Q4 2015
- Sales total US$56.6
million
- Adjusted EBITDA amounts to US$5.0
million, 8.8% of sales
- Restructuring to deliver annual cost savings of
US$3.5 million
- Philippe Morin to join
EXFO in new role as COO
Fiscal 2015
- Sales decrease 3.8% to US$222.1
million due to currency impact
- Adjusted EBITDA totals US$13.8
million, 6.2% of sales
- SG&A and R&D expenses drop by US$5.1 million
QUEBEC CITY, Oct. 7, 2015 /CNW
Telbec/ - EXFO Inc. (NASDAQ: EXFO) (TSX: EXF) announced today
financial results for the fourth quarter and fiscal year ended
August 31, 2015.
Sales in the fourth quarter of fiscal 2015 reached US$56.6 million compared to US$57.8 million in the third quarter of 2015 and
US$59.7 million in the fourth quarter
of 2014. Annual sales decreased 3.8% to US$222.1 million in fiscal 2015 from US$230.8 million in 2014, but were stable
year-over-year on a constant currency* basis.
Bookings totaled US$54.9 million
for a book-to-bill ratio of 0.97 in the fourth quarter of fiscal
2015 compared to US$59.2 million in
the third quarter of 2015 and US$57.3
million in the fourth quarter of 2014. Overall for fiscal
2015, bookings decreased 7.2% to US$223.1
million for a book-to-bill ratio of 1.00 from US$240.4 million in 2014.
Gross margin before depreciation and amortization* attained
61.2% of sales in the fourth quarter of fiscal 2015 compared to
61.4% in the third quarter of 2015 and 63.0% in the fourth quarter
of 2014. In fiscal 2015, gross margin reached 61.7% of sales
compared to 62.4% in 2014.
In the fourth quarter of fiscal 2015, IFRS net earnings amounted
to US$2.3 million, or US$0.04 per diluted share, compared to net
earnings of US$0.6 million, or
US$0.01 per diluted, share in the
third quarter of 2015 and US$1.2
million, or US$0.02 per
diluted share, in the fourth quarter of 2014. IFRS net earnings in
the fourth quarter of 2015 included US$1.3
million in after-tax restructuring charges, US$0.3 million in after-tax amortization of
intangible assets, US$0.1 million in
stock-based compensation costs and a foreign exchange gain of
US$2.4 million.
In fiscal 2015, IFRS net earnings totaled US$5.3 million, or US$0.09 per diluted share, compared to
US$0.8 million, or US$0.01 per diluted share, in 2014. IFRS net
earnings in 2015 included, US$2.7
million in after-tax amortization of intangible assets,
US$1.3 million in after-tax
restructuring charges, US$1.3 million
in stock-based compensation costs and a foreign exchange gain of
US$7.2 million.
Adjusted EBITDA* totaled US$5.0
million, or 8.8% of sales, in the fourth quarter of fiscal
2015 compared to US$4.5 million, or
7.7% of sales, in the third quarter of 2015 and US$5.8 million, or 9.6% of sales, in the fourth
quarter of 2014. Adjusted EBITDA amounted to US$13.8 million, or 6.2% of sales, in fiscal 2015
compared to US$14.4 million, or 6.2%
of sales, in 2014.
Cash and short-term investments decreased to US$27.4 million at the end of fiscal 2015 from
US$59.8 million at the end of 2014
largely due to EXFO's substantial issuer bid (SIB) and normal
course issuer bid (NCIB) share repurchase plans totaling
US$25.5 million.
