- Sales reached US$73.6
million, above midpoint of guidance range
- IFRS net earnings attained break-even mark, US$0.00 per share
- Adjusted EBITDA totaled US$7.9
million, 10.7% of sales
QUEBEC CITY, July 10, 2019 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO) (TSX: EXF), the communications industry's test,
monitoring and analytics experts, reported today financial results
for the third quarter ended May 31,
2019.
Sales increased 1.9% to US$73.6
million in the third quarter of fiscal 2019 from US$72.2
million in the third quarter of 2018. After nine months in fiscal
2019, sales improved 8.2% year-over-year to US$216.7 million. Astellia contributed nine
months to EXFO's financial results in 2019 versus four months for
the same period in 2018.
Bookings decreased 4.8% to US$69.6 million for a
book-to-bill ratio of 0.95 in the third quarter of fiscal 2019 from
US$73.1 million
for the same period of 2018. After nine months in fiscal
2019, bookings increased 10.9% year-over-year to US$226.9 million for a book-to-bill ratio of
1.05.
Gross margin before depreciation and
amortization* amounted to 58.6% of sales in the
third quarter of fiscal 2019 compared to 59.9% in the third
quarter of 2018.
IFRS net earnings in the third quarter of fiscal 2019 totaled
US$21,000, or US$0.00 per share, compared to a net loss of
US$6.0 million, or US$0.11 per share, in the third quarter of 2018.
IFRS net earnings in the third quarter of 2019 included
US$1.7 million in after-tax
amortization of intangible assets, US$0.5 million in stock-based compensation costs
and a foreign exchange gain of US$0.1 million. After nine
months in fiscal 2019, IFRS net loss attributable to the parent
interest1 amounted to US$2.3
million compared to US$8.0
million for the same period in 2018.
Adjusted EBITDA* totaled US$7.9 million, or 10.7% of sales, in the third
quarter of fiscal 2019 compared to US$2.5 million, or 3.5% of sales, in the
third quarter of 2018. After nine months in fiscal 2019, adjusted
EBITDA surged 74.5% year-over-year to US$19.4 million.
"I am pleased with our execution so far in fiscal 2019 with
significant year-over-year increases in sales, bookings and
adjusted EBITDA, including third quarter revenue above the midpoint
of guidance and an adjusted EBITDA margin greater than 10% for a
second consecutive quarter," said EXFO's CEO Philippe Morin. "This heightened level of
consistency reflects a strong performance against our growth
strategy, leveraging fiber buildouts, data center interconnects as
well as 5G deployments and network virtualization, while
maintaining a sound financial discipline. We are confident
that we will at least achieve our adjusted EBITDA target of
US$24 million for fiscal 2019."
1
|
Represents net loss
excluding share of the net loss attributable to Astellia's minority
shareholders.
|
Selected Financial
Information
|
(In thousands of
US dollars)
|
|
Three months
ended May 31,
2019
|
|
Three months
ended May 31,
2018
|
|
Nine months
ended May 31,
2019
|
|
Nine months
ended May 31,
2018
|
|
|
|
|
|
|
|
|
Test and Measurement
sales
|
$
|
54,359
|
|
$
|
49,864
|
|
$
|
154,530
|
|
$
|
149,934
|
Service Assurance,
Systems and Services sales
|
19,469
|
|
22,174
|
|
62,586
|
|
49,599
|
Foreign exchange
gains (losses) on forward exchange contracts
|
(241)
|
|
179
|
|
(401)
|
|
797
|
Total
sales
|
$
|
73,587
|
|
$
|
72,217
|
|
$
|
216,715
|
|
$
|
200,330
|
|
|
|
|
|
|
|
|
Test and Measurement
bookings
|
$
|
50,157
|
|
$
|
52,111
|
|
$
|
159,473
|
|
$
|
152,351
|
Service Assurance,
Systems and Services bookings
|
19,648
|
|
20,800
|
|
67,822
|
|
51,407
|
Foreign exchange
gains (losses) on forward exchange contracts
|
(241)
|
|
179
|
|
(401)
|
|
797
|
Total
bookings
|
$
|
69,564
|
|
$
|
73,090
|
|
$
|
226,894
|
|
$
|
204,555
|
Book-to-bill ratio
(bookings/sales)
|
0.95
|
|
1.01
|
|
1.05
|
|
1.02
|
Gross margin before
depreciation and amortization*
|
$
|
43,129
|
|
$
|
43,254
|
|
$
|
128,298
|
|
$
|
122,752
|
|
58.6%
|
|
59.9%
|
|
59.2%
|
|
61.3%
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) attributable to the parent interest
|
$
|
21
|
|
$
|
(5,970)
|
|
$
|
(2,253)
|
|
$
|
(7,951)
|
Amortization of
intangible assets
|
$
|
2,072
|
|
$
|
4,210
|
|
$
|
7,142
|
|
$
|
8,385
|
Stock-based
compensation costs
|
$
|
475
|
|
$
|
440
|
|
$
|
1,354
|
|
$
|
1,280
|
Restructuring charges
(reversals)
|
$
|
(13)
|
|
$
|
‒
|
|
$
|
3,305
|
|
$
|
‒
|
Change in fair value
of cash contingent consideration
|
$
|
‒
|
