- Sales total US$63.4
million, above midpoint of guidance range
- Bookings attain US$65.9
million, book-to-bill ratio of 1.04
- Gross margin improves to 63.3% of sales
- Adjusted EBITDA reaches US$6.1
million, 9.6% of sales
QUEBEC CITY, Jan. 9, 2018 /CNW Telbec/ - EXFO Inc.
(NASDAQ: EXFO) (TSX: EXF) reported today financial results for the
first quarter ended November 30,
2017.
Sales reached US$63.4 million in
the first quarter of fiscal 2018 compared to US$61.8 million in the first quarter of 2017 and
US$63.0 million in the fourth quarter
of 2017.
Bookings attained US$65.9 million
in the first quarter of fiscal 2018 compared to US$65.9 million in the same period last year and
US$66.3 million in the fourth quarter
of 2017. The company's book-to-bill ratio was 1.04 in the first
quarter of 2018.
Gross margin before depreciation and amortization*
amounted to 63.3% of sales in the first quarter of fiscal 2018
compared to 63.1% in the first quarter of 2017 and 61.9% in
the fourth quarter of 2017.
IFRS net earnings in the first quarter of fiscal 2018 totaled
US$2.7 million, or US$0.05 per diluted share, compared US$3.3 million, or US$0.06 per diluted share, in the same period
last year and US$0.8 million, or
US$0.02 per diluted share, in the
fourth quarter of 2017. IFRS net earnings in the first quarter of
2018 included US$0.9 million in
after-tax amortization of intangible assets, US$0.4 million in stock-based compensation costs,
US$0.2 million for the positive
change of the fair value of the cash contingent consideration
related to the Ontology Systems acquisition, US$0.8 million in after-tax acquisition-related
costs and a foreign exchange gain of US$1.2
million.
Adjusted EBITDA* totaled US$6.1 million, or 9.6% of sales, in the first
quarter of fiscal 2018 compared to US$6.3 million, or 10.2% of sales, in the
first quarter of 2017 and US$8.5
million, or 13.6% of sales, in the fourth quarter of
2017.
In the first quarter of fiscal 2018, EXFO acquired a 33.1% stake
in France-based Astellia, a
leading provider of network and subscriber intelligence for mobile
network operators, for a cash consideration of US$10.3 million with the intent to purchase the
remaining equity through a public tender offer that opened on
December 15, 2017 and is scheduled to
close on January 23, 2018. In late
December, EXFO increased its investment in Astellia to 40.3% of the
total shares outstanding by acquiring an additional 7.2% off-market
for a cash consideration of US$2.2
million. The entirety of Astellia's equity is valued at
approximately US$30.3 million.
EXFO also closed the acquisition of Yenista Optics, a supplier
of complementary high-end optical test instruments for the lab and
manufacturing markets, in the first quarter of 2018 for a total
cash consideration of US$9.5 million,
net of cash acquired. At the end of the first quarter of 2018, EXFO
held a cash position of US$19.5
million.
Following the quarter-end, EXFO increased its credit facilities
to C$70.0 million (US$54.3 million) and US$9.0 million. The new credit facilities will be
used to finance the acquisition of Astellia's remaining equity as
well as working capital and general corporate purposes.
"EXFO has gotten off to a running start in the first quarter of
2018 with sales above the midpoint of our guidance and strong
earnings results," said EXFO's CEO Philippe
Morin. "We leveraged the ongoing 100G optical investment
cycle as fiber is being rolled out closer to the network edge and
inside data centers, while benefiting from revenue contributions of
recently acquired businesses. We are looking forward to close our
public tender offer of Astellia's shares in the not-too-distant
future in order to significantly increase our scale and market
position in the global telecom service assurance and analytics
industry."
