Product category:
Stand-Alone Instruments
News Release from: Exfo Electro-Optical Engineering
Edited by the Electronicstalk Editorial
Team on 12 January 2006
EXFO clocks up ninth consecutive quarter
of growth
EXFO Electro-Optical Engineering has reported sales growth for a ninth consecutive quarter.
EXFO Electro-Optical Engineering has reported sales growth for a ninth consecutive quarter Sales increased 25.2% to US $27.0 million in the first quarter ended November 30, 2005, from US $21.6 million in the first quarter of 2005 and 2.8% from US $26.3 million in the fourth quarter of 2005
This article was originally published on Electronicstalk on 14 Dec 2007 at 8.00am (UK)
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Net bookings improved 30.9% to US $30.6 million for a book-to-bill ratio of 1.13 in the first quarter of fiscal 2006 from US $23.3 million in the same period last year and 24.1% from US $24.6 million in the fourth quarter of 2005.
Gross margin progressed to 55.4% of sales in the first quarter of fiscal 2006 from 52.7% in the first quarter of 2005 and 54.7% in the fourth quarter of 2005.
GAAP net earnings in the first quarter of fiscal 2006 totalled US $355,000, or US $0.01 per diluted share, compared with a net loss of US $2.4 million, or US $ 0.03 per diluted share, in the same period last year and net earnings of US $454,000, or US $0.01 per diluted share, in the fourth quarter of 2005.
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GAAP net earnings in the first quarter of fiscal 2006 included US $1.2 million in amortisation of intangible assets and US $274,000 in stock-based compensation costs.
Subsequent to the quