- Sales reach US$58.9
million
- Bookings attain US$61.8
million (book-to-bill ratio of 1.05)
- Adjusted EBITDA totals US$3.1
million
QUEBEC CITY, June 26,
2013 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO; TSX: EXF)
reported today financial results for the third quarter ended
May 31, 2013.
Sales reached US$58.9
million in the third quarter of fiscal 2013 compared to
US$59.5 million in the third quarter
of 2012 and US$62.6 million in the
second quarter of 2013.
Bookings attained US$61.8
million in the third quarter of fiscal 2013 for a
book-to-bill ratio of 1.05 compared to US$57.5 million in the same period last year and
US$53.4 million in the second quarter
of 2013.
Gross margin* amounted to 61.7% of
sales in the third quarter of fiscal 2013 compared to 60.4% in the
third quarter of 2012 and 62.2% in the second quarter of
2013.
IFRS net loss in the third quarter of fiscal
2013 totaled US$0.9 million, or
US$0.01 per share, compared to a net
loss of US$3.7 million, or
US$0.06 per share, in the same period
last year and net earnings of US$39,000, or US$0.00 per diluted share, in the second quarter
of 2013. IFRS net loss in the third quarter of 2013 included
US$1.5 million in after-tax
amortization of intangible assets, US$0.4
million in stock-based compensation costs and a foreign
exchange gain of US$0.3 million.
Adjusted EBITDA** totaled
US$3.1 million, or 5.3% of sales, in
the third quarter of fiscal 2013 compared to -US$0.5 million, or -0.8% of sales, in the
third quarter of 2012 and US$4.4
million, or 7.1% of sales, in the second quarter of
2013.
"Although we increased bookings 7%
year-over-year and 16% sequentially in the third quarter, our
financial performance clearly ended below our expectations," said
Germain Lamonde, EXFO's Chairman,
President and CEO. "Network operator spending remained muted in the
telecom industry with bookings soft in EMEA and uneven in
Asia-Pacific, while rather strong
in the Americas based on 4G/LTE and 100G deployments. Given market
uncertainty, we reduced our SG&A and net R&D expenses by
$7.5 million after nine months into
fiscal 2013 —despite normal salary increases and inflation —
without sacrificing the growth engine of the company. I am
confident that our enhanced competitive position, sharpened market
focus and newly launched products will combine with strong industry
fundamentals to deliver robust revenue growth and profitability in
the near future."
Selected Financial Information
(In thousands of US dollars)
| |
|
|
|
|
|
|
|
|
| |
Q3 2013 |
|
Q2 2013 |
|
Q3 2012 |
| |
|
|
|
|
|
|
|
|
| Sales |
$ |
58,865 |
|
$ |
62,576 |
|
$ |
59,505 |
| |
|
|
|
|
|
|
|
|
| Gross margin* |
$ |
36,291 |
|
$ |
38,912 |
|
$ |
35,956 |
| |
|
61.7% |
|
|
62.2% |
|
|
60.4% |
| |
|
|
|
|
|
|
|
|
| Other selected information: |
|
|
|
|
|
|
|
|
|
|
IFRS net
earnings (loss) |
$ |
(862) |
|
$ |
39 |
|
$ |
(3,720) |
|
|
Amortization of intangible assets |
$ |
1,586 |
|
$ |
1,922 |
|
$ |
1,993 |
|
Stock-based compensation costs |
$ |
415 |
|
$ |
468 |
|
$ |
370 |
|
Restructuring charges |
$ |
‒ |
|
$ |
89 |
|
$ |
‒ |
|
Net
income tax effect of the above items |
$ |
(68) |
|
$ |
(95) |
|
$ |
(60) |
|
Foreign
exchange gain |
$ |
(314) |
|
$ |
(1,700) |
|
$ |
(1,090) |
|
|
Adjusted
EBITDA** |
$ |
3,131 |
|
$ |
4,435 |
|
$ |
(472) |
Operating Expenses
Selling and administrative expenses totaled US$22.0 million, or 37.4% of sales in the third
quarter of fiscal 2013 compared to US$23.6
million, or 39.7% of sales, in the same period last year and
US$23.1 million, or 36.9%
of sales, in the second quarter of 2013.