|
$
|
‒
|
|
$
|
‒
|
|
$
|
(716)
|
Acquisition-related
deferred revenue fair value adjustment
|
$
|
‒
|
|
$
|
913
|
|
$
|
1,435
|
|
$
|
1,222
|
Net income tax effect
of the above items
|
$
|
(344)
|
|
$
|
(138)
|
|
$
|
(1,115)
|
|
$
|
(704)
|
Foreign exchange
(gain) loss
|
$
|
(146)
|
|
$
|
(160)
|
|
$
|
55
|
|
$
|
(1,386)
|
Adjusted
EBITDA*
|
$
|
7,860
|
|
$
|
2,549
|
|
$
|
19,372
|
|
$
|
11,100
|
Operating Expenses
Selling and administrative expenses
reached US$23.8 million, or 32.3% of
sales in the third quarter of fiscal 2019 compared to
US$26.0 million, or 35.9% of sales,
in the same period last year.
Net R&D expenses attained US$12.0
million, or 16.3% of sales, in the third quarter of fiscal
2019 compared to US$16.1 million, or 22.3% of sales, in
the third quarter of 2018.
Third-Quarter Highlights
- Growth. Sales increased 1.9% year-over-year despite a negative
currency impact. The increase in sales can be attributed to
heightened demand for EXFO's Test and Measurement product line,
especially 100G/200G/400G optical transport solutions for
communications service providers and advanced equipment for the
R&D labs and factories of network equipment manufacturers.
Service Assurance, Systems and Services (SASS) sales were down
year-over-year mainly due to a market slowdown to evaluate how to
optimally transform network architectures into virtualized 5G
infrastructures. Test and Measurement sales accounted for 74% of
total revenue in the third quarter of 2019, while SASS sales
totaled 26%. Revenue breakdown among the three main selling regions
amounted to 51% in the Americas, 30% in Europe, Middle
East and Africa (EMEA) and
19% in Asia-Pacific (APAC). EXFO's
top customer accounted for 6.9% of sales, while the top three
represented 16.9%.
- Profitability. IFRS net earnings attained the break-even mark
in the third quarter of 2019, while adjusted EBITDA reached
US$7.9 million, or 10.7% of sales.
After nine months in fiscal 2019, IFRS net loss amounted to
US$2.3 million while adjusted EBITDA
totaled US$19.4 million.
- Innovation. EXFO introduced a new category of fiber testing
solutions with the launch of the industry's first optical fiber
multimeter (OFM) following the quarter-end. This revolutionary test
instrument, branded Optical Xplorer™, greatly simplifies and
accelerates the task of frontline technicians by automatically
evaluating the quality of fiber links in a matter of seconds.
Business Outlook
EXFO forecasts sales between
US$66.0 million and US$71.0 million for the fourth quarter of fiscal
2019.
IFRS net results are expected to range between a loss of
US$0.02 per share and earnings
of US$0.02 per share in the fourth
quarter of 2019. IFRS net results include US$0.04 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 third 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: 8949289. 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 July
17, 2019. The replay number is 1-719-457-0820 and the
required participant passcode is 8949289. 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 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 represents 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
|
|
|
|
|
|
|
|
|
Three months
ended
May 31,
2019
|
|
Three months
ended
May 31,
2018
|
|
Nine months
ended
May 31,
2019
|
|
Nine months
ended
May 31,
2018
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) attributable to the parent interest for the
period
|
$
|
21
|
|
$
|
(5,970)
|
|
$
|
(2,253)
|
|
$
|
(7,951)
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
1,368
|
|
1,555
|
|
4,187
|
|
3,972
|
Amortization of
intangible assets
|
2,072
|
|
4,210
|
|
7,142
|
|
8,385
|
Interest and other
(income) expense
|
698
|
|
198
|
|
(439)
|
|
870
|
Income
taxes
|
3,385
|
|
1,363
|
|
4,586
|
|
5,424
|
Stock-based
compensation costs
|
475
|
|
440
|
|
1,354
|
|
1,280
|
Restructuring charges
(reversals)
|
(13)
|
|
‒
|
|
3,305
|
|
‒
|
Change in fair value
of cash contingent consideration
|
‒
|
|
‒
|
|
‒
|
|
(716)
|
Acquisition-related
deferred revenue fair value adjustment
|
‒
|
|
913
|
|
1,435
|
|
1,222
|
Foreign exchange
(gain) loss
|
(146)
|
|
(160)
|
|
55
|
|
(1,386)
|
Adjusted EBITDA for
the period (1)
|
$
|
7,860
|
|
$
|
2,549
|
|
$
|
19,372
|
|
$
|
11,100
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
percentage of sales
|
10.7%
|
|
3.5%
|
|
8.9%
|
|
5.5%
|
|
(1) Includes
acquisition-related costs of US$2.1 million for the nine months
ended May 31, 2018 (nil in fiscal 2019).
