In c#8099 transmitted at 16h02e today, an error occurred in the
table entitled "EXFO Inc. Unaudited Interim Consolidated Balance
Sheets", section "Current liabilities - Accounts payable and
accrued liabilities" The amount should read as $ 26,253 instead of $
25,679. Corrected copy follows:
EXFO Reports Fourth-Quarter and Fiscal 2013 Results
Q4 2013
- Sales total US$60.9
million, up 6.5% year-over-year and 3.4%
sequentially
- Gross margin reaches 62.9%, highest level in last six
quarters
- Adjusted EBITDA amounts to US$7.1
million, or 11.6% of sales
Fiscal 2013
- Sales total US$242.2
million, down 3.1% year-over-year
- Operating expenses decrease US$9.0
million year-over-year
- Adjusted EBITDA amounts to US$17.3
million, or 7.2% of sales
QUEBEC CITY, Oct. 8, 2013 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO) (TSX: EXF) announced today financial results for the fourth
quarter and fiscal year ended August 31,
2013.
Sales in the fourth quarter of fiscal 2013
increased 3.4% to US$60.9 million
from US$58.9 million in the third
quarter of 2013 and 6.5% from US$57.2
million in the fourth quarter of 2012. Annual sales
decreased 3.1% to US$242.2 million in
fiscal 2013 from US$250.0 million in
2012.
Bookings totaled US$54.0
million for a book-to-bill ratio of 0.89 in the seasonally
weak fourth quarter of fiscal 2013 compared to US$61.8 million in the third quarter of 2013 and
US$55.2 million in the fourth quarter
of 2012. Overall for fiscal 2013, bookings amounted to US$233.5 million for a book-to-bill ratio of
0.96 compared to US$244.8 million in 2012.
Gross margin* reached 62.9% of sales in the
fourth quarter of fiscal 2013 compared to 61.7% in the third
quarter of 2013 and 62.8% in the fourth quarter of 2012. In
fiscal 2013, gross margin attained 61.8% of sales compared to 63.3%
in 2012.
In the fourth quarter of fiscal 2013, IFRS net
earnings amounted to US$3.8 million,
or US$0.06 per diluted share,
including US$1.1 million in
after-tax amortization of intangible assets, US$0.4 million in stock-based compensation costs
and a foreign exchange gain of US$1.3
million.
In the third quarter of 2013, IFRS net loss
totaled US$0.9 million, or
US$0.01 per share, including
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.
In the fourth quarter of 2012, IFRS net loss
amounted to US$3.7 million, or
US$0.06 per share, including
US$2.1 million in after-tax
amortization of intangible assets, US$1.9
million in after-tax restructuring charges and US$0.4 million in stock-based compensation costs.
EXFO also incurred a foreign exchange loss of US$1.9 million in the fourth quarter of 2012.
In fiscal 2013, IFRS net earnings totaled
US$1.3 million, or US$0.02 per diluted share, including US$6.4 million in after-tax amortization of
intangible assets, US$1.8 million in
stock-based compensation costs, US$0.1
million in after-tax restructuring charges and a foreign
exchange gain of US$4.1 million.
In 2012, IFRS net loss totaled US$3.6 million, or US$0.06 per share, including US$7.8 million in after-tax amortization of
intangible assets, US$1.9 million in
after-tax restructuring charges, US$1.9
million in stock-based compensation costs and a gain of
US$0.3 million for changes in the
fair value of the cash contingent consideration related to the
NetHawk acquisition. EXFO also incurred a foreign exchange loss of
US$0.7 million in 2012.
Adjusted EBITDA** totaled US$7.1 million, or 11.6% of sales, in the fourth
quarter of fiscal 2013 compared to US$3.1
million, or 5.3% of sales, in the third quarter of 2013 and
US$4.5 million, or 8.0% of sales, in
the fourth quarter of 2012. Adjusted EBITDA reached US$17.3 million, or 7.2% of sales, in fiscal 2013
compared to US$18.4 million, or
7.3% of sales in 2012.
