EXFO reports third quarter results for fiscal 2019

Published

  • Sales reached US$73.6 million, above midpoint of guidance range
  • IFRS net earnings attained break-even mark, US$0.00 per share
  • Adjusted EBITDA totaled US$7.9 million, 10.7% of sales

QUEBEC CITY, July 10, 2019 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO) (TSX: EXF), the communications industry's test, monitoring and analytics experts, reported today financial results for the third quarter ended May 31, 2019.

Sales increased 1.9% to US$73.6 million in the third quarter of fiscal 2019 from  US$72.2 million in the third quarter of 2018. After nine months in fiscal 2019, sales improved 8.2% year-over-year to US$216.7 million. Astellia contributed nine months to EXFO's financial results in 2019 versus four months for the same period in 2018.

Bookings decreased 4.8% to US$69.6 million for a book-to-bill ratio of 0.95 in the third quarter of fiscal 2019 from US$73.1 million for the same period of 2018. After nine months in fiscal 2019, bookings increased 10.9% year-over-year to US$226.9 million for a book-to-bill ratio of 1.05.

Gross margin before depreciation and amortization* amounted to 58.6% of sales in the third quarter of fiscal 2019 compared to 59.9% in the third quarter of 2018.

IFRS net earnings in the third quarter of fiscal 2019 totaled US$21,000, or US$0.00 per share, compared to a net loss of US$6.0 million, or US$0.11 per share, in the third quarter of 2018. IFRS net earnings in the third quarter of 2019 included US$1.7 million in after-tax amortization of intangible assets, US$0.5 million in stock-based compensation costs and a foreign exchange gain of US$0.1 million. After nine months in fiscal 2019, IFRS net loss attributable to the parent interest1 amounted to US$2.3 million compared to US$8.0 million for the same period in 2018.

Adjusted EBITDA* totaled US$7.9 million, or 10.7% of sales, in the third quarter of fiscal 2019 compared to US$2.5 million, or 3.5% of sales, in the third quarter of 2018. After nine months in fiscal 2019, adjusted EBITDA surged 74.5% year-over-year to US$19.4 million.

"I am pleased with our execution so far in fiscal 2019 with significant year-over-year increases in sales, bookings and adjusted EBITDA, including third quarter revenue above the midpoint of guidance and an adjusted EBITDA margin greater than 10% for a second consecutive quarter," said EXFO's CEO Philippe Morin. "This heightened level of consistency reflects a strong performance against our growth strategy, leveraging fiber buildouts, data center interconnects as well as 5G deployments and network virtualization, while maintaining a sound financial discipline. We are confident that we will at least achieve our adjusted EBITDA target of US$24 million for fiscal 2019."

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders.

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information
(In thousands of US dollars)
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752
58.6% 59.9% 59.2% 61.3%
Other selected information:
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951)
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒   
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716)
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704)
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386)
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100

 

Operating ExpensesSelling and administrative expenses reached US$23.8 million, or 32.3% of sales in the third quarter of fiscal 2019 compared to US$26.0 million, or 35.9% of sales, in the same period last year.

Net R&D expenses attained US$12.0 million, or 16.3% of sales, in the third quarter of fiscal 2019 compared to US$16.1 million, or 22.3% of sales, in the third quarter of 2018.

Third-Quarter Highlights

  • Growth. Sales increased 1.9% year-over-year despite a negative currency impact. The increase in sales can be attributed to heightened demand for EXFO's Test and Measurement product line, especially 100G/200G/400G optical transport solutions for communications service providers and advanced equipment for the R&D labs and factories of network equipment manufacturers. Service Assurance, Systems and Services (SASS) sales were down year-over-year mainly due to a market slowdown to evaluate how to optimally transform network architectures into virtualized 5G infrastructures. Test and Measurement sales accounted for 74% of total revenue in the third quarter of 2019, while SASS sales totaled 26%. Revenue breakdown among the three main selling regions amounted to 51% in the Americas, 30% in Europe, Middle East and Africa (EMEA) and 19% in Asia-Pacific (APAC). EXFO's top customer accounted for 6.9% of sales, while the top three represented 16.9%.
  • Profitability. IFRS net earnings attained the break-even mark in the third quarter of 2019, while adjusted EBITDA reached US$7.9 million, or 10.7% of sales. After nine months in fiscal 2019, IFRS net loss amounted to US$2.3 million while adjusted EBITDA totaled US$19.4 million.
  • Innovation. EXFO introduced a new category of fiber testing solutions with the launch of the industry's first optical fiber multimeter (OFM) following the quarter-end. This revolutionary test instrument, branded Optical Xplorer™, greatly simplifies and accelerates the task of frontline technicians by automatically evaluating the quality of fiber links in a matter of seconds.

Business Outlook EXFO forecasts sales between US$66.0 million and US$71.0 million for the fourth quarter of fiscal 2019.

