- Sales reach US$63.9
million, up 24.8% sequentially and 8.5%
year-over-year
- Bookings attain US$66.5
million, book-to-bill ratio of 1.04
- Gross margin* improves to 63.3%, adjusted EBITDA**
amounts to US$7.3 million
(11.5%)
QUEBEC CITY, June 25,
2014 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO; TSX: EXF)
reported today financial results for the third quarter ended
May 31, 2014.
Sales reached US$63.9
million in the third quarter of fiscal 2014 compared to
US$58.9 million in the third quarter
of 2013 and US$51.2 million in the
second quarter of 2014.
Bookings attained US$66.5
million in the third quarter of fiscal 2014 compared to
US$61.8 million in the same period
last year and US$58.7 million in the
second quarter of 2014. The company's book-to-bill ratio was 1.04
in the third quarter of 2014.
Gross margin before depreciation and
amortization* improved to 63.3% of sales in the third
quarter of fiscal 2014 from 61.7% in the third quarter of 2013
and 60.8% in the second quarter of 2014.
IFRS net earnings in the third quarter of fiscal
2014 totaled US$1.7 million, or
US$0.03 per diluted share, compared
to a net loss of US$0.9 million, or
US$0.01 per share, in the same period
last year and a net loss of US$1.3 million, or US$0.02 per share, in the second quarter of 2014.
IFRS net earnings in the third quarter of 2014 included
US$1.0 million in after-tax
amortization of intangible assets, US$0.4
million in stock-based compensation costs and a foreign
exchange loss of US$1.1 million.
Adjusted EBITDA** amounted to
US$7.3 million, or 11.5% of sales, in
the third quarter of fiscal 2014 compared to US$3.1 million, or 5.3% of sales, in the
third quarter of 2013 and -US$1.0
million, or -2.0% of sales, in the second quarter of
2014.
During the third quarter of fiscal 2014, EXFO
acquired the assets of ByteSphere, a Boston-area software company specializing in
global IT management and network monitoring solutions. This
transaction extends EXFO's service assurance offering into
infrastructure performance visibility through highly scalable
device and network element polling.
Following the quarter-end, EXFO acquired the
business of Aito Technologies, a Finnish provider of customer
experience analytics for mobile network operators, through an asset
purchase deal. EXFO intends to combine the analytics software
capabilities of Aito Technologies with its own wireless product
portfolio to provide mobile operators with heightened, end-to-end
visibility of their 3G and 4G/LTE networks.
"I am really pleased with our strong sequential
and year-over-year sales growth, the strengthening of our backlog
for a third consecutive quarter and leverage in our operating model
with an adjusted EBITDA margin of 11.5% in the third quarter," said
Germain Lamonde, EXFO's Chairman,
President and CEO. "I am also delighted with our improved market
position in the wireless industry, both through the recent
acquisitions of ByteSphere and Aito Technologies but also with
several recently introduced solutions. All these initiatives have
greatly elevated EXFO's strategic relevance in the wireless
industry as reflected by three recent contract wins, two of which
occurred with tier-1 network operators after the quarter-end."
Selected Financial Information
(In thousands of US dollars)
| |
|
|
|
|
|
|
|
|
|
|
Q3
2014 |
|
|
Q2
2014 |
|
|
Q3
2013 |
|
|
|
|
|
|
|
|
|
| Sales |
$ |
63,882 |
|
$ |
51,179 |
|
$ |
58,865 |
|
|
|
|
|
|
|
|
|
| Gross margin before depreciation
and amortization* |
$ |
40,413 |
|
$ |
31,106 |
|
$ |
36,291 |
|
|
63.3% |
|
|
60.8% |
|
|
61.7% |
| Other selected
information: |
|
|
|
|
|
|
|
|
|
IFRS net earnings (loss) |
$ |
1,665 |
|
$ |
(1,339) |
|
$ |
(862) |
|
Amortization of intangible assets |
$ |
1,025 |
|
$ |
1,074 |
|
$ |
1,586 |
|
Stock-based compensation costs |
$ |
407 |
|
$ |
402 |
|
$ |
415 |
|
Net income tax effect of the above items |
$ |
(63) |
|
$ |
(64) |
|
$ |
(68) |
|
Foreign exchange gain (loss) |
$ |
(1,126) |
|
$ |
2,292 |
|
$ |
314 |
|
Adjusted
EBITDA** |
$ |
7,345 |
|
$ |
(1,002) |
|
$ |
3,131 |
Operating Expenses
Selling and administrative expenses totaled US$21.7 million, or 34.0% of sales, in the third
quarter of fiscal 2014 compared to US$22.0
million, or 37.4% of sales, in the same period last year and
US$21.5 million, or 42.1%
of sales, in the second quarter of 2014.
