- Sales increase 5.4% year-over-year to US$60.9 million
- Adjusted EBITDA improves 18.8% year-over-year to
US$5.3 million
- Cash flows from operations of US$2.3 million raises cash position to
US$46.3 million
QUEBEC CITY, June 29, 2016
/PRNewswire/ - EXFO Inc. (NASDAQ: EXFO) (TSX: EXF) reported
today financial results for the third quarter ended May 31, 2016.
Sales reached US$60.9 million in
the third quarter of fiscal 2016 compared to US$57.8 million in the third quarter of 2015
and US$53.6 million in the second
quarter of 2016. After three quarters into 2016, sales increased
2.6% year-over-year to US$169.7
million.
Bookings attained US$59.7 million
in the third quarter of fiscal 2016 for a book-to-bill ratio of
0.98 compared to US$59.2 million in
the same period last year and US$59.7
million in the second quarter of 2016. Bookings improved
5.8% year-over-year to US$177.9
million after three quarters into 2016 for a book-to-bill
ratio of 1.05 for this period.
Gross margin before depreciation and amortization*
amounted to 60.8% of sales in the third quarter of fiscal 2016
compared to 61.4% in the third quarter of 2015 and 64.7% in the
second quarter of 2016. After three quarters into 2016, gross
margin reached 62.9% compared to 61.9% for the same period in
2015.
IFRS net earnings in the third quarter of fiscal 2016 totaled
US$0.9 million, or US$0.02 per diluted share, compared US$0.6 million, or US$0.01 per diluted share, in the same period
last year and US$4.0 million, or
US$0.07 per diluted share, in the
second quarter of 2016. IFRS net earnings in the third quarter of
2016 included US$0.3 million in
after-tax amortization of intangible assets, US$0.4 million in stock-based compensation costs
and a foreign exchange loss of US$1.0
million.
After three quarters into 2016, IFRS net earnings totaled
US$6.6 million, or US$0.12 per diluted share, compared to
US$3.0 million, or US$0.05 per diluted share, in the same period in
2015. IFRS net earnings on a year-to-date basis included
US$0.8 million in after-tax
amortization of intangible assets, US$1.1
million in stock-based compensation costs and a foreign
exchange gain of US$0.5 million.
Adjusted EBITDA* totaled US$5.3 million, or 8.7% of sales, in the third
quarter of fiscal 2016 compared to US$4.5 million, or 7.7% of sales, in the
third quarter of 2015 and US$5.3
million, or 9.9% of sales, in the second quarter of 2016. On
a year-to-date basis, adjusted EBITDA totaled US$15.9 million, or 9.3% of sales, compared to
US$8.8 million, or 5.3% of
sales, for the same period in 2015.
EXFO's cash and short-term investments amounted to US$46.3 million at the end of the third quarter
of fiscal 2016 compared to US$29.9
million at the end of the third quarter of 2015 and
US$44.4 million at the end of the
second quarter of 2016.
"I am quite pleased with the progress of our financial results
after the first three quarters of 2016, including the solid
performances of both our Physical and Protocol-layer product
groups," said Germain Lamonde,
EXFO's Chairman, President and CEO. "During the third quarter, our
instruments business delivered strong bookings and revenues, while
we experienced delays in closing some systems-based deals which, in
turn, limited our overall top and bottom-line results."
"After nine months into fiscal 2016, we have increased adjusted
EBITDA by 80% year-over-year and generated more EBITDA than the
entire reporting period in 2015," Mr. Lamonde added.
