- Sales reach US$57.8
million
- Bookings attain US$59.2
million, book-to-bill ratio of 1.03
- Adjusted EBITDA totals US$4.5
million, 7.7% of sales
QUEBEC CITY, June 23, 2015 /CNW
Telbec/ - EXFO Inc. (NASDAQ: EXFO; TSX: EXF) reported today
financial results for the third quarter ended May 31, 2015.
Sales reached US$57.8 million in
the third quarter of fiscal 2015 compared to US$63.9 million in the third quarter of 2014 and
US$51.0 million in the second quarter
of 2015.
Bookings attained US$59.2 million
in the third quarter of fiscal 2015 compared to US$66.5 million in the same period last year and
US$54.7 million in the second quarter
of 2015. The company's book-to-bill ratio was 1.03 in the third
quarter of 2015.
Gross margin before depreciation and amortization*
amounted to 61.4% of sales in the third quarter of fiscal 2015
compared to 63.3% in the third quarter of 2014 and 61.7% in
the second quarter of 2015.
IFRS net earnings in the third quarter of fiscal 2015 totaled
US$0.6 million, or US$0.01 per diluted share, compared to
US$1.7 million, or US$0.03 per diluted share, in the same period
last year and US$0.9 million, or
US$0.02 per diluted share, in the
second quarter of 2015. IFRS net earnings in the third quarter of
2015 included US$0.4 million in
after-tax amortization of intangible assets, US$0.4 million in stock-based compensation costs
and a foreign exchange loss of US$0.2
million.
Adjusted EBITDA** totaled US$4.5 million, or 7.7% of sales, in the third
quarter of fiscal 2015 compared to US$7.3 million, or 11.5% of sales, in the
third quarter of 2014 and US$1.2
million, or 2.3% of sales, in the second quarter of
2015.
"Our sequential sales improvement was led by a 20%-plus increase
in the Americas, while the EMEA region remained challenging due to
macro-economic issues, devaluation of local currencies and
difficult end-markets," said Germain
Lamonde, EXFO's Chairman, President and CEO.
"Year-over-year, I am pleased with the adoption and progress in
sales and bookings for our end-to-end solutions offering, which is
driven mainly by network operators shifting their focus and
investments toward visibility solutions to help increase quality of
customer experience."
"We have begun taking action this quarter to reduce operating
costs and position the company to accelerate revenue, since
improving profitability is the centerpiece of management's
strategy," Mr. Lamonde added.
Selected Financial
Information
(In thousands of US dollars)
|
|
|
|
|
|
|
|
|
|
Q3
2015
|
|
Q2 2015
|
|
Q3 2014
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
57,781
|
|
$
|
50,990
|
|
$
|
63,882
|
|
|
|
|
|
|
|
|
|
Gross
margin*
|
$
|
35,500
|
|
$
|
31,444
|
|
$
|
40,413
|
|
|
61.4%
|
|
|
61.7%
|
|
|
63.3%
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
IFRS net
earnings
|
$
|
563
|
|
$
|
931
|
|
$
|
1,665
|
|
Amortization of
intangible assets
|
$
|
444
|
|
$
|
1,019
|
|
$
|
1,025
|
|
Stock-based
compensation costs
|
$
|
374
|
|
$
|
388
|
|
$
|
407
|
|
Net income tax effect
of the above items
|
$
|
(49)
|
|
$
|
(53)
|
|
$
|
(63)
|
|
Foreign exchange gain
(loss)
|
$
|
(175)
|
|
$
|
2,987
|
|
$
|
(1,126)
|
|
Adjusted
EBITDA**
|
$
|
4,462
|
|
$
|
1,158
|
|
$
|
7,345
|
Operating Expenses
Selling and administrative expenses
totaled US$20.5 million, or 35.5% of
sales in the third quarter of fiscal 2015 compared to US$21.7 million, or 34.0% of sales, in the same
period last year and US$20.2 million,
or 39.6% of sales, in the second quarter of 2015.
