QUEBEC CITY, Sept. 1, 2020 /PRNewswire/ - EXFO Inc.
(NASDAQ: EXFO) (TSX: EXF), the communications industry's
test, monitoring and analytics experts, announced today the company
has secured service assurance contracts with five new customers,
including a previously announced agreement with eir in Ireland.
These multi-year, multi-million-dollar deals will contribute
approximately US$5.0 million to
EXFO's bookings in the fourth quarter of fiscal 2020. They reflect
market acceptance of EXFO Nova's service assurance solutions and
shared vision to transform communications networks with the highest
degree of visibility in order to accelerate revenue-generating
services and reduce downtime.
Four orders feature the extensive portfolio of EXFO Nova
solutions, delivering core-to-radio access network (RAN) monitoring
and optimization, including 5G capabilities, active and passive
probes, subscriber experience metrics, and analytics. The fifth
deal is focused on Nova Context for network inventory management
use cases. This network topology software, which essentially maps
network resources to related services in real time, will be used by
the multi-country customer to obtain a holistic view of its
next-generation network.
"We're pleased to add five new mobile network operators within a
single quarter to our established customer base benefiting from
Nova service assurance solutions," said Philippe Morin, EXFO's Chief Executive Officer.
"These contract wins, which will bolster our SASS backlog for
fiscal 2021, represent strong proof points that our recently
launched Nova Adaptive Service Assurance vision is resonating
strongly with customers. Given heightened demand for remote,
centralized monitoring solutions in this new environment, Nova
Adaptive Service Assurance's capabilities allow mobile operators to
automate critical functions, thus significantly reducing time to
detect and resolve network issues without the presence of staff
on-site at network operations and service operations centers."
EXFO also announced a restructuring initiative to strengthen its
market focus on high-growth drivers like fiber, 5G and cloud-native
deployments, while mitigating the effects of the coronavirus
pandemic on its business operations.
Restructuring charges of approximately US$3.0 million will be incurred under this plan
mostly in the fourth quarter of fiscal 2020 and are expected to
generate US$5.0 million in annual
cost savings.
"Although we had to make difficult decisions, it was necessary
to re-align our resources toward rapidly expanding verticals, while
reducing investments in lower-growth areas," Mr. Morin added.
"Profitable growth remains the cornerstone of our long-term
strategy despite the pandemic."
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 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, namely the impact of the coronavirus
pandemic on our employees, customers and global
operations, including the ability of our suppliers to fulfil
raw material requirements and services and our ability to
manufacture and deliver our products and services to our customers;
the effects of emergency measures related to isolation periods for
individuals in affected areas, lockdown restrictions imposed by
national governments on businesses in countries where we operate
and have employees, and limitations on travel to attract new
customers and serve existing ones; deteriorating financial and
market conditions as well as a potential recession; trade wars, and
our ability to successfully integrate businesses that we acquire;
capital spending and network deployment levels in the
communications 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 communications test, monitoring 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.
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.
EXFO-C
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SOURCE EXFO Inc.