- Sales reach US$62.6
million
- Gross margin amounts to 62.2% of sales
- Adjusted EBITDA totals US$4.4
million
QUEBEC CITY,
March 27, 2013 /CNW Telbec/ - EXFO
Inc. (NASDAQ: EXFO; TSX: EXF) reported today financial results for
the second quarter ended February 28,
2013.
Sales reached US$62.6
million in the second quarter of fiscal 2013 compared to
US$66.9 million in the second quarter
of 2012 and US$59.8 million in the
first quarter of 2013.
Bookings attained US$53.4
million in the second quarter of fiscal 2013 compared to
US$60.6 million in the same period
last year and US$64.3 million in the
first quarter of 2013. The company's book-to-bill ratio was 0.85 in
the second quarter of 2013 and 0.96 after six months into the
fiscal year.
Gross margin* amounted to 62.2% of
sales in the second quarter of fiscal 2013 compared to 64.7% in the
second quarter of 2012 and 60.5% in the first quarter of
2013.
IFRS net earnings in the second quarter of
fiscal 2013 totaled US$39,000, or
US$0.00 per diluted share, compared
to net earnings of US$1.0 million, or
US$0.02 per diluted share, in the
same period last year and a net loss of US$1.6 million, or US$0.03 per share, in the first quarter of 2013.
IFRS net earnings in the second quarter of 2013 included
US$1.9 million in after-tax
amortization of intangible assets, US$0.5
million in stock-based compensation costs, US$0.1 million in after-tax restructuring charges
and a foreign exchange gain of US$1.7
million.
Adjusted EBITDA** totaled
US$4.4 million, or 7.1% of sales, in
the second quarter of fiscal 2013 compared to US$7.8 million, or 11.7% of sales, in the
second quarter of 2012 and US$2.7
million, or 4.5% of sales, in the first quarter of 2013.
"I am encouraged by our sequential increase in
sales and profitability in the second quarter," said Germain Lamonde, EXFO's Chairman, President and
CEO. "At the beginning of fiscal 2013, we had expected a stronger
financial performance in the second half and I remain confident we
will deliver a stronger second half. This stated confidence is
based on improving market conditions, discussions with customers,
positive impact of key new product launches for 4G/LTE and 100G
network deployments, recent product approvals and the quality of
our sales funnel."
"Consequently, I believe EXFO will generate
mid-single digit sales growth and improved profitability in fiscal
2013," Mr. Lamonde added. "I am pleased with our improved market
position and remain committed to returning to our historical sales
CAGR of 20% that we delivered over the last 10 years, while
focusing on the earnings growth that the investment community has
come to expect from EXFO."
Selected Financial Information
(In thousands of US dollars)
|
|
|
|
|
|
|
|
|
|
|
Q2
2013 |
|
|
Q1
2013 |
|
|
Q2
2012 |
|
|
|
|
|
|
|
|
|
Sales |
$ |
62,576 |
|
$ |
59,821 |
|
$ |
66,917 |
|
|
|
|
|
|
|
|
|
Gross margin* |
$ |
38,912 |
|
$ |
36,164 |
|
$ |
43,301 |
|
|
62.2% |
|
|
60.5% |
|
|
64.7% |
|
|
|
|
|
|
|
|
|
Other selected
information: |
|
|
|
|
|
|
|
|
|
IFRS net earnings (loss) |
$ |
39 |
|
$ |
(1,638) |
|
$ |
954 |
|
Amortization of intangible assets |
$ |
1,922 |
|
$ |
1,962 |
|
$ |
1,974 |
|
Stock-based compensation costs |
$ |
468 |
|
$ |
448 |
|
$ |
508 |
|
Restructuring charges |
$ |
89 |
|
$ |
- |
|
$ |
- |
|
Change in fair value of cash contingent
consideration |
$ |
- |
|
$ |
- |
|
$ |
(311) |
|
Net income tax effect of the above items |
$ |
(95) |
|
$ |
(67) |
|
$ |
(56) |
|
Foreign exchange (gain) loss |
$ |
(1,700) |
|
$ |
(756) |
|
$ |
1,471 |
|
Adjusted EBITDA** |
$ |
4,435 |
|
$ |
2,720 |
|
$ |
7,826 |
Operating Expenses
Selling and administrative expenses totaled US$23.1 million, or 36.9% of sales in the second
quarter of fiscal 2013 compared to US$23.7
million, or 35.4% of sales, in the same period last year and
US$22.3 million, or 37.3%
of sales, in the first quarter of 2013.