"While fiscal 2013 will not rank as a vintage
year by EXFO's standards, I am pleased with the strongly improved
market positioning of our Protocol-layer product group and
heightened results in the wireless industry," said Germain Lamonde, EXFO's Chairman, President and
CEO. "Sales to wireless customers increased from approximately 24%
of total sales to 28% in 2013, but more importantly I am excited by
the market acceptance of several new solutions among leading mobile
network operators, who are faced with the daunting challenge of
increasing network capacity and improving quality of experience
while reducing their operating expenses. Looking ahead to 2014, I
fully expect our two main product groups and our wireless business
to deliver growth, and the entire organization remains steadfastly
focused on the execution of our profitable growth strategy which
will benefit from a reduced cost base of US$9.0 million."
Selected Financial Information (unaudited)
(In thousands of US dollars)
| |
| |
|
Q4 2013 |
|
Q3 2013 |
|
Q4 2012 |
|
FY 2013 |
|
FY 2012 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales |
$ |
60,888 |
|
$ |
58,865 |
|
$ |
57,156 |
|
$ |
242,150 |
|
$ |
249,966 |
| Gross margin* |
$ |
38,314 |
|
$ |
36,291 |
|
$ |
35,899 |
|
$ |
149,681 |
|
$ |
158,174 |
| |
|
62.9% |
|
|
61.7% |
|
|
62.8% |
|
|
61.8% |
|
|
63.3% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other selected
information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net earnings (loss) |
$ |
3,802 |
|
$ |
(862) |
|
$ |
(3,714) |
|
$ |
1,341 |
|
$ |
(3,593) |
| |
Amortization of intangible
assets |
$ |
1,173 |
|
$ |
1,586 |
|
$ |
1,931 |
|
$ |
6,643 |
|
$ |
7,819 |
| |
Stock-based compensation
costs |
$ |
437 |
|
$ |
415 |
|
$ |
429 |
|
$ |
1,768 |
|
$ |
1,862 |
| |
Restructuring charges |
$ |
− |
|
$ |
− |
|
$ |
2,329 |
|
$ |
89 |
|
$ |
2,329 |
| |
Net income tax effect of the
above items |
$ |
(64) |
|
$ |
(68) |
|
$ |
(247) |
|
$ |
(294) |
|
$ |
(392) |
| |
Changes in fair value of cash
contingent consideration |
$ |
− |
|
$ |
− |
|
$ |
− |
|
$ |
− |
|
$ |
(311) |
| |
Foreign exchange gain (loss) |
$ |
1,312 |
|
$ |
314 |
|
$ |
(1,940) |
|
$ |
4,082 |
|
$ |
(657) |
| |
Adjusted EBITDA** |
$ |
7,052 |
|
$ |
3,131 |
|
$ |
4,546 |
|
$ |
17,338 |
|
$ |
18,372 |
Operating Expenses
Selling and administrative expenses totaled US$21.4 million, or 35.1% of sales, in the fourth
quarter of fiscal 2013 compared to US$22.0
million, or 37.4% of sales, in the third quarter of 2013 and
US$22.2 million, or 38.9% of sales,
in the fourth quarter of 2012. In fiscal 2013, selling and
administrative expenses amounted to US$88.8
million, or 36.6% of sales, compared to US$94.1 million, or 37.7% of sales, in 2012.
Gross R&D expenses attained US$12.5 million, or 20.6% of sales, in the fourth
quarter of fiscal 2013 compared to US$13.8
million, or 23.4% of sales, in the previous quarter and
US$14.1 million, or 24.7% of sales,
in the fourth quarter of 2012. In fiscal 2013, gross R&D
expenses reached US$54.3 million, or
22.4% of sales, compared to US$59.3
million, or 23.7% of sales, in 2012.