Gross research and development expenses amounted
to US$13.8 million, or 23.4% of
sales, in the third quarter of fiscal 2013 compared to
US$15.6 million, or 26.2% of sales,
in the third quarter of 2012 and US$14.1 million, or 22.6% of sales, in
the second quarter of 2013.
Net R&D expenses totaled US$11.6 million, or 19.7% of sales, in the third
quarter of fiscal 2013 compared to US$13.2 million, or 22.1% of sales, in the same
period last year and US$12.0 million,
or 19.1% of sales, in the second quarter of 2013.
Third-Quarter Highlights
- Growth. EXFO's bookings improved 7.4%
year-over-year and 15.8% quarter-over-quarter to US$61.8 million in the third quarter.
Bookings strengthened particularly in the
United States in the last month of the quarter. EXFO's top
customer accounted for 6.6% of sales in the third quarter, while
the top three represented 15.7%. Bookings progressed particularly
in EXFO's wireless and high-speed optical product lines.
- Profitability. EXFO delivered adjusted EBITDA of
US$3.1 million in the third quarter
of 2013 compared to -US$0.5 million
in the same period last year. The company also generated
US$1.3 million in cash flows from
operating activities. EXFO continues to maintain a tight control on
expenses, while core technologies related to the Brix Networks
acquisition became fully amortized in April.
- Innovation. Altogether, EXFO has released 13 new
products or major enhancements since the beginning of the fiscal
year, including significant features in its Protocol product line
in which innovation is largely driven by ongoing software releases.
New product introductions garnered strong traction in the market,
especially with tier-1 wireless operators.
Business Outlook
EXFO forecasts sales between US$58.0 million
and US$63.0 million for the fourth quarter of fiscal 2013,
while IFRS net earnings are expected to range between US$0.00 and US$0.04 per diluted share. Net
earnings include US$0.03 per share in
after-tax amortization of intangible assets and stock-based
compensation costs.
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 at May 31,
2013.
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 2013. To listen to the
conference call and participate in the question period via
telephone, dial 1-416-981-9004. 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 one hour
after the event until 7 p.m. on
July 3, 2013. The replay number is
1-402-977-9141 and the reservation number is 21658380. 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
Listed on the NASDAQ and TSX stock exchanges, EXFO is among the
leading providers of next-generation test and service assurance
solutions for wireline and wireless network operators and equipment
manufacturers in the global telecommunications industry. The
company offers innovative solutions for the development,
installation, management and maintenance of converged, IP fixed and
mobile networks—from the core to the edge. Key technologies
supported include 3G, 4G/LTE, IMS, Ethernet, OTN, FTTx, VDSL2,
ADSL2+ and various optical technologies accounting for more than
35% of the portable fiber-optic test market. EXFO has a staff of
approximately 1700 people in 25 countries, supporting more than
2000 telecom customers worldwide. For more information, visit
www.EXFO.com.
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, will, expect,
believe, anticipate, intend, could, estimate, continue,
or the negative or comparable terminology 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 macro-economic
uncertainty and/or recession (including our ability to quickly
adapt cost structures with anticipated levels of business and our
ability to manage inventory levels with market demand); capital
spending and network deployment levels in the telecommunications
industry; future economic, competitive, financial and market
conditions; limited visibility with regards to customer orders and
the timing of such orders; fluctuating exchange rates;
consolidation in the global telecommunications test and
service assurance industry and increased competition among vendors;
concentration of sales; timely release and market acceptance of our
new products and other upcoming products; our ability to
successfully integrate our acquired and to-be-acquired businesses;
our ability to successfully expand international operations; 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* and adjusted
EBITDA**) as supplemental information regarding
its operational performance. The company uses these measures
for the purposes of evaluating historical and prospective financial
performance, as well as performance relative to competitors.