Gross research and development expenses amounted to US$12.5 million, or 21.6% of sales, in the third
quarter of fiscal 2015 compared to US$13.6 million, or 21.3% of sales, in the third
quarter of 2014 and US$12.2 million,
or 23.9% of sales, in the second quarter of 2015.
Net R&D expenses totaled US$10.9
million, or 18.9% of sales, in the third quarter of fiscal
2015 compared to US$11.7 million, or 18.4% of sales, in the
same period last year and US$10.5
million, or 20.6% of sales, in the second quarter of
2015.
Third-Quarter Highlights
- Sales. Geographical sales breakdown in the third quarter was
58% from the Americas, 23% from EMEA and 19% from the Asia-Pacific region. EXFO's top-three
customers represented 15.7% of sales. The largest customer
accounted for 7.0% of sales, mostly for EXFO's systems and
solutions. Revenue after nine months would be almost flat
year-over-year, excluding the negative impact of the US
dollar.
- Profitability. EXFO generated adjusted EBITDA of US$4.5 million (7.7% of sales) in the third
quarter of 2015 for a total of US$8.8
million (5.3%) after the first three quarters into the
fiscal year. In comparison, the company delivered US$8.6 million (5.0%) of adjusted EBITDA after
three quarters into 2014. A restructuring charge of
US$1.2 million is planned for the
fourth quarter of 2015 which is expected to generate annual savings
US$2 million. EXFO had a cash
position of US$29.9 million and no
debt at the end of the third quarter of 2015.
- Innovation. EXFO introduced major enhancements to its analytics
platform (EXFO Xtract), service assurance systems and network
visibility solutions in the third quarter in order to help network
operators take proactive actions that improve customer quality of
experience. The company also released new capabilities for its iOLM
fiber test technology and a fully automated wireless fiber
inspection solution, both contributing to EXFO's thrust to automate
and accelerate fiber deployments in wireless access networks.
Following the quarter-end, EXFO accelerated its market-driven
strategy by unveiling the most advanced, all-in-one test platform:
FTB-1 Pro. This platform combines the unique, quad-port NetBlazer
10G Ethernet module and iSAM software test option. The company also
launched a new OTDR series and above-mentioned iOLM and fiber
inspection probe options for the FTB-1 Pro to greatly accelerate
and simplify the turn-up of next-generation fixed and mobile access
networks.
Business Outlook
EXFO forecasts sales between
US$55.0 million and US$60.0 million
for the fourth quarter of fiscal 2015, while IFRS net results are
expected to range between a net loss of US$0.02 per share and net earnings of
US$0.02 per share. IFRS net
loss/earnings include US$0.01 per
share in after-tax amortization of intangible assets and
stock-based compensation costs as well as US$0.02 per share in restructuring charges.
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 third quarter
of fiscal 2015. To listen to the conference call and participate in
the question period via telephone, dial 1-704-288-0432. Please
take note the following conference ID number will be required:
52901975. 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 two hours after the event
until 11:59 p.m. on June 30, 2015. The replay number is
1-855-859-2056 and the conference ID number is 52901975. 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 enables extraordinary experiences on
global networks. Our test, service assurance and network visibility
solutions allow equipment manufacturers and network operators to
deliver a wealth of services to consumers, while increasing network
capacity and reducing operating costs. From a company executive
holding a telepresence meeting with overseas staff to a runner
transferring data from wearable technology, EXFO's inherent
expertise and powerful analytics render these events commonplace.