Selected Financial
Information
|
(In thousands of
US dollars)
|
|
|
|
Q1
2018
|
|
Q4
2017
|
|
Q1
2017
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
sales
|
$
|
42,513
|
|
$
|
40,802
|
|
$
|
42,016
|
Protocol-layer
sales
|
|
20,641
|
|
|
22,122
|
|
|
20,009
|
Foreign exchange
gains (losses) on forward exchange contracts
|
|
237
|
|
|
57
|
|
|
(240)
|
Total
sales
|
$
|
63,391
|
|
$
|
62,981
|
|
$
|
61,785
|
|
|
|
|
|
|
|
|
|
|
Physical-layer
bookings
|
$
|
48,352
|
|
$
|
39,322
|
|
$
|
44,090
|
Protocol-layer
bookings
|
|
17,290
|
|
|
26,943
|
|
|
22,009
|
Foreign exchange
gains (losses) on forward exchange contracts
|
|
237
|
|
|
57
|
|
|
(240)
|
Total
bookings
|
$
|
65,879
|
|
$
|
66,322
|
|
$
|
65,859
|
Book-to-bill ratio
(bookings/sales)
|
|
1.04
|
|
|
1.05
|
|
|
1.07
|
Gross margin before
depreciation and amortization*
|
$
|
40,102
|
|
$
|
39,009
|
|
$
|
38,972
|
|
|
|
63.3%
|
|
|
61.9%
|
|
|
63.1%
|
|
|
|
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
|
|
|
|
IFRS net
earnings
|
$
|
2,679
|
|
$
|
844
|
|
$
|
3,303
|
|
Amortization of
intangible assets
|
$
|
1,119
|
|
$
|
1,048
|
|
$
|
427
|
|
Stock-based
compensation costs
|
$
|
402
|
|
$
|
431
|
|
$
|
258
|
|
Restructuring
charges
|
$
|
‒
|
|
$
|
1,266
|
|
$
|
‒
|
|
Changes in fair value
of cash contingent consideration
|
$
|
(155)
|
|
$
|
(383)
|
|
$
|
‒
|
|
Net income tax effect
of the above items
|
$
|
(172)
|
|
$
|
(275)
|
|
$
|
(64)
|
|
Foreign exchange
(gain) loss
|
$
|
(1,218)
|
|
$
|
2,943
|
|
$
|
(512)
|
|
Adjusted
EBITDA*
|
$
|
6,059
|
|
$
|
8,545
|
|
$
|
6,321
|
Operating Expenses
Selling and administrative expenses
totaled US$23.2 million, or 36.6% of
sales in the first quarter of fiscal 2018 compared to US$21.6 million, or 35.0% of sales, in the same
period last year and US$20.8 million,
or 33.1% of sales, in the fourth quarter of 2017. Selling and
administrative expenses in the first quarter of 2018 included
US$0.8 million in acquisition-related
costs as well as three months' impact of Ontology Systems expenses
and two months of Yenista Optics.
Net R&D expenses totaled US$11.3
million, or 17.8% of sales, in the first quarter of fiscal
2018 compared to US$11.3 million, or 18.3% of sales, in
the first quarter of 2017 and US$11.3
million, or 17.9% of sales, in the fourth quarter of 2017.
Net R&D expenses in the first quarter of 2018 included three
months' impact of Ontology Systems expenses and two months of
Yenista Optics.
First-Quarter Highlights
- Sales. Sales increased 2.6% year-over-year mainly due to the
ongoing 100G optical investment cycle as well as the positive
impact of the recent Yenista Optics and Ontology Systems
acquisitions. Physical-layer sales accounted for 67% of total
revenue in the first quarter of 2018, while Protocol-layer sales
totaled 33%. Revenue distribution among the three main selling
regions in the first quarter amounted to 53% in the Americas, 23%
in Europe, Middle East and Africa (EMEA) and 24% in Asia-Pacific. EXFO's top customer accounted
for 13.8% of sales, while the top three represented 21.6%.
- Profitability. EXFO generated adjusted EBITDA of US$6.1 million, or 9.6% of sales, in the first
quarter of 2018 compared to US$6.3
million, or 10.2% of sales, in the first quarter of 2017.
The company also delivered US$2.4
million in cash flows from operating activities in the first
quarter of 2018.
- Innovation. EXFO launched four new products or major
enhancements in the first quarter of fiscal 2018 including EX1, a
multipurpose test solution for validating bandwidth speed up to
full line rate Gigabit Ethernet and for monitoring quality of
experience at customer premises; a compact 400G test solution for
network equipment manufacturers, carrier labs and data centers; an
optical spectrum analyzer delivering in-service optical
signal-to-noise ratio (OSNR) measurements for networks up to 400G;
and a power meter that automatically detects and adapts test
parameters for passive optical network (PON) technology in use at
customer premises.