Selected Financial
Information
|
|
|
|
|
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2016
|
|
Q2
2016
|
|
Q3 2015
|
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
sales
|
|
$
|
42,074
|
|
$
|
32,582
|
|
$
|
38,167
|
Protocol-layer
sales
|
|
|
19,260
|
|
|
21,990
|
|
|
20,492
|
Foreign exchange
losses on forward exchange contracts
|
|
|
(438)
|
|
|
(975)
|
|
|
(878)
|
Total
sales
|
|
$
|
60,896
|
|
$
|
53,597
|
|
$
|
57,781
|
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
bookings
|
|
$
|
41,797
|
|
$
|
34,873
|
|
$
|
38,534
|
Protocol-layer
bookings
|
|
|
18,389
|
|
|
25,805
|
|
|
21,593
|
Foreign exchange
losses on forward exchange contracts
|
|
|
(438)
|
|
|
(975)
|
|
|
(878)
|
Total
bookings
|
|
$
|
59,748
|
|
$
|
59,703
|
|
$
|
59,249
|
Book-to-bill
ratio
|
|
|
0.98
|
|
|
1.11
|
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin*
|
|
$
|
37,016
|
|
$
|
34,693
|
|
$
|
35,500
|
|
|
|
|
60.8%
|
|
|
64.7%
|
|
|
61.4%
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
IFRS net
earnings
|
|
$
|
919
|
|
$
|
3,963
|
|
$
|
563
|
|
Amortization of
intangible assets
|
|
$
|
294
|
|
$
|
286
|
|
$
|
444
|
|
Stock-based
compensation costs
|
|
$
|
386
|
|
$
|
314
|
|
$
|
374
|
|
Net income tax effect
of the above items
|
|
$
|
(31)
|
|
$
|
(30)
|
|
$
|
(49)
|
|
Foreign exchange
(gain) loss
|
|
$
|
957
|
|
$
|
(1,101)
|
|
$
|
175
|
|
Adjusted
EBITDA*
|
|
$
|
5,301
|
|
$
|
5,280
|
|
$
|
4,462
|
Operating Expenses
Selling and administrative
expenses totaled US$20.8 million, or
34.2% of sales in the third quarter of fiscal 2016 compared to
US$20.5 million, or 35.5% of sales,
in the same period last year and US$19.6
million, or 36.5% of sales, in the second quarter of
2016.
Net R&D expenses totaled US$11.3
million, or 18.6% of sales, in the third quarter of fiscal
2016 compared to US$10.9 million, or 18.9% of sales, in
the third quarter of 2015 and US$10.2
million, or 19.0% of sales, in the second quarter of
2016.
Third-Quarter Highlights
- Sales. In the third quarter of 2016, sales were particularly
robust within EXFO's optical and transport product lines which are
benefiting from a 100G investment cycle. From a geographic
standpoint, 59% of sales originated from the Americas, 22% from
EMEA and 19% from Asia-Pacific.
EXFO's top customer accounted for 5.0% of sales, while the top
three represented 14.7%.
- Profitability. Adjusted EBITDA improved 18.8% year-over-year to
US$5.3 million in the third quarter
of 2016. After nine months into fiscal 2016, EXFO generated
adjusted EBITDA of US$15.9 million,
or 9.3% of sales. The company also reported US$2.3 million in cash flows from operating
activities in the third quarter and US$20.8
million after nine months into fiscal 2016.
- Innovation. EXFO launched four key new solutions during the
third quarter of 2016, including the LTB-8, a multi-module test
platform dedicated to high-speed testing in lab and manufacturing
environments; a 100G Power Blazer test module that can be swapped
between the LTB-8 and FTB-2 Pro platforms to ease the transition
between lab and field testing; and EXFO added two 100G portable
testers to its NetBlazer product family in order to address growing
turn-up and troubleshooting requirements for metro networks and
data center interconnects (DCIs).
Business Outlook
EXFO forecasts sales between
US$57.0 million and US$62.0 million
for the fourth quarter of fiscal 2016, 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$0.01 per share in after-tax
amortization of intangible assets and stock-based compensation
costs as well as US$0.01 per share
for foreign exchange losses based on current exchange rates.
This guidance was established by management based on existing
backlog as of the date of this press release, current market
conditions, 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 third-quarter results for fiscal 2016. 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: 20909896.