Gross research and development expenses amounted
to US$14.1 million, or 22.6% of
sales, in the second quarter of fiscal 2013 compared to
US$14.8 million, or 22.1% of sales,
in the second quarter of 2012 and US$13.9 million, or 23.2% of sales, in
the first quarter of 2013.
Net R&D expenses totaled US$12.0 million, or 19.1% of sales, in the second
quarter of fiscal 2013 compared to US$12.3 million, or 18.4% of sales, in the same
period last year and US$11.6 million,
or 19.4% of sales, in the first quarter of 2013.
Second-Quarter Highlights
- Growth. Despite late budget releases by network
operators, EXFO's revenue level improved 4.6% sequentially in the
second quarter mainly due to increased traction in the wireless
sector. This marked the second consecutive quarter of revenue
growth for EXFO amid difficult market conditions. The company
posted double-digit sequential sales increases in the Asia-Pacific and Europe, Middle
East and Africa (EMEA)
regions, but a decrease in the Americas. EXFO's top customer
accounted for 5.9% of sales in the second quarter, while the top
three represented 13.1%.
- Profitability. EXFO finished break-even (US$39,000) on an IFRS basis in the second
quarter compared to a net loss of US$1.6
million in the previous quarter. The company also generated
US$2.1 million in cash flows from
operating activities. Based on increased sales volume and a tight
control on expenses, EXFO expects to significantly improve
profitability in the second half of the fiscal year.
- Innovation. EXFO launched six new products in the second
quarter including amongst others the TravelHawk Pro, a 4G/LTE
network troubleshooting tool that has been selected by three of
world's top five LTE operators; FTB-88100NGE Power Blazer, the
first portable, multiservice test solution supporting transmission
rates from 10M to 100G; and packet synchronization functionalities
on the FTB1/FTB-800 NetBlazer series for wireless network
deployments. Altogether, the company has released 11 new products
since the beginning of the fiscal year.
Business Outlook
EXFO forecasts sales between US$64.0 million
and US$69.0 million for the third quarter of fiscal 2013,
while IFRS net earnings are expected to range between US$0.00 and US$0.04 per diluted share. Net
earnings include US$0.03 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 press release,
seasonality, expected bookings for the remaining of the quarter, as
well as exchange rates as of the day of this press release.
Conference Call and Webcast
EXFO will host a conference call today at 5
p.m. (Eastern time) to review its financial results for the
second quarter of fiscal 2013. To listen to the conference
call and participate in the question period via telephone, dial
1-416-641-6680. Germain Lamonde,
Chairman, President and CEO, and Pierre
Plamondon, CPA, CA, Vice-President of Finance and Chief
Financial Officer, will participate in the call. An audio replay of
the conference call will be available one hour after the event
until 7 p.m. on April 3, 2013. The replay number is
1-402-977-9141 and the reservation number is 21649128. 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
Listed on the NASDAQ and TSX stock exchanges, EXFO is among the
leading providers of next-generation test and service assurance
solutions for wireline and wireless network operators and equipment
manufacturers in the global telecommunications industry. The
company offers innovative solutions for the development,
installation, management and maintenance of converged, IP fixed and
mobile networks-from the core to the edge. Key technologies
supported include 3G, 4G/LTE, IMS, Ethernet, OTN, FTTx, VDSL2,
ADSL2+ and various optical technologies accounting for more than
35% of the portable fiber-optic test market. EXFO has a staff of
approximately 1700 people in 25 countries, supporting more than
2000 telecom customers worldwide. For more information, visit
www.EXFO.com.