Gross research and development expenses amounted to US$13.6 million, or 21.3% of sales, in the third
quarter of fiscal 2014 compared to US$13.8 million, or 23.4% of sales, in the third
quarter of 2013 and US$13.0 million,
or 25.5% of sales, in the second quarter of 2014.
Net R&D expenses totaled US$11.7
million, or 18.4% of sales, in the third quarter of fiscal
2014 compared to US$11.6
million, or 19.7% of sales, in the same period last year and
US$11.0 million, or 21.4% of sales,
in the second quarter of 2014.
Third-Quarter Highlights
- Sales. Sales improved 24.8% quarter-over-quarter and 8.5%
year-over-year to US$63.9 million in
the third quarter of 2014 mainly due to the typical seasonal
release of network operators' capital spending budgets and
increased traction of EXFO's optical and wireless solutions. Global
sales originated 54% from the Americas, 28% from EMEA and 18% from
Asia-Pacific. EXFO's top
customer accounted for 6.7% of sales in the third quarter, while
the top three represented 15.3%. Following the quarter-end, two
tier-1 mobile network operators (one from the Americas and the
other from EMEA) selected EXFO as a strategic solutions
partner.
- Profitability. EXFO reported adjusted EBITDA of US$7.3 million, or 11.5% of sales, in the third
quarter of 2014 which marked the company's best performance in the
last nine quarters. Cash flows from operating activities totaled
US$2.9 million in the third quarter
of 2014 compared to US$1.3 million
for the same period in 2013. EXFO's cash position amounted to
US$52.7 million with no debt at the
end of the third quarter of 2014.
- Innovation. EXFO completed the initial integration phase of
ByteSphere's network element performance metrics solution into its
latest BrixWorx service assurance release. EXFO also will combine
the analytics software capabilities of Aito Technologies with its
own wireless product portfolio in upcoming quarters to provide
mobile operators with heightened, end-to-end visibility of their 3G
and 4G/LTE networks. EXFO launched three new products in the third
quarter of 2014, including among others the FTB-2 Pro Platform, the
industry's smallest platform for high-speed, multi-technology
testing in the field and a 10G multi-test solution for the turn-up,
validation and troubleshooting of next-generation and legacy
networks. Altogether, the company released 19 new products or major
product upgrades since the beginning of the fiscal year.
Business Outlook
EXFO forecasts sales between US$60.0 million
and US$65.0 million for the fourth quarter of fiscal 2014,
while IFRS net earnings are expected to range between US$0.00 and US$0.04 per diluted share. Net
earnings include US$0.02 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 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 2014. To listen to the conference call and
participate in the question period via telephone, dial
1-416-981-9091. 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 2, 2014. The replay number is 1-402-977-9141
and the reservation number is 21716514. 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 a leading
provider of next-generation test, service assurance and end-to-end
quality of experience solutions for mobile and fixed network
operators and equipment manufacturers in the global
telecommunications industry. EXFO's intelligent solutions with
contextually relevant analytics improve end-user quality of
experience, enhance network performance and drive operational
efficiencies throughout the network and service delivery lifecycle.