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 July 5,
2016. The replay number is 1-855-859-2056 and the conference
ID number is 20909896. 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 provides communications service
providers (CSPs) with test orchestration and performance
intelligence solutions to ensure the smooth deployment, maintenance
and management of next-generation, physical, virtual, fixed and
mobile networks. The company has also forged strong relationships
with network equipment manufacturers (NEMs) to develop deep
expertise that migrates from the lab to the field and beyond.
EXFO's key differentiation comes from combining intelligent,
automated and cloud-based test and monitoring solutions with
real-time analytics to deliver unmatched end-to-end visibility and
assurance—from a network, services and end-user level. EXFO is no.
1 in portable optical testing and boasts the largest active service
assurance deployment worldwide. For more information, visit
www.EXFO.com and follow us on the EXFO Blog.
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 (constant currency data, 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.
Constant currency data represents data before foreign currency
impact. Data for the current period is translated using foreign
exchange rates of the corresponding period from the preceding
year.
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
2016
|
|
|
Q2
2016
|
|
|
Q3 2015
|
|
|
|
|
|
|
|
|
|
IFRS net earnings for
the period
|
$
|
919
|
|
$
|
3,963
|
|
$
|
563
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
958
|
|
|
924
|
|
|
1,163
|
Amortization of
intangible assets
|
|
294
|
|
|
286
|
|
|
444
|
Interest and other
(income) expenses
|
|
(309)
|
|
|
(470)
|
|
|
36
|
Income
taxes
|
|
2,096
|
|
|
1,364
|
|
|
1,707
|
Stock-based
compensation costs
|
|
386
|
|
|
314
|
|
|
374
|
Foreign exchange
(gain) loss
|
|
957
|
|
|
(1,101)
|
|
|
175
|
Adjusted EBITDA for
the period
|
$
|
5,301
|
|
$
|
5,280
|
|
$
|
4,462
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
8.7%
|
|
|
9.9%
|
|
|
7.7%
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
As
at
May
31,
2016
|
|
As
at
August
31,
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
42,273
|
|
$
|
25,864
|
Short-term
investments
|
|
|
4,039
|
|
|
1,487
|
Accounts
receivable
|
|
|
|
|
|
|
|
Trade
|
|
|
44,288
|
|
|
48,068
|
|
Other
|
|
|
2,510
|
|
|
2,384
|
Income taxes and tax
credits recoverable
|
|
|
4,263
|
|
|
3,855
|
Inventories
|
|
|
34,939
|
|
|
27,951
|
Prepaid
expenses
|
|
|
3,235
|
|
|
2,801
|
|
|
|
|
135,547
|
|
|
112,410
|
|
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
|
34,320
|
|
|
35,625
|
Property, plant
and equipment
|
|
|
36,007
|
|
|
35,695
|
Intangible
assets
|
|
|
3,541
|
|
|
4,096
|
Goodwill
|
|
|
21,938
|
|
|
21,860
|
Deferred income
tax assets
|
|
|
7,973
|
|
|
8,900
|
Other
assets
|
|
|
691
|
|
|
416
|
|
|
|
|
|
|
|
|
|
|
|
$
|
240,017
|
|
$
|
219,002
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank loan
|
|
$
|
455
|
|
$
|
–
|
Accounts payable and
accrued liabilities
|
|
|
39,022
|
|
|
34,126
|
Provisions
|
|
|
336
|
|
|
427
|
Income taxes
payable
|
|
|
421
|
|
|
779
|
Deferred
revenue
|
|
|
10,729
|
|
|
7,647
|
|
|
|
|