"While financial results for fiscal 2015 are below my
expectations mainly due to adverse conditions and the strength of
the US dollar against a basket of currencies, I am nonetheless
quite pleased with the important internal transformations
implemented during 2015 that will strongly contribute to value
creation in 2016 and beyond," said Germain
Lamonde, EXFO's Chairman, President and CEO. "We launched
EXFO Xtract, an exciting, real-time network performance and service
experience analytics solution that is enjoying significant deal
traction with leading customers. We resolved specific issues within
our Protocol family of solutions with tangible growth results in
the second half of 2015 that should accelerate during 2016. We
lowered operating expenses by US$6.7
million, while additional cost savings of US$3.5 million are expected in 2016 from our
August restructuring plan. We strengthened our executive team with
the appointment of Philippe Morin in
a new role as COO to improve global sales execution and product
strategy. His vast executive experience at Ciena and Nortel will be
strong assets for EXFO as we strive to expand our end-to-end
network performance and service visibility business."
"We also delivered strong sales growth in our Physical-layer
product line in 2015 which should continue in 2016. Given all of
the above factors, fiscal 2016 promises to be far more satisfying
from a growth standpoint, especially in the higher-margin Protocol
area which includes solutions and systems, wireless, data centers,
Cloud and web-scale service provider markets," Mr. Lamonde added.
"Combined with an ongoing tight focus on operating expenses, we are
targeting more than 40% growth in adjusted EBITDA to reach
US$20 million in 2016, which should
be achieved at a revenue level of about US$230 million."
Selected Financial
Information (unaudited)
|
(In thousands of
US dollars)
|
|
|
|
Q4
2015
|
|
Q3
2015
|
|
Q4
2014
|
|
FY
2015
|
|
FY
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
56,594
|
|
$
|
57,781
|
|
$
|
59,742
|
|
$
|
222,089
|
|
$
|
230,806
|
Bookings
|
$
|
54,916
|
|
$
|
59,249
|
|
$
|
57,335
|
|
$
|
223,062
|
|
$
|
240,405
|
Book-to-bill
ratio
|
|
0.97
|
|
|
1.03
|
|
|
0.96
|
|
|
1.00
|
|
|
1.04
|
Gross margin before
depreciation and amortization*
|
$
|
34,619
|
|
$
|
35,500
|
|
$
|
37,633
|
|
$
|
137,050
|
|
$
|
143,970
|
|
|
|
61.2%
|
|
|
61.4%
|
|
|
63.0%
|
|
|
61.7%
|
|
|
62.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
2,323
|
|
$
|
563
|
|
$
|
1,204
|
|
$
|
5,298
|
|
$
|
783
|
|
Amortization of
intangible assets
|
$
|
322
|
|
$
|
444
|
|
$
|
1,117
|
|
$
|
2,883
|
|
$
|
4,398
|
|
Stock-based
compensation costs
|
$
|
133
|
|
$
|
374
|
|
$
|
424
|
|
$
|
1,295
|
|
$
|
1,696
|
|
Restructuring
charges
|
$
|
1,637
|
|
$
|
−
|
|
$
|
−
|
|
$
|
1,637
|
|
$
|
−
|
|
Net income tax effect
of the above items
|
$
|
(371)
|
|
$
|
(49)
|
|
$
|
(62)
|
|
$
|
(531)
|
|
$
|
(256)
|
|
Foreign exchange gain
(loss)
|
$
|
2,425
|
|
$
|
(175)
|
|
$
|
(334)
|
|
$
|
7,212
|
|
$
|
1,634
|
|
Adjusted
EBITDA*
|
$
|
4,962
|
|
$
|
4,462
|
|
$
|
5,756
|
|
$
|
13,779
|
|
$
|
14,391
|
Operating Expenses
Selling and administrative
expenses totaled US$20.5 million, or
36.3% of sales, in the fourth quarter of fiscal 2015 compared to
US$20.5 million, or 35.5% of sales,
in the third quarter of 2015 and US$21.5
million, or 35.9% of sales, in the fourth quarter of 2014.
In fiscal 2015, selling and administrative expenses amounted to
US$82.2 million, or 37.0% of sales,
compared to US$86.4 million, or 37.4%
of sales, in 2014.