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
As
at
May
31,
2019
|
|
As
at
August
31,
2018
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
13,623
|
|
$
|
12,758
|
Short-term
investments
|
|
1,691
|
|
|
2,282
|
Accounts
receivable
|
|
|
|
|
|
Trade
|
|
52,876
|
|
|
47,273
|
Other
|
|
3,384
|
|
|
4,137
|
Income taxes and tax
credits recoverable
|
|
2,985
|
|
|
4,790
|
Inventories
|
|
37,859
|
|
|
38,589
|
Prepaid
expenses
|
|
5,492
|
|
|
5,291
|
Other
assets
|
|
2,945
|
|
|
2,279
|
|
|
120,855
|
|
|
117,399
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
46,271
|
|
|
47,677
|
Property, plant
and equipment
|
|
40,509
|
|
|
44,310
|
Intangible
assets
|
|
22,875
|
|
|
29,866
|
Goodwill
|
|
38,517
|
|
|
39,892
|
Deferred income
tax assets
|
|
5,229
|
|
|
4,714
|
Other
assets
|
|
911
|
|
|
686
|
|
$
|
275,167
|
|
$
|
284,544
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank loan
|
$
|
5,000
|
|
$
|
10,692
|
Accounts payable and
accrued liabilities
|
|
48,903
|
|
|
47,898
|
Provisions
|
|
1,181
|
|
|
2,954
|
Income taxes
payable
|
|
1,040
|
|
|
873
|
Deferred
revenue
|
|
24,943
|
|
|
16,556
|
Other
liabilities
|
|
1,624
|
|
|
3,197
|
Current portion of
long-term debt
|
|
2,579
|
|
|
2,921
|
|
|
85,270
|
|
|
85,091
|
|
|
|
|
|
|
Provisions
|
|
2,830
|
|
|
2,347
|
Deferred
revenue
|
|
9,086
|
|
|
6,947
|
Long-term
debt
|
|
3,876
|
|
|
5,907
|
Deferred income
tax liabilities
|
|
3,638
|
|
|
5,910
|
Other
liabilities
|
|
625
|
|
|
421
|
|
|
105,325
|
|
|
106,623
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
92,889
|
|
|
91,937
|
Contributed
surplus
|
|
18,734
|
|
|
18,428
|
Retained
earnings
|
|
112,400
|
|
|
114,906
|
Accumulated other
comprehensive loss
|
|
(54,181)
|
|
|
(47,350)
|
|
|
169,842
|
|
|
177,921
|
|
|
|
|
|
|
|
$
|
275,167
|
|
$
|
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 May 31, 2019
|
|
Nine
months ended May 31, 2019
|
|
Three
months ended May 31, 2018
|
|
Nine
months ended May 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
73,587
|
|
$
|
216,715
|
|
$
|
72,217
|
|
$
|
200,330
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
30,458
|
|
|
88,417
|
|
|
28,963
|
|
|
77,578
|
Selling and
administrative
|
|
23,761
|
|
|
75,610
|
|
|
25,957
|
|
|
74,066
|
Net research and
development
|
|
11,970
|
|
|
39,410
|
|
|
16,101
|
|
|
40,440
|
Depreciation of
property, plant and equipment
|
|
1,368
|
|
|
4,187
|
|
|
1,555
|
|
|
3,972
|
Amortization of
intangible assets
|
|
2,072
|
|
|
7,142
|
|
|
4,210
|
|
|
8,385
|
Change in fair value
of cash contingent consideration
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(716)
|
Interest and other
(income) expense
|
|
698
|
|
|
(439)
|
|
|
198
|
|
|
870
|
Foreign exchange
(gain) loss
|
|
(146)
|
|
|
55
|
|
|
(160)
|
|
|
(1,386)
|
Share in net loss of
an associate
|
|
–
|
|
|
–
|
|
|
–
|
|
|
2,080
|
Gain on the deemed
disposal of the investment in an associate
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(2,080)
|
Earnings (loss)
before income taxes
|
|
3,406
|
|
|
2,333
|
|
|
(4,607)
|
|
|
(2,879)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
3,385
|
|
|
4,586
|
|
|
1,363
|
|
|
5,424
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
|
21
|
|
|
(2,253)
|
|
|
(5,970)
|
|
|
(8,303)
|
Net loss for the
period attributable to non-controlling interest
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(352)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period attributable to parent
interest
|
$
|
21
|
|
$
|
(2,253)
|
|
$
|
(5,970)
|
|
$
|
(7,951)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings (loss) attributable to parent interest
per share
|
$
|
0.00
|
|
$
|
(0.04)
|
|
$
|
(0.11)
|
|
$
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
55,392
|
|
|
55,306
|
|
|
55,099
|
|
|
54,959
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
56,437
|
|
|
55,306
|
|
|
55,099
|
|
|
54,959
|
|
(1) The cost of sales
is exclusive of depreciation and amortization, shown
separately.