These measures also help EXFO to plan and forecast 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 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 represents sales less cost of sales, excluding
depreciation and amortization. |
| ** |
Adjusted EBITDA represents net earnings (loss) before interest,
income taxes, depreciation of property, plant and equipment,
amortization of intangible assets, restructuring charges,
stock-based compensation costs and foreign exchange gain. |
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings (loss), in thousands
of US dollars:
Adjusted EBITDA
| |
|
Q3 2013 |
|
Q2 2013 |
|
Q3 2012 |
|
|
|
|
|
|
|
|
|
|
|
| IFRS net
earnings (loss) for the period |
|
$ |
(862) |
|
$ |
39 |
|
$ |
(3,720) |
|
|
|
|
|
|
|
|
|
|
|
| Add
(deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
|
1,473 |
|
|
1,504 |
|
|
1,520 |
|
Amortization of intangible assets |
|
|
1,586 |
|
|
1,922 |
|
|
1,993 |
| Interest
(income) expense |
|
|
(68) |
|
|
25 |
|
|
(85) |
| Income
taxes |
|
|
901 |
|
|
2,088 |
|
|
540 |
|
Restructuring charges |
|
|
− |
|
|
89 |
|
|
− |
|
Stock-based compensation costs |
|
|
415 |
|
|
468 |
|
|
370 |
| Foreign
exchange gain |
|
|
(314) |
|
|
(1,700) |
|
|
(1,090) |
| Adjusted
EBITDA for the period |
|
$ |
3,131 |
|
$ |
4,435 |
|
$ |
(472) |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted
EBITDA in percentage of sales |
|
|
5.3% |
|
|
7.1% |
|
|
(0.8)% |
EXFO Inc.
Condensed Unaudited Interim Consolidated Balance Sheets
(in thousands of US dollars)
| |
|
As at
May 31,
2013 |
|
As at
August 31,
2012 |
| Assets |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash |
|
$ |
49,858 |
|
$ |
58,868 |
| Short-term investments |
|
|
4,939 |
|
|
8,236 |
| Accounts receivable |
|
|
|
|
|
|
| |
Trade |
|
|
46,794 |
|
|
37,643 |
| |
Other |
|
|
2,802 |
|
|
4,283 |
| Income taxes and tax credits
recoverable |
|
|
5,915 |
|
|
9,024 |
| Inventories |
|
|
38,399 |
|
|
41,212 |
| Prepaid expenses |
|
|
4,465 |
|
|
3,800 |
| |
|
|
153,172 |
|
|
163,066 |
| |
|
|
|
|
|
|
| Tax credits recoverable |
|
|
41,894 |
|
|
38,397 |
| Property, plant and equipment |
|
|
45,775 |
|
|
49,848 |
| Intangible assets |
|
|
8,664 |
|
|
14,132 |
| Goodwill |
|
|
27,740 |
|
|
29,160 |
| Deferred income taxes |
|
|
10,867 |
|
|
12,080 |
| |
|
|
|
|
|
|
| |
|
$ |
288,112 |
|
$ |
306,683 |
| Liabilities |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
|
$ |
30,255 |
|
$ |
32,392 |
| Provisions |
|
|
902 |
|
|
952 |
| Income taxes payable |
|
|
1,502 |
|
|
917 |
| Current portion of long-term debt |
|
|
580 |
|
|
565 |
| Deferred revenue |
|
|
10,869 |
|
|
10,583 |
| |
|
|
44,108 |
|
|
45,409 |
| |
|
|
|
|
|
|
| Deferred revenue |
|
|
4,245 |
|
|
4,997 |
| Long-term debt |
|
|
‒ |
|
|
282 |
| Other liabilities |
|
|
357 |
|
|
609 |
| Deferred income taxes |
|
|
2,452 |
|
|
2,105 |
| |
|
|
51,162 |
|
|
53,402 |
| |
|
|
|
|
|
|
| Shareholders' equity |
|
|
|
|
|
|
| Share capital |
|
|
110,510 |
|
|
110,965 |
| Contributed surplus |
|
|
16,872 |
|
|
17,298 |
| Retained earnings |
|
|
109,050 |
|
|
111,511 |
| Accumulated other comprehensive
income |
|
|
518 |
|
|
13,507 |
| |
|
|
|
|
|
|
| |
|
|
236,950 |
|
|
253,281 |
| |
|
|
|
|
|
|
| |
|
$ |
