- Fast-tracking the integration of a highly differentiated
monitoring and analytics platform to address network virtualization
and 5G transformations
- Annualized cost savings estimated at US$10.5 million
QUEBEC CITY, Aug. 21, 2018
/PRNewswire/ - EXFO Inc. (NASDAQ: EXFO) (TSX: EXF) announced
today an accelerated integration plan for its newly acquired
monitoring and analytics technologies, while reducing its cost
structure to strengthen profitable growth.
Accelerating technology and systems integration. The
company will fast-track the integration of Astellia's and
Ontology's solutions with EXFO's technologies on a common
monitoring and analytics platform. This highly differentiated
platform, with big data capabilities, will address critical
visibility and quality of experience issues for communications
service providers as they invest in the digital transformation of
their networks.
Improving profitability. EXFO will also simplify its
corporate structure, optimize resources and increase efficiency as
the company converges toward fewer sites and reduces its workforce
by less than 5%. The company, however, will continue to invest in
the business areas and product lines affected by the
reorganization.
These initiatives will allow EXFO to focus more efficiently on
high-growth vectors in the test, monitoring and analytics markets
like fiber, network virtualization and 5G deployments, as well as
reallocate selected resources to better serve customers in key
geographic regions.
Once this reorganization is completed, EXFO intends to benefit
from annualized cost savings of US$10.5
million. The company will incur US$8.0 million in restructuring costs, including
US$6.0 million in severance expenses.
From total restructuring expenses, US$3.4
million will be recorded in the fourth quarter of fiscal
2018, which was not reflected in previously issued guidance.
Remaining restructuring costs will mostly be incurred in the first
half of 2019.
"Although we have made difficult decisions, I am convinced they
will provide EXFO with a greater focus and differentiated portfolio
to move the company ahead of the market," said EXFO's CEO
Philippe Morin. "Communications
service providers are embarking on massive transformations of their
fiber and 5G network infrastructures, while increasing investments
in analytics, virtualization and IoT solutions. Through this
reorganization, we are putting the right resources in the right
places to increase EXFO's efficiency, agility and value to
customers, while improving profitable growth."
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 more than 2,000 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 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,
including trade wars, as well as 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; our ability to successfully
integrate businesses that we acquire; 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.
EXFO-F
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SOURCE EXFO Inc.