IFRS net results are expected to range between a loss of US$0.02 per share and earnings of US$0.02 per share in the fourth quarter of 2019. IFRS net results include US$0.04 per share in after-tax amortization of intangible assets and stock-based compensation costs.

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 day of this news release.

Conference Call and WebcastEXFO will host a conference call today at 5 p.m. (Eastern time) to review third 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: 8949289. Germain Lamonde, founder and Executive Chairman, Philippe Morin, Chief Executive Officer, and Pierre Plamondon, 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 8:00 p.m. on July 17, 2019. The replay number is 1-719-457-0820 and the required participant passcode is 8949289. 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 EXFOEXFO (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 StatementsThis 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 MeasuresEXFO provides non-IFRS measures (gross margin before depreciation and amortization and adjusted EBITDA) as supplemental information regarding its operational performance. Gross margin before depreciation and amortization represents sales, less cost of sales, excluding depreciation and amortization. Adjusted EBITDA represents net earnings (loss) attributable to the parent interest before interest and other income/expense, 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 adjusted EBITDA to IFRS net earnings (loss) attributable to the parent interest, in thousands of US dollars:

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct):
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972
Amortization of intangible assets 2,072 4,210 7,142 8,385
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒   
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716)
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386)
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100
Other selected information:
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5%
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒   
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716)
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704)
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386)
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018 (1) Includes acquisition-related costs of US$2.1 million for the nine months ended May 31, 2018 (nil in fiscal 2019).
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct):
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972
Amortization of intangible assets 2,072 4,210 7,142 8,385
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒   
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716)
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386)
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100
Other selected information:
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5%
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒   
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716)
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704)
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386)
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA EXFO Inc.
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018 (1) Includes acquisition-related costs of US$2.1 million for the nine months ended May 31, 2018 (nil in fiscal 2019). Condensed Unaudited Interim Consolidated Balance Sheets
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951) (in thousands of US dollars)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct): As at May 31, 2019 As at August 31, 2018
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972 Assets
Amortization of intangible assets 2,072 4,210 7,142 8,385
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870 Current assets
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424 Cash $ 13,623 $ 12,758
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280 Short-term investments 1,691 2,282
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒    Accounts receivable
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716) Trade 52,876 47,273
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222 Other 3,384 4,137
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386) Income taxes and tax credits recoverable 2,985 4,790
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100 Inventories 37,859 38,589
Other selected information: Prepaid expenses 5,492 5,291
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5% Other assets 2,945 2,279
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385 120,855 117,399
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒    Tax credits recoverable 46,271 47,677
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716) Property, plant and equipment 40,509 44,310
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222 Intangible assets 22,875 29,866
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704) Goodwill 38,517 39,892
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386) Deferred income tax assets 5,229 4,714
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100 Other assets 911 686
$ 275,167 $ 284,544
Liabilities
Current liabilities
Bank loan $ 5,000 $ 10,692
Accounts payable and accrued liabilities 48,903 47,898
Provisions 1,181 2,954
Income taxes payable 1,040 873
Deferred revenue 24,943 16,556
Other liabilities 1,624 3,197
Current portion of long-term debt 2,579 2,921
85,270 85,091
Provisions 2,830 2,347
Deferred revenue 9,086 6,947
Long-term debt 3,876 5,907
Deferred income tax liabilities 3,638 5,910
Other liabilities 625 421
105,325 106,623
Shareholders' equity
Share capital 92,889 91,937
Contributed surplus 18,734 18,428
Retained earnings 112,400 114,906
Accumulated other comprehensive loss (54,181) (47,350)
169,842 177,921
$ 275,167 $ 284,544

