Q4 2014
- Sales total
US$59.7 million with gross margin
reaching 63.0%
- Bookings attain
US$57.3 million, up 6.3%
year-over-year
- Adjusted EBITDA
amounts to US$5.8 million, 9.6% of
sales
Fiscal 2014
- Sales total
US$230.8 million, while bookings
attain US$240.4 million
- Adjusted EBITDA
amounts to US$14.4 million, 6.2% of
sales
- Operating expenses
decrease US$6.2 million
year-over-year
QUEBEC CITY, Oct. 8, 2014 /CNW
Telbec/ - EXFO Inc. (NASDAQ: EXFO) (TSX: EXF) announced today
financial results for the fourth quarter and fiscal year ended
August 31, 2014.
Sales in the fourth quarter of fiscal 2014 reached US$59.7 million compared to US$63.9 million in the third quarter of 2014 and
US$60.9 million in the fourth quarter
of 2013. Annual sales decreased 4.7% to US$230.8 million in fiscal 2014 from US$242.2 million in 2013.
Bookings totaled US$57.3 million
for a book-to-bill ratio of 0.96 in the fourth quarter of fiscal
2014 compared to US$66.5 million in
the third quarter of 2014 and US$54.0
million in the fourth quarter of 2013. Overall for fiscal
2014, bookings increased 3.0% to US$240.4 million for a book-to-bill ratio of
1.04 from US$233.5 million
in 2013.
Gross margin before depreciation and amortization* attained
63.0% of sales in the fourth quarter of fiscal 2014 compared to
63.3% in the third quarter of 2014 and 62.9% in the fourth quarter
of 2013. In fiscal 2014, gross margin improved to 62.4% of
sales compared to 61.8% in 2013.
In the fourth quarter of fiscal 2014, IFRS net earnings amounted
to US$1.2 million, or US$0.02 per diluted share, including US$1.1 million in after-tax amortization of
intangible assets, US$0.4 million in
stock-based compensation costs and a foreign exchange loss of
US$0.3 million.
In the third quarter of 2014, IFRS net earnings totaled
US$1.7 million, or US$0.03 per diluted share, including US$1.0 million in after-tax amortization of
intangible assets, US$0.4 million in
stock-based compensation costs and a foreign exchange loss of
US$1.1 million.
In the fourth quarter of 2013, IFRS net earnings amounted to
US$3.8 million, or US$0.06 per diluted share, including US$1.1 million in after-tax amortization of
intangible assets, US$0.4 million in
stock-based compensation costs and a foreign exchange gain of
US$1.3 million.
In fiscal 2014, IFRS net earnings totaled US$0.8 million, or US$0.01 per diluted share, including US$4.1 million in after-tax amortization of
intangible assets, US$1.7 million in
stock-based compensation costs and a foreign exchange gain of
US$1.6 million.
In 2013, IFRS net earnings totaled US$1.3
million, or US$0.02 per
diluted share, including US$6.4
million in after-tax amortization of intangible assets,
US$1.8 million in stock-based
compensation costs, US$0.1 million in
after-tax restructuring charges and a foreign exchange gain of
US$4.1 million.
Adjusted EBITDA** totaled US$5.8
million, or 9.6% of sales, in the fourth quarter of fiscal
2014 compared to US$7.3 million,
or 11.5% of sales, in the third quarter of 2014 and US$7.1 million, or 11.6% of sales, in the fourth
quarter of 2013. Adjusted EBITDA amounted to US$14.4 million, or 6.2% of sales, in fiscal 2014
compared to US$17.3 million, or
7.2% of sales in 2013.
Cash and short-term investments increased by US$9.6 million to US$59.8
million in fiscal 2014, despite US$7.9 million in additions to capital
assets, including the asset acquisitions of ByteSphere and Aito
Technologies.