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, will, expect,
believe, anticipate, intend, could, estimate, continue,
or the negative or comparable terminology 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 macro-economic
uncertainty and/or recession (including our ability to quickly
adapt cost structures with anticipated levels of business and our
ability to manage inventory levels with market demand); capital
spending and network deployment levels in the telecommunications
industry; future economic, competitive, financial and market
conditions; limited visibility with regards to customer orders and
the timing of such orders; fluctuating exchange rates;
consolidation in the global telecommunications test and
service assurance industry and increased competition among vendors;
concentration of sales; timely release and market acceptance of our
new products and other upcoming products; our ability to
successfully integrate our acquired and to-be-acquired businesses;
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 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* and adjusted
EBITDA**) as supplemental information regarding
its operational performance. The company uses these measures
for the purposes of evaluating its 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
to investors, in addition to IFRS measures, allows them to see the
company's results through the eyes of management, and to
better understand 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 represents sales less cost of sales, excluding
depreciation and amortization. |
|
** |
Adjusted EBITDA represents net earnings (loss) before interest,
income taxes, depreciation of property, plant and equipment,
amortization of intangible assets, restructuring charges, change in
the fair value of the cash contingent consideration, stock-based
compensation costs 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
|
|
|
Three months
ended
February 28,
2013 |
|
|
Three months
ended
November 30,
2012 |
|
|
Three months
ended
February 29,
2012 |
|
|
|
|
|
|
|
|
|
|
IFRS net earnings (loss) for the period |
|
$ |
39 |
|
$ |
(1,638) |
|
$ |
954 |
|
|
|
|
|
|
|
|
|
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
|
1,504 |
|
|
1,605 |
|
|
1,546 |
Amortization of intangible assets |
|
|
1,922 |
|
|
1,962 |
|
|
1,974 |
Interest (income) expenses |
|
|
25 |
|
|
(33) |
|
|
(54) |
Income taxes |
|
|
2,088 |
|
|
1,132 |
|
|
1,738 |
Restructuring charges |
|
|
89 |
|
|
- |
|
|
- |
Change in fair value of cash contingent
consideration |
|
|
- |
|
|
- |
|
|
(311) |
Stock-based compensation costs |
|
|
468 |
|
|
448 |
|
|
508 |
Foreign exchange (gain) loss |
|
|
(1,700) |
|
|
(756) |
|
|
1,471 |
Adjusted EBITDA for the period |
|
$ |
4,435 |
|
$ |
2,720 |
|
$ |
7,826 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in percentage of sales |
|
|
7.1% |
|
|
4.5% |
|
|
11.7% |
EXFO Inc.
Condensed Unaudited Interim Consolidated Balance Sheets
(in thousands of US dollars)
|
As at
February 28,
2013 |
|
As at
August 31,
2012 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash |
$ |
51,425 |
|
$ |
58,868 |
Short-term investments |
|
4,952 |
|
|
8,236 |
Accounts receivable |
|
|
|
|
|
|
Trade |
|
42,715 |
|
|
37,643 |
|
Other |
|
2,643 |
|
|
4,283 |
Income taxes and tax credits
recoverable |
|
8,375 |
|
|
9,024 |
Inventories |
|
38,331 |
|
|
41,212 |
Prepaid expenses |
|
3,685 |
|
|
3,800 |
|
|
152,126 |
|
|
163,066 |
|
|
|
|
|
|
Tax credits recoverable |
|
40,368 |
|
|
38,397 |
Property, plant and equipment |
|
46,593 |
|
|
49,848 |
Intangible assets |
|
10,111 |
|
|
14,132 |
Goodwill |
|
27,885 |
|
|
29,160 |
Deferred income taxes |
|
11,266 |
|
|
12,080 |
|
|
|
|
|
|
|
$ |
288,349 |
|
$ |