Net R&D expenses amounted to US$10.3 million, or 16.9% of sales, in the fourth
quarter of fiscal 2013 compared to US$11.6
million, or 19.7% of sales, in the third quarter of 2013 and
US$11.9 million, or 20.8% of sales,
in the fourth quarter of 2012. In fiscal 2013, net R&D expenses
totaled US$45.4 million, or 18.8% of
sales, compared to US$49.9 million, or 19.9% of sales, in
2012.
FY 2013 Highlights
- Sales Growth. Despite difficult market conditions, sales
of Physical-Layer solutions (Optical and Copper Access) increased
4.3% in fiscal 2013 mainly due to market-share leadership in
portable Optical testing and strong growth from Copper Access
products. Sales of Protocol-Layer solutions (Transport &
Datacom, Wireless and Service Assurance) decreased 11.3%
year-over-year as the company upgraded several product lines during
the course of the year and endured delayed investments by fixed and
mobile network operators. Overall, EXFO's sales decreased 3.1%
year-over-year.
Sales to wireless customers improved to approximately 28% of total
sales in fiscal 2013 from 24% in 2012.
EXFO's largest customer accounted for 6.1% of sales in fiscal 2013,
while the company's top-three customers represented 13.5%. In
comparison, EXFO's largest customer accounted for 4.4% of sales in
2012, while the company's top-three customers represented
12.0%.
- Profitability. EXFO generated adjusted EBITDA of
US$17.3 million, or 7.2% of sales, in
fiscal 2013 compared to US$18.4
million, or 7.3% of sales, in 2012. The company also reduced
selling and administrative expenses, net R&D expenses, as well
as depreciation and amortization expenses by a total of
US$9.0 million in 2013, excluding
restructuring charges.
- Innovation. EXFO launched 15 new products in fiscal
2013, including two in the fourth quarter. Key new Protocol-layer
product introductions during 2013 included among others the
TravelHawk Pro, a 4G/LTE capture and analysis tool for network
troubleshooting that has been selected by the three of the world's
top-five LTE operators; FTB-88100NGE Power Blazer, the first and
most versatile portable, multiservice test solution supporting
transmission rates from 100M to 100G; BV-100 service assurance
probe that enables network operators to validate service-level
agreements and end-user quality of experience at customer premises
and cell sites; and following the year-end, the company released
Brix Mobile Agent, a software application that transforms
Android-based 3G/4G cellular phones into mobile probes in order to
capture quality of experience (QoE) data at highly attended events
like football games or rock concerts inside stadiums.
Business Outlook
EXFO forecasts sales between US$58 million
and US$63 million for the first quarter of fiscal 2014,
while IFRS net loss should range between US$0.04 and US$0.00 per share. IFRS net loss
includes 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 an estimated foreign exchange loss of US$0.9 million based on 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 fourth-quarter and
year-end financial results for fiscal 2013. To listen to the
conference call and participate in the question period via
telephone, dial 1-416-981-9007. 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 will be available one hour after the end of the
conference call until 7 p.m. on
October 15, 2013. The replay number
is 1-402-977-9141 and the reservation number is 21672676. The live
audio Webcast and replay of the conference call will also be
available on EXFO's Website at www.EXFO.com/investors.
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 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, 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 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;
limited visibility with regards to customer orders and the timing
of such orders; fluctuating exchange rates; 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 its performance relative to competitors.