"After a challenging first quarter, EXFO delivered bookings
growth of 6% to 10% year-over-year in each of the last three
quarters to close fiscal 2014 with a bookings increase of 3% and a
book-to-bill ratio of 1.04 compared to 0.96 in a more difficult
2013," said Germain Lamonde, EXFO's
Chairman, President and CEO. "This bookings trend demonstrates we
have passed an inflection point on the strength of several new
products and solutions that are starting to have a consistent
market impact. EXFO has significantly transformed itself in 2014 by
bringing to market end-to-end solutions related to key challenges
faced by fixed and mobile network operators such as increasing
network capacity, assuring quality of experience, enhancing
productivity, or introducing new strategic technologies like VoLTE,
NFV and SDN."
"Given our continued flow of innovative solutions, recent
contract wins with tier-1 wireless operators and two strategic
technology acquisitions, I am confident our bookings momentum will
persist and allow EXFO to deliver revenue and earnings growth," Mr.
Lamonde added. "Based on cost savings of US$6 million in 2014, we are also entering 2015
with strong earnings leverage as reflected in the second half of
2014 in which we increased sales and bookings 3.2% and 6.9%
year-over-year while generating adjusted EBITDA of US$13.1 million, or 10.6% of sales. With
impending sales growth and continued cost controls, our 15%
adjusted EBITDA margin target is clearly achievable in a
not-too-distant future."
Selected Financial
Information (unaudited)
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2014
|
|
Q3
2014
|
|
Q4
2013
|
|
FY
2014
|
|
FY
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
59,742
|
|
$
|
63,882
|
|
$
|
60,888
|
|
$
|
230,806
|
|
$
|
242,150
|
Bookings
|
$
|
57,335
|
|
$
|
66,508
|
|
$
|
53,960
|
|
$
|
240,405
|
|
$
|
233,480
|
Book-to-bill
ratio
|
|
0.96
|
|
|
1.04
|
|
|
0.89
|
|
|
1.04
|
|
|
0.96
|
Gross margin before
depreciation and amortization*
|
$
|
37,633
|
|
$
|
40,413
|
|
$
|
38,314
|
|
$
|
143,970
|
|
$
|
149,681
|
|
|
63.0%
|
|
|
63.3%
|
|
|
62.9%
|
|
|
62.4%
|
|
|
61.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,204
|
|
$
|
1,665
|
|
$
|
3,802
|
|
$
|
783
|
|
$
|
1,341
|
|
Amortization of
intangible assets
|
$
|
1,117
|
|
$
|
1,025
|
|
$
|
1,173
|
|
$
|
4,398
|
|
$
|
6,643
|
|
Stock-based
compensation costs
|
$
|
424
|
|
$
|
407
|
|
$
|
437
|
|
$
|
1,696
|
|
$
|
1,768
|
|
Restructuring
charges
|
$
|
−
|
|
$
|
−
|
|
$
|
−
|
|
$
|
−
|
|
$
|
89
|
|
Net income tax effect
of the above items
|
$
|
(62)
|
|
$
|
(63)
|
|
$
|
(64)
|
|
$
|
(256)
|
|
$
|
(294)
|
|
Foreign exchange gain
(loss)
|
$
|
(334)
|
|
$
|
(1,126)
|
|
$
|
1,312
|
|
$
|
1,634
|
|
$
|
4,082
|
|
Adjusted
EBITDA**
|
$
|
5,756
|
|
$
|
7,345
|
|
$
|
7,052
|
|
$
|
14,391
|
|
$
|
17,338
|
Operating Expenses
Selling and administrative expenses
totaled US$21.5 million, or 35.9% of
sales, in the fourth quarter of fiscal 2014 compared to
US$21.7 million, or 34.0% of sales,
in the third quarter of 2014 and US$21.4
million, or 35.1% of sales, in the fourth quarter of 2013.
In fiscal 2014, selling and administrative expenses amounted to
US$86.4 million, or 37.4% of sales,
compared to US$88.8 million, or 36.6%
of sales, in 2013.
Gross R&D expenses attained US$12.5
million, or 20.8% of sales, in the fourth quarter of fiscal
2014 compared to US$13.6 million, or
21.3% of sales, in the previous quarter and US$12.5 million, or 20.6% of sales, in the fourth
quarter of 2013. In fiscal 2014, gross R&D expenses reached
US$52.4 million, or 22.7% of sales,
compared to US$54.3 million, or 22.4%
of sales, in 2013.