Net R&D expenses amounted to US$10.9
million, or 19.3% of sales, in the fourth quarter of fiscal
2015 compared to US$10.9 million, or
18.9% of sales, in the third quarter of 2015 and US$10.8 million, or 18.2% of sales, in the fourth
quarter of 2014. In fiscal 2015, net R&D expenses totaled
US$44.0 million, or 19.8% of sales,
compared to US$44.8 million, or 19.4%
of sales, in 2014.
FY 2015 Highlights
- Sales. Sales of Physical-layer solutions (optical
and copper access) increased 9.1% year-over-year, while sales of
Protocol-layer solutions (transport & datacom, wireless,
service assurance and network visibility) decreased 19.1%. On a
constant currency basis, the Physical-layer growth would be higher
and Protocol-layer decline lower to reflect stable sales
year-over-year for the combined product lines.
Sales in the Americas (-1.9%) and Asia-Pacific (+0.8%) regions were relatively
stable year-over-year, while sales in Europe, Middle
East and Africa (EMEA)
decreased 10.5%. EXFO's largest customer accounted for 7.1% of
sales in fiscal 2015, while the company's top-three customers
represented 14.4%. In comparison, EXFO's largest customer accounted
for 6.1% of sales in 2014, while the company's top-three customers
represented 11.6%.
- Profitability. EXFO generated adjusted EBITDA of
US$13.8 million, or 6.2% of sales, in
fiscal 2015 compared to US$14.4
million, or 6.2% of sales, in 2014. Selling and
administrative expenses, net R&D expenses as well as
depreciation and amortization expenses decreased by a total of
US$6.7 million in 2015 due to the
strength of the US dollar and tight cost controls. The company's
restructuring plan, which incurred after-tax expenses of
US$1.3 million in the fourth quarter
of 2015, is expected to deliver US$3.5
million in annual cost savings. EXFO also returned
US$25.5 million to shareholders via
its substantial issuer bid (SIB) and normal course issuer bid
(NCIB) share repurchase plans in 2015.
- Innovation. EXFO launched 13 new products or
major enhancements in fiscal 2015. Key new product introductions
included EXFO Xtract, a real-time analytics software platform that
has been well received by network operators for critical end-to-end
network performance and service visibility requirements. EXFO also
introduced the NetBlazer 800 v2 series, a quad-port,
field-portable, transport & datacom performance validation test
solution designed to accelerate and simplify the turn-up of 1G and
10G Ethernet services. This solution is housed in the new FTB-1
Pro, a lightweight and compact test platform allowing field
technicians to carry out dedicated optical, Ethernet and
multi-service testing. The company also released CPRI (common
public radio interface) test capabilities for fiber-to-the-antenna
(FTTA) and distributed antenna system (DAS) deployments. Finally,
EXFO introduced new features for its patented intelligent optical
link mapping (iOLM) software and for its automated wireless fiber
inspection solutions, both contributing to automate and accelerate
fiber deployments in wireless access networks.
Business Outlook
EXFO forecasts sales between
US$55.0 million and US$60.0 million
for the first 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.
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.
For fiscal 2016, EXFO is targeting adjusted EBITDA of
US$20 million which should be
achieved at a revenue level of about US$230
million.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review fourth quarter and year-end financial
results for fiscal 2015. To listen to the conference call and
participate in the question period via telephone, dial
1-704-288-0432. Please take note the following conference ID number
will be required: 24691492. 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
October 14, 2015. The replay number
is 1-855-859-2056 and the conference ID number is 24691492. The
audio Webcast and replay of the conference call will also be
available on EXFO's Website at www.EXFO.com, under the Investors
section.