306,683 |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable and accrued
liabilities |
$ |
29,420 |
|
$ |
32,392 |
Provisions |
|
742 |
|
|
952 |
Income taxes payable |
|
1,225 |
|
|
917 |
Current portion of long-term debt |
|
584 |
|
|
565 |
Deferred revenue |
|
9,069 |
|
|
10,583 |
|
|
41,040 |
|
|
45,409 |
|
|
|
|
|
|
Deferred revenue |
|
4,481 |
|
|
4,997 |
Long-term debt |
|
- |
|
|
282 |
Other liabilities |
|
383 |
|
|
609 |
Deferred income taxes |
|
2,628 |
|
|
2,105 |
|
|
48,532 |
|
|
53,402 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Share capital |
|
111,400 |
|
|
110,965 |
Contributed surplus |
|
16,688 |
|
|
17,298 |
Retained earnings |
|
109,912 |
|
|
111,511 |
Accumulated other comprehensive
income |
|
1,817 |
|
|
13,507 |
|
|
|
|
|
|
|
|
239,817 |
|
|
253,281 |
|
|
|
|
|
|
|
$ |
288,349 |
|
$ |
306,683 |
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,
2013 |
|
|
Six
months
ended
February 28,
2013 |
|
|
Three months
ended
February 29,
2012 |
|
|
Six
months
ended
February 29,
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
62,576 |
|
$ |
122,397 |
|
$ |
66,917 |
|
$ |
133,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (1) |
|
|
23,664 |
|
|
47,321 |
|
|
23,616 |
|
|
46,986 |
Selling and administrative |
|
|
23,074 |
|
|
45,364 |
|
|
23,676 |
|
|
48,294 |
Net research and development |
|
|
11,960 |
|
|
23,562 |
|
|
12,307 |
|
|
24,790 |
Depreciation of property, plant and equipment |
|
|
1,504 |
|
|
3,109 |
|
|
1,546 |
|
|
3,114 |
Amortization of intangible assets |
|
|
1,922 |
|
|
3,884 |
|
|
1,974 |
|
|
3,895 |
Change in fair value of cash contingent
consideration |
|
|
- |
|
|
- |
|
|
(311) |
|
|
(311) |
Earnings (loss) from operations |
|
|
452 |
|
|
(843) |
|
|
4,109 |
|
|
6,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expenses) |
|
|
(25) |
|
|
8 |
|
|
54 |
|
|
(17) |
Foreign exchange gain (loss) |
|
|
1,700 |
|
|
2,456 |
|
|
(1,471) |
|
|
193 |
Earnings before income taxes |
|
|
2,127 |
|
|
1,621 |
|
|
2,692 |
|
|
6,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
2,088 |
|
|
3,220 |
|
|
1,738 |
|
|
2,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the period |
|
$ |
39 |
|
$ |
(1,599) |
|
$ |
954 |
|
$ |
3,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net earnings (loss) per
share |
|
$ |
0.00 |
|
$ |
(0.03) |
|
$ |
0.02 |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares
outstanding (000's) |
|
|
60,392 |
|
|
60,391 |
|
|
60,441 |
|
|
60,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of shares
outstanding (000's) |
|
|
61,175 |
|
|
61,195 |
|
|
61,606 |
|
|
61,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2013 |
|
|
Six
months
ended
February 28,
2013 |
|
|
Three months
ended
February 29,
2012 |
|
|
Six
months
ended
February 29,
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the
period |
|
$ |
39 |
|
$ |
(1,599) |
|
$ |
954 |
|
$ |
3,841 |
Other comprehensive income (loss), net
of income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified
subsequently to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
(9,184) |
|
|
(10,892) |
|
|
6,200 |
|
|
(5,627) |
Items that may be reclassified
subsequently to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains/losses on forward exchange
contracts |
|
|
(679) |
|
|
(762) |
|
|
963 |
|
|
144 |
|
Reclassification of realized gains on forward
exchange contracts in net earnings (loss) |
|
|
(130) |
|
|
(329) |
|
|
(355) |
|
|
(980) |
|
Deferred income tax effect of gains/losses on
forward exchange contracts |
|
|
217 |
|
|
293 |
|
|
(163) |
|
|
232 |
Other comprehensive income (loss) |
|
|
(9,776) |
|
|
(11,690) |
|
|
6,645 |
|
|
(6,231) |
Comprehensive income (loss) for the
period |
|
$ |
(9,737) |
|
$ |
(13,289) |
|
$ |
7,599 |
|
$ |
(2,390) |
EXFO Inc.