Net R&D expenses amounted to US$10.8
million, or 18.2% of sales, in the fourth quarter of fiscal
2014 compared to US$11.7 million, or
18.4% of sales, in the third quarter of 2014 and US$10.3 million, or 16.9% of sales, in the fourth
quarter of 2013. In fiscal 2014, net R&D expenses totaled
US$44.8 million, or 19.4% of sales,
compared to US$45.4 million, or
18.8% of sales, in 2013.
FY 2014 Highlights
-
Sales. Sales of Physical-Layer solutions (Optical and
Copper Access) decreased 6.3% year-over-year, while bookings
increased 3.0% during the same period. Sales of Protocol-Layer
solutions (Transport & Datacom, Wireless and Service Assurance)
decreased 1.2% year-over-year while bookings increased 3.0%.
Sales to wireless customers improved to an estimated 30% to 32% of
total sales in fiscal 2014 from 26% to 28% in 2013 due to increased
market focus and new product introductions.
EXFO announced three major wireless contract wins in 2014,
including two with tier-1 mobile network operators for integrated
end-to-end solutions involving productivity enhancements, improved
quality of experience and heightened network visibility and
analytics. These two orders should start to be recognized into
revenue in the second quarter of 2015.
Sales decreased 4.9% year-over-year to US$121.8 million in the Americas, 4.5% to
US$64.0 million in Europe, Middle
East and Africa, and 4.3%
to US$45.0 million in Asia-Pacific, while bookings increased
year-over-year in all three regions.
EXFO's largest customer accounted for 6.1% of sales in fiscal 2014,
while the company's top-three customers represented 11.6%. In
comparison, EXFO's largest customer accounted for 6.1% of sales in
2013, while the company's top-three customers represented
13.5%.
- Profitability. EXFO generated adjusted EBITDA of
US$14.4 million, or 6.2% of sales, in
fiscal 2014 compared to US$17.3
million, or 7.2% of sales, in 2013. Selling and
administrative expenses (US$2.3 million), net R&D expenses
(US$0.6 million) as well as
depreciation and amortization expenses (US$3.3 million) decreased by a total of
US$6.2 million in fiscal
2014.
- Innovation. EXFO launched 24 new products or
major enhancements in fiscal 2014, including five in the fourth
quarter. Key new product introductions during 2014 included, among
others, an all-in-one optical and Ethernet test module that
accelerates the deployment and troubleshooting of wireless
backhaul, small cell or Ethernet networks; FTB-2, the industry's
smallest platform for high-speed, multi-technology field testing; a
tablet-based OTDR series that simplifies and reduces testing time
on fixed and mobile networks; and a fully automated fiber
inspection probe that eliminates error risks and reduces fiber
connector inspection time by more than 50%.
- Transformation. EXFO accelerated its focus on
solutions that help network operators enhance quality of
experience, reduce operating costs and increase network visibility.
In 2014, the company released a monitoring solution, featuring the
highest polling capabilities for millions of distributed network
elements, to provide end-to-end network infrastructure performance;
and a service assurance solution that enables mobile operators to
proactively monitor and assure quality of experience of
voice-over-LTE (VoLTE) deployments. EXFO also acquired the assets
of ByteSphere (network element polling) and Aito Technologies
(customer experience assurance and analytics software).