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA EXFO Inc. EXFO Inc.
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018 (1) Includes acquisition-related costs of US$2.1 million for the nine months ended May 31, 2018 (nil in fiscal 2019). Condensed Unaudited Interim Consolidated Balance Sheets Condensed Unaudited Interim Consolidated Statements of Earnings
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951) (in thousands of US dollars) (in thousands of US dollars, except share and per share data)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct): As at May 31, 2019 As at August 31, 2018 Three monthsendedMay 31, 2019 Nine monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2018
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972 Assets Sales $ 73,587 $ 216,715 $ 72,217 $ 200,330
Amortization of intangible assets 2,072 4,210 7,142 8,385
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870 Current assets Cost of sales (1) 30,458 88,417 28,963 77,578
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424 Cash $ 13,623 $ 12,758 Selling and administrative 23,761 75,610 25,957 74,066
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280 Short-term investments 1,691 2,282 Net research and development 11,970 39,410 16,101 40,440
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒    Accounts receivable Depreciation of property, plant and equipment 1,368 4,187 1,555 3,972
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716) Trade 52,876 47,273 Amortization of intangible assets 2,072 7,142 4,210 8,385
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222 Other 3,384 4,137 Change in fair value of cash contingent consideration (716)
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386) Income taxes and tax credits recoverable 2,985 4,790 Interest and other (income) expense 698 (439) 198 870
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100 Inventories 37,859 38,589 Foreign exchange (gain) loss (146) 55 (160) (1,386)
Other selected information: Prepaid expenses 5,492 5,291 Share in net loss of an associate 2,080
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5% Other assets 2,945 2,279 Gain on the deemed disposal of the investment in an associate (2,080)
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385 120,855 117,399 Earnings (loss) before income taxes 3,406 2,333 (4,607) (2,879)
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒    Tax credits recoverable 46,271 47,677 Income taxes 3,385 4,586 1,363 5,424
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716) Property, plant and equipment 40,509 44,310
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222 Intangible assets 22,875 29,866 Net earnings (loss) for the period 21 (2,253) (5,970) (8,303)
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704) Goodwill 38,517 39,892 Net loss for the period attributable to non-controlling interest (352)
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386) Deferred income tax assets 5,229 4,714
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100 Other assets 911 686 Net earnings (loss) for the period attributable to parent interest $ 21 $ (2,253) $ (5,970) $ (7,951)
$ 275,167 $ 284,544
Liabilities Basic and diluted net earnings (loss) attributable to parent interest per share $ 0.00 $ (0.04) $ (0.11) $ (0.14)
Current liabilities Basic weighted average number of shares outstanding (000's) 55,392 55,306 55,099 54,959
Bank loan $ 5,000 $ 10,692
Accounts payable and accrued liabilities 48,903 47,898 Diluted weighted average number of shares outstanding (000's) 56,437 55,306 55,099 54,959
Provisions 1,181 2,954
Income taxes payable 1,040 873
Deferred revenue 24,943 16,556
Other liabilities 1,624 3,197
Current portion of long-term debt 2,579 2,921
85,270 85,091
Provisions 2,830 2,347
Deferred revenue 9,086 6,947
Long-term debt 3,876 5,907
Deferred income tax liabilities 3,638 5,910
Other liabilities 625 421
105,325 106,623
Shareholders' equity
Share capital 92,889 91,937
Contributed surplus 18,734 18,428
Retained earnings 112,400 114,906
Accumulated other comprehensive loss (54,181) (47,350)
169,842 177,921
$ 275,167 $ 284,544

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA EXFO Inc. EXFO Inc.
