Optical components and test systems developer EXFO Inc., based in Quebec City, Canada, has reported its financial results for the third quarter ended May 31, 2016. Sales reached $60.9m (all figures US dollars) in Q3 2016 compared to $57.8m in Q3 2015 and $53.6m in Q2 2016. After three quarters into 2016, sales increased 2.6% year-over-year to $169.7m.
Bookings attained $59.7m in Q3 2016 for a book-to-bill ratio of 0.98 compared to $59.2m in the same period last year and $59.7m in Q2 2016. Bookings improved 5.8% year-over-year to $177.9m after three quarters into 2016 for a book-to-bill ratio of 1.05 for this period.
Gross margin before depreciation and amortization amounted to 60.8% of sales in Q3 2016 compared to 61.4% in Q3 2015 and 64.7% in Q2 2016. After three quarters into 2016, gross margin reached 62.9% compared to 61.9% for the same period in 2015.
IFRS net earnings in Q3 2016 totalled $0.9m, or $0.02 per diluted share, compared $0.6m, or $0.01 per diluted share, in the same period last year and $4.0m, or $0.07 per diluted share, in Q2 2016. IFRS net earnings in Q3 2016 included $0.3m in after-tax amortization of intangible assets, $0.4m in stock-based compensation costs and a foreign exchange loss of $1.0m.
The company’s adjusted EBITDA totalled $5.3m, or 8.7% of sales, in Q3 2016 compared to $4.5m, or 7.7% of sales, in Q3 2015 and $5.3m, or 9.9% of sales, in Q2 2016. On a year-to-date basis, adjusted EBITDA totalled $15.9m, or 9.3% of sales, compared to $8.8m, or 5.3% of sales, for the same period in 2015.
EXFO’s cash and short-term investments amounted to $46.3m at the end of Q3 2016 compared to $29.9m at the end of Q3 2015 and $44.4m at the end of Q2 2016.
“I am quite pleased with the progress of our financial results after the first three quarters of 2016, including the solid performances of both our Physical and Protocol-layer product groups,” said Germain Lamonde, EXFO’s Chairman, President and CEO. “During the third quarter, our instruments business delivered strong bookings and revenues, while we experienced delays in closing some systems-based deals which, in turn, limited our overall top and bottom-line results.
“After nine months into fiscal 2016, we have increased adjusted EBITDA by 80% year-over-year and generated more EBITDA than the entire reporting period in 2015,” Lamonde added.
EXFO forecasts sales between $57.0m and $62.0m for Q4 fiscal 2016, while IFRS net results are expected to range between a loss of $0.01 per share and earnings of $0.03 per share. IFRS net loss/earnings include $0.01 per share in after-tax amortization of intangible assets and stock-based compensation costs as well as $0.01 per share for foreign exchange losses based on current exchange rates.
By Optical Connections News Team