Business Outlook
EXFO forecasts sales between
US$58.0 million and US$63.0 million
for the first quarter of fiscal 2015, while IFRS net results are
expected to range between a loss of US$0.01 per share and earnings of US$0.03 per share. IFRS net loss/earnings 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 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 fourth quarter
of fiscal 2014. To listen to the conference call and participate in
the question period via telephone, dial
1-416-359-3130. 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 October 15,
2014. The replay number is 1-402-977-9141 and the
reservation number is 21732154. 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 a leading provider of next-generation test,
service assurance and end-to-end quality of experience solutions
for mobile and fixed network operators and equipment manufacturers
in the global telecommunications industry. EXFO's intelligent
solutions with contextually relevant analytics improve end-user
quality of experience, enhance network performance and drive
operational efficiencies throughout the network and service
delivery lifecycle. Key technologies supported include 3G, 4G/LTE,
VoLTE, IMS, video, Ethernet/IP, SNMP, OTN, FTTx, xDSL and various
optical technologies accounting for more than 38% of the global
portable fiber-optic test market. EXFO has a staff of approximately
1600 people in 25 countries, supporting more than 2000 customers
worldwide. For more information, visit www.EXFO.com and follow us
on the EXFO Blog, Twitter, LinkedIn, Facebook, Google+
and YouTube.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, and we intend that such
forward-looking statements be subject to the safe harbors created
thereby. Forward-looking statements are statements other than
historical information or statements of current condition.
Words such as may, expect, believe, plan, anticipate, intend,
could, estimate, continue, or similar expressions or the
negative of such expressions are intended to identify
forward-looking statements. In addition, any statement that
refers to expectations, projections or other characterizations of
future events and circumstances are considered forward-looking
statements. They are not guarantees of future performance
and involve risks and uncertainties. Actual results may differ
materially from those in forward-looking statements due to various
factors including, but not limited to, macroeconomic uncertainty as
well as capital spending and network deployment levels in the
telecommunications industry (including our ability to quickly adapt
cost structures with anticipated levels of business and our ability
to manage inventory levels with market demand); future economic,
competitive, financial and market conditions; consolidation in the
global telecommunications test and service assurance industry and
increased competition among vendors; capacity to adapt our future
product offering to future technological changes; limited
visibility with regards to customer orders and the timing of
such orders; fluctuating exchange rates; concentration of sales;
timely release and market acceptance of our new products and other
upcoming products; our ability to successfully expand international
operations; our ability to successfully integrate businesses that
we acquire; and the retention of key technical and
management personnel. Assumptions relating to the foregoing involve
judgments and risks, all of which are difficult or impossible
to predict and many of which are beyond our control. Other risk
factors that may affect our future performance and operations are
detailed in our Annual Report, on Form 20-F, and our other filings
with the U.S. Securities and Exchange Commission and the Canadian
securities commissions. We believe that the expectations reflected
in the forward-looking statements are reasonable based on
information currently available to us, but we cannot assure that
the expectations will prove to have been correct. Accordingly, you
should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this
document. Unless required by law or applicable regulations, we
undertake no obligation to revise or update any of them
to reflect events or circumstances that occur after the date of
this document.
NON-IFRS MEASURES
EXFO provides non-IFRS measures (gross margin before
depreciation and amortization* and adjusted EBITDA**) as
supplemental information regarding its operational
performance. The company uses these measures for the purpose of
evaluating historical and prospective financial performance, as
well as its performance relative to competitors.
These measures also help the company to plan and forecast
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 before interest,
income taxes, depreciation and amortization, restructuring charges,
stock-based compensation costs and foreign exchange gain or
loss.
The following tables summarize the reconciliation of adjusted
EBITDA to IFRS net earnings, in thousands
of US dollars:
Adjusted EBITDA
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2014
|
|
Q3
2014
|
|
Q4
2013
|
|
FY
2014
|
|
FY
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings for
the period
|
$
|
1,204
|
|
$
|
1,665
|
|
$
|
3,802
|
|
$
|
783
|
|
$
|
1,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
1,258
|
|
|
1,219
|
|
|
1,446
|
|
|
4,995
|
|
|
6,028
|
Amortization of
intangible assets
|
|
1,117
|
|
|
1,025
|
|
|
1,173
|
|
|
4,398
|
|
|
6,643
|
Interest and other
income
|
|
(30)
|
|
|
(220)
|
|
|
(37)
|
|
|
(326)
|
|
|
(113)
|
Income
taxes
|
|
1,449
|
|
|
2,123
|
|
|
1,543
|
|
|
4,479
|
|
|
5,664
|
Restructuring
charges
|
|
–
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
89
|
Stock-based
compensation costs
|
|
424
|
|
|
407
|
|
|
437
|
|
|
1,696
|
|
|
1,768
|
Foreign exchange
(gain) loss
|
|
334
|
|
|
1,126
|
|
|
(1,312)
|
|
|
(1,634)
|
|
|
(4,082)
|
Adjusted EBITDA for
the period
|
$
|
5,756
|
|
$
|
7,345
|
|
$
|
7,052
|
|
$
|
14,391
|
|
$
|
17,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
9.6%
|
|
|
11.5%
|
|
|
11.6%
|
|
|
6.2%
|
|
|
7.2%
|
EXFO
Inc.