Condensed Unaudited Interim Consolidated Statements of Changes
in Shareholders' Equity
(in thousands of US dollars)
|
|
|
Six months ended February 29, 2012 |
|
|
|
Share
capital |
|
|
Contributed surplus |
|
|
Retained earnings |
|
|
Accumulated
other
comprehensive income |
|
|
Total
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at September 1, 2011 |
|
$ |
110,341 |
|
$ |
18,017 |
|
$ |
115,104 |
|
$ |
21,049 |
|
$ |
$ 264,511 |
Exercise of stock options |
|
|
78 |
|
|
- |
|
|
- |
|
|
- |
|
|
78 |
Redemption of share capital |
|
|
(404) |
|
|
(222) |
|
|
- |
|
|
- |
|
|
(626) |
Reclassification of stock-based
compensation Costs |
|
|
1,406 |
|
|
(1,406) |
|
|
- |
|
|
- |
|
|
- |
Stock-based compensation costs |
|
|
- |
|
|
956 |
|
|
- |
|
|
- |
|
|
956 |
Net earnings for the period |
|
|
- |
|
|
- |
|
|
3,841 |
|
|
- |
|
|
3,841 |
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
- |
|
|
- |
|
|
- |
|
|
(5,627) |
|
|
(5,627) |
|
Changes in unrealized gains on forward exchange
contracts, net of deferred income taxes of $232 |
|
|
- |
|
|
- |
|
|
- |
|
|
(604) |
|
|
(604) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income
(loss) for the period |
|
|
- |
|
|
- |
|
|
3,841 |
|
|
(6,231) |
|
|
(2,390) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at February 29, 2012 |
|
$ |
111,421 |
|
$ |
17,345 |
|
$ |
118,945 |
|
$ |
14,818 |
|
$ |
262,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended February 28, 2013 |
|
|
|
Share
capital |
|
|
Contributed surplus |
|
|
Retained earnings |
|
|
Accumulated
other
comprehensive income |
|
|
Total
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at September 1, 2012 |
|
$ |
110,965 |
|
$ |
17,298 |
|
$ |
111,511 |
|
$ |
13,507 |
|
$ |
253,281 |
Exercise of stock options |
|
|
87 |
|
|
- |
|
|
- |
|
|
- |
|
|
87 |
Redemption of share capital |
|
|
(913) |
|
|
(227) |
|
|
- |
|
|
- |
|
|
(1,140) |
Reclassification of stock-based
compensation Costs |
|
|
1,261 |
|
|
(1,261) |
|
|
- |
|
|
- |
|
|
- |
Stock-based compensation costs |
|
|
- |
|
|
878 |
|
|
- |
|
|
- |
|
|
878 |
Net loss for the period |
|
|
- |
|
|
- |
|
|
(1,599) |
|
|
- |
|
|
(1,599) |
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
- |
|
|
- |
|
|
- |
|
|
(10,892) |
|
|
(10,892) |
|
Changes in unrealized gains/losses on forward
exchange contracts, net of deferred income taxes of $293 |
|
|
- |
|
|
- |
|
|
- |
|
|
(798) |
|
|
(798) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive loss for the
period |
|
|
- |
|
|
- |
|
|
(1,599) |
|
|
(11,690) |
|
|
(13,289) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at February 28, 2013 |
|
$ |
111,400 |
|
$ |
16,688 |
|
$ |
109,912 |
|
$ |
1,817 |
|
$ |
239,817 |
EXFO Inc.