These measures also help the company 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
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 represents sales less cost of sales, excluding
depreciation and amortization. |
| |
| ** |
Adjusted EBITDA represents net earnings (loss) before interest,
income taxes, depreciation and amortization, restructuring charges,
changes in the fair value of the cash contingent consideration,
stock-based compensation costs and foreign exchange gain or
loss. |
The following table summarizes the
reconciliation of adjusted EBITDA to IFRS net earnings (loss), in
thousands of US dollars:
Adjusted EBITDA
| |
Q4 2013 |
|
Q3 2013 |
|
Q4 2012 |
|
FY 2013 |
|
FY 2012 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| IFRS net earnings (loss) for the period |
$ |
3,802 |
|
$ |
(862) |
|
$ |
(3,714) |
|
$ |
1,341 |
|
$ |
(3,593) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation of property, plant and equipment |
|
1,446 |
|
|
1,473 |
|
|
1,535 |
|
|
6,028 |
|
|
6,169 |
| Amortization of intangible assets |
|
1,173 |
|
|
1,586 |
|
|
1,931 |
|
|
6,643 |
|
|
7,819 |
| Interest income |
|
(37) |
|
|
(68) |
|
|
(63) |
|
|
(113) |
|
|
(131) |
| Income taxes |
|
1,543 |
|
|
901 |
|
|
159 |
|
|
5,664 |
|
|
3,571 |
| Restructuring charges |
|
|
|
|
- |
|
|
2,329 |
|
|
89 |
|
|
2,329 |
| Changes in fair value of cash contingent
consideration |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(311) |
| Stock-based compensation costs |
|
437 |
|
|
415 |
|
|
429 |
|
|
1,768 |
|
|
1,862 |
| Foreign exchange (gain) loss |
|
(1,312) |
|
|
(314) |
|
|
1,940 |
|
|
(4,082) |
|
|
657 |
| Adjusted EBITDA for the period |
$ |
7,052 |
|
$ |
3,131 |
|
$ |
4,546 |
|
$ |
17,338 |
|
$ |
18,372 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA in percentage of sales |
|
11.6% |
|
|
5.3% |
|
|
8.0% |
|
|
7.2% |
|
|
7.3% |
EXFO Inc.
Unaudited Interim Consolidated Balance Sheets
(in thousands of US dollars)
| |
|
As at August 31, |
| |
|
2013 |
|
2012 |
| Assets |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash |
|
$ |
45,386 |
|
$ |
58,868 |
| Short-term investments |
|
|
4,868 |
|
|
8,236 |
| Accounts receivable |
|
|
|
|
|
|
| |
Trade |
|
|
50,117 |
|
|
37,643 |
| |
Other |
|
|
2,778 |
|
|
4,283 |
| Income taxes and tax credits
recoverable |
|
|
6,525 |
|
|
9,024 |
| Inventories |
|
|
35,705 |
|
|
41,212 |
| Prepaid expenses |
|
|
2,561 |
|
|
3,800 |
| |
|
|
|
|
|
|
| |
|
|
147,940 |
|
|
163,066 |
| |
|
|
|
|
|
|
| Tax credits recoverable |
|
|
41,719 |
|
|
38,397 |
| Property, plant and
equipment |
|
|
45,523 |
|
|
49,848 |
| Intangible assets |
|
|
7,543 |
|
|
14,132 |
| Goodwill |
|
|
27,313 |
|
|
29,160 |
| Deferred income tax assets |
|
|
10,807 |
|
|
12,080 |
| Other assets |
|
|
693 |
|
|
- |
| |
|
|
|
|
|
|
| |
|
$ |
281,538 |
|
$ |
306,683 |
| Liabilities |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
|
$ |
26,253 |
|
$ |
32,392 |
| Provisions |
|
|
756 |
|
|
952 |
| Income taxes payable |
|
|
679 |
|
|
917 |
| Current portion of long-term debt |
|
|
296 |
|
|
565 |
| Deferred revenue |
|
|
9,467 |
|
|
10,583 |
| |
|
|
|
|
|
|
| |
|
|
37,451 |
|
|
45,409 |
| |
|
|
|
|
|
|
| Deferred revenue |
|
|
3,932 |
|
|
4,997 |
| Long-term debt |
|
|
- |
|
|
282 |
| Deferred income tax
liabilities |
|
|
3,226 |
|
|
2,105 |
| Other liabilities |
|
|
477 |
|
|
609 |
| |
|
|
|
|
|
|
| |
|
|
45,086 |
|
|
53,402 |
| |
|
|
|
|
|
|
| Shareholders' equity |
|
|
|
|
|
|
| Share capital |
|
|
109,837 |
|
|
110,965 |
| Contributed surplus |
|
|
17,186 |
|
|
17,298 |
| Retained earnings |
|
|
112,852 |
|
|
111,511 |
| Accumulated other comprehensive income
(loss) |
|
|
(3,423) |
|
|
13,507 |
| |
|
|
|
|
|
|
| |
|
|
236,452 |
|
|
253,281 |
| |
|
|
|
|
|
|
| |
|
$ |
281,538 |
|
$ |
306,683 |
EXFO Inc.