|
Unaudited Interim
Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
As at August
31,
|
|
2014
|
|
2013
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
54,121
|
|
$
|
45,386
|
Short-term
investments
|
|
5,726
|
|
|
4,868
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
46,031
|
|
|
50,117
|
|
Other
|
|
2,001
|
|
|
2,778
|
Income taxes and tax
credits recoverable
|
|
3,796
|
|
|
6,525
|
Inventories
|
|
35,232
|
|
|
35,705
|
Prepaid
expenses
|
|
2,281
|
|
|
2,561
|
|
|
|
|
|
|
|
|
149,188
|
|
|
147,940
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
41,745
|
|
|
41,719
|
Property, plant
and equipment
|
|
42,780
|
|
|
45,523
|
Intangible
assets
|
|
7,293
|
|
|
7,543
|
Goodwill
|
|
26,488
|
|
|
27,313
|
Deferred income
tax assets
|
|
9,816
|
|
|
10,807
|
Other
assets
|
|
721
|
|
|
693
|
|
|
|
|
|
|
|
$
|
278,031
|
|
$
|
281,538
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
29,553
|
|
$
|
26,253
|
Provisions
|
|
532
|
|
|
756
|
Income taxes
payable
|
|
840
|
|
|
679
|
Current portion of
long-term debt
|
|
-
|
|
|
296
|
Deferred
revenue
|
|
8,990
|
|
|
9,467
|
|
|
|
|
|
|
|
|
39,915
|
|
|
37,451
|
|
|
|
|
|
|
Deferred
revenue
|
|
3,319
|
|
|
3,932
|
Deferred income
tax liabilities
|
|
3,087
|
|
|
3,226
|
Other
liabilities
|
|
340
|
|
|
477
|
|
|
|
|
|
|
|
|
46,661
|
|
|
45,086
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
111,491
|
|
|
109,837
|
Contributed
surplus
|
|
16,503
|
|
|
17,186
|
Retained
earnings
|
|
113,635
|
|
|
112,852
|
Accumulated other
comprehensive loss
|
|
(10,259)
|
|
|
(3,423)
|
|
|
|
|
|
|
|
|
231,370
|
|
|
236,452
|
|
|
|
|
|
|
|
$
|
278,031
|
|
$
|
281,538
|
EXFO
Inc.
|
Unaudited Interim
Consolidated Statements of Earnings
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
August 31,
2014
|
|
Twelve
months
ended
August 31,
2014
|
|
Three
months
ended
August 31,
2013
|
|
Twelve
months
ended
August 31,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
59,742
|
|
$
|
230,806
|
|
$
|
60,888
|
|
$
|
242,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
|
22,109
|
|
|
86,836
|
|
|
22,574
|
|
|
92,469
|
Selling and
administrative
|
|
|
21,454
|
|
|
86,429
|
|
|
21,390
|
|
|
88,756
|
Net research and
development
|
|
|
10,847
|
|
|
44,846
|
|
|
10,309
|
|
|
45,444
|
Depreciation of
property, plant and equipment
|
|
|
1,258
|
|
|
4,995
|
|
|
1,446
|
|
|
6,028
|
Amortization of
intangible assets
|
|
|
1,117
|
|
|
4,398
|
|
|
1,173
|
|
|
6,643
|
Interest and other
income
|
|
|
(30)
|
|
|
(326)
|
|
|
(37)
|
|
|
(113)
|
Foreign exchange
(gain) loss
|
|
|
334
|
|
|
(1,634)
|
|
|
(1,312)
|
|
|
(4,082)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
|
2,653
|
|
|
5,262
|
|
|
5,345
|
|
|
7,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
1,449
|
|
|
4,479
|
|
|
1,543
|
|
|
5,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
1,204
|
|
$
|
783
|
|
$
|
3,802
|
|
$
|
1,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings per share
|
|
$
|
0.02
|
|
$
|
0.01
|
|
$
|
0.06
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
|
60,347
|
|
|
60,329
|
|
|
60,132
|
|
|
60,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
|
61,043
|
|
|
61,015
|
|
|
60,929
|
|
|
61,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
cost of sales is exclusive of depreciation and amortization, shown
separately.