About EXFO
EXFO enables extraordinary experiences on
global networks. Our test, service assurance and network visibility
solutions allow network operators, web-scale service providers and
equipment manufacturers to deliver a wealth of services to
consumers, while increasing network capacity and reducing operating
costs. From a company executive holding a telepresence meeting with
overseas staff to a runner transferring data from wearable
technology, EXFO's inherent expertise and powerful analytics render
these events commonplace. Simply put, we have evolved over our
30-year history to ensure unmatched network performance and service
experience on next-generation fixed and mobile networks. EXFO has a
staff of approximately 1500 people in 25 countries, supporting more
than 2000 customers worldwide. For more information, visit
www.EXFO.com and follow us on the EXFO Blog, Twitter, LinkedIn,
Facebook, Google+ and YouTube.
Forward-Looking Statements
This press release
contains forward-looking statements within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995, and we intend
that such forward-looking statements be subject to the safe harbors
created thereby. Forward-looking statements are statements other
than historical information or statements of current condition.
Words such as may, expect, believe, plan, anticipate, intend,
could, estimate, continue, or similar expressions or the negative
of such expressions are intended to identify forward-looking
statements. In addition, any statement that refers to expectations,
projections or other characterizations of future events and
circumstances are considered forward-looking statements. They are
not guarantees of future performance and involve risks and
uncertainties. Actual results may differ materially from those in
forward-looking statements due to various factors including, but
not limited to, macroeconomic uncertainty as well as capital
spending and network deployment levels in the telecommunications
industry (including our ability to quickly adapt cost structures
with anticipated levels of business and our ability to manage
inventory levels with market demand); future economic, competitive,
financial and market conditions; consolidation in the global
telecommunications test and service assurance industry and
increased competition among vendors; capacity to adapt our future
product offering to future technological changes; limited
visibility with regards to timing and nature of customer orders;
longer sales cycles for complex systems involving customers'
acceptances delaying revenue recognition; fluctuating exchange
rates; concentration of sales; timely release and market acceptance
of our new products and other upcoming products; our ability to
successfully expand international operations; our ability to
successfully integrate businesses that we acquire; and the
retention of key technical and management personnel. Assumptions
relating to the foregoing involve judgments and risks, all of which
are difficult or impossible to predict and many of which are beyond
our control. Other risk factors that may affect our future
performance and operations are detailed in our Annual Report, on
Form 20-F, and our other filings with the U.S. Securities and
Exchange Commission and the Canadian securities commissions. We
believe that the expectations reflected in the forward-looking
statements are reasonable based on information currently available
to us, but we cannot assure that the expectations will prove to
have been correct. Accordingly, you should not place undue reliance
on these forward-looking statements. These statements speak only as
of the date of this document. Unless required by law or applicable
regulations, we undertake no obligation to revise or update any of
them to reflect events or circumstances that occur after the date
of this document.
*Non-IFRS Measures
EXFO provides non-IFRS measures
(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 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 is 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, restructuring charges,
stock-based compensation costs and foreign exchange gain or
loss.
