
(225)
|
|
|
(105)
|
|
|
(105)
|
|
|
(1,469)
|
|
|
5,140
|
|
|
(13,341)
|
|
|
(2,801)
|
Effect of foreign
exchange rate changes on cash
|
|
(140)
|
|
|
(128)
|
|
|
100
|
|
|
(96)
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash
during the period
|
|
4,081
|
|
|
2,608
|
|
|
6,676
|
|
|
12,005
|
Cash – Beginning
of the period
|
|
15,045
|
|
|
16,518
|
|
|
18,087
|
|
|
12,758
|
Cash – End of the
period
|
$
|
19,126
|
|
$
|
19,126
|
|
$
|
24,763
|
|
$
|
24,763
|
EXFO-F
View original
content:http://www.prnewswire.com/news-releases/exfo-reports-second-quarter-results-for-fiscal-2020-301037050.html
SOURCE EXFO Inc.