|
EXFO
Inc.
|
Unaudited Interim
Consolidated Statements of Comprehensive Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended August 31,
2014
|
|
Twelve
months ended August 31,
2014
|
|
Three
months ended August 31,
2013
|
|
Twelve
months ended August 31,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
1,204
|
|
$
|
783
|
|
$
|
3,802
|
|
$
|
1,341
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(294)
|
|
|
(7,086)
|
|
|
(3,686)
|
|
|
(15,830)
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gains/losses on forward exchange contracts
|
|
|
76
|
|
|
(618)
|
|
|
(382)
|
|
|
(1,256)
|
|
Reclassification of
realized gains/losses on forward exchange contracts in net
earnings
|
|
|
203
|
|
|
959
|
|
|
34
|
|
|
(247)
|
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
|
(75)
|
|
|
(91)
|
|
|
93
|
|
|
403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
(90)
|
|
|
(6,836)
|
|
|
(3,941)
|
|
|
(16,930)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
|
$
|
1,114
|
|
$
|
(6,053)
|
|
$
|
(139)
|
|
$
|
(15,589)
|
EXFO
Inc.
|
Unaudited Interim
Consolidated Statements of Changes in Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended August
31, 2013
|
|
|
|
Share
capital
|
|
|
Contributed
surplus
|
|
|
Retained
earnings
|
|
|
Accumulated
other
comprehensive
income (loss)
|
|
|
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
|
|
|
(2,565)
|
|
|
(531)
|
|
|
–
|
|
|
–
|
|
|
(3,096)
|
Reclassification of
stock-based compensation costs
|
|
|
1,350
|
|
|
(1,350)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,769
|
|
|
–
|
|
|
–
|
|
|
1,769
|
Net earnings for the
year
|
|
|
–
|
|
|
–
|
|
|
1,341
|
|
|
–
|
|
|
1,341
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(15,830)
|
|
|
(15,830)
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $403
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(1,100)
|
|
|
(1,100)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income (loss) for the year
|
|
|
–
|
|
|
–
|
|
|
1,341
|
|
|
(16,930)
|
|
|
(15,589)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2013
|
|
$
|
109,837
|
|
$
|
17,186
|
|
$
|
112,852
|
|
$
|
(3,423)
|
|
$
|
236,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended August
31, 2014
|
|
|
|
Share
capital
|
|
|
Contributed
surplus
|
|
|
Retained
earnings
|
|
|
Accumulated
other
comprehensive
loss
|
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2013
|
|
$
|
109,837
|
|
$
|
17,186
|
|
$
|
112,852
|
|
$
|
(3,423)
|
|
$
|
236,452
|
Exercise of stock
options
|
|
|
225
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
225
|
Redemption of share
capital
|
|
|
(831)
|
|
|
(106)
|
|
|
–
|
|
|
–
|
|
|
(937)
|
Reclassification of
stock-based compensation costs
|
|
|
2,260
|
|
|
(2,260)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,683
|
|
|
–
|
|
|
–
|
|
|
1,683
|
Net earnings for the
year
|
|
|
–
|
|
|
–
|
|
|
783
|
|
|
–
|
|
|
783
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(7,086)
|
|
|
(7,086)
|
|
Changes in unrealized
losses on forward exchange contracts, net of deferred income taxes
of $91
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
250
|
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income (loss) for the year
|
|
|
–
|
|
|
–
|
|
|
783
|
|
|
(6,836)
|
|
|
(6,053)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2014
|
|
$
|
111,491
|
|
$
|
16,503
|
|
$
|
113,635
|
|
$
|
(10,259)
|
|
$
|
231,370
|
EXFO
Inc.
