- Sales reached US$66.1
million
- IFRS net earnings totaled US$3.2
million
- Adjusted EBITDA amounted to US$10.7 million, 16.1% of sales
QUEBEC CITY, July 8, 2020
/PRNewswire/ - 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, 2020.
"Despite constraints and restrictive measures in many countries,
EXFO navigated through the coronavirus pandemic with a solid
financial performance in the third quarter of 2020," said EXFO's
CEO Philippe Morin. "We delivered
encouraging sales in a difficult environment and proactively
implemented cost-controls, while benefiting from a Canadian
government wage subsidy program. The end-result was strong earnings
amid end-markets that will necessarily improve as long-term drivers
like fiber and 5G deployments remain intact."
Third Quarter Highlights
- Sales. Sales decreased 10.1% year-over-year to
US$66.1 million in the third quarter
of fiscal 2020 mainly due to the ongoing impact of the coronavirus
pandemic. Test and Measurement (T&M) sales accounted for 75% of
revenue in the third quarter of 2020, while Service Assurance,
Systems and Services (SASS) sales represented 25%. Revenue
distribution among the three main selling regions amounted to 45%
in the Americas, 33% in Europe,
Middle East and Africa (EMEA) and 22% in Asia-Pacific. EXFO's top customer accounted
for 9.6% of sales, while the top three totaled 18.2%.
- Profitability. IFRS net earnings amounted to US$3.2 million, or US$0.06 per share, in the third quarter of fiscal
2020, while adjusted EBITDA totaled US$10.7
million, or 16.1% of sales. Net earnings included a
wage subsidy of US$3.3M (US$2.4M after-tax) under the Canada emergency wage subsidy program to help
qualifying businesses alleviate the effects of the coronavirus
pandemic.
Selected Financial
Information
|
(In thousands of
US dollars)
|
|
Three months
ended
May 31, 2020
|
|
Three months
ended
May 31, 2019
|
|
Nine months
ended
May 31, 2020
|
|
Nine months
ended
May 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Test and Measurement
sales
|
$
|
50,309
|
|
$
|
54,359
|
|
$
|
143,733
|
|
$
|
154,530
|
Service Assurance,
Systems and Services sales
|
|
16,352
|
|
|
19,469
|
|
|
52,036
|
|
|
62,586
|
Foreign exchange
losses on forward exchange
|
|
|
|
|
|
|
|
|
|
|
|
contracts
|
|
(514)
|
|
|
(241)
|
|
|
(758)
|
|
|
(401)
|
Total
sales
|
$
|
66,147
|
|
$
|
73,587
|
|
$
|
195,011
|
|
$
|
216,715
|
|
|
|
|
|
|
|
|
|
|
|
|
Test and Measurement
bookings
|
$
|
46,634
|
|
$
|
50,157
|
|
$
|
153,646
|
|
$
|
159,473
|
Service Assurance,
Systems and Services
|
|
|
|
|
|
|
|
|
|
|
|
bookings
|
|
12,988
|
|
|
19,648
|
|
|
49,000
|
|
|
67,822
|
Foreign exchange
losses on forward exchange
|
|
|
|
|
|
|
|
|
|
|
|
contracts
|
|
(514)
|
|
|
(241)
|
|
|
(758)
|
|
|
(401)
|
Total
bookings
|
$
|
59,108
|
|
$
|
69,564
|
|
$
|
201,888
|
|
$
|
226,894
|
Book-to-bill ratio
(bookings/sales)
|
|
0.89
|
|
|
0.95
|
|
|
1.04
|
|
|
1.05
|
Gross margin before
depreciation and amortization*
|
$
|
38,199
|
|
$
|
43,129
|
|
$
|
113,026
|
|
$
|
128,298
|
|
|
57.7%
|
|
|
58.6%
|
|
|
58.0%
|
|
|
59.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss)
|
$
|
3,177
|
|
$
|
21
|
|
$
|
(5,907)
|
|
$
|
(2,253)
|
Amortization of
intangible assets
|
$
|
1,698
|
|
$
|
2,072
|
|
$
|
5,025
|
|
$
|
7,142
|
Stock-based
compensation costs
|
$
|
523
|
|
$
|
475
|
|
$
|
1,446
|
|
$
|
1,354
|
Restructuring charges
(reversals)
|
$
|
–
|
|
$
|
(13)
|
|
$
|
–
|
|
$
|
3,305
|
Acquisition-related deferred revenue fair value
|
|
|
|
|
|
|
|
|
|
|
|
adjustment
|
$
|
–
|
|
$
|
–
|
|
$
|
–
|
|
$
|
1,435
|
Net income tax effect
of the above items
|
$
|
(257)
|
|
$
|
(344)
|
|
$
|
(760)
|
|
$
|
(1,115)
|
Foreign exchange (gain)
loss
|
$
|
141
|
|
$
|
(146)
|
|
$
|
649
|
|
$
|
55
|
Adjusted
EBITDA*
|
$
|
10,656
|
|
$
|
7,860
|
|
$
|
13,284
|
|
$
|
19,372
|
Quarterly Overview
Sales reached US$66.1 million in the third quarter of
fiscal 2020 compared to US$73.6 million in the third quarter of
2019.