The following tables summarize the reconciliation of adjusted
EBITDA to IFRS net earnings, in thousands of US dollars:
Adjusted EBITDA
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2015
|
|
|
Q3
2015
|
|
|
Q4
2014
|
|
|
FY
2015
|
|
|
FY
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IFRS net earnings for
the period
|
$
|
2,323
|
|
$
|
563
|
|
$
|
1,204
|
|
$
|
5,298
|
|
$
|
783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
1,171
|
|
|
1,163
|
|
|
1,258
|
|
|
4,835
|
|
|
4,995
|
Amortization of
intangible assets
|
|
322
|
|
|
444
|
|
|
1,117
|
|
|
2,883
|
|
|
4,398
|
Interest and other
(income) expenses
|
|
61
|
|
|
36
|
|
|
(30)
|
|
|
(155)
|
|
|
(326)
|
Income
taxes
|
|
1,740
|
|
|
1,707
|
|
|
1,449
|
|
|
5,198
|
|
|
4,479
|
Restructuring
charges
|
|
1,637
|
|
|
–
|
|
|
–
|
|
|
1,637
|
|
|
–
|
Stock-based
compensation costs
|
|
133
|
|
|
374
|
|
|
424
|
|
|
1,295
|
|
|
1,696
|
Foreign exchange
(gain) loss
|
|
(2,425)
|
|
|
175
|
|
|
334
|
|
|
(7,212)
|
|
|
(1,634)
|
Adjusted EBITDA for
the period
|
$
|
4,962
|
|
$
|
4,462
|
|
$
|
5,756
|
|
$
|
13,779
|
|
$
|
14,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
8.8%
|
|
|
7.7%
|
|
|
9.6%
|
|
|
6.2%
|
|
|
6.2%
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
As
at
August
31,
2015
|
|
|
As
at
August
31,
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
25,864
|
|
$
|
54,121
|
Short-term
investments
|
|
1,487
|
|
|
5,726
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
48,068
|
|
|
46,031
|
|
Other
|
|
2,384
|
|
|
2,001
|
Income taxes and tax
credits recoverable
|
|
3,855
|
|
|
3,796
|
Inventories
|
|
27,951
|
|
|
35,232
|
Prepaid
expenses
|
|
2,801
|
|
|
2,281
|
|
|
|
112,410
|
|
|
149,188
|
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
35,625
|
|
|
41,745
|
Property, plant
and equipment
|
|
35,695
|
|
|
42,780
|
Intangible
assets
|
|
4,096
|
|
|
7,293
|
Goodwill
|
|
21,860
|
|
|
26,488
|
Deferred income
tax assets
|
|
8,900
|
|
|
9,816
|
Other
assets
|
|
416
|
|
|
721
|
|
|
|
|
|
|
|
|
|
$
|
219,002
|
|
$
|
278,031
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
34,126
|
|
$
|
29,553
|
Provisions
|
|
427
|
|
|
532
|
Income taxes
payable
|
|
779
|
|
|
840
|
Deferred
revenue
|
|
7,647
|
|
|
8,990
|
|
|
|
42,979
|
|
|
39,915
|
|
|
|
|
|
|
|
Deferred
revenue
|
|
2,957
|
|
|
3,319
|
Deferred income
tax liabilities
|
|
1,524
|
|
|
3,087
|
Other
liabilities
|
|
791
|
|
|
340
|
|
|
|
48,251
|
|
|
46,661
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
86,045
|
|
|
111,491
|
Contributed
surplus
|
|
17,778
|
|
|
16,503
|
Retained
earnings
|
|
118,933
|
|
|
113,635
|
Accumulated other
comprehensive loss
|
|
(52,005)
|
|
|
(10,259)
|
|
|
|
170,751
|
|
|
231,370
|
|
|
|
|
|
|
|
|
|
$
|
219,002
|
|
$
|
278,031
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Earnings
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
ended
August 31,
2015
|
|
|
Twelve
months
ended
August 31,
2015
|
|
|
Three
months
ended
August 31,
2014
|
|
|
Twelve
months
ended
August 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
56,594
|
|
$
|
222,089
|
|
$
|
59,742
|
|
$
|
230,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(1,2)
|
|
|
21,975
|
|
|
85,039
|
|
|
22,109
|
|
|
86,836
|
Selling and
administrative (2)
|
|
|
20,511
|
|
|
82,200
|
|
|
21,454
|
|
|
86,429
|
Net research and
development (2)
|
|
|
10,916
|
|
|
44,003
|
|
|
10,847
|
|
|
44,846
|
Depreciation of
property, plant and equipment
|
|
|
1,171
|
|
|
4,835
|
|
|
1,258
|
|
|
4,995
|
Amortization of
intangible assets
|
|
|
322
|
|
|
2,883
|
|
|
1,117
|
|
|
4,398
|
Interest and other
(income) expense
|
|
|
61
|
|
|
(155)
|
|
|
(30)
|
|
|
(326)
|
Foreign exchange
(gain) loss
|
|
|
(2,425)
|
|
|
(7,212)
|
|
|
334
|
|
|
(1,634)
|
Earnings before
income taxes
|
|
|
4,063
|
|
|
10,496
|
|
|
2,653
|
|
|
5,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
1,740
|
|
|
5,198
|
|
|
1,449
|
|
|
4,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
2,323
|
|
$
|
5,298
|
|
$
|
1,204
|
|
$
|
783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net earnings per share
|
|
$
|
0.04
|
|
$
|
0.09
|
|
$
|
0.02
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
|
53,806
|
|
|
56,804
|
|
|
60,347
|
|
|
60,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
|
54,473
|
|
|
57,457
|
|
|
61,043
|
|
|
61,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The cost
of sales is exclusive of depreciation and amortization, shown
separately.