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Comprehensive
Loss
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
Three
months
ended
May 31,
2019
|
|
Nine
months
ended
May 31,
2019
|
|
Three
months
ended
May 31,
2018
|
|
Nine
months
ended
May 31,
2018
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
$
|
21
|
|
$
|
(2,253)
|
|
$
|
(5,970)
|
|
$
|
(8,303)
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(4,611)
|
|
(6,160)
|
|
(3,189)
|
|
(5,033)
|
Unrealized
gains/losses on forward exchange contracts
|
(1,046)
|
|
(1,237)
|
|
(486)
|
|
(971)
|
Reclassification of
realized gains/losses on forward exchange contracts
in net earnings
|
(91)
|
|
210
|
|
(232)
|
|
(840)
|
Deferred income taxes
on gains/losses on forward exchange contracts
|
314
|
|
356
|
|
155
|
|
418
|
Other comprehensive
loss
|
(5,434)
|
|
(6,831)
|
|
(3,752)
|
|
(6,426)
|
|
|
|
|
|
|
|
|
Comprehensive loss
for the period
|
(5,413)
|
|
(9,084)
|
|
(9,722)
|
|
(14,729)
|
|
|
|
|
|
|
|
|
Comprehensive loss
for the period attributable to non-controlling
interest
|
–
|
|
–
|
|
–
|
|
(352)
|
|
|
|
|
|
|
|
|
Comprehensive loss
for the period attributable to parent interest
|
$
|
(5,413)
|
|
$
|
(9,084)
|
|
$
|
(9,722)
|
|
$
|
(14,377)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands of US
dollars)
|
|
|
|
Nine months ended
May 31, 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
|
1,499
|
|
(1,499)
|
|
–
|
|
–
|
|
–
|
|
–
|
Stock-based
compensation costs
|
–
|
|
1,322
|
|
–
|
|
–
|
|
–
|
|
1,322
|
Business
combination
|
–
|
|
–
|
|
–
|
|
–
|
|
(3,662)
|
|
(3,662)
|
Acquisition of
non-controlling interest
|
–
|
|
–
|
|
(352)
|
|
–
|
|
4,014
|
|
3,662
|
Net loss for the
period
|
–
|
|
–
|
|
(7,951)
|
|
–
|
|
(352)
|
|
(8,303)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
–
|
|
–
|
|
–
|
|
(5,033)
|
|
–
|
|
(5,033)
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $418
|
–
|
|
–
|
|
–
|
|
(1,393)
|
|
–
|
|
(1,393)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
for the period
|
|
|
|
|
|
|
|
|
|
|
(14,729)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2018
|
$
|
91,910
|
|
$
|
18,007
|
|
$
|
118,857
|
|
$
|
(45,391)
|
|
$
|
–
|
|
$
|
183,383
|
|
|
|
|
|
Nine months ended
May 31, 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
|
1,078
|
|
(1,078)
|
|
–
|
|
–
|
|
–
|
Redemption of share
capital
|
(126)
|
|
21
|
|
–
|
|
–
|
|
(105)
|
Stock-based
compensation costs
|
–
|
|
1,363
|
|
–
|
|
–
|
|
1,363
|
Net loss for the
period
|
–
|
|
–
|
|
(2,253)
|
|
–
|
|
(2,253)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
–
|
|
–
|
|
–
|
|
(6,160)
|
|
(6,160)
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $356
|
–
|
|
–
|
|
–
|
|
(671)
|
|
(671)
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
(9,084)
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2019
|
$
|
92,889
|
|
$
|
18,734
|
|
$
|
112,400
|
|
$
|
(54,181)
|
|
$
|
169,842
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
