- Sales increased 9.2% to US$69.2
million, above midpoint of guidance range
- Bookings improved 23.3% to US$81.2
million, book-to-bill ratio of 1.17
- Announced multi-million-dollar deal with a tier-1 service
provider after quarter-end
QUEBEC CITY, Jan. 8, 2019 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO) (TSX: EXF), the communications industry's test, monitoring
and analytics experts, reported today financial results for the
first quarter ended November 30,
2018.
IFRS sales increased 9.2% to US$69.2 million in the
first quarter of fiscal 2019 from US$63.4
million in the first quarter of 2018. First-quarter sales
for 2019 included a $7.5 million contribution from
Astellia, reduced by US$0.9 million to account for
acquisition-related fair value adjustment of deferred revenue.
Bookings, which included a US$7.8 million contribution
from Astellia, improved 23.3% year-over-year to US$81.2
million in the first quarter of fiscal 2019 from US$65.9
million in the same period of 2018. The company's book-to-bill
ratio was 1.17 in the first quarter of 2019.
Gross margin before depreciation and amortization* amounted to
58.2% of sales in the first quarter of fiscal 2019 compared to
63.3% in the first quarter of 2018.
IFRS net loss in the first quarter of fiscal 2019
totaled US$7.5 million, or US$0.14 per share,
compared to net earnings of US$2.7 million, or US$0.05 per
share, in the first quarter of 2018. IFRS net loss in the first
quarter of 2019 included net expenses totaling US$6.3 million: US$2.5 million in after-tax amortization of
intangible assets, US$0.4 million in stock-based
compensation costs, US$2.7
million in after-tax restructuring charges, US$0.9 million for acquisition-related fair
value adjustment of deferred revenue and a foreign exchange gain
of US$0.2 million.
Adjusted EBITDA* totaled US$2.7 million, or 3.9% of sales,
in the first quarter of fiscal 2019 compared
to US$6.1 million, or 9.6% of sales, in the first quarter
of 2018.
Beginning with the first quarter of fiscal 2019, EXFO is
reporting revenues and bookings based on two newly created product
families: Test and Measurement (T&M) as well as Service
Assurance, Systems and Services (SASS).
- Optical, transport and copper test solutions make up the
T&M product family, including portable equipment for the field
and benchtop units for the lab and manufacturing environments. EXFO
is No. 1 worldwide in optical testing and a top-2 provider of
portable telecom T&M solutions.
- The SASS family mainly consists of service assurance, fiber
monitoring, analytics and professional services as well as other
systems-related solutions like network simulation and network
topology discovery. EXFO is well positioned for virtualization and
5G network transformations and is now part of the top-5 global SASS
suppliers based on its acquisitions of Ontology and Astellia.
This classification replaces the former Physical-Layer and
Protocol-Layer product groups. EXFO believes this breakdown better
reflects the company's long-term strategy, while enhancing
comparisons against industry peers and investors' understanding
EXFO's business.
"EXFO delivered solid results in the first quarter of 2019 with
revenue above the midpoint of our guidance range, while benefitting
from robust calendar year-end spending for our T&M solutions to
achieve the second-highest bookings level in company history," said
EXFO's CEO Philippe Morin. "Our
announced strategic transformation, focused on heightened
efficiency and profitability, is progressing according to plan and
should be completed by the end of the second quarter. This new
structure is starting to pay off internally, but also externally
with a better value proposition and more relevant engagement with
SASS customers as reflected by a US$4.9 million contract
win for real-time active topology software with a tier-1 service
provider after the quarter-end."