Unaudited Interim Consolidated Statements of Earnings
(in thousands of US dollars, except share and per
share data)
| |
|
Three months
ended
August 31, 2013 |
|
Twelve months
ended
August 31, 2013 |
|
Three months
ended
August 31, 2012 |
|
Twelve months
ended
August 31, 2012 |
| |
|
|
|
|
|
|
|
|
| Sales |
|
$ |
60,888 |
|
$ |
242,150 |
|
$ |
57,156 |
|
$ |
249,966 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales (1) |
|
|
22,574 |
|
|
92,469 |
|
|
21,257 |
|
|
91,792 |
| Selling and administrative |
|
|
21,390 |
|
|
88,756 |
|
|
22,220 |
|
|
94,139 |
| Net research and development |
|
|
10,309 |
|
|
45,444 |
|
|
11,891 |
|
|
49,854 |
| Depreciation of property, plant and equipment |
|
|
1,446 |
|
|
6,028 |
|
|
1,535 |
|
|
6,169 |
| Amortization of intangible assets |
|
|
1,173 |
|
|
6,643 |
|
|
1,931 |
|
|
7,819 |
| Changes in fair value of cash contingent
consideration |
|
|
‒ |
|
|
‒ |
|
|
‒ |
|
|
(311) |
| Interest income |
|
|
(37) |
|
|
(113) |
|
|
(63) |
|
|
(131) |
| Foreign exchange (gain) loss |
|
|
(1,312) |
|
|
(4,082) |
|
|
1,940 |
|
|
657 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) before income taxes |
|
|
5,345 |
|
|
7,005 |
|
|
(3,555) |
|
|
(22) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income taxes |
|
|
1,543 |
|
|
5,664 |
|
|
159 |
|
|
3,571 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the period |
|
$ |
3,802 |
|
$ |
1,341 |
|
$ |
(3,714) |
|
$ |
(3,593) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted net earnings (loss) per
share |
|
$ |
0.06 |
|
$ |
0.02 |
|
$ |
(0.06) |
|
$ |
(0.06) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares
outstanding (000's) |
|
|
60,132 |
|
|
60,323 |
|
|
60,491 |
|
|
60,453 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of
shares
outstanding (000's) |
|
|
60,929 |
|
|
61,110 |
|
|
60,491 |
|
|
60,453 |
(1) The cost of
sales is exclusive of depreciation and amortization, shown
separately.
EXFO Inc.