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018 (1) Includes acquisition-related costs of US$2.1 million for the nine months ended May 31, 2018 (nil in fiscal 2019). Condensed Unaudited Interim Consolidated Balance Sheets Condensed Unaudited Interim Consolidated Statements of Earnings (1) The cost of sales is exclusive of depreciation and amortization, shown separately.
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951) (in thousands of US dollars) (in thousands of US dollars, except share and per share data)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct): As at May 31, 2019 As at August 31, 2018 Three monthsendedMay 31, 2019 Nine monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2018
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972 Assets Sales $ 73,587 $ 216,715 $ 72,217 $ 200,330
Amortization of intangible assets 2,072 4,210 7,142 8,385
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870 Current assets Cost of sales (1) 30,458 88,417 28,963 77,578
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424 Cash $ 13,623 $ 12,758 Selling and administrative 23,761 75,610 25,957 74,066
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280 Short-term investments 1,691 2,282 Net research and development 11,970 39,410 16,101 40,440
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒    Accounts receivable Depreciation of property, plant and equipment 1,368 4,187 1,555 3,972
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716) Trade 52,876 47,273 Amortization of intangible assets 2,072 7,142 4,210 8,385
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222 Other 3,384 4,137 Change in fair value of cash contingent consideration (716)
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386) Income taxes and tax credits recoverable 2,985 4,790 Interest and other (income) expense 698 (439) 198 870
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100 Inventories 37,859 38,589 Foreign exchange (gain) loss (146) 55 (160) (1,386)
Other selected information: Prepaid expenses 5,492 5,291 Share in net loss of an associate 2,080
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5% Other assets 2,945 2,279 Gain on the deemed disposal of the investment in an associate (2,080)
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385 120,855 117,399 Earnings (loss) before income taxes 3,406 2,333 (4,607) (2,879)
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒    Tax credits recoverable 46,271 47,677 Income taxes 3,385 4,586 1,363 5,424
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716) Property, plant and equipment 40,509 44,310
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222 Intangible assets 22,875 29,866 Net earnings (loss) for the period 21 (2,253) (5,970) (8,303)
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704) Goodwill 38,517 39,892 Net loss for the period attributable to non-controlling interest (352)
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386) Deferred income tax assets 5,229 4,714
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100 Other assets 911 686 Net earnings (loss) for the period attributable to parent interest $ 21 $ (2,253) $ (5,970) $ (7,951)
$ 275,167 $ 284,544
Liabilities Basic and diluted net earnings (loss) attributable to parent interest per share $ 0.00 $ (0.04) $ (0.11) $ (0.14)
Current liabilities Basic weighted average number of shares outstanding (000's) 55,392 55,306 55,099 54,959
Bank loan $ 5,000 $ 10,692
Accounts payable and accrued liabilities 48,903 47,898 Diluted weighted average number of shares outstanding (000's) 56,437 55,306 55,099 54,959
Provisions 1,181 2,954
Income taxes payable 1,040 873
Deferred revenue 24,943 16,556
Other liabilities 1,624 3,197
Current portion of long-term debt 2,579 2,921
85,270 85,091
Provisions 2,830 2,347
Deferred revenue 9,086 6,947
Long-term debt 3,876 5,907
Deferred income tax liabilities 3,638 5,910
Other liabilities 625 421
105,325 106,623
Shareholders' equity
Share capital 92,889 91,937
Contributed surplus 18,734 18,428
Retained earnings 112,400 114,906
Accumulated other comprehensive loss (54,181) (47,350)
169,842 177,921
$ 275,167 $ 284,544