Simply put, we have evolved over our 30-year history to ensure
unmatched quality of service and quality of experience on
next-generation fixed and mobile networks. 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 timing and nature of customer
orders; longer sales cycles for complex systems involving
customers' acceptances delaying revenue recognition; 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 for 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, stock-based compensation costs and foreign
exchange gain or loss.
|
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings, in thousands
of US dollars:
Adjusted EBITDA
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Q3
2015
|
|
|
Q2
2015
|
|
|
Q3 2014
|
|
|
|
|
|
|
|
|
|
IFRS net earnings for
the period
|
$
|
563
|
|
$
|
931
|
|
$
|
1,665
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
1,163
|
|
|
1,256
|
|
|
1,219
|
Amortization of
intangible assets
|
|
444
|
|
|
1,019
|
|
|
1,025
|
Interest and other
(income) expense
|
|
36
|
|
|
(35)
|
|
|
(220)
|
Income
taxes
|
|
1,707
|
|
|
586
|
|
|
2,123
|
Stock-based
compensation costs
|
|
374
|
|
|
388
|
|
|
407
|
Foreign exchange
(gain) loss
|
|
175
|
|
|
(2,987)
|
|
|
1,126
|
Adjusted EBITDA for
the period
|
$
|
4,462
|
|
$
|
1,158
|
|
$
|
7,345
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
7.7%
|
|
|
2.3%
|
|
|
11.5%
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
|
As
at
May
31,
2015
|
|
As
at
August 31,
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
28,895
|
|
$
|
54,121
|
Short-term
investments
|
|
|
982
|
|
|
5,726
|
Accounts
receivable
|
|
|
|
|
|
|
|
Trade
|
|
|
47,678
|
|
|
46,031
|
|
Other
|
|
|
2,058
|
|
|
2,001
|
Income taxes and tax
credits recoverable
|
|
|
5,324
|
|
|
3,796
|
Inventories
|
|
|
31,555
|
|
|
35,232
|
Prepaid
expenses
|
|
|
2,816
|
|
|
2,281
|
|
|
|
119,308
|
|
|
149,188
|
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
|
36,423
|
|
|
41,745
|
Property, plant
and equipment
|
|
|
37,864
|
|
|
42,780
|
Intangible
assets
|
|
|
4,490
|
|
|
7,293
|
Goodwill
|
|
|
23,125
|
|
|
26,488
|
Deferred income
tax assets
|
|
|
9,765
|
|
|
9,816
|
Other
assets
|
|
|
475
|
|
|
721
|
|
|
|
|
|
|
|
|
|
$
|
231,450
|
|
$
|
278,031
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
36,009
|
|
$
|
29,553
|
Provisions
|
|
|
437
|
|
|
532
|
Income taxes
payable
|
|
|
834
|
|
|
840
|
Deferred
revenue
|
|
|
9,348
|
|
|
8,990
|
|
|
|
46,628
|
|
|
39,915
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
2,845
|
|
|
3,319
|
Deferred income
tax liabilities
|
|
|
2,262
|
|
|
3,087
|
Other
liabilities
|
|
|
869
|
|
|
340
|
|
|
|
52,604
|
|
|
46,661
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Share
capital
|
|
|
86,471
|
|
|
111,491
|
Contributed
surplus
|
|
|
17,524
|
|
|
16,503
|
Retained
earnings
|
|
|
116,610
|
|
|
113,635
|
Accumulated other
comprehensive loss
|
|
|
(41,759)
|
|
|
(10,259)
|
|
|
|
178,846
|
|
|
231,370
|
|
|
|
|
|
|
|
|
|
$
|
231,450
|
|
$
|
278,031
|
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, 2015
|
|
Nine
months
ended
May
31, 2015
|
|
Three
months
ended
May
31, 2014
|
|
Nine
months
ended
May
31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
57,781
|
|
$
|
165,495