Selected Financial
Information
|
(In thousands of
US dollars)
|
|
|
Three months
ended
November 30,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Test and measurement
sales
|
$
|
49,764
|
|
$
|
50,186
|
Service assurance,
systems and services sales
|
|
19,416
|
|
|
12,968
|
Foreign exchange
gains on forward exchange contracts
|
|
21
|
|
|
237
|
Total
sales
|
$
|
69,201
|
|
$
|
63,391
|
|
|
|
|
|
|
Test and measurement
bookings
|
$
|
63,996
|
|
$
|
52,854
|
Service assurance,
systems and services bookings
|
|
17,221
|
|
|
12,788
|
Foreign exchange
gains on forward exchange contracts
|
|
21
|
|
|
237
|
Total
bookings
|
$
|
81,238
|
|
$
|
65,879
|
Book-to-bill ratio
(bookings/sales)
|
|
1.17
|
|
|
1.04
|
Gross margin before
depreciation and amortization*
|
$
|
40,304
|
|
$
|
40,102
|
|
|
58.2 %
|
|
|
63.3 %
|
|
|
|
|
|
|
Other selected
information:
|
|
|
|
|
|
IFRS net earnings
(loss)
|
$
|
(7,467)
|
|
$
|
2,679
|
Amortization of
intangible assets
|
$
|
2,940
|
|
$
|
1,119
|
Stock-based
compensation costs
|
$
|
418
|
|
$
|
402
|
Restructuring
charges
|
$
|
2,741
|
|
$
|
‒
|
Changes in fair value
of cash contingent consideration
|
$
|
‒
|
|
$
|
(155)
|
Acquisition-related
deferred revenue fair value adjustment
|
$
|
864
|
|
$
|
‒
|
Net income tax effect
of the above items
|
$
|
(423)
|
|
$
|
(172)
|
Foreign exchange
gain
|
$
|
(215)
|
|
$
|
(1,218)
|
Adjusted
EBITDA*
|
$
|
2,728
|
|
$
|
6,059
|
Operating Expenses
Selling and administrative expenses
totaled US$26.4 million, or 38.1% of sales in the first
quarter of fiscal 2019 compared to US$23.2 million, or 36.6%
of sales, in the first quarter of 2018.
Net R&D expenses totaled US$15.2 million, or 22.0% of
sales, in the first quarter of fiscal 2019 compared
to US$11.3 million, or 17.8% of sales, in the same period
last year. Net R&D expenses included US$2.1 million in restructuring charges in the
first quarter of 2019.
First-Quarter Highlights
- Sales. Sales increased 9.2% year-over-year mainly due to the
Astellia acquisition (US$7.5 revenue
contribution in the quarter), partially offset by a negative
currency impact. Test and Measurement sales accounted for 72% of
revenue in the first quarter of 2019, while Service Assurance,
Systems and Services sales totaled 28%. Revenue distribution among
the three main selling regions in the first quarter amounted to 51%
in the Americas, 33% in Europe,
Middle East and Africa (EMEA) and 16% in Asia-Pacific. EXFO's top customer accounted
for 9.0% of sales, while the top three represented 19.6%.
- Profitability. IFRS net loss totaled US$7.5 million in the first quarter of 2019,
including US$5.1 million for newly
acquired Astellia. Of that number, US$1.8
million is attributable to after-tax amortization of
acquired intangible assets. Adjusted EBITDA amounted to
US$2.7 million in the first quarter
of 2019.
- Innovation. EXFO received two separate innovation-related
awards from the Metro Ethernet Forum (MEF) in the first quarter of
fiscal 2019. EXFO's software verifier agent, a software solution
providing advanced layer-2 to layer-7 testing and end-to-end
visibility, received the Technology Solutions Award for Service
Assurance from the MEF. EXFO also accepted a Proof of Concept Award
from the MEF for its contribution to a collaborative project, named
Blade Runner, delivering augmented reality over a 5G wireless
network. EXFO covered service assurance by providing virtual probes
to enable closed-loop automation and seamless service continuity.
EXFO had previously obtained the TM Forum Outstanding Catalyst
Innovation Award for its involvement in the Blade Runner
project.
EXFO also expanded its 400G test portfolio with the release of a
module featuring an Open Transceiver System. This modular design
enables compatibility between current and future high-speed
transceivers with EXFO's field and lab test platforms. The company
also introduced an automated fiber inspection tool for testing
polarity, continuity and connector cleanliness on multifiber
cables.
Business Outlook
EXFO forecasts sales between
US$70.0 million and US$75.0 million for the second quarter of fiscal
2019, while IFRS net earnings are expected to range between
US$0.05 and US$0.09 per share. IFRS net earnings include net
expenses of US$0.06 per share in
after-tax amortization of intangible assets, stock-based
compensation costs, acquisition-related fair value adjustment of
deferred revenue, after tax restructuring charges, and an
anticipated foreign exchange gain. IFRS net earnings also include
US$0.03 per share for an after-tax
gain on disposal of a capital asset and US$0.04 per share for a one-time deferred income
tax recovery.
This guidance, which is a forward-looking statement, 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 date
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 2019. To
listen to the conference call and participate in the question
period via telephone, dial 1-323-794-2093. Please take note
the following participant passcode will be required: 9817746.