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA EXFO Inc. EXFO Inc. EXFO Inc.
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018 (1) Includes acquisition-related costs of US$2.1 million for the nine months ended May 31, 2018 (nil in fiscal 2019). Condensed Unaudited Interim Consolidated Balance Sheets Condensed Unaudited Interim Consolidated Statements of Earnings (1) The cost of sales is exclusive of depreciation and amortization, shown separately. Condensed Unaudited Interim Consolidated Statements of Comprehensive Loss
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951) (in thousands of US dollars) (in thousands of US dollars, except share and per share data) (in thousands of US dollars)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct): As at May 31, 2019 As at August 31, 2018 Three monthsendedMay 31, 2019 Nine monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2018 Three months ended May 31, 2019 Nine months ended May 31, 2019 Three months ended May 31, 2018 Nine months ended May 31, 2018
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972 Assets Sales $ 73,587 $ 216,715 $ 72,217 $ 200,330 Net earnings (loss) for the period $ 21 $ (2,253) $ (5,970) $ (8,303)
Amortization of intangible assets 2,072 4,210 7,142 8,385 Other comprehensive income (loss), net of income taxes
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870 Current assets Cost of sales (1) 30,458 88,417 28,963 77,578 Items that may be reclassified subsequently to net earnings
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424 Cash $ 13,623 $ 12,758 Selling and administrative 23,761 75,610 25,957 74,066 Foreign currency translation adjustment (4,611) (6,160) (3,189) (5,033)
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280 Short-term investments 1,691 2,282 Net research and development 11,970 39,410 16,101 40,440 Unrealized gains/losses on forward exchange contracts (1,046) (1,237) (486) (971)
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒    Accounts receivable Depreciation of property, plant and equipment 1,368 4,187 1,555 3,972 Reclassification of realized gains/losses on forward exchange contracts in net earnings (91) 210 (232) (840)
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716) Trade 52,876 47,273 Amortization of intangible assets 2,072 7,142 4,210 8,385 Deferred income taxes on gains/losses on forward exchange contracts 314 356 155 418
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222 Other 3,384 4,137 Change in fair value of cash contingent consideration (716) Other comprehensive loss (5,434) (6,831) (3,752) (6,426)
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386) Income taxes and tax credits recoverable 2,985 4,790 Interest and other (income) expense 698 (439) 198 870
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100 Inventories 37,859 38,589 Foreign exchange (gain) loss (146) 55 (160) (1,386) Comprehensive loss for the period (5,413) (9,084) (9,722) (14,729)
Other selected information: Prepaid expenses 5,492 5,291 Share in net loss of an associate 2,080
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5% Other assets 2,945 2,279 Gain on the deemed disposal of the investment in an associate (2,080) Comprehensive loss for the period attributable to non-controlling interest (352)
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385 120,855 117,399 Earnings (loss) before income taxes 3,406 2,333 (4,607) (2,879)
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280 Comprehensive loss for the period attributable to parent interest $ (5,413) $ (9,084) $ (9,722) $ (14,377)
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒    Tax credits recoverable 46,271 47,677 Income taxes 3,385 4,586 1,363 5,424
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716) Property, plant and equipment 40,509 44,310
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222 Intangible assets 22,875 29,866 Net earnings (loss) for the period 21 (2,253) (5,970) (8,303)
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704) Goodwill 38,517 39,892 Net loss for the period attributable to non-controlling interest (352)
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386) Deferred income tax assets 5,229 4,714
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100 Other assets 911 686 Net earnings (loss) for the period attributable to parent interest $ 21 $ (2,253) $ (5,970) $ (7,951)
$ 275,167 $ 284,544
Liabilities Basic and diluted net earnings (loss) attributable to parent interest per share $ 0.00 $ (0.04) $ (0.11) $ (0.14)
Current liabilities Basic weighted average number of shares outstanding (000's) 55,392 55,306 55,099 54,959
Bank loan $ 5,000 $ 10,692
Accounts payable and accrued liabilities 48,903 47,898 Diluted weighted average number of shares outstanding (000's) 56,437 55,306 55,099 54,959
Provisions 1,181 2,954
Income taxes payable 1,040 873
Deferred revenue 24,943 16,556
Other liabilities 1,624 3,197
Current portion of long-term debt 2,579 2,921
85,270 85,091
Provisions 2,830 2,347
Deferred revenue 9,086 6,947
Long-term debt 3,876 5,907
Deferred income tax liabilities 3,638 5,910
Other liabilities 625 421
105,325 106,623
Shareholders' equity
Share capital 92,889 91,937
Contributed surplus 18,734 18,428
Retained earnings 112,400 114,906
Accumulated other comprehensive loss (54,181) (47,350)
169,842 177,921
$ 275,167 $ 284,544