Condensed Unaudited Interim Consolidated Statements of Cash
Flows
(in thousands of US dollars)
|
|
|
Three months
ended
February 28,
2013 |
|
|
Six
months
ended
February 28,
2013 |
|
|
Three months
ended
February 29,
2012 |
|
|
Six
months
ended
February 29,
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) for the
period |
|
$ |
39 |
|
$ |
(1,599) |
|
$ |
954 |
|
$ |
3,841 |
Add (deduct) items not affecting
cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in discount on short-term investments |
|
|
(3) |
|
|
(1) |
|
|
12 |
|
|
43 |
|
Stock-based compensation costs |
|
|
468 |
|
|
916 |
|
|
508 |
|
|
1,063 |
|
Depreciation and amortization |
|
|
3,426 |
|
|
6,993 |
|
|
3,520 |
|
|
7,009 |
|
Change in fair value of cash contingent
consideration |
|
|
- |
|
|
- |
|
|
(311) |
|
|
(311) |
|
Deferred revenue |
|
|
111 |
|
|
(1,420) |
|
|
488 |
|
|
(653) |
|
Deferred income taxes |
|
|
988 |
|
|
1,721 |
|
|
857 |
|
|
1,575 |
|
Change in foreign exchange gain/loss |
|
|
(775) |
|
|
(798) |
|
|
175 |
|
|
(1,039) |
|
|
|
4,254 |
|
|
5,812 |
|
|
6,203 |
|
|
11,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in non-cash operating
items |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
2,016 |
|
|
(6,088) |
|
|
5,504 |
|
|
2,607 |
|
Income taxes and tax credits |
|
|
(1,313) |
|
|
(3,186) |
|
|
(1,430) |
|
|
(1,258) |
|
Inventories |
|
|
1,213 |
|
|
1,053 |
|
|
7,050 |
|
|
7,643 |
|
Prepaid expenses |
|
|
(414) |
|
|
(55) |
|
|
(228) |
|
|
(213) |
|
Accounts payable, accrued liabilities and
provisions |
|
|
(3,687) |
|
|
(50) |
|
|
(3,432) |
|
|
(35) |
|
Other liabilities |
|
|
(15) |
|
|
(210) |
|
|
(91) |
|
|
(152) |
|
|
|
2,054 |
|
|
(2,724) |
|
|
13,576 |
|
|
20,120 |
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Additions to short-term
investments |
|
|
(10,236) |
|
|
(34,769) |
|
|
(9,876) |
|
|
(67,798) |
Proceeds from disposal and maturity of
short-term investments |
|
|
13,283 |
|
|
37,810 |
|
|
16,987 |
|
|
107,766 |
Additions to capital assets |
|
|
(2,504) |
|
|
(4,493) |
|
|
(6,691) |
|
|
(11,177) |
|
|
|
543 |
|
|
(1,452) |
|
|
420 |
|
|
28,791 |
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan |
|
|
- |
|
|
- |
|
|
- |
|
|
(785) |
Repayment of long-term debt |
|
|
(293) |
|
|
(293) |
|
|
(296) |
|
|
(296) |
Exercise of stock options |
|
|
36 |
|
|
87 |
|
|
78 |
|
|
78 |
Redemption of share capital |
|
|
(167) |
|
|
(1,140) |
|
|
(263) |
|
|
(626) |
|
|
|
(424) |
|
|
(1,346) |
|
|
(481) |
|
|
(1,629) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate
changes on cash |
|
|
(1,566) |
|
|
(1,921) |
|
|
1,564 |
|
|
1,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash |
|
|
607 |
|
|
(7,443) |
|
|
15,079 |
|
|
48,478 |
Cash - Beginning of the
period |
|
|
50,818 |
|
|
58,868 |
|
|
56,170 |
|
|
22,771 |
Cash - End of the period |
|
$ |
51,425 |
|
$ |
51,425 |
|
$ |
71,249 |
|
$ |
71,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary information |
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
17 |
|
$ |
26 |
|
$ |
31 |
|
$ |
58 |
Income taxes paid |
|
$ |
552 |
|
$ |
937 |
|
$ |
255 |
|
$ |
990 |
SOURCE EXFO inc.