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 15, 2019. The replay number
is 1-719-457-0820 and the participant passcode is 9817746. 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 (NASDAQ: EXFO) (TSX: EXF) develops
smarter test, monitoring and analytics solutions for fixed and
mobile network operators, webscale companies and equipment
manufacturers in the global communications industry. Our customers
count on us to deliver superior network performance, service
reliability and subscriber insights. They count on our unique blend
of equipment, software and services to accelerate digital
transformations related to fiber, 4G/LTE and 5G deployments. They
count on our expertise with automation, real-time troubleshooting
and big data analytics, which are critical to their business
performance. We've spent over 30 years earning this trust, and
today 1,900 EXFO employees in over 25 countries work side by side
with our customers in the lab, field, data center and beyond.
Forward-Looking Statements
This news 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 statements that refer to
expectations, projections or other characterizations of future
events and circumstances are considered forward-looking statements.
They are not guarantee 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, including
trade wars; our ability to successfully integrate businesses that
we acquire; capital spending and network deployment levels in the
telecommunications industry (including our ability to quickly adapt
cost structures to 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, service
assurance and analytics solutions markets and increased competition
among vendors; capacity to adapt our future product offering to
future technological changes; limited visibility with regard to the
timing and nature of customer orders; delay in revenue recognition
due to longer sales cycles for complex systems involving customers'
acceptance; 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 to conduct business internationally; 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
(non-IFRS sales, gross margin before depreciation and amortization
and adjusted EBITDA) as supplemental information regarding its
operational performance. Non-IFRS sales represent total sales plus
acquisition-related deferred revenue fair value adjustment. Gross
margin before depreciation and amortization represents sales, less
cost of sales, excluding depreciation and amortization. Adjusted
EBITDA represent net earnings (loss) before interest, income taxes,
depreciation and amortization, stock-based compensation costs,
restructuring charges, change in fair value of cash contingent
consideration, acquisition-related deferred revenue fair value
adjustment, and foreign exchange gain or loss.
These non-IFRS measures eliminate the effect on IFRS results of
non-cash and/or non-operating statement of earnings elements, as
well as elements subject to significant volatility such as foreign
exchange gain or loss. EXFO uses these measures for evaluating
historical and prospective financial performance, as well as its
performance relative to competitors. These non-IFRS measures are
also the financial measures used by financial analysts to evaluate
and compare EXFO's performance against competitors and industry
players in the company's sector.
Finally, these measures help EXFO plan and forecast future
periods as well as make operational and strategic decisions. EXFO
believes that providing this information, in addition to the IFRS
measures, allows investors to see the company's results through the
eyes of management, and to better understand historical and future
financial performance. More importantly, it enables the comparison
of EXFO's performance on a relatively similar basis against other
public and private companies in the industry worldwide.
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.
The following table summarizes the reconciliation of non-IFRS
sales to IFRS sales, in thousands of US dollars:
Non-IFRS
Sales
|
|
|
Three months
ended November
30,
|
|
2018
|
|
2017
|
|
|
|
|
IFRS sales
|
$
|
69,201
|
|
$