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA EXFO Inc. EXFO Inc. EXFO Inc. EXFO Inc.
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018 (1) Includes acquisition-related costs of US$2.1 million for the nine months ended May 31, 2018 (nil in fiscal 2019). Condensed Unaudited Interim Consolidated Balance Sheets Condensed Unaudited Interim Consolidated Statements of Earnings (1) The cost of sales is exclusive of depreciation and amortization, shown separately. Condensed Unaudited Interim Consolidated Statements of Comprehensive Loss Condensed Unaudited Interim Consolidated Statements of Changes in Shareholders' Equity
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951) (in thousands of US dollars) (in thousands of US dollars, except share and per share data) (in thousands of US dollars) (in thousands of US dollars)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct): As at May 31, 2019 As at August 31, 2018 Three monthsendedMay 31, 2019 Nine monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2018 Three months ended May 31, 2019 Nine months ended May 31, 2019 Three months ended May 31, 2018 Nine months ended May 31, 2018 Nine months ended May 31, 2018
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Share capital Contributedsurplus Retainedearnings Accumulatedothercomprehensiveloss Non-controlling interest Total shareholders' equity
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972 Assets Sales $ 73,587 $ 216,715 $ 72,217 $ 200,330 Net earnings (loss) for the period $ 21 $ (2,253) $ (5,970) $ (8,303)
Amortization of intangible assets 2,072 4,210 7,142 8,385 Other comprehensive income (loss), net of income taxes Balance as at September 1, 2017 $ 90,411 $ 18,184 $ 127,160 $ (38,965) $ $ 196,790
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870 Current assets Cost of sales (1) 30,458 88,417 28,963 77,578 Items that may be reclassified subsequently to net earnings Reclassification of stock-based compensation costs 1,499 (1,499)
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424 Cash $ 13,623 $ 12,758 Selling and administrative 23,761 75,610 25,957 74,066 Foreign currency translation adjustment (4,611) (6,160) (3,189) (5,033) Stock-based compensation costs 1,322 1,322
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280 Short-term investments 1,691 2,282 Net research and development 11,970 39,410 16,101 40,440 Unrealized gains/losses on forward exchange contracts (1,046) (1,237) (486) (971) Business combination (3,662) (3,662)
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒    Accounts receivable Depreciation of property, plant and equipment 1,368 4,187 1,555 3,972 Reclassification of realized gains/losses on forward exchange contracts in net earnings (91) 210 (232) (840) Acquisition of non-controlling interest (352) 4,014 3,662
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716) Trade 52,876 47,273 Amortization of intangible assets 2,072 7,142 4,210 8,385 Deferred income taxes on gains/losses on forward exchange contracts 314 356 155 418 Net loss for the period (7,951) (352) (8,303)
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222 Other 3,384 4,137 Change in fair value of cash contingent consideration (716) Other comprehensive loss (5,434) (6,831) (3,752) (6,426) Other comprehensive loss
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386) Income taxes and tax credits recoverable 2,985 4,790 Interest and other (income) expense 698 (439) 198 870 Foreign currency translation adjustment (5,033) (5,033)
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100 Inventories 37,859 38,589 Foreign exchange (gain) loss (146) 55 (160) (1,386) Comprehensive loss for the period (5,413) (9,084) (9,722) (14,729) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $418 (1,393) (1,393)
Other selected information: Prepaid expenses 5,492 5,291 Share in net loss of an associate 2,080
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5% Other assets 2,945 2,279 Gain on the deemed disposal of the investment in an associate (2,080) Comprehensive loss for the period attributable to non-controlling interest (352) Comprehensive loss for the period (14,729)
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385 120,855 117,399 Earnings (loss) before income taxes 3,406 2,333 (4,607) (2,879)
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280 Comprehensive loss for the period attributable to parent interest $ (5,413) $ (9,084) $ (9,722) $ (14,377) Balance as at May 31, 2018 $ 91,910 $ 18,007 $ 118,857 $ (45,391) $ $ 183,383
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒    Tax credits recoverable 46,271 47,677 Income taxes 3,385 4,586 1,363 5,424
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716) Property, plant and equipment 40,509 44,310
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222 Intangible assets 22,875 29,866 Net earnings (loss) for the period 21 (2,253) (5,970) (8,303) Nine months ended May 31, 2019
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704) Goodwill 38,517 39,892 Net loss for the period attributable to non-controlling interest (352) Share capital Contributedsurplus Retainedearnings Accumulatedothercomprehensiveloss Total shareholders'equity
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386) Deferred income tax assets 5,229 4,714
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100 Other assets 911 686 Net earnings (loss) for the period attributable to parent interest $ 21 $ (2,253) $ (5,970) $ (7,951) Balance as at September 1, 2018 $ 91,937 $ 18,428 $ 114,906 $ (47,350) $ 177,921
$ 275,167 $ 284,544 Adoption of IFRS 9 (253) (253)
Liabilities Basic and diluted net earnings (loss) attributable to parent interest per share $ 0.00 $ (0.04) $ (0.11) $ (0.14) Adjusted balance as at September 1, 2018 91,937 18,428 114,653 (47,350) 177,668
Reclassification of stock-based compensation costs 1,078 (1,078)
Current liabilities Basic weighted average number of shares outstanding (000's) 55,392 55,306 55,099 54,959 Redemption of share capital (126) 21 (105)
Bank loan $ 5,000 $ 10,692 Stock-based compensation costs 1,363 1,363
Accounts payable and accrued liabilities 48,903 47,898 Diluted weighted average number of shares outstanding (000's) 56,437 55,306 55,099 54,959 Net loss for the period (2,253) (2,253)
Provisions 1,181 2,954 Other comprehensive loss
Income taxes payable 1,040 873 Foreign currency translation adjustment (6,160) (6,160)
Deferred revenue 24,943 16,556 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $356 (671) (671)
Other liabilities 1,624 3,197
Current portion of long-term debt 2,579 2,921 Total comprehensive loss for the period (9,084)
85,270 85,091
Balance as at May 31, 2019 $ 92,889 $ 18,734 $ 112,400 $ (54,181) $ 169,842
Provisions 2,830 2,347
Deferred revenue 9,086 6,947
Long-term debt 3,876 5,907
Deferred income tax liabilities 3,638 5,910
Other liabilities 625 421
105,325 106,623
Shareholders' equity
Share capital 92,889 91,937
Contributed surplus 18,734 18,428
Retained earnings 112,400 114,906
Accumulated other comprehensive loss (54,181) (47,350)
169,842 177,921
$ 275,167 $ 284,544