Unaudited Interim Consolidated Statements of Comprehensive
Income (Loss)
(in thousands of US dollars)
| |
|
Three months
ended
August 31, 2013 |
|
Twelve months
ended
August 31, 2013 |
|
Three months
ended
August 31, 2012 |
|
Twelve months
ended
August 31, 2012 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the
period |
|
$ |
3,802 |
|
$ |
1,341 |
|
$ |
(3,714) |
|
$ |
(3,593) |
| Other comprehensive income (loss), net
of income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be
reclassified
subsequently to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
|
|
(3,686) |
|
|
(15,830) |
|
|
10,956 |
|
|
(6,875) |
Items that may be reclassified
subsequently
to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Unrealized gains/losses on forward
exchange contracts |
|
|
(382) |
|
|
(1,256) |
|
|
1,107 |
|
|
185 |
| |
Reclassification of realized gains/losses
on forward exchange contracts in
net earnings |
|
|
34 |
|
|
(247) |
|
|
157 |
|
|
(1,108) |
| |
Deferred income tax effect of
gains/losses on forward exchange
contracts |
|
|
93 |
|
|
403 |
|
|
(338) |
|
|
256 |
| Other comprehensive income (loss) |
|
|
(3,941) |
|
|
(16,930) |
|
|
11,882 |
|
|
(7,542) |
| Comprehensive income (loss) for the
period |
|
$ |
(139) |
|
$ |
(15,589) |
|
$ |
8,168 |
|
$ |
(11,135) |
EXFO Inc.
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
(in thousands of US dollars)
| |
|
Year ended August 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 |
|
|
310 |
|
|
- |
|
|
- |
|
|
- |
|
|
310 |
| Redemption of share capital |
|
|
(1,696) |
|
|
(540) |
|
|
- |
|
|
- |
|
|
(2,236) |
| Reclassification of stock-based
compensation costs |
|
|
2,010 |
|
|
(2,010) |
|
|
- |
|
|
- |
|
|
- |
| Stock-based compensation costs |
|
|
- |
|
|
1,831 |
|
|
- |
|
|
- |
|
|
1,831 |
| Net loss for the year |
|
|
- |
|
|
- |
|
|
(3,593) |
|
|
- |
|
|
(3,593) |
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
|
|
- |
|
|
- |
|
|
- |
|
|
(6,875) |
|
|
(6,875) |
| |
Changes in unrealized gains on
forward exchange
contracts, net of deferred income taxes of $256 |
|
|
- |
|
|
- |
|
|
- |
|
|
(667) |
|
|
(667) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive loss for the
year |
|
|
- |
|
|
- |
|
|
(3,593) |
|
|
(7,542) |
|
|
(11,135) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at August 31, 2012 |
|
$ |
110,965 |
|
$ |
17,298 |
|
$ |
111,511 |
|
$ |
13,507 |
|
$ |
253,281 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year ended August 31, 2013 |
| |
|
Share
capital |
|
Contributed
surplus |
|
Retained
earnings |
|
Accumulated
other
comprehensive
income (loss) |
|
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 |
|
|
(2,565) |
|
|
(531) |
|
|
- |
|
|
- |
|
|
(3,096) |
| Reclassification of stock-based
compensation costs |
|
|
1,350 |
|
|
(1,350) |
|
|
- |
|
|
- |
|
|
- |
| Stock-based compensation costs |
|
|
- |
|
|
1,769 |
|
|
- |
|
|
- |
|
|
1,769 |
| Net earnings for the year |
|
|
- |
|
|
- |
|
|
1,341 |
|
|
- |
|
|
1,341 |
| Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
|
|
- |
|
|
- |
|
|
- |
|
|
(15,830) |
|
|
(15,830) |
| |
Changes in unrealized gains/losses
on forward
exchange contracts, net of deferred income
taxes of $403 |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,100) |
|
|
(1,100) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) for
the year |
|
|
- |
|
|
- |
|
|
1,341 |
|
|
(16,930) |
|
|
(15,589) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at August 31, 2013 |
|
$ |
109,837 |
|
$ |
17,186 |
|
$ |
112,852 |
|
$ |
(3,423) |
|
$ |
236,452 |
EXFO Inc.