Bookings attained US$59.1 million
in the third quarter of fiscal 2020 compared to US$69.6 million for the same period in 2019.
The company's book-to-bill ratio was 0.89 in the third quarter of
2020.
Gross margin before depreciation and amortization* amounted to
57.7% of sales in the third quarter of fiscal 2020 compared to
58.6% in the third quarter of 2019.
Selling and administrative expenses totaled US$18.9 million, or 28.6% of sales in the third
quarter of fiscal 2020 compared to US$23.8
million, or 32.3% of sales, in the third quarter of
2019.
Net R&D expenses attained US$9.2
million, or 13.9% of sales, in the third quarter of fiscal
2020 compared to US$12.0 million, or
16.3% of sales, in the same period last year.
IFRS net earnings totaled US$3.2
million, or US$0.06 per
share, in the third quarter of fiscal 2020 compared to net earnings
of US$21,000, or US$0.00 per share, in the third quarter of 2019.
IFRS net earnings in the third quarter of 2020 included
US$1.4 million in after-tax
amortization of intangible assets, US$0.5 million in stock-based compensation
costs, and US$0.1 million in foreign
exchange loss. Net earnings in the third quarter of 2020 also
included US$2.4 million for an
after-tax wage subsidy granted by the Canadian government to help
qualifying businesses alleviate the effects of the coronavirus
pandemic.
Adjusted EBITDA* amounted to US$10.7
million, or 16.1% of sales, in the third quarter of fiscal
2020 compared to US$7.9 million,
or 10.7% of sales, in the third quarter of 2019.
During the third quarter of fiscal 2020, EXFO extended its
revolving credit facilities, which had provided advances up to
US$50.8 million (C$70.0 million), to US$65.3 million (C$90.0
million) until May 31, 2021,
and will return to US$50.8 million
(C$70.0 million) on June 1, 2021.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review third 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:
8963518. 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 July 15, 2020. The
replay number is 1-719-457-0820 and the participant passcode is
8963518. 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.
*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 gain or 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
|
|
|
Three months
ended
May 31, 2020
|
|
Three months
ended
May 31, 2019
|
|
Nine months
ended
May 31, 2020
|
|
Nine months
ended
May 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings
(loss) for the period (1)
|
$
|
3,177
|
|
$
|
21
|
|
$
|
(5,907)
|
|
$
|
(2,253)
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,833
|
|
|
3,440
|
|
|
11,732
|
|
|
11,329
|
Interest and other
(income) expense
|
|
291
|
|
|
698
|
|
|
975
|
|
|
(439)
|
Income
taxes
|
|
2,691
|
|
|
3,385
|
|
|
4,389
|
|
|
4,586
|
Stock-based
compensation costs
|
|
523
|
|
|
475
|
|
|
1,446
|
|
|
1,354
|
Restructuring charges
(reversals)
|
|
–
|
|
|
(13)
|
|
|
–
|
|
|
3,305
|
Acquisition-related
deferred revenue fair value
|
|
|
|
|
|
|
|
|
|
|
|
adjustment
|
|
–
|
|
|
–
|
|
|
–
|
|
|
1,435
|
Foreign exchange
(gain) loss
|
|
141
|
|
|
(146)
|
|
|
649
|
|
|
55
|
Adjusted EBITDA for
the period
|
$
|
10,656
|
|
$
|
7,860
|
|
$
|
13,284
|
|
$
|
19,372
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a
percentage of sales
|
|
16.1%
|
|
|
10.7%
|
|
|
6.8%
|
|
|
8.9%
|
|
|
(1)
|
IFRS net earnings
(loss) for the three months and the nine months ended May 31, 2020
takes into account the impact of the adoption of IFRS 16 on
September 1, 2019. The adoption of IFRS 16 on September 1, 2019 had
a positive impact on adjusted EBITDA of $844,000 or 1.3% of
sales and $2,549,000 or 1.3% of sales respectively for the three
months and the nine months ended May 31, 2020.