Key technologies supported include 3G, 4G/LTE, VoLTE, IMS, video,
Ethernet/IP, SNMP, OTN, FTTx, xDSL and various optical technologies
accounting for more than 38% of the global 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, 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 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 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 (loss) 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 (loss), in
thousands of US dollars:
Adjusted EBITDA
| |
|
Q3
2014 |
|
|
Q2
2014 |
|
|
Q3
2013 |
| |
|
|
|
|
|
|
|
|
| IFRS net earnings (loss) for the period |
$ |
1,665 |
|
$ |
(1,339) |
|
$ |
(862) |
|
|
|
|
|
|
|
|
|
| Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation of property, plant and
equipment |
|
1,219 |
|
|
1,243 |
|
|
1,473 |
| Amortization of intangible assets |
|
1,025 |
|
|
1,074 |
|
|
1,586 |
| Interest and other income |
|
(220) |
|
|
(49) |
|
|
(68) |
| Income taxes |
|
2,123 |
|
|
(41) |
|
|
901 |
| Stock-based compensation costs |
|
407 |
|
|
402 |
|
|
415 |
| Foreign exchange (gain) loss |
|
1,126 |
|
|
(2,292) |
|
|
(314) |
| Adjusted EBITDA for the period |
$ |
7,345 |
|
$ |
(1,002) |
|
$ |
3,131 |
| |
|
|
|
|
|
|
|
|
| Adjusted EBITDA in percentage of sales |
|
11.5% |
|
|
(2.0)% |
|
|
5.3% |
EXFO Inc.
Condensed Unaudited Interim Consolidated Balance Sheets
(in thousands of US dollars)
| |
|
As at
May 31,
2014 |
|
As at
August 31,
2013 |
| Assets |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash |
|
$ |
47,423 |
|
$ |
45,386 |
| Short-term investments |
|
|
5,321 |
|
|
4,868 |
| Accounts receivable |
|
|
|
|
|
|
| |
Trade |
|
|
52,930 |
|
|
50,117 |
| |
Other |
|
|
2,332 |
|
|
2,778 |
| Income taxes and tax credits
recoverable |
|
|
6,326 |
|
|
6,525 |
| Inventories |
|
|
37,376 |
|
|
35,705 |
| Prepaid expenses |
|
|
2,612 |
|
|
2,561 |
| |
|
|
154,320 |
|
|
147,940 |
| |
|
|
|
|
|
|
| Tax credits recoverable |
|
|
42,388 |
|
|
41,719 |
| Property, plant and
equipment |
|
|
43,166 |
|
|
45,523 |
| Intangible assets |
|
|
6,745 |
|
|
7,543 |
| Goodwill |
|
|
26,527 |
|
|
27,313 |
| Deferred income taxes |
|
|
10,323 |
|
|
10,807 |
| Other assets |
|
|
786 |
|
|
693 |
| |
|
|
|
|
|
|
| |
|
$ |
284,255 |
|
$ |
281,538 |
| Liabilities |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
|
$ |
35,919 |
|
$ |
26,253 |
| Provisions |
|
|
572 |
|
|
756 |
| Income taxes payable |
|
|
777 |
|
|
679 |
| Current portion of long-term debt |
|
|
- |
|
|
296 |
| Deferred revenue |
|
|
9,480 |
|
|
9,467 |
| |
|
|
46,748 |
|
|
37,451 |
| |
|
|
|
|
|
|
| Deferred revenue |
|
|
3,131 |
|
|
3,932 |
| Deferred income taxes |
|
|
4,090 |
|
|
3,226 |
| Other liabilities |
|
|
452 |
|
|
477 |
| |
|
|
54,421 |
|
|
45,086 |
| |
|
|
|
|
|
|
| Shareholders' equity |
|
|
|
|
|
|
| Share capital |
|
|
111,491 |
|
|
109,837 |
| Contributed surplus |
|
|
16,081 |
|
|
17,186 |
| Retained earnings |
|
|
112,431 |
|
|
112,852 |
| Accumulated other comprehensive
loss |
|
|
(10,169) |
|
|
(3,423) |
| |
|
|
229,834 |
|
|
236,452 |
| |
|
|
|
|
|
|
| |
|
$ |
284,255 |
|
$ |
281,538 |
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, 2014 |
|
Nine months
ended
May 31, 2014 |
|
Three months
ended
May 31, 2013 |
|
Nine months
ended
May 31, 2013 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Sales |