288,112 |
|
$ |
306,683 |
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, 2013 |
|
Nine months
ended
May 31, 2013 |
|
Three months
ended
May 31, 2012 |
|
Nine months
ended
May 31, 2012 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Sales |
|
$ |
58,865 |
|
$ |
181,262 |
|
$ |
59,505 |
|
$ |
192,810 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales (1) |
|
|
22,574 |
|
|
69,895 |
|
|
23,549 |
|
|
70,535 |
| Selling and administrative |
|
|
22,002 |
|
|
67,366 |
|
|
23,625 |
|
|
71,919 |
| Net research and development |
|
|
11,573 |
|
|
35,135 |
|
|
13,173 |
|
|
37,963 |
| Depreciation of property, plant and equipment |
|
|
1,473 |
|
|
4,582 |
|
|
1,520 |
|
|
4,634 |
| Amortization of intangible assets |
|
|
1,586 |
|
|
5,470 |
|
|
1,993 |
|
|
5,888 |
| Changes in fair value of cash contingent
consideration |
|
|
‒ |
|
|
‒ |
|
|
‒ |
|
|
(311) |
| Earnings (loss) from operations |
|
|
(343) |
|
|
(1,186) |
|
|
(4,355) |
|
|
2,182 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
68 |
|
|
76 |
|
|
85 |
|
|
68 |
| Foreign exchange gain |
|
|
314 |
|
|
2,770 |
|
|
1,090 |
|
|
1,283 |
| Earnings (loss) before income taxes |
|
|
39 |
|
|
1,660 |
|
|
(3,180) |
|
|
3,533 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income taxes |
|
|
901 |
|
|
4,121 |
|
|
540 |
|
|
3,412 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the period |
|
$ |
(862) |
|
$ |
(2,461) |
|
$ |
(3,720) |
|
$ |
121 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted net earnings (loss) per
share |
|
$ |
(0.01) |
|
$ |
(0.04) |
|
$ |
(0.06) |
|
$ |
0.00 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic weighted average number of shares
outstanding (000's) |
|
|
60,377 |
|
|
60,386 |
|
|
60,537 |
|
|
60,440 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted weighted average number of shares
outstanding (000's) |
|
|
60,377 |
|
|
60,386 |
|
|
60,537 |
|
|
61,694 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| (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, 2013 |
|
Nine months
ended
May 31, 2013 |
|
Three months
ended
May 31, 2012 |
|
Nine months
ended
May 31, 2012 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the
period |
|
$ |
(862) |
|
$ |
(2,461) |
|
$ |
(3,720) |
|
$ |
121 |
| Other comprehensive income (loss), net
of income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will not be reclassified
subsequently to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
|
|
(1,252) |
|
|
(12,144) |
|
|
(12,307) |
|
|
(17,934) |
| Items that may be reclassified
subsequently to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Unrealized gains/losses on forward exchange
contracts |
|
|
(112) |
|
|
(874) |
|
|
(1,066) |
|
|
(922) |
| |
Reclassification of realized gains/losses on
forward exchange contracts in net earnings (loss) |
|
|
48 |
|
|
(281) |
|
|
(285) |
|
|
(1,265) |
| |
Deferred income tax effect of gains/losses on
forward exchange contracts |
|
|
17 |
|
|
310 |
|
|
362 |
|
|
594 |
| Other comprehensive loss |
|
|
(1,299) |
|
|
(12,989) |
|
|
(13,296) |
|
|
(19,527) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive loss for the
period |
|
$ |
(2,161) |
|
$ |
(15,450) |
|
$ |
(17,016) |
|
$ |
(19,406) |
EXFO Inc.