|
63,391
|
Acquisition-related
deferred revenue fair value adjustment
|
|
864
|
|
|
‒
|
Non-IFRS
sales
|
$
|
70,065
|
|
$
|
63,391
|
The following table summarizes the reconciliation of adjusted
EBITDA to IFRS net earnings (loss) in thousands
of US dollars:
Adjusted
EBITDA
|
|
|
Three months
ended November
30,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
IFRS net earnings
(loss) for the period
|
$
|
(7,467)
|
|
$
|
2,679
|
|
|
|
|
|
|
Add
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
1,429
|
|
|
1,154
|
Amortization
|
|
2,940
|
|
|
1,119
|
Interest and other
expense
|
|
377
|
|
|
338
|
Income
taxes
|
|
1,641
|
|
|
1,740
|
Stock-based
compensation costs
|
|
418
|
|
|
402
|
Restructuring
charges
|
|
2,741
|
|
|
‒
|
Change in fair value
of cash contingent consideration
|
|
‒
|
|
|
(155)
|
Acquisition-related
deferred revenue fair value adjustment
|
|
864
|
|
|
‒
|
Foreign exchange
gain
|
|
(215)
|
|
|
(1,218)
|
Adjusted EBITDA for
the period
|
$
|
2,728
|
|
$
|
6,059
|
|
|
|
|
|
|
Adjusted EBITDA in
percentage of sales
|
|
3.9
%
|
|
|
9.6 %
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Balance Sheets
|
|
(in thousands of US
dollars)
|
|
|
As
at
November
30,
2018
|
|
As
at August
31, 2018
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
18,087
|
|
$
|
12,758
|
Short-term
investments
|
|
1,976
|
|
|
2,282
|
Accounts
receivable
|
|
|
|
|
|
Trade
|
|
50,364
|
|
|
47,273
|
Other
|
|
3,693
|
|
|
4,137
|
Income taxes and tax
credits recoverable
|
|
4,694
|
|
|
4,790
|
Inventories
|
|
39,186
|
|
|
38,589
|
Prepaid
expenses
|
|
5,019
|
|
|
5,291
|
Other
assets
|
|
2,264
|
|
|
2,279
|
|
|
125,283
|
|
|
117,399
|
|
|
|
|
|
|
Tax credits
recoverable
|
|
47,527
|
|
|
47,677
|
Property, plant
and equipment
|
|
43,687
|
|
|
44,310
|
Intangible
assets
|
|
26,507
|
|
|
29,866
|
Goodwill
|
|
39,115
|
|
|
39,892
|
Deferred income
tax assets
|
|
4,270
|
|
|
4,714
|
Other
assets
|
|
661
|
|
|
686
|
|
$
|
287,050
|
|
$
|
284,544
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank loan
|
$
|
21,399
|
|
$
|
10,692
|
Accounts payable and
accrued liabilities
|
|
49,590
|
|
|
47,898
|
Provisions
|
|
2,338
|
|
|
2,954
|
Income taxes
payable
|
|
557
|
|
|
873
|
Deferred
revenue
|
|
18,564
|
|
|
16,556
|
Other
liabilities
|
|
3,109
|
|
|
3,197
|
Current portion of
long-term debt
|
|
2,808
|
|
|
2,921
|
|
|
98,365
|
|
|
85,091
|
|
|
|
|
|
|
Provisions
|
|
2,605
|
|
|
2,347
|
Deferred
revenue
|
|
8,320
|
|
|
6,947
|
Long-term
debt
|
|
5,185
|
|
|
5,907
|
Deferred income
tax liabilities
|
|
5,117
|
|
|
5,910
|
Other
liabilities
|
|
540
|
|
|
421
|
|
|
120,132
|
|
|
106,623
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
92,580
|
|
|
91,937
|
Contributed
surplus
|
|
18,245
|
|
|
18,428
|
Retained
earnings
|
|
107,186
|
|
|
114,906
|
Accumulated other
comprehensive loss
|
|
(51,093)
|
|
|
(47,350)
|
|
|
166,918
|
|
|
177,921
|
|
|
|
|
|
|
|
$
|
287,050
|
|
$
|
284,544
|
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,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
Sales
|
$
|
69,201
|
|
$
|
63,391
|
|
|
|
|
|
|
Cost of sales
(1)
|
|
28,897
|
|
|
23,289
|
Selling and
administrative
|
|
26,375
|
|
|
23,193
|
Net research and
development
|
|
15,224
|
|
|
11,252
|
Depreciation of
property, plant and equipment
|
|
1,429
|
|
|
1,154
|
Amortization of
intangible assets
|
|
2,940
|
|
|
1,119
|
Change in fair value
of cash contingent consideration
|
|
‒
|
|
|
(155)
|
Interest and other
expense
|
|
377
|
|
|
338
|
Foreign exchange
gain
|
|
(215)
|
|
|
(1,218)
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
|
(5,826)
|
|
|
4,419
|
|
|
|
|
|
|
Income
taxes
|
|
1,641
|
|
|
1,740
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
$
|
(7,467)
|
|
$
|
2,679
|
|
|
|
|
|
|
Basic and diluted
net earnings (loss) per share
|
$
|
(0.14)
|
|
$
|
0.05
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding (000's)
|
|
55,184
|
|
|
54,805
|
|
|
|
|
|
|
Diluted weighted
average number of shares outstanding (000's)
|
|
55,184
|
|
|
55,793
|
|
|
(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,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
Net earnings