|
Unaudited Interim
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
August 31,
2014
|
|
Twelve
months
ended
August 31,
2014
|
|
Three
months
ended
August 31,
2013
|
|
Twelve
months
ended
August 31,
2013
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for the
period
|
|
$
|
1,204
|
|
$
|
783
|
|
$
|
3,802
|
|
$
|
1,341
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
424
|
|
|
1,696
|
|
|
437
|
|
|
1,768
|
|
Depreciation and
amortization
|
|
|
2,375
|
|
|
9,393
|
|
|
2,619
|
|
|
12,671
|
|
Deferred
revenue
|
|
|
(285)
|
|
|
(804)
|
|
|
(1,507)
|
|
|
(1,266)
|
|
Deferred income
taxes
|
|
|
(557)
|
|
|
891
|
|
|
967
|
|
|
2,951
|
|
Changes in foreign
exchange gain/loss
|
|
|
32
|
|
|
(491)
|
|
|
(215)
|
|
|
(1,091)
|
|
|
|
3,193
|
|
|
11,468
|
|
|
6,103
|
|
|
16,374
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
7,261
|
|
|
3,578
|
|
|
(4,108)
|
|
|
(14,765)
|
|
Income taxes and tax
credits
|
|
|
3,149
|
|
|
1,447
|
|
|
(2,004)
|
|
|
(4,205)
|
|
Inventories
|
|
|
2,072
|
|
|
(734)
|
|
|
2,125
|
|
|
2,916
|
|
Prepaid
expenses
|
|
|
334
|
|
|
210
|
|
|
1,852
|
|
|
993
|
|
Other
assets
|
|
|
73
|
|
|
92
|
|
|
(703)
|
|
|
(703)
|
|
Accounts payable and
accrued liabilities and provisions
|
|
|
(6,124)
|
|
|
3,832
|
|
|
(3,876)
|
|
|
(2,373)
|
|
Other
liabilities
|
|
|
(29)
|
|
|
(107)
|
|
|
(23)
|
|
|
(258)
|
|
|
|
9,929
|
|
|
19,786
|
|
|
(634)
|
|
|
(2,021)
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
(9,830)
|
|
|
(34,222)
|
|
|
(9,786)
|
|
|
(54,489)
|
Proceeds from
disposal and maturity of
short-term investments
|
|
|
9,402
|
|
|
33,208
|
|
|
9,783
|
|
|
57,514
|
Additions to capital
assets
|
|
|
(2,785)
|
|
|
(7,931)
|
|
|
(2,074)
|
|
|
(8,026)
|
|
|
|
(3,213)
|
|
|
(8,945)
|
|
|
(2,077)
|
|
|
(5,001)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
|
-
|
|
|
(307)
|
|
|
(296)
|
|
|
(589)
|
Exercise of stock
options
|
|
|
-
|
|
|
225
|
|
|
-
|
|
|
87
|
Redemption of share
capital
|
|
|
-
|
|
|
(937)
|
|
|
(795)
|
|
|
(3,096)
|
|
|
|
-
|
|
|
(1,019)
|
|
|
(1,091)
|
|
|
(3,598)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
|
|
(18)
|
|
|
(1,087)
|
|
|
(670)
|
|
|
(2,862)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
|
6,698
|
|
|
8,735
|
|
|
(4,472)
|
|
|
(13,482)
|
Cash – Beginning
of period
|
|
|
47,423
|
|
|
45,386
|
|
|
49,858
|
|
|
58,868
|
Cash – End of
period
|
|
$
|
54,121
|
|
$
|
54,121
|
|
$
|
45,386
|
|
$
|
45,386
|
SOURCE EXFO inc.