Condensed Unaudited Interim Consolidated Statements of Changes
in Shareholders' Equity
(in thousands of US dollars)
| |
|
Nine
months ended May 31, 2012 |
| |
|
Share
capital |
|
Contributed
surplus |
|
Retained
earnings |
|
Accumulated
other
comprehensive
income |
|
Total
shareholders'
equity |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at September 1, 2011 |
|
$ |
110,341 |
|
$ |
18,017 |
|
$ |
115,104 |
|
$ |
21,049 |
|
$ |
264,511 |
| Exercise of stock options |
|
|
118 |
|
|
- |
|
|
- |
|
|
- |
|
|
118 |
| Redemption of share capital |
|
|
(404) |
|
|
(222) |
|
|
- |
|
|
- |
|
|
(626) |
Reclassification of stock-based
compensation
costs |
|
|
1,835 |
|
|
(1,835) |
|
|
- |
|
|
- |
|
|
- |
| Stock-based compensation costs |
|
|
- |
|
|
1,362 |
|
|
- |
|
|
- |
|
|
1,362 |
| Net earnings for the period |
|
|
- |
|
|
- |
|
|
121 |
|
|
- |
|
|
121 |
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
|
|
- |
|
|
- |
|
|
- |
|
|
(17,934) |
|
|
(17,934) |
| |
Changes in unrealized gains on forward exchange
contracts, net of deferred income taxes of $594 |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,593) |
|
|
(1,593) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) for
the period |
|
|
- |
|
|
- |
|
|
121 |
|
|
(19,527) |
|
|
(19,406) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at May 31, 2012 |
|
$ |
111,890 |
|
$ |
17,322 |
|
$ |
115,225 |
|
$ |
1,522 |
|
$ |
245,959 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine
months ended May 31, 2013 |
| |
|
Share
capital |
|
Contributed
surplus |
|
Retained
earnings |
|
Accumulated
other
comprehensive
income |
|
Total
shareholders'
equity |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at September 1, 2012 |
|
$ |
110,965 |
|
$ |
17,298 |
|
$ |
111,511 |
|
$ |
13,507 |
|
$ |
253,281 |
| Exercise of stock options |
|
|
87 |
|
|
- |
|
|
- |
|
|
- |
|
|
87 |
| Redemption of share capital |
|
|
(1,892) |
|
|
(409) |
|
|
- |
|
|
- |
|
|
(2,301) |
Reclassification of stock-based
compensation
costs |
|
|
1,350 |
|
|
(1,350) |
|
|
- |
|
|
- |
|
|
- |
| Stock-based compensation costs |
|
|
- |
|
|
1,333 |
|
|
- |
|
|
- |
|
|
1,333 |
| Net loss for the period |
|
|
- |
|
|
- |
|
|
(2,461) |
|
|
- |
|
|
(2,461) |
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
|
|
- |
|
|
- |
|
|
- |
|
|
(12,144) |
|
|
(12,144) |
| |
Changes in unrealized gains/losses on forward
exchange contracts, net of deferred income taxes of $310 |
|
|
- |
|
|
- |
|
|
- |
|
|
(845) |
|
|
(845) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive loss for the
period |
|
|
- |
|
|
- |
|
|
(2,461) |
|
|
(12,989) |
|
|
(15,450) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at May 31, 2013 |
|
$ |
110,510 |
|
$ |
16,872 |
|
$ |
109,050 |
|
$ |
518 |
|
$ |
236,950 |
EXFO Inc.