50,963
|
|
|
42,979
|
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
|
4,929
|
|
|
2,957
|
Deferred income
tax liabilities
|
|
|
2,734
|
|
|
1,524
|
Other
liabilities
|
|
|
195
|
|
|
791
|
|
|
|
|
58,821
|
|
|
48,251
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Share
capital
|
|
|
86,826
|
|
|
86,045
|
Contributed
surplus
|
|
|
17,635
|
|
|
17,778
|
Retained
earnings
|
|
|
125,581
|
|
|
118,933
|
Accumulated other
comprehensive loss
|
|
|
(48,846)
|
|
|
(52,005)
|
|
|
|
|
|
|
|
|
|
|
|
|
181,196
|
|
|
170,751
|
|
|
|
|
|
|
|
|
|
|
|
$
|
240,017
|
|
$
|
219,002
|
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,
2016
|
|
Nine
months
ended
May 31,
2016
|
|
Three
months
ended
May 31,
2015
|
|
Nine
months
ended
May 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
60,896
|
|
$
|
169,725
|
|
$
|
57,781
|
|
$
|
165,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
|
23,880
|
|
|
62,921
|
|
|
22,281
|
|
|
63,064
|
Selling and
administrative
|
|
|
20,798
|
|
|
60,615
|
|
|
20,489
|
|
|
61,689
|
Net research and
development
|
|
|
11,303
|
|
|
31,398
|
|
|
10,923
|
|
|
33,087
|
Depreciation of
property, plant and equipment
|
|
|
958
|
|
|
2,857
|
|
|
1,163
|
|
|
3,664
|
Amortization of
intangible assets
|
|
|
294
|
|
|
880
|
|
|
444
|
|
|
2,561
|
Interest and other
(income) expense
|
|
|
(309)
|
|
|
(716)
|
|
|
36
|
|
|
(216)
|
Foreign exchange
(gain) loss
|
|
|
957
|
|
|
(454)
|
|
|
175
|
|
|
(4,787)
|
Earnings before
income taxes
|
|
|
3,015
|
|
|
12,224
|
|
|
2,270
|
|
|
6,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
2,096
|
|
|
5,576
|
|
|
1,707
|
|
|
3,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
919
|
|
$
|
6,648
|
|
$
|
563
|
|
$
|
2,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings per share
|
|
$
|
0.02
|
|
$
|
0.12
|
|
$
|
0.01
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000s)
|
|
|
53,940
|
|
|
53,894
|
|
|
53,861
|
|
|
57,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000s)
|
|
|
54,813
|
|
|
54,655
|
|
|
54,549
|
|
|
58,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
2016
|
|
Nine
months ended May 31,
2016
|
|
Three
months ended May 31,
2015
|
|
Nine
months
ended
May 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
919
|
|
$
|
6,648
|
|
$
|
563
|
|
$
|
2,975
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
5,488
|
|
|
775
|
|
|
802
|
|
|
(29,499)
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gains/losses on forward exchange contracts
|
|
|
1,045
|
|
|
825
|
|
|
38
|
|
|
(4,164)
|
|
Reclassification of
realized losses on forward exchange contracts
in net earnings
|
|
|
666
|
|
|
2,383
|
|
|
938
|
|
|
1,438
|
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
|
(434)
|
|
|
(824)
|
|
|
(270)
|
|
|
725
|
Other comprehensive
income (loss)
|
|
|
6,765
|
|
|
3,159
|
|
|
1,508
|
|
|
(31,500)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
|
$
|
7,684
|
|
$
|
9,807
|
|
$
|
2,071
|
|
$
|
(28,525)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands of US
dollars)
|
|
|
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
|
|
|
|
Nine months ended
May 31, 2016
|
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2015
|
|
$
|
86,045
|
|
$
|
17,778
|
|
$
|
118,933
|
|
$
|
(52,005)