|
|
$
|
63,882
|
|
$
|
171,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
|
22,281
|
|
|
63,064
|
|
|
23,469
|
|
|
64,727
|
Selling and
administrative
|
|
|
20,489
|
|
|
61,689
|
|
|
21,730
|
|
|
64,975
|
Net research and
development
|
|
|
10,923
|
|
|
33,087
|
|
|
11,745
|
|
|
33,999
|
Depreciation of
property, plant and equipment
|
|
|
1,163
|
|
|
3,664
|
|
|
1,219
|
|
|
3,737
|
Amortization of
intangible assets
|
|
|
444
|
|
|
2,561
|
|
|
1,025
|
|
|
3,281
|
Interest and other
(income) expense
|
|
|
36
|
|
|
(216)
|
|
|
(220)
|
|
|
(296)
|
Foreign exchange
(gain) loss
|
|
|
175
|
|
|
(4,787)
|
|
|
1,126
|
|
|
(1,968)
|
Earnings before
income taxes
|
|
|
2,270
|
|
|
6,433
|
|
|
3,788
|
|
|
2,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
1,707
|
|
|
3,458
|
|
|
2,123
|
|
|
3,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
|
$
|
563
|
|
$
|
2,975
|
|
$
|
1,665
|
|
$
|
(421)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings (loss) per share
|
|
$
|
0.01
|
|
$
|
0.05
|
|
$
|
0.03
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
|
53,861
|
|
|
57,804
|
|
|
60,339
|
|
|
60,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
|
54,549
|
|
|
58,453
|
|
|
60,986
|
|
|
60,323
|
(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
May
31, 2015
|
|
Nine
months
ended
May
31, 2015
|
|
Three
months
ended
May
31, 2014
|
|
Nine
months
ended
May
31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
|
$
|
563
|
|
$
|
2,975
|
|
$
|
1,665
|
|
$
|
(421)
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
802
|
|
|
(29,499)
|
|
|
4,736
|
|
|
(6,792)
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on
forward exchange contracts
|
|
|
38
|
|
|
(4,164)
|
|
|
835
|
|
|
(694)
|
|
Reclassification of
realized losses on forward exchange contracts in net earnings
(loss)
|
|
|
938
|
|
|
1,438
|
|
|
391
|
|
|
756
|
|
Deferred income tax
effect of losses on forward exchange contracts
|
|
|
(270)
|
|
|
725
|
|
|
(328)
|
|
|
(16)
|
Other comprehensive
income (loss)
|
|
|
1,508
|
|
|
(31,500)
|
|
|
5,634
|
|
|
(6,746)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
|
$
|
2,071
|
|
$
|
(28,525)
|
|
$
|
7,299
|
|
$
|
(7,167)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands of US
dollars)
|
|
|
|
Nine months ended
May 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
|
|
|
–
|
|
|
1,261
|
|
|
–
|
|
|
–
|
|
|
1,261
|
Net loss for the
period
|
|
|
–
|
|
|
–
|
|
|
(421)
|
|
|
–
|
|
|
(421)
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(6,792)
|
|
|
(6,792)
|
|
Changes in unrealized
losses on forward exchange contracts, net of deferred income taxes
of $16
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
46
|
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,167)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2014
|
|
$
|
111,491
|
|
$
|
16,081
|
|
$
|
112,431
|
|
$
|
(10,169)
|
|
$
|
229,834
|
|
|
|
|
|
Nine months ended
May 31, 2015
|
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2014
|
|
$
|
111,491
|
|
$
|
16,503
|
|
$
|
113,635
|
|
$
|
(10,259)
|
|
$
|
231,370
|
Redemption of share
capital
|
|
|
(26,396)
|
|
|
1,222
|
|
|
–
|
|
|
–
|
|
|
(25,174)
|
Reclassification of
stock-based compensation costs
|
|
|
1,376
|
|