Three
months
ended
May 31,
2019
|
|
Nine
months
ended
May 31,
2019
|
|
Three
months
ended
May 31,
2018
|
|
Nine
months
ended
May 31,
2018
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net earnings (loss)
for the period
|
$
|
21
|
|
$
|
(2,253)
|
|
$
|
(5,970)
|
|
$
|
(8,303)
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
475
|
|
1,354
|
|
440
|
|
1,280
|
Depreciation and
amortization
|
3,440
|
|
11,329
|
|
5,765
|
|
12,357
|
Gain on disposal of
capital assets
|
–
|
|
(1,732)
|
|
–
|
|
–
|
Write-off of capital
assets
|
–
|
|
261
|
|
77
|
|
325
|
Change in fair value
of cash contingent consideration
|
–
|
|
–
|
|
–
|
|
(716)
|
Deferred
revenue
|
1,676
|
|
11,619
|
|
(552)
|
|
1,682
|
Deferred income
taxes
|
(142)
|
|
(2,295)
|
|
389
|
|
2,533
|
Share in net loss of
an associate
|
–
|
|
–
|
|
–
|
|
2,080
|
Gain on deemed
disposal of the investment in an associate
|
–
|
|
–
|
|
–
|
|
(2,080)
|
Changes in foreign
exchange gain/loss
|
143
|
|
(310)
|
|
(603)
|
|
(239)
|
|
5,613
|
|
17,973
|
|
(454)
|
|
8,919
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
Accounts
receivable
|
(12,857)
|
|
(7,038)
|
|
2,353
|
|
7,693
|
Income taxes and tax
credits
|
1,596
|
|
1,629
|
|
172
|
|
(2,787)
|
Inventories
|
(306)
|
|
(668)
|
|
1,162
|
|
(12)
|
Prepaid
expenses
|
(585)
|
|
(380)
|
|
16
|
|
205
|
Other
assets
|
(664)
|
|
(1,003)
|
|
(245)
|
|
(769)
|
Accounts payable,
accrued liabilities and provisions
|
1,995
|
|
2,013
|
|
1,821
|
|
5
|
Other
liabilities
|
(6)
|
|
(1,527)
|
|
(109)
|
|
101
|
|
(5,214)
|
|
10,999
|
|
4,716
|
|
13,355
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
(286)
|
|
(578)
|
|
–
|
|
(482)
|
Proceeds from disposal
of short-term investments
|
826
|
|
1,168
|
|
–
|
|
234
|
Purchases of capital
assets
|
(1,639)
|
|
(6,318)
|
|
(3,431)
|
|
(7,680)
|
Proceeds from
disposal of capital assets
|
–
|
|
3,318
|
|
–
|
|
–
|
Investment in an
associate
|
–
|
|
–
|
|
–
|
|
(12,530)
|
Business
combinations, net of cash acquired
|
–
|
|
–
|
|
–
|
|
(19,120)
|
|
(1,099)
|
|
(2,410)
|
|
(3,431)
|
|
(39,578)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Bank loan
|
(3,808)
|
|
(5,052)
|
|
9,184
|
|
11,250
|
Repayment of
long-term debt
|
(713)
|
|
(2,165)
|
|
(757)
|
|
(1,027)
|
Redemption of share
capital
|
–
|
|
(105)
|
|
–
|
|
–
|
Acquisition of
non-controlling interest
|
–
|
|
–
|
|
(3,657)
|
|
(3,657)
|
|
(4,521)
|
|
(7,322)
|
|
4,770
|
|
6,566
|
Effect of foreign
exchange rate changes on cash
|
(306)
|
|
(402)
|
|
(119)
|
|
(289)
|
|
|
|
|
|
|
|
|
Change in cash
during the period
|
(11,140)
|
|
865
|
|
5,936
|
|
(19,946)
|
Cash – Beginning
of the period
|
24,763
|
|
12,758
|
|
12,553
|
|
38,435
|
Cash – End of the
period
|
$
|
13,623
|
|
$
|
13,623
|
|
$
|
18,489
|
|
$
|
18,489
|
EXFO-F
View original
content:http://www.prnewswire.com/news-releases/exfo-reports-third-quarter-results-for-fiscal-2019-300882945.html
SOURCE EXFO Inc.