|
|
$
|
170,751
|
Redemption of share
capital
|
|
|
(457)
|
|
|
55
|
|
|
–
|
|
|
–
|
|
|
(402)
|
Reclassification of
stock-based compensation costs
|
|
|
1,238
|
|
|
(1,238)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,040
|
|
|
–
|
|
|
–
|
|
|
1,040
|
Net earnings for the
period
|
|
|
–
|
|
|
–
|
|
|
6,648
|
|
|
–
|
|
|
6,648
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
775
|
|
|
775
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $824
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
2,384
|
|
|
2,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at May 31,
2016
|
|
$
|
86,826
|
|
$
|
17,635
|
|
$
|
125,581
|
|
$
|
(48,846)
|
|
$
|
181,196
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
May 31,
2016
|
|
Nine
months
ended
May 31,
2016
|
|
Three
months
ended
May 31,
2015
|
|
Nine
months
ended
May 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for the
period
|
|
$
|
919
|
|
$
|
6,648
|
|
$
|
563
|
|
$
|
2,975
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
386
|
|
|
1,076
|
|
|
374
|
|
|
1,162
|
|
Depreciation and
amortization
|
|
|
1,252
|
|
|
3,737
|
|
|
1,607
|
|
|
6,225
|
|
Deferred
revenue
|
|
|
1,203
|
|
|
4,876
|
|
|
854
|
|
|
1,358
|
|
Deferred income
taxes
|
|
|
611
|
|
|
1,285
|
|
|
542
|
|
|
199
|
|
Changes in foreign
exchange gain/loss
|
|
|
626
|
|
|
(333)
|
|
|
(77)
|
|
|
(2,875)
|
|
|
|
|
4,997
|
|
|
17,289
|
|
|
3,863
|
|
|
9,044
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(5,887)
|
|
|
3,394
|
|
|
(6,494)
|
|
|
(7,811)
|
|
Income taxes and tax
credits
|
|
|
(301)
|
|
|
632
|
|
|
(541)
|
|
|
(1,964)
|
|
Inventories
|
|
|
(759)
|
|
|
(6,627)
|
|
|
950
|
|
|
(983)
|
|
Prepaid
expenses
|
|
|
(452)
|
|
|
(418)
|
|
|
(374)
|
|
|
(875)
|
|
Other
assets
|
|
|
‒
|
|
|
203
|
|
|
30
|
|
|
29
|
|
Accounts payable,
accrued liabilities and provisions
|
|
|
4,675
|
|
|
6,406
|
|
|
1,334
|
|
|
8,994
|
|
Other
liabilities
|
|
|
(5)
|
|
|
(59)
|
|
|
(30)
|
|
|
(62)
|
|
|
|
|
2,268
|
|
|
20,820
|
|
|
(1,262)
|
|
|
6,372
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
(3,109)
|
|
|
(3,130)
|
|
|
‒
|
|
|
(19,509)
|
Proceeds from
disposal and maturity of short-term investments
|
|
|
‒
|
|
|
501
|
|
|
1,619
|
|
|
23,685
|
Purchases capital
assets
|
|
|
(1,138)
|
|
|
(3,374)
|
|
|
(1,826)
|
|
|
(4,625)
|
|
|
|
|
(4,247)
|
|
|
(6,003)
|
|
|
(207)
|
|
|
(449)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loan
|
|
|
‒
|
|
|
468
|
|
|
‒
|
|
|
‒
|
Redemption of share
capital
|
|
|
(215)
|
|
|
(402)
|
|
|
(71)
|
|
|
(25,174)
|
|
|
|
|
(215)
|
|
|
66
|
|
|
(71)
|
|
|
(25,174)
|
Effect of foreign
exchange rate changes on cash
|
|
|
1,049
|
|
|
1,526
|
|
|
78
|
|
|
(5,975)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
|
(1,145)
|
|
|
16,409
|
|
|
(1,462)
|
|
|
(25,226)
|
Cash – Beginning
of the period
|
|
|
43,418
|
|
|
25,864
|
|
|
30,357
|
|
|
54,121
|
Cash – End of the
period
|
|
$
|
42,273
|
|
$
|
42,273
|
|
$
|
28,895
|
|
$
|
28,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
information
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
paid
|
|
$
|
505
|
|
$
|
1,621
|
|
$
|
350
|
|
$
|
1,174
|
Additions to capital
assets
|
|
$
|
1,011
|
|
$
|
3,386
|
|
$
|
1,700
|
|
$
|
4,638
|
EXFO-F
SOURCE EXFO inc.