|
(1,376)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,175
|
|
|
–
|
|
|
–
|
|
|
1,175
|
Net earnings for the
period
|
|
|
–
|
|
|
–
|
|
|
2,975
|
|
|
–
|
|
|
2,975
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(29,499)
|
|
|
(29,499)
|
|
Changes in unrealized
losses on forward exchange contracts, net of deferred income taxes
of $725
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(2,001)
|
|
|
(2,001)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(28,525)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2015
|
|
$
|
86,471
|
|
$
|
17,524
|
|
$
|
116,610
|
|
$
|
(41,759)
|
|
$
|
178,846
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
(in thousands of US
dollars)
|
|
|
|
Three
months
ended
May
31, 2015
|
|
Nine
months
ended
May
31, 2015
|
|
Three
months
ended
May
31, 2014
|
|
Nine
months
ended
May 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
for the period
|
|
$
|
563
|
|
$
|
2,975
|
|
$
|
1,665
|
|
$
|
(421)
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
374
|
|
|
1,162
|
|
|
407
|
|
|
1,272
|
|
Depreciation and
amortization
|
|
|
1,607
|
|
|
6,225
|
|
|
2,244
|
|
|
7,018
|
|
Deferred
revenue
|
|
|
854
|
|
|
1,358
|
|
|
209
|
|
|
(519)
|
|
Deferred income
taxes
|
|
|
542
|
|
|
199
|
|
|
1,147
|
|
|
1,448
|
|
Changes in foreign
exchange gain/loss
|
|
|
(77)
|
|
|
(2,875)
|
|
|
378
|
|
|
(523)
|
|
|
|
3,863
|
|
|
9,044
|
|
|
6,050
|
|
|
8,275
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(6,494)
|
|
|
(7,811)
|
|
|
(8,208)
|
|
|
(3,683)
|
|
Income taxes and tax
credits
|
|
|
(541)
|
|
|
(1,964)
|
|
|
(759)
|
|
|
(1,702)
|
|
Inventories
|
|
|
950
|
|
|
(983)
|
|
|
727
|
|
|
(2,806)
|
|
Prepaid
expenses
|
|
|
(374)
|
|
|
(875)
|
|
|
492
|
|
|
(124)
|
|
Other
assets
|
|
|
30
|
|
|
29
|
|
|
53
|
|
|
19
|
|
Accounts payable,
accrued liabilities and provisions
|
|
|
1,334
|
|
|
8,994
|
|
|
4,565
|
|
|
9,956
|
|
Other
liabilities
|
|
|
(30)
|
|
|
(62)
|
|
|
(35)
|
|
|
(78)
|
|
|
|
(1,262)
|
|
|
6,372
|
|
|
2,885
|
|
|
9,857
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
‒
|
|
|
(19,509)
|
|
|
(9,821)
|
|
|
(24,392)
|
Proceeds from
disposal and maturity of short-term investments
|
|
|
1,619
|
|
|
23,685
|
|
|
9,244
|
|
|
23,806
|
Additions to capital
assets
|
|
|
(1,826)
|
|
|
(4,625)
|
|
|
(2,750)
|
|
|
(5,146)
|
|
|
|
(207)
|
|
|
(449)
|
|
|
(3,327)
|
|
|
(5,732)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(307)
|
Exercise of stock
options
|
|
|
‒
|
|
|
‒
|
|
|
30
|
|
|
225
|
Redemption of share
capital
|
|
|
(71)
|
|
|
(25,174)
|
|
|
‒
|
|
|
(937)
|
|
|
|
(71)
|
|
|
(25,174)
|
|
|
30
|
|
|
(1,019)
|
Effect of foreign
exchange rate changes on cash
|
|
|
78
|
|
|
(5,975)
|
|
|
771
|
|
|
(1,069)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
|
(1,462)
|
|
|
(25,226)
|
|
|
359
|
|
|
2,037
|
Cash – Beginning
of the period
|
|
|
30,357
|
|
|
54,121
|
|
|
47,064
|
|
|
45,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash – End of the
period
|
|
$
|
28,895
|
|
$
|
28,895
|
|
$
|
47,423
|
|
$
|
47,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
350
|
|
$
|
1,174
|
|
$
|
271
|
|
$
|
1,142
|
Additions to capital
assets
|
|
$
|
1,700
|
|
$
|
4,638
|
|
$
|
2,734
|
|
$
|
5,414
|
SOURCE EXFO inc.