Condensed Unaudited Interim Consolidated Statements of Cash
Flows
(in thousands of US dollars)
| |
|
Three months
ended
May 31, 2013 |
|
Nine months
ended
May 31, 2013 |
|
Three months
ended
May 31, 2012 |
|
Nine months
ended
May 31, 2012 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the
period |
|
$ |
(862) |
|
$ |
(2,461) |
|
$ |
(3,720) |
|
$ |
121 |
| Add (deduct) items not affecting
cash |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Change in discount on short-term investments |
|
|
1 |
|
|
- |
|
|
- |
|
|
43 |
| |
Stock-based compensation costs |
|
|
415 |
|
|
1,331 |
|
|
370 |
|
|
1,433 |
| |
Depreciation and amortization |
|
|
3,059 |
|
|
10,052 |
|
|
3,513 |
|
|
10,522 |
| |
Changes in fair value of cash contingent
consideration |
|
|
- |
|
|
- |
|
|
- |
|
|
(311) |
| |
Deferred revenue |
|
|
1,661 |
|
|
241 |
|
|
2,629 |
|
|
1,976 |
| |
Deferred income taxes |
|
|
263 |
|
|
1,984 |
|
|
445 |
|
|
2,020 |
| |
Change in foreign exchange gain/loss |
|
|
(78) |
|
|
(876) |
|
|
(1,091) |
|
|
(2,130) |
| |
|
|
4,459 |
|
|
10,271 |
|
|
2,146 |
|
|
13,674 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Change in non-cash operating
items |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Accounts receivable |
|
|
(4,569) |
|
|
(10,657) |
|
|
(2,339) |
|
|
268 |
| |
Income taxes and tax credits |
|
|
985 |
|
|
(2,201) |
|
|
(2,308) |
|
|
(3,566) |
| |
Inventories |
|
|
(262) |
|
|
791 |
|
|
1,930 |
|
|
9,573 |
| |
Prepaid expenses |
|
|
(804) |
|
|
(859) |
|
|
(238) |
|
|
(451) |
| |
Accounts payable, accrued liabilities and
provisions |
|
|
1,553 |
|
|
1,503 |
|
|
3,478 |
|
|
3,443 |
| |
Other liabilities |
|
|
(25) |
|
|
(235) |
|
|
163 |
|
|
11 |
| |
|
|
1,337 |
|
|
(1,387) |
|
|
2,832 |
|
|
22,952 |
| Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Additions to short-term
investments |
|
|
(9,934) |
|
|
(44,703) |
|
|
(24,170) |
|
|
(91,968) |
| Proceeds from disposal and maturity of
short-term investments |
|
|
9,921 |
|
|
47,731 |
|
|
21,135 |
|
|
128,901 |
| Additions to capital assets |
|
|
(1,459) |
|
|
(5,952) |
|
|
(6,826) |
|
|
(18,003) |
| |
|
|
(1,472) |
|
|
(2,924) |
|
|
(9,861) |
|
|
18,930 |
| Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Bank loan |
|
|
- |
|
|
- |
|
|
3 |
|
|
(782) |
| Repayment of long-term debt |
|
|
- |
|
|
(293) |
|
|
- |
|
|
(296) |
| Exercise of stock options |
|
|
- |
|
|
87 |
|
|
40 |
|
|
118 |
| Redemption of share capital |
|
|
(1,161) |
|
|
(2,301) |
|
|
- |
|
|
(626) |
| |
|
|
(1,161) |
|
|
(2,507) |
|
|
43 |
|
|
(1,586) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of foreign exchange rate
changes on cash |
|
|
(271) |
|
|
(2,192) |
|
|
(2,354) |
|
|
(1,158) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Change in cash |
|
|
(1,567) |
|
|
(9,010) |
|
|
(9,340) |
|
|
39,138 |
| Cash - Beginning of the
period |
|
|
51,425 |
|
|
58,868 |
|
|
71,249 |
|
|
22,771 |
| Cash - End of the period |
|
$ |
49,858 |
|
$ |
49,858 |
|
$ |
61,909 |
|
$ |
61,909 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Supplementary information |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest paid |
|
$ |
2 |
|
$ |
28 |
|
$ |
3 |
|
$ |
61 |
| Income taxes paid |
|
$ |
118 |
|
$ |
1,055 |
|
$ |
367 |
|
$ |
1,357 |
SOURCE EXFO inc.