Business Outlook
EXFO forecasts sales between
US$59.0 million and US$64.0 million for the second quarter of fiscal
2018, while IFRS net loss is expected to range between US$0.08 and US$0.04
per share. IFRS net loss includes US$0.02 per share in after-tax amortization of
intangible assets and stock-based compensation costs, US$0.03 per share for acquisition expenses
related to the Astellia transaction, US$0.03 per share to account for the effects of
the new US tax reform on EXFO's deferred US tax assets, and an
anticipated foreign exchange loss of US$0.02 per share.
This guidance, which excludes financial results of the pending
Astellia acquisition to be accounted by EXFO, was established by
management based on existing backlog as of the date of this news
release, seasonality, expected bookings for the remaining of the
quarter, as well as exchange rates as of the day of this news
release.
Conference Call and Webcast
EXFO will host a
conference call today at 5 p.m. (Eastern
time) to review first-quarter results for fiscal 2018. To
listen to the conference call and participate in the question
period via telephone, dial 1-323-794-2551. Please take note
the following participant passcode will be required: 1612195.
Executive Chairman Germain Lamonde,
CEO Philippe Morin and Pierre Plamondon, CPA, Chief Financial Officer
and Vice-President of Finance, will participate in the call. An
audio replay of the conference call will be available two hours
after the event until 8 p.m. on
January 16, 2018. The replay number
is 1-719-457-0820 and the participant passcode is 1612195. 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 develops smarter network test,
monitoring and analytics solutions for the world's leading
communications service providers, network equipment manufacturers
and webscale companies. Since 1985, we've worked side by side with
our customers in the lab, field, data center, boardroom and beyond
to pioneer essential technology and methods for each phase of the
network lifecycle. Our portfolio of test orchestration and
real-time 3D analytics solutions turn complex into simple and
deliver business-critical insights from the network, service and
subscriber dimensions. Most importantly, we help our customers
flourish in a rapidly transforming industry where "good enough"
testing, monitoring and analytics just aren't good enough
anymore—they never were for us, anyway. For more information, visit
EXFO.com and follow us on the EXFO Blog.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, and we intend that such
forward-looking statements be subject to the safe harbors created
thereby. Forward-looking statements are statements other than
historical information or statements of current condition.
Words such as may, expect, believe, plan, anticipate, intend,
could, estimate, continue, or similar expressions or the
negative of such expressions are intended to identify
forward-looking statements. In addition, any statement that
refers to expectations, projections or other characterizations of
future events and circumstances are considered forward-looking
statements. They are not guarantees of future performance
and involve risks and uncertainties. Actual results may differ
materially from those in forward-looking statements due to various
factors including, but not limited to, macroeconomic uncertainty as
well as capital spending and network deployment levels in the
telecommunications industry (including our ability to quickly adapt
cost structures with anticipated levels of business and our ability
to manage inventory levels with market demand); future economic,
competitive, financial and market conditions; consolidation in the
global telecommunications test and service assurance industry and
increased competition among vendors; our ability to successfully
integrate businesses that we acquire; 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; 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 before interest, income
taxes, depreciation and amortization, stock-based compensation
costs, restructuring charges, change in the fair value of cash
contingent consideration and foreign exchange gain or loss.
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings, in thousands