|
(2) Restructuring charges included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
$
|
290
|
|
$
|
290
|
|
$
|
–
|
|
$
|
–
|
|
Selling and
administrative
|
|
|
586
|
|
|
586
|
|
|
–
|
|
|
–
|
|
Net research and
development
|
|
|
761
|
|
|
761
|
|
|
–
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,637
|
|
$
|
1,637
|
|
$
|
–
|
|
$
|
–
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Comprehensive Income
(Loss)
|
|
(in thousands of US
dollars)
|
|
|
|
|
Three
months
ended
August 31,
2015
|
|
|
Twelve
months
ended
August 31,
2015
|
|
|
Three
months
ended
August 31,
2014
|
|
|
Twelve
months
ended
August 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for
the period
|
|
$
|
2,323
|
|
$
|
5,298
|
|
$
|
1,204
|
|
$
|
783
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(9,676)
|
|
|
(39,175)
|
|
|
(294)
|
|
|
(7,086)
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on
forward exchange contracts
|
|
|
(1,419)
|
|
|
(5,583)
|
|
|
76
|
|
|
(618)
|
|
Reclassification of
realized losses on forward exchange contracts in net
earnings
|
|
|
669
|
|
|
2,107
|
|
|
203
|
|
|
959
|
|
Deferred income tax
effect of losses on forward exchange contracts
|
|
|
180
|
|
|
905
|
|
|
(75)
|
|
|
(91)
|
Other comprehensive
loss
|
|
|
(10,246)
|
|
|
(41,746)
|
|
|
(90)
|
|
|
(6,836)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
|
$
|
(7,923)
|
|
$
|
(36,448)
|
|
$
|
1,114
|
|
$
|
(6,053)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended August 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
|
|
|
–
|
|
|
1,683
|
|
|
–
|
|
|
–
|
|
|
1,683
|
Net earnings for the
year
|
|
|
–
|
|
|
–
|
|
|
783
|
|
|
–
|
|
|
783
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(7,086)
|
|
|
(7,086)
|
|
Changes in unrealized
losses on forward exchange contracts, net of deferred income taxes
of $91
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
250
|
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,053)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2014
|
|
$
|
111,491
|
|
$
|
16,503
|
|
$
|
113,635
|
|
$
|
(10,259)
|
|
$
|
231,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months
ended August 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
|
|
|
(26,827)
|
|
|
1,333
|
|
|
–
|
|
|
–
|
|
|
(25,494)
|
Reclassification of
stock-based compensation costs
|
|
|
1,381
|
|
|
(1,381)
|
|
|
–
|
|
|
–
|
|
|
–
|
Stock-based
compensation costs
|
|
|
–
|
|
|
1,323
|
|
|
–
|
|
|
–
|
|
|
1,323
|
Net earnings for the
year
|
|
|
–
|
|
|
–
|
|
|
5,298
|
|
|
–
|
|
|
5,298
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(39,175)
|
|
|
(39,175)
|
|
Changes in unrealized
losses on forward exchange contracts, net of deferred income taxes
of $905
|
|
|
–
|
|
|
–
|
|
|
–
|
|
|
(2,571)
|
|
|
(2,571)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(36,448)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at August
31, 2015
|
|
$
|
86,045
|
|
$
|
17,778
|
|
$
|
118,933
|
|
$
|
(52,005)
|
|
$
|
170,751
|
|
|
|
EXFO
Inc.