|
$ |
63,882 |
|
$ |
171,064 |
|
$ |
58,865 |
|
$ |
181,262 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of sales (1) |
|
|
23,469 |
|
|
64,727 |
|
|
22,574 |
|
|
69,895 |
| Selling and administrative |
|
|
21,730 |
|
|
64,975 |
|
|
22,002 |
|
|
67,366 |
| Net research and development |
|
|
11,745 |
|
|
33,999 |
|
|
11,573 |
|
|
35,135 |
| Depreciation of property, plant and equipment |
|
|
1,219 |
|
|
3,737 |
|
|
1,473 |
|
|
4,582 |
| Amortization of intangible assets |
|
|
1,025 |
|
|
3,281 |
|
|
1,586 |
|
|
5,470 |
| Interest and other income |
|
|
(220) |
|
|
(296) |
|
|
(68) |
|
|
(76) |
| Foreign exchange (gain) loss |
|
|
1,126 |
|
|
(1,968) |
|
|
(314) |
|
|
(2,770) |
| Earnings before income taxes |
|
|
3,788 |
|
|
2,609 |
|
|
39 |
|
|
1,660 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income taxes |
|
|
2,123 |
|
|
3,030 |
|
|
901 |
|
|
4,121 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the period |
|
$ |
1,665 |
|
$ |
(421) |
|
$ |
(862) |
|
$ |
(2,461) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted net earnings (loss)
per share |
|
$ |
0.03 |
|
$ |
(0.01) |
|
$ |
(0.01) |
|
$ |
(0.04) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic weighted average number of shares
outstanding (000's) |
|
|
60,339 |
|
|
60,323 |
|
|
60,377 |
|
|
60,386 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted weighted average number of shares
outstanding (000's) |
|
|
60,986 |
|
|
60,323 |
|
|
60,377 |
|
|
60,386 |
(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, 2014 |
|
Nine months
ended
May 31, 2014 |
|
Three months
ended
May 31, 2013 |
|
Nine months
ended
May 31, 2013 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the
period |
|
$ |
1,665 |
|
$ |
(421) |
|
$ |
(862) |
|
$ |
(2,461) |
| Other comprehensive income (loss), net
of income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
| Items that will not be reclassified
subsequently to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Foreign currency translation adjustment |
|
|
4,736 |
|
|
(6,792) |
|
|
(1,252) |
|
|
(12,144) |
| Items that may be reclassified
subsequently to net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Unrealized gains/losses on forward exchange
contracts |
|
|
835 |
|
|
(694) |
|
|
(112) |
|
|
(874) |
| |
Reclassification of realized gains/losses on
forward exchange contracts in net earnings (loss) |
|
|
391 |
|
|
756 |
|
|
48 |
|
|
(281) |
| |
Deferred income tax effect of gains/losses on
forward exchange contracts |
|
|
(328) |
|
|
(16) |
|
|
17 |
|
|
310 |
| Other comprehensive income (loss) |
|
|
5,634 |
|
|
(6,746) |
|
|
(1,299) |
|
|
(12,989) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income (loss) for the
period |
|
$ |
7,299 |
|
$ |
(7,167) |
|
$ |
(2,161) |
|
$ |
(15,450)
|
EXFO Inc.
Condensed Unaudited Interim Consolidated Statements of Changes
in Shareholders' Equity
(in thousands of US dollars)
| |
|
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 |
| |
|
| |
|
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 |
|
|
- |
|
|
- |
|
|
(421) |
|
|
(6,746) |
|
|
(7,167) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at May 31, 2014 |
|
$ |
111,491 |
|
$ |
16,081 |
|
$ |
112,431 |
|
$ |
(10,169) |
|
$ |
229,834 |
EXFO Inc.