 

 

1 Represents net loss excluding share of the net loss attributable to Astellia's minority shareholders. Selected Financial Information Adjusted EBITDA EXFO Inc. EXFO Inc. EXFO Inc. EXFO Inc. EXFO Inc.
(In thousands of US dollars) Three monthsended May 31, 2019 Three monthsended May 31, 2018 Nine monthsended May 31, 2019 Nine monthsended May 31, 2018 (1) Includes acquisition-related costs of US$2.1 million for the nine months ended May 31, 2018 (nil in fiscal 2019). Condensed Unaudited Interim Consolidated Balance Sheets Condensed Unaudited Interim Consolidated Statements of Earnings (1) The cost of sales is exclusive of depreciation and amortization, shown separately. Condensed Unaudited Interim Consolidated Statements of Comprehensive Loss Condensed Unaudited Interim Consolidated Statements of Changes in Shareholders' Equity Condensed Unaudited Interim Consolidated Statements of Cash Flows
Three monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2019 Nine monthsendedMay 31, 2018
IFRS net earnings (loss) attributable to the parent interest for the period $ 21 $ (5,970) $ (2,253) $ (7,951) (in thousands of US dollars) (in thousands of US dollars, except share and per share data) (in thousands of US dollars) (in thousands of US dollars) (in thousands of US dollars)
Test and Measurement sales $ 54,359 $ 49,864 $ 154,530 $ 149,934
Service Assurance, Systems and Services sales 19,469 22,174 62,586 49,599 Add (deduct): As at May 31, 2019 As at August 31, 2018 Three monthsendedMay 31, 2019 Nine monthsendedMay 31, 2019 Three monthsendedMay 31, 2018 Nine monthsendedMay 31, 2018 Three months ended May 31, 2019 Nine months ended May 31, 2019 Three months ended May 31, 2018 Nine months ended May 31, 2018 Nine months ended May 31, 2018 Three months ended May 31, 2019 Nine months ended May 31, 2019 Three months ended May 31, 2018 Nine months ended May 31, 2018
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Share capital Contributedsurplus Retainedearnings Accumulatedothercomprehensiveloss Non-controlling interest Total shareholders' equity
Total sales $ 73,587 $ 72,217 $ 216,715 $ 200,330 Depreciation of property, plant and equipment 1,368 1,555 4,187 3,972 Assets Sales $ 73,587 $ 216,715 $ 72,217 $ 200,330 Net earnings (loss) for the period $ 21 $ (2,253) $ (5,970) $ (8,303) Cash flows from operating activities
Amortization of intangible assets 2,072 4,210 7,142 8,385 Other comprehensive income (loss), net of income taxes Balance as at September 1, 2017 $ 90,411 $ 18,184 $ 127,160 $ (38,965) $ $ 196,790 Net earnings (loss) for the period $ 21 $ (2,253) $ (5,970) $ (8,303)
Test and Measurement bookings $ 50,157 $ 52,111 $ 159,473 $ 152,351 Interest and other (income) expense 698 198 (439) 870 Current assets Cost of sales (1) 30,458 88,417 28,963 77,578 Items that may be reclassified subsequently to net earnings Reclassification of stock-based compensation costs 1,499 (1,499) Add (deduct) items not affecting cash
Service Assurance, Systems and Services bookings 19,648 20,800 67,822 51,407 Income taxes 3,385 1,363 4,586 5,424 Cash $ 13,623 $ 12,758 Selling and administrative 23,761 75,610 25,957 74,066 Foreign currency translation adjustment (4,611) (6,160) (3,189) (5,033) Stock-based compensation costs 1,322 1,322 Stock-based compensation costs 475 1,354 440 1,280
Foreign exchange gains (losses) on forward exchange contracts (241) 179 (401) 797 Stock-based compensation costs 475 440 1,354 1,280 Short-term investments 1,691 2,282 Net research and development 11,970 39,410 16,101 40,440 Unrealized gains/losses on forward exchange contracts (1,046) (1,237) (486) (971) Business combination (3,662) (3,662) Depreciation and amortization 3,440 11,329 5,765 12,357
Total bookings $ 69,564 $ 73,090 $ 226,894 $ 204,555 Restructuring charges (reversals) (13)                  ‒    3,305                  ‒    Accounts receivable Depreciation of property, plant and equipment 1,368 4,187 1,555 3,972 Reclassification of realized gains/losses on forward exchange contracts in net earnings (91) 210 (232) (840) Acquisition of non-controlling interest (352) 4,014 3,662 Gain on disposal of capital assets (1,732)
Book-to-bill ratio (bookings/sales) 0.95 1.01 1.05 1.02 Change in fair value of cash contingent consideration                  ‒                     ‒                     ‒    (716) Trade 52,876 47,273 Amortization of intangible assets 2,072 7,142 4,210 8,385 Deferred income taxes on gains/losses on forward exchange contracts 314 356 155 418 Net loss for the period (7,951) (352) (8,303) Write-off of capital assets 261 77 325
Gross margin before depreciation and amortization* $ 43,129 $ 43,254 $ 128,298 $ 122,752 Acquisition-related deferred revenue fair value adjustment                  ‒    913 1,435 1,222 Other 3,384 4,137 Change in fair value of cash contingent consideration (716) Other comprehensive loss (5,434) (6,831) (3,752) (6,426) Other comprehensive loss Change in fair value of cash contingent consideration (716)
58.6% 59.9% 59.2% 61.3% Foreign exchange (gain) loss (146) (160) 55 (1,386) Income taxes and tax credits recoverable 2,985 4,790 Interest and other (income) expense 698 (439) 198 870 Foreign currency translation adjustment (5,033) (5,033) Deferred revenue 1,676 11,619 (552) 1,682