(loss) for the period
|
$
|
(7,467)
|
|
$
|
2,679
|
Other comprehensive
income (loss), net of income taxes
|
|
|
|
|
|
Items that may be
reclassified subsequently to net earnings (loss)
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(3,356)
|
|
|
(4,130)
|
Unrealized
gains/losses on forward exchange contracts
|
|
(687)
|
|
|
(524)
|
Reclassification of
realized gains/losses on forward exchange contracts
in net earnings (loss)
|
|
91
|
|
|
(383)
|
Deferred income tax
effect of gains/losses on forward exchange contracts
|
|
209
|
|
|
215
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
(3,743)
|
|
|
(4,822)
|
|
|
|
|
|
|
Comprehensive loss
for the period
|
$
|
(11,210)
|
|
$
|
(2,143)
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Changes in
Shareholders' Equity
|
|
(in thousands of US
dollars)
|
|
|
|
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
|
|
|
|
|
Three months ended
November 30, 2018
|
|
|
Share capital
|
|
Contributed
surplus
|
|
Retained
earnings
|
|
Accumulated
other comprehensive loss
|
|
Total
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
September 1, 2018
|
|
$
|
91,937
|
|
$
|
18,428
|
|
$
|
114,906
|
|
$
|
(47,350)
|
|
$
|
177,921
|
Adoption of IFRS
9
|
|
|
‒
|
|
|
‒
|
|
|
(253)
|
|
|
‒
|
|
|
(253)
|
Adjusted balance as
at September 1, 2018
|
|
|
91,937
|
|
|
18,428
|
|
|
114,653
|
|
|
(47,350)
|
|
|
177,668
|
Reclassification of
stock-based compensation costs
|
|
|
643
|
|
|
(643)
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
Stock-based
compensation costs
|
|
|
‒
|
|
|
460
|
|
|
‒
|
|
|
‒
|
|
|
460
|
Net loss for the
period
|
|
|
‒
|
|
|
‒
|
|
|
(7,467)
|
|
|
‒
|
|
|
(7,467)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(3,356)
|
|
|
(3,356)
|
Changes in unrealized
gains/losses on forward exchange contracts, net of deferred income
taxes of $209
|
|
|
‒
|
|
|
‒
|
|
|
‒
|
|
|
(387)
|
|
|
(387)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,210)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
November 30, 2018
|
|
$
|
92,580
|
|
$
|
18,245
|
|
$
|
107,186
|
|
$
|
(51,093)
|
|
$
|
166,918
|
EXFO
Inc.
|
Condensed
Unaudited Interim Consolidated Statements of Cash
Flows
|
|
(in thousands of US
dollars)
|
|
|
Three months
ended
November
30,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net earnings (loss)
for the period
|
$
|
(7,467)
|
|
$
|
2,679
|
Add (deduct) items
not affecting cash
|
|
|
|
|
|
Stock-based
compensation costs
|
|
418
|
|
|
402
|
Depreciation and
amortization
|
|
4,369
|
|
|
2,273
|
Write-off of capital
assets
|
|
‒
|
|
|
124
|
Change in fair value
of cash contingent consideration
|
|
‒
|
|
|
(155)
|
Deferred
revenue
|
|
3,922
|
|
|
(782)
|
Deferred income
taxes
|
|
(29)
|
|
|
(240)
|
Changes in foreign
exchange gain/loss
|
|
(529)
|
|
|
(247)
|
|
|
684
|
|
|
4,054
|
|
|
|
|
|
|
Changes in non-cash
operating items
|
|
|
|
|
|
Accounts
receivable
|
|
(4,052)
|
|
|
1,085
|
Income taxes and tax
credits
|
|
(998)
|
|
|
59
|
Inventories
|
|
(1,361)
|
|
|
(1,953)
|
Prepaid
expenses
|
|
183
|
|
|
318
|
Other
assets
|
|
(12)
|
|
|
4
|
Accounts payable,
accrued liabilities and provisions
|
|
3,132
|
|
|
(1,369)
|
Other
liabilities
|
|
(51)
|
|
|
188
|
|
|
(2,475)
|
|
|
2,386
|
Cash flows from
investing activities
|
|
|
|
|
|
Additions to
short-term investments
|
|
‒
|
|
|
(234)
|
Proceeds from
disposal of short-term investments
|
|
342
|
|
|
‒
|
Purchases of capital
assets
|
|
(2,882)
|
|
|
(1,991)
|
Investment in an
associate
|
|
‒
|
|
|
(10,311)
|
Business combination,
net of cash acquired
|
|
‒
|
|
|
(9,540)
|
|
|
(2,540)
|
|
|
(22,076)
|
Cash flows from
financing activities
|
|
|
|
|
|
Bank loan
|
|
11,257
|
|
|
2
|
Repayment of
long-term debt
|
|
(717)
|
|
|
(70)
|
|
|
10,540
|
|
|
(68)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes on cash
|
|
(196)
|
|
|
(226)
|
|
|
|
|
|
|
Change in
cash
|
|
5,329
|
|
|
(19,984)
|
Cash – Beginning
of the period
|
|
12,758
|
|
|
38,435
|
Cash – End of the
period
|
$
|
18,087
|
|
$
|
18,451
|
EXFO-F
View original
content:http://www.prnewswire.com/news-releases/exfo-reports-first-quarter-results-for-fiscal-2019-300775164.html
SOURCE EXFO Inc.