EXFO reports third quarter results for fiscal 2019
Created July 15, 2019
News and BusinessTest, monitoring and analytics systems provider Exfo has reported financial results for its third quarter, which ended May 31, 2019.
Sales increased 1.9% to US$73.6 million in Q3, 2019, from US$72.2 million in Q3, 2018. After nine months in fiscal 2019, sales improved by 8.2% year-on-year to US$216.7 million. Astellia contributed nine months to Exfo’s financial results in 2019 compared with four months for the same period in 2018.
However, forward bookings decreased 4.8% to US$69.6 million, giving 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.
Adjusted earnings before tax (EBITDA) totalled 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 Q3, 2018. After nine months in fiscal 2019, adjusted EBITDA surged 74.5% year-over-year to US$19.4 million.
Exfo CEO Philippe Morin commented, “I am pleased with our execution so far in 2019 with significant year-on-year increases in sales, bookings and adjusted earnings, including third quarter revenue above the midpoint of guidance and an adjusted earnings margin greater than 10% for a second consecutive quarter. This improved consistency reflects a strong performance against our growth strategy, leveraging fibre build outs, data centre interconnects as well as 5G deployments and network virtualisation, while maintaining a sound financial discipline. We are confident that we will at least achieve our adjusted earnings target of US$24 million for 2019.”
Q3 highlights
In its Q3 financial report, Exfo highlighted the following achievements: sales increased 1.9% year-over-year despite a negative currency impact. The company stated, “the increase in sales can be attributed to heightened demand for Exfo’s test and measurement portfolio, 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.
“Test and Measurement sales accounted for 74% of total revenue in Q3, 2019. 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. Exfo’s top customer accounted for 6.9% of sales, while the top three represented 16.9%.”
Exfo recently introduced a new category of fibre testing solutions with the launch of the industry’s first optical fibre multimeter, following the quarter-end. This revolutionary test instrument, branded Optical Xplorer (pictured), simplifies and accelerates the task of frontline technicians by automatically evaluating the quality of fibre links in seconds.
Looking ahead Exfo forecasts sales of between $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 amortisation of intangible assets and stock-based compensation costs.
For more information, visit www.exfo.com