Unaudited Interim Consolidated Statements of Cash Flows
(in thousands of US dollars)
| |
|
Three months
ended
August 31, 2013 |
|
Twelve months
ended
August 31, 2013 |
|
Three months
ended
August 31, 2012 |
|
Twelve months
ended
August 31, 2012 |
| Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the
period |
|
$ |
3,802 |
|
$ |
1,341 |
|
$ |
(3,714) |
|
$ |
(3,593) |
| Add (deduct) items not affecting
cash |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Change in discount on short-term
investments |
|
|
‒ |
|
|
‒ |
|
|
2 |
|
|
45 |
| |
Stock-based compensation costs |
|
|
437 |
|
|
1,768 |
|
|
429 |
|
|
1,862 |
| |
Depreciation and amortization |
|
|
2,619 |
|
|
12,671 |
|
|
3,466 |
|
|
13,988 |
| |
Changes in fair value of cash contingent
consideration |
|
|
‒ |
|
|
‒ |
|
|
‒ |
|
|
(311) |
| |
Deferred revenue |
|
|
(1,507) |
|
|
(1,266) |
|
|
(2,482) |
|
|
(506) |
| |
Deferred income taxes |
|
|
967 |
|
|
2,951 |
|
|
33 |
|
|
2,050 |
| |
Changes in foreign exchange gain/loss |
|
|
(215) |
|
|
(1,091) |
|
|
617 |
|
|
(1,510) |
| |
|
|
6,103 |
|
|
16,374 |
|
|
(1,649) |
|
|
12,025 |
| Change in non-cash operating
items |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Accounts receivable |
|
|
(4,108) |
|
|
(14,765) |
|
|
7,706 |
|
|
7,974 |
| |
Income taxes and tax credits |
|
|
(2,004) |
|
|
(4,205) |
|
|
(2,004) |
|
|
(5,570) |
| |
Inventories |
|
|
2,125 |
|
|
2,916 |
|
|
1,306 |
|
|
10,879 |
| |
Prepaid expenses |
|
|
1,852 |
|
|
993 |
|
|
(138) |
|
|
(589) |
| |
Other assets |
|
|
(703) |
|
|
(703) |
|
|
‒ |
|
|
‒ |
| |
Accounts payable and accrued liabilities
and provisions |
|
|
(3,876) |
|
|
(2,373) |
|
|
(2,800) |
|
|
643 |
| |
Other liabilities |
|
|
(23) |
|
|
(258) |
|
|
(116) |
|
|
(105) |
| |
|
|
(634) |
|
|
(2,021) |
|
|
2,305 |
|
|
25,257 |
| Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Additions to short-term
investments |
|
|
(9,786) |
|
|
(54,489) |
|
|
(23,918) |
|
|
(115,886) |
Proceeds from disposal and maturity
of
short-term investments |
|
|
9,783 |
|
|
57,514 |
|
|
23,896 |
|
|
152,797 |
| Additions to capital assets |
|
|
(2,074) |
|
|
(8,026) |
|
|
(5,846) |
|
|
(23,849) |
| |
|
|
(2,077) |
|
|
(5,001) |
|
|
(5,868) |
|
|
13,062 |
| Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Bank loan |
|
|
‒ |
|
|
‒ |
|
|
‒ |
|
|
(782) |
| Repayment of long-term debt |
|
|
(296) |
|
|
(589) |
|
|
(281) |
|
|
(577) |
| Exercise of stock options |
|
|
‒ |
|
|
87 |
|
|
192 |
|
|
310 |
| Redemption of share capital |
|
|
(795) |
|
|
(3,096) |
|
|
(1,610) |
|
|
(2,236) |
| |
|
|
(1,091) |
|
|
(3,598) |
|
|
(1,699) |
|
|
(3,285) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate
changes
on cash |
|
|
(670) |
|
|
(2,862) |
|
|
2,221 |
|
|
1,063 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Change in cash |
|
|
(4,472) |
|
|
(13,482) |
|
|
(3,041) |
|
|
36,097 |
| Cash - Beginning of period |
|
|
49,858 |
|
|
58,868 |
|
|
61,909 |
|
|
22,771 |
| Cash - End of period |
|
$ |
45,386 |
|
$ |
45,386 |
|
$ |
58,868 |
|
$ |
58,868 |
SOURCE EXFO inc.