Comparative figures were not adjusted.
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
|
As
at May
31, 2020
|
|
As
at August
31, 2019
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
17,070
|
|
$
|
16,518
|
Short-term
investments
|
|
|
3,384
|
|
|
2,918
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
|
56,842
|
|
|
51,517
|
Other
|
|
|
4,543
|
|
|
3,396
|
Income taxes and tax
credits recoverable
|
|
|
4,912
|
|
|
3,159
|
Inventories
|
|
|
42,745
|
|
|
38,017
|
Prepaid
expenses
|
|
|
5,553
|
|
|
6,510
|
Other
assets
|
|
|
3,800
|
|
|
3,083
|
|
|
|
138,849
|
|
|
125,118
|
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
|
45,203
|
|
|
46,704
|
Property, plant
and equipment
|
|
|
37,814
|
|
|
39,364
|
Right-of-use
assets
|
|
|
10,636
|
|
|
–
|
Intangible
assets
|
|
|
17,523
|
|
|
21,654
|
Goodwill
|
|
|
37,842
|
|
|
38,648
|
Deferred income
tax assets
|
|
|
4,407
|
|
|
4,821
|
Other
assets
|
|
|
1,257
|
|
|
1,293
|
|
|
$
|
293,531
|
|
$
|
277,602
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank loan
|
|
$
|
33,821
|
|
$
|
5,000
|
Accounts payable and
accrued liabilities
|
|
|
43,954
|
|
|
50,790
|
Provisions
|
|
|
706
|
|
|
1,065
|
Income taxes
payable
|
|
|
249
|
|
|
704
|
Deferred
revenue
|
|
|
21,634
|
|
|
24,422
|
Other
liabilities
|
|
|
1,616
|
|
|
1,606
|
Current portion of
lease liabilities
|
|
|
3,188
|
|
|
–
|
Current portion of
long-term debt
|
|
|
2,043
|
|
|
2,449
|
|
|
|
107,211
|
|
|
86,036
|
|
|
|
|
|
|
|
Provisions
|
|
|
2,490
|
|
|
2,737
|
Deferred
revenue
|
|
|
7,669
|
|
|
9,056
|
Lease
liabilities
|
|
|
7,453
|
|
|
–
|
Long-term
debt
|
|
|
2,118
|
|
|
3,293
|
Deferred income
tax liabilities
|
|
|
2,760
|
|
|
3,598
|
Other
liabilities
|
|
|
878
|
|
|
318
|
|
|
|
130,579
|
|
|
105,038
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Share
capital
|
|
|
93,999
|
|
|
92,706
|
Contributed
surplus
|
|
|
19,149
|
|
|
19,196
|
Retained
earnings
|
|
|
106,266
|
|
|
112,173
|
Accumulated other
comprehensive loss
|
|
|
(56,462)
|
|
|
(51,511)
|
|
|
|
162,952
|
|
|
172,564
|
|
|
$
|
293,531
|
|
$
|
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
May 31,
2020
|
|
Nine
months
ended
May 31,
2020
|
|
Three
months
ended
May 31,
2019
|
|
Nine
months
ended
May 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
66,147
|
|
$
|
195,011
|
|
$
|
73,587
|
|
$
|
216,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
|
27,948
|
|
|
81,985
|
|
|
30,458
|
|
|
88,417
|
Selling and
administrative
|
|
|
18,898
|
|
|
67,705
|
|
|
23,761
|
|
|
75,610
|
Net research and
development
|
|
|
9,168
|
|
|
33,483
|
|
|
11,970
|
|
|
39,410
|
Depreciation of
property, plant and
|
|
|
|
|
|
|
|
|
|
|
|
|
equipment
|
|
|
1,291
|
|
|
4,158
|
|
|
1,368
|
|
|
4,187
|
Depreciation of lease
right-of-use assets
|
|
|
844
|
|
|
2,549
|
|
|
–
|
|
|
–
|
Amortization of
intangible assets
|
|
|
1,698
|
|
|
5,025
|
|
|
2,072
|
|
|
7,142
|
Interest and other
(income) expense
|
|
|
291
|
|
|
975
|
|
|
698
|
|
|
(439)
|
Foreign exchange