Adjusted EBITDA for the period (1) $ 7,860 $ 2,549 $ 19,372 $ 11,100 Inventories 37,859 38,589 Foreign exchange (gain) loss (146) 55 (160) (1,386) Comprehensive loss for the period (5,413) (9,084) (9,722) (14,729) Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $418 (1,393) (1,393) Deferred income taxes (142) (2,295) 389 2,533
Other selected information: Prepaid expenses 5,492 5,291 Share in net loss of an associate 2,080 Share in net loss of an associate 2,080
IFRS net earnings (loss) attributable to the parent interest $ 21 $ (5,970) $ (2,253) $ (7,951) Adjusted EBITDA as a percentage of sales 10.7% 3.5% 8.9% 5.5% Other assets 2,945 2,279 Gain on the deemed disposal of the investment in an associate (2,080) Comprehensive loss for the period attributable to non-controlling interest (352) Comprehensive loss for the period (14,729) Gain on deemed disposal of the investment in an associate (2,080)
Amortization of intangible assets $ 2,072 $ 4,210 $ 7,142 $ 8,385 120,855 117,399 Earnings (loss) before income taxes 3,406 2,333 (4,607) (2,879) Changes in foreign exchange gain/loss 143 (310) (603) (239)
Stock-based compensation costs $ 475 $ 440 $ 1,354 $ 1,280 Comprehensive loss for the period attributable to parent interest $ (5,413) $ (9,084) $ (9,722) $ (14,377) Balance as at May 31, 2018 $ 91,910 $ 18,007 $ 118,857 $ (45,391) $ $ 183,383 5,613 17,973 (454) 8,919
Restructuring charges (reversals) $ (13) $  ‒    $ 3,305 $ ‒    Tax credits recoverable 46,271 47,677 Income taxes 3,385 4,586 1,363 5,424 Changes in non-cash operating items
Change in fair value of cash contingent consideration $ ‒    $ ‒    $ ‒    $ (716) Property, plant and equipment 40,509 44,310 Accounts receivable (12,857) (7,038) 2,353 7,693
Acquisition-related deferred revenue fair value adjustment $ ‒    $ 913 $ 1,435 $ 1,222 Intangible assets 22,875 29,866 Net earnings (loss) for the period 21 (2,253) (5,970) (8,303) Nine months ended May 31, 2019 Income taxes and tax credits 1,596 1,629 172 (2,787)
Net income tax effect of the above items $ (344) $ (138) $ (1,115) $ (704) Goodwill 38,517 39,892 Net loss for the period attributable to non-controlling interest (352) Share capital Contributedsurplus Retainedearnings Accumulatedothercomprehensiveloss Total shareholders'equity Inventories (306) (668) 1,162 (12)
Foreign exchange (gain) loss $ (146) $ (160) $ 55 $ (1,386) Deferred income tax assets 5,229 4,714 Prepaid expenses (585) (380) 16 205
Adjusted EBITDA* $ 7,860 $ 2,549 $ 19,372 $ 11,100 Other assets 911 686 Net earnings (loss) for the period attributable to parent interest $ 21 $ (2,253) $ (5,970) $ (7,951) Balance as at September 1, 2018 $ 91,937 $ 18,428 $ 114,906 $ (47,350) $ 177,921 Other assets (664) (1,003) (245) (769)
$ 275,167 $ 284,544 Adoption of IFRS 9 (253) (253) Accounts payable, accrued liabilities and provisions 1,995 2,013 1,821 5
Liabilities Basic and diluted net earnings (loss) attributable to parent interest per share $ 0.00 $ (0.04) $ (0.11) $ (0.14) Adjusted balance as at September 1, 2018 91,937 18,428 114,653 (47,350) 177,668 Other liabilities (6) (1,527) (109) 101
Reclassification of stock-based compensation costs 1,078 (1,078) (5,214) 10,999 4,716 13,355
Current liabilities Basic weighted average number of shares outstanding (000's) 55,392 55,306 55,099 54,959 Redemption of share capital (126) 21 (105) Cash flows from investing activities
Bank loan $ 5,000 $ 10,692 Stock-based compensation costs 1,363 1,363 Additions to short-term investments (286) (578) (482)
Accounts payable and accrued liabilities 48,903 47,898 Diluted weighted average number of shares outstanding (000's) 56,437 55,306 55,099 54,959 Net loss for the period (2,253) (2,253) Proceeds from disposal of short-term investments 826 1,168 234
Provisions 1,181 2,954 Other comprehensive loss Purchases of capital assets (1,639) (6,318) (3,431) (7,680)
Income taxes payable 1,040 873 Foreign currency translation adjustment (6,160) (6,160) Proceeds from disposal of capital assets 3,318
Deferred revenue 24,943 16,556 Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $356 (671) (671) Investment in an associate (12,530)
Other liabilities 1,624 3,197 Business combinations, net of cash acquired (19,120)
Current portion of long-term debt 2,579 2,921 Total comprehensive loss for the period (9,084) (1,099) (2,410) (3,431) (39,578)
85,270 85,091 Cash flows from financing activities
Balance as at May 31, 2019 $ 92,889 $ 18,734 $ 112,400 $ (54,181) $ 169,842 Bank loan (3,808) (5,052) 9,184 11,250
Provisions 2,830 2,347 Repayment of long-term debt (713) (2,165) (757) (1,027)
Deferred revenue 9,086 6,947 Redemption of share capital (105)
Long-term debt 3,876 5,907 Acquisition of non-controlling interest (3,657) (3,657)
Deferred income tax liabilities 3,638 5,910 (4,521) (7,322) 4,770 6,566
Other liabilities 625 421 Effect of foreign exchange rate changes on cash (306) (402) (119) (289)
105,325 106,623
Change in cash during the period (11,140) 865 5,936 (19,946)
Shareholders' equity Cash – Beginning of the period 24,763 12,758 12,553 38,435
Share capital 92,889 91,937 Cash – End of the period $ 13,623 $ 13,623 $ 18,489 $ 18,489
Contributed surplus 18,734 18,428
Retained earnings 112,400 114,906
Accumulated other comprehensive loss (54,181) (47,350)
169,842 177,921
$ 275,167 $ 284,544

 

EXFO-F

 

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