|
|
|
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
Three
months
ended
August 31,
2015
|
|
Twelve
months ended August 31, 2015
|
|
Three
months ended August 31, 2014
|
|
Twelve
months ended August 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for the
period
|
|
$
|
2,323
|
|
$
|
5,298
|
|
$
|
1,204
|
|
$
|
783
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
|
133
|
|
|
1,295
|
|
|
424
|
|
|
1,696
|
|
Depreciation and
amortization
|
|
|
1,493
|
|
|
7,718
|
|
|
2,375
|
|
|
9,393
|
|
Deferred
revenue
|
|
|
(962)
|
|
|
396
|
|
|
(285)
|
|
|
(804)
|
|
Deferred income
taxes
|
|
|
366
|
|
|
565
|
|
|
(557)
|
|
|
891
|
|
Changes in foreign
exchange gain/loss
|
|
|
(967)
|
|
|
(3,842)
|
|
|
32
|
|
|
(491)
|
|
|
|
|
2,386
|
|
|
11,430
|
|
|
3,193
|
|
|
11,468
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(3,017)
|
|
|
(10,828)
|
|
|
7,261
|
|
|
3,578
|
|
Income taxes and tax
credits
|
|
|
(98)
|
|
|
(2,062)
|
|
|
3,149
|
|
|
1,447
|
|
Inventories
|
|
|
1,803
|
|
|
820
|
|
|
2,072
|
|
|
(734)
|
|
Prepaid
expenses
|
|
|
(107)
|
|
|
(982)
|
|
|
334
|
|
|
210
|
|
Other
assets
|
|
|
32
|
|
|
61
|
|
|
73
|
|
|
92
|
|
Accounts payable,
accrued liabilities and provisions
|
|
|
(862)
|
|
|
8,132
|
|
|
(6,124)
|
|
|
3,832
|
|
Other
liabilities
|
|
|
(25)
|
|
|
(87)
|
|
|
(29)
|
|
|
(107)
|
|
|
|
|
112
|
|
|
6,484
|
|
|
9,929
|
|
|
19,786
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
short-term investments
|
|
|
(558)
|
|
|
(20,067)
|
|
|
(9,830)
|
|
|
(34,222)
|
Proceeds from
disposal and maturity of short-term investments
|
|
|
‒
|
|
|
23,685
|
|
|
9,402
|
|
|
33,208
|
Additions to capital
assets
|
|
|
(1,308)
|
|
|
(5,933)
|
|
|
(2,785)
|
|
|
(7,931)
|
|
|
|
|
(1,866)
|
|
|
(2,315)
|
|
|
(3,213)
|
|
|
(8,945)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(307)
|
Exercise of stock
options
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
225
|
Redemption of share
capital
|
|
|
(320)
|
|
|
(25,494)
|
|
|
‒
|
|
|
(937)
|
|
|
|
|
(320)
|
|
|
(25,494)
|
|
|
‒
|
|
|
(1,019)
|
Effect of foreign
exchange rate changes on cash
|
|
|
(957)
|
|
|
(6,932)
|
|
|
(18)
|
|
|
(1,087)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
cash
|
|
|
(3,031)
|
|
|
(28,257)
|
|
|
6,698
|
|
|
8,735
|
Cash – Beginning
of the period
|
|
|
28,895
|
|
|
54,121
|
|
|
47,423
|
|
|
45,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash – End of the
period
|
|
$
|
25,864
|
|
$
|
25,864
|
|
$
|
54,121
|
|
$
|
54,121
|
EXFO-F
SOURCE EXFO inc.