of US dollars:
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
Q1
2018
|
|
Q4
2017
|
|
Q1
2017
|
|
|
|
|
|
|
|
|
|
IFRS net earnings for
the period
|
$
|
2,679
|
|
$
|
884
|
|
$
|
3,303
|
|
|
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
1,154
|
|
|
1,008
|
|
|
903
|
Amortization
|
|
1,119
|
|
|
1,048
|
|
|
427
|
Interest and other
(income) expense
|
|
338
|
|
|
275
|
|
|
(20)
|
Income
taxes
|
|
1,740
|
|
|
1,113
|
|
|
1,962
|
Stock-based
compensation costs
|
|
402
|
|
|
431
|
|
|
258
|
Restructuring
charges
|
|
‒
|
|
|
1,266
|
|
|
‒
|
Change in fair value
of cash contingent consideration
|
|
(155)
|
|
|
(383)
|
|
|
‒
|
Foreign exchange
(gain) loss
|
|
(1,218)
|
|
|
2,943
|
|
|
(512)
|
Adjusted EBITDA for
the period
|
$
|
6,059
|
|
$
|
8,545
|
|
$
|
6,321
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
9.6%
|
|
|
13.6%
|
|
|
10.2%
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance
Sheets
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
As
at
November
30,
2017
|
|
As
at
August
31,
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
18,451
|
|
$
|
38,435
|
Short-term
investments
|
|
1,004
|
|
|
775
|
Accounts
receivable
|
|
|
|
|
|
|
Trade
|
|
39,784
|
|
|
41,130
|
|
Other
|
|
4,082
|
|
|
3,907
|
Income taxes and tax
credits recoverable
|
|
4,664
|
|
|
4,955
|
Inventories
|
|
37,164
|
|
|
33,832
|
Prepaid
expenses
|
|
3,946
|
|
|
4,202
|
|
|
109,095
|
|
|
127,236
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
38,245
|
|
|
38,111
|
Property, plant
and equipment
|
|
41,253
|
|
|
40,132
|
Investment in an
associate
|
|
9,706
|
|
|
‒
|
Intangible
assets
|
|
14,403
|
|
|
11,183
|
Goodwill
|
|
39,204
|
|
|
35,077
|
Deferred income
tax assets
|
|
6,599
|
|
|
6,555
|
Other
assets
|
|
573
|
|
|
947
|
|
|
|
|
|
|
|
$
|
259,078
|
|
$
|
259,241
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
38,444
|
|
$
|
36,776
|
Provisions
|
|
1,445
|
|
|
3,889
|
Income taxes
payable
|
|
748
|
|
|
663
|
Deferred
revenue
|
|
10,590
|
|
|
11,554
|
Current portion of
long-term debt
|
|
510
|
|
|
‒
|
|
|
51,737
|
|
|
52,882
|
|
|
|
|
|
|
Deferred
revenue
|
|
5,978
|
|
|
6,257
|
Long-term
debt
|
|
1,595
|
|
|
‒
|
Deferred income
tax liabilities
|
|
4,317
|
|
|
3,116
|
Other
liabilities
|
|
374
|
|
|
196
|
|
|
64,001
|
|
|
62,451
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
91,009
|
|
|
90,411
|
Contributed
surplus
|
|
18,016
|
|
|
18,184
|
Retained
earnings
|
|
129,839
|
|
|
127,160
|
Accumulated other
comprehensive loss
|
|
(43,787)
|
|
|
(38,965)
|
|
|
|
|
|
|
|
|
195,077
|
|
|
196,790
|
|
|
|
|
|
|
|
$
|
259,078
|
|
$
|
259,241
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Earnings
|
|
|
(in thousands of US
dollars, except share and per share data)
|
|
|
|
Three months
ended
November
30,
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Sales
|
$
|
63,391
|
|
$
|
61,785
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
23,289
|
|
|
22,813
|
Selling and
administrative
|
|
23,193
|
|
|
21,595
|
Net research and
development
|
|
11,252
|
|
|
11,314
|
Depreciation of
property, plant and equipment
|
|
1,154
|
|
|
903
|
Amortization of
intangible assets
|
|
1,119
|
|
|
427
|
Change in fair value
of cash contingent consideration
|
|
(155)
|
|
|
‒
|
Interest and other
(income) expense
|
|
338
|
|
|
(20)
|
Foreign exchange
gain
|
|
(1,218)
|
|
|
(512)
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
4,419
|
|
|
5,265
|
|
|
|
|
|
|
Income
taxes
|
|
1,740
|
|
|
1,962
|
|
|
|
|
|
|
Net earnings for
the period
|
$
|
2,679
|
|
$
|
3,303
|
|
|
|
|
|
|
Basic and diluted
net earnings per share
|
$
|
0.05
|
|
$
|
0.06
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
54,805
|
|
|
53,884
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
55,793
|
|
|
55,001
|
|
|
(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
November
30,
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Net earnings for
the period
|
$
|
2,679
|
|
$
|
3,303
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
Items that will not
be reclassified subsequently to net earnings
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(4,130)
|
|
|
(4,217)
|
Items that may be
reclassified subsequently to net earnings
|
|
|
|
|
|
|
Unrealized
gains/losses on forward exchange contracts