(gain) loss
|
|
|
141
|
|
|
649
|
|
|
(146)
|
|
|
55
|
Earnings (loss)
before income taxes
|
|
|
5,868
|
|
|
(1,518)
|
|
|
3,406
|
|
|
2,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
2,691
|
|
|
4,389
|
|
|
3,385
|
|
|
4,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
|
$
|
3,177
|
|
$
|
(5,907)
|
|
$
|
21
|
|
$
|
(2,253)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
per share
|
|
$
|
0.06
|
|
$
|
(0.11)
|
|
$
|
0.00
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding
(000's)
|
|
|
55,678
|
|
|
55,573
|
|
|
55,392
|
|
|
55,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of
|
|
|
|
|
|
|
|
|
|
|
|
|
shares outstanding
(000's)
|
|
|
56,724
|
|
|
55,573
|
|
|
56,437
|
|
|
55,306
|
|
|
(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, 2020
|
|
Nine
months ended May 31, 2020
|
|
Three
months ended May 31, 2019
|
|
Nine
months ended May 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
|
$
|
3,177
|
|
$
|
(5,907)
|
|
$
|
21
|
|
$
|
(2,253)
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
subsequently to net
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment
|
|
|
(3,317)
|
|
|
(4,075)
|
|
|
(4,611)
|
|
|
(6,160)
|
Unrealized
gains/losses on forward
|
|
|
|
|
|
|
|
|
|
|
|
|
exchange
contracts
|
|
|
(1,052)
|
|
|
(1,805)
|
|
|
(1,046)
|
|
|
(1,237)
|
Reclassification of
realized gains/losses
|
|
|
|
|
|
|
|
|
|
|
|
|
on forward
exchange contracts
|
|
|
251
|
|
|
607
|
|
|
(91)
|
|
|
210
|
Deferred income tax
effect on
|
|
|
|
|
|
|
|
|
|
|
|
|
gains/losses on
forward exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
contracts
|
|
|
206
|
|
|
322
|
|
|
314
|
|
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
(3,912)
|
|
|
(4,951)
|
|
|
(5,434)
|
|
|
(6,831)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
for the period
|
|
$
|
(735)
|
|
$
|
(10,858)
|
|
$
|
(5,413)
|
|
$
|
(9,084)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands of US
dollars)
|
|
|
|
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
|
|
|
|
|
|
|
|
|
Nine months ended
May 31, 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
|
|
|
1,505
|
|
|
(1,505)
|
|
|
–
|
|
|
–
|
|
|
–
|
Redemption of share
capital
|
|
|
(212)
|
|
|
(13)
|
|
|
–
|
|
|
–
|
|
|
(225)
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,471
|
|
|
–
|
|
|
–
|
|
|
1,471
|
Net loss for the
period
|
|
|
–
|
|
|
–
|
|
|
(5,907)
|
|
|
–
|
|
|
(5,907)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(4,075)
|
|
|
(4,075)
|
Changes in unrealized
gains/losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on forward
exchange contracts,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of deferred income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of $322
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(876)
|
|
|
(876)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,858)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2020
|
|
$
|
93,999
|
|
$
|
19,149
|
|
$
|
106,266
|
|
$
|
(56,462)
|
|
$
|
162,952