Condensed Unaudited Interim Consolidated Statements of Cash
Flows
(in thousands of US dollars)
| |
|
Three months
ended
May 31, 2014 |
|
Nine months
ended
May 31, 2014 |
|
Three months
ended
May 31, 2013 |
|
Nine months
ended
May 31, 2013 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) for the
period |
|
$ |
1,665 |
|
$ |
(421) |
|
$ |
(862) |
|
$ |
(2,461) |
| Add (deduct) items not affecting
cash |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Changes in discount on short-term investments |
|
|
- |
|
|
- |
|
|
1 |
|
|
- |
| |
Stock-based compensation costs |
|
|
407 |
|
|
1,272 |
|
|
415 |
|
|
1,331 |
| |
Depreciation and amortization |
|
|
2,244 |
|
|
7,018 |
|
|
3,059 |
|
|
10,052 |
| |
Deferred revenue |
|
|
209 |
|
|
(519) |
|
|
1,661 |
|
|
241 |
| |
Deferred income taxes |
|
|
1,147 |
|
|
1,448 |
|
|
263 |
|
|
1,984 |
| |
Changes in foreign exchange gain/loss |
|
|
378 |
|
|
(523) |
|
|
(78) |
|
|
(876) |
| |
|
|
6,050 |
|
|
8,275 |
|
|
4,459 |
|
|
10,271 |
| Changes in non-cash operating
items |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Accounts receivable |
|
|
(8,208) |
|
|
(3,683) |
|
|
(4,569) |
|
|
(10,657) |
| |
Income taxes and tax credits |
|
|
(759) |
|
|
(1,702) |
|
|
985 |
|
|
(2,201) |
| |
Inventories |
|
|
727 |
|
|
(2,806) |
|
|
(262) |
|
|
791 |
| |
Prepaid expenses |
|
|
492 |
|
|
(124) |
|
|
(804) |
|
|
(859) |
| |
Other assets |
|
|
53 |
|
|
19 |
|
|
- |
|
|
- |
| |
Accounts payable, accrued liabilities
and provisions |
|
|
4,565 |
|
|
9,956 |
|
|
1,553 |
|
|
1,503 |
| |
Other liabilities |
|
|
(35) |
|
|
(78) |
|
|
(25) |
|
|
(235) |
| |
|
|
2,885 |
|
|
9,857 |
|
|
1,337 |
|
|
(1,387) |
| Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Additions to short-term
investments |
|
|
(9,821) |
|
|
(24,392) |
|
|
(9,934) |
|
|
(44,703) |
| Proceeds from disposal and maturity
of short-term investments |
|
|
9,244 |
|
|
23,806 |
|
|
9,921 |
|
|
47,731 |
| Additions to capital assets |
|
|
(2,750) |
|
|
(5,146) |
|
|
(1,459) |
|
|
(5,952) |
| |
|
|
(3,327) |
|
|
(5,732) |
|
|
(1,472) |
|
|
(2,924) |
| Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Repayment of long-term debt |
|
|
- |
|
|
(307) |
|
|
- |
|
|
(293) |
| Exercise of stock options |
|
|
30 |
|
|
225 |
|
|
- |
|
|
87 |
| Redemption of share capital |
|
|
- |
|
|
(937) |
|
|
(1,161) |
|
|
(2,301) |
| |
|
|
30 |
|
|
(1,019) |
|
|
(1,161) |
|
|
(2,507) |
| Effect of foreign exchange rate
changes on cash |
|
|
771 |
|
|
(1,069) |
|
|
(271) |
|
|
(2,192) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Change in cash |
|
|
359 |
|
|
2,037 |
|
|
(1,567) |
|
|
(9,010) |
| Cash - Beginning of the
period |
|
|
47,064 |
|
|
45,386 |
|
|
51,425 |
|
|
58,868 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash - End of the period |
|
$ |
47,423 |
|
$ |
47,423 |
|
$ |
49,858 |
|
$ |
49,858 |
SOURCE EXFO inc.