|
|
(524)
|
|
|
(561)
|
|
Reclassification of
realized gains/losses on forward exchange contracts
in net earnings
|
|
(383)
|
|
|
181
|
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
215
|
|
|
92
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
(4,822)
|
|
|
(4,505)
|
|
|
|
|
|
|
Comprehensive loss
for the period
|
$
|
(2,143)
|
|
$
|
(1,202)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Changes in Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30, 2016
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2016
|
$
|
85,516
|
|
$
|
18,150
|
|
$
|
126,309
|
|
$
|
(48,574)
|
|
$
|
181,401
|
Issuance of share
capital
|
|
3,490
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
3,490
|
Reclassification of
stock-based compensation costs
|
|
346
|
|
|
(346)
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
Stock-based
compensation costs
|
|
‒
|
|
|
214
|
|
|
‒
|
|
|
‒
|
|
|
214
|
Net earnings for the
period
|
|
‒
|
|
|
‒
|
|
|
3,303
|
|
|
‒
|
|
|
3,303
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(4,217)
|
|
|
(4,217)
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $92
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(288)
|
|
|
(288)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,202)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
November 30, 2016
|
$
|
89,352
|
|
$
|
18,018
|
|
$
|
129,612
|
|
$
|
(53,079)
|
|
$
|
183,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30, 2017
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2017
|
$
|
90,411
|
|
$
|
18,184
|
|
$
|
127,160
|
|
$
|
(38,965)
|
|
$
|
196,790
|
Reclassification of
stock-based compensation costs
|
|
598
|
|
|
(598)
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
Stock-based
compensation costs
|
|
‒
|
|
|
430
|
|
|
‒
|
|
|
‒
|
|
|
430
|
Net earnings for the
period
|
|
‒
|
|
|
‒
|
|
|
2,679
|
|
|
‒
|
|
|
2,679
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(4,130)
|
|
|
(4,130)
|
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $215
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(692)
|
|
|
(692)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,143)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
November 30, 2017
|
$
|
91,009
|
|
$
|
18,016
|
|
$
|
129,839
|
|
$
|
(43,787)
|
|
$
|
195,077
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of
Cash Flows
|
|
|
(in thousands of US
dollars)
|
|
|
|
Three months
ended
November
30,
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net earnings for the
period
|
$
|
2,679
|
|
$
|
3,303
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
|
Stock-based
compensation costs
|
|
402
|
|
|
258
|
|
Depreciation and
amortization
|
|
2,273
|
|
|
1,330
|
|
Write-off of capital
assets
|
|
124
|
|
|
‒
|
|
Change in fair value
of cash contingent consideration
|
|
(155)
|
|
|
‒
|
|
Deferred
revenue
|
|
(782)
|
|
|
(75)
|
|
Deferred income
taxes
|
|
(240)
|
|
|
147
|
|
Changes in foreign
exchange gain/loss
|
|
(247)
|
|
|
(538)
|
|
|
4,054
|
|
|
4,425
|
|
|
|
|
|
|
Changes in non-cash
operating items
|
|
|
|
|
|
|
Accounts
receivable
|
|
1,085
|
|
|
(2,558)
|
|
Income taxes and tax
credits
|
|
59
|
|
|
(344)
|
|
Inventories
|
|
(1,953)
|
|
|
(1,248)
|
|
Prepaid
expenses
|
|
318
|
|
|
258
|
|
Other
assets
|
|
4
|
|
|
13
|
|
Accounts payable,
accrued liabilities and provisions
|
|
(1,369)
|
|
|
(1,425)
|
|
Other
liabilities
|
|
188
|
|
|
‒
|
|
|
2,386
|
|
|
(879)
|
Cash flows from
investing activities
|
|
|
|
|
|
Additions to
short-term investments
|
|
(234)
|
|
|
(296)
|
Purchases of capital
assets
|
|
(1,991)
|
|
|
(1,237)
|
Investment in an
associate
|
|
(10,311)
|
|
|
‒
|
Business combination,
net of cash acquired
|
|
(9,540)
|
|
|
(5,000)
|
|
|
(22,076)
|
|
|
(6,533)
|
Cash flows from
financing activities
|
|
|
|
|
|
Bank loan
|
|
2
|
|
|
‒
|
Repayment of
long-term debt
|
|
(70)
|
|
|
‒
|
|
|
(68)
|
|
|
‒
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
|
(226)
|
|
|
(735)
|
|
|
|
|
|
|
Change in
cash
|
|
(19,984)
|
|
|
(8,147)
|
Cash – Beginning
of the period
|
|
38,435
|
|
|
43,208
|
Cash – End of the
period
|
$
|
18,451
|
|
$
|
35,061
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
information
|
|
|
|
|
|
Income taxes
paid
|
$
|
682
|
|
$
|
958
|
EXFO-F
SOURCE EXFO inc.