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
(in thousands of US
dollars)
|
|
|
|
Three
months
ended
May 31,
2020
|
|
Nine
months
ended
May 31,
2020
|
|
Three
months
ended
May 31,
2019
|
|
Nine
months
ended
May 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
for the period
|
|
$
|
3,177
|
|
$
|
(5,907)
|
|
$
|
21
|
|
$
|
(2,253)
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
523
|
|
|
1,446
|
|
|
475
|
|
|
1,354
|
Depreciation and
amortization
|
|
|
3,833
|
|
|
11,732
|
|
|
3,440
|
|
|
11,329
|
Gain on disposal of
capital assets
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(1,732)
|
Write-off of capital
assets
|
|
|
–
|
|
|
216
|
|
|
–
|
|
|
261
|
Deferred
revenue
|
|
|
(329)
|
|
|
(3,144)
|
|
|
1,676
|
|
|
11,619
|
Deferred income
taxes
|
|
|
493
|
|
|
(161)
|
|
|
(142)
|
|
|
(2,295)
|
Changes in foreign
exchange gain/loss
|
|
|
869
|
|
|
1,750
|
|
|
143
|
|
|
(310)
|
|
|
|
8,566
|
|
|
5,932
|
|
|
5,613
|
|
|
17,973
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(25,485)
|
|
|
(6,874)
|
|
|
(12,857)
|
|
|
(7,038)
|
Income taxes and tax
credits
|
|
|
44
|
|
|
(2,618)
|
|
|
1,596
|
|
|
1,629
|
Inventories
|
|
|
(2,282)
|
|
|
(6,233)
|
|
|
(306)
|
|
|
(668)
|
Prepaid
expenses
|
|
|
(773)
|
|
|
215
|
|
|
(585)
|
|
|
(380)
|
Other
assets
|
|
|
(256)
|
|
|
(712)
|
|
|
(664)
|
|
|
(1,003)
|
Accounts payable,
accrued liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
and provisions
|
|
|
3,253
|
|
|
(6,020)
|
|
|
1,995
|
|
|
2,013
|
Other
liabilities
|
|
|
53
|
|
|
95
|
|
|
(6)
|
|
|
(1,527)
|
|
|
|
(16,880)
|
|
|
(16,215)
|
|
|
(5,214)
|
|
|
10,999
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
(1,927)
|
|
|
(2,074)
|
|
|
(286)
|
|
|
(578)
|
Disposal of
short-term investments
|
|
|
–
|
|
|
1,264
|
|
|
826
|
|
|
1,168
|
Purchases of capital
assets
|
|
|
(1,880)
|
|
|
(6,066)
|
|
|
(1,639)
|
|
|
(6,318)
|
Proceeds from
disposal of capital assets
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
3,318
|
|
|
|
(3,807)
|
|
|
(6,876)
|
|
|
(1,099)
|
|
|
(2,410)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
|
19,934
|
|
|
28,304
|
|
|
(3,808)
|
|
|
(5,052)
|
Repayment of lease
liabilities
|
|
|
(844)
|
|
|
(2,534)
|
|
|
–
|
|
|
–
|
Repayment of
long-term debt
|
|
|
(292)
|
|
|
(1,607)
|
|
|
(713)
|
|
|
(2,165)
|
Redemption of share
capital
|
|
|
–
|
|
|
(225)
|
|
|
–
|
|
|
(105)
|
|
|
|
18,798
|
|
|
23,938
|
|
|
(4,521)
|
|
|
(7,322)
|
Effect of foreign
exchange rate changes
|
|
|
|
|
|
|
|
|
|
|
|
|
on cash
|
|
|
(167)
|
|
|
(295)
|
|
|
(306)
|
|
|
(402)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash
during the period
|
|
|
(2,056)
|
|
|
552
|
|
|
(11,140)
|
|
|
865
|
Cash – Beginning
of the period
|
|
|
19,126
|
|
|
16,518
|
|
|
24,763
|
|
|
12,758
|
Cash – End of the
period
|
|
$
|
17,070
|
|
$
|
17,070
|
|
$
|
13,623
|
|
$
|
13,623
|
View original
content:http://www.prnewswire.com/news-releases/exfo-reports-third-quarter-results-for-fiscal-2020-301090420.html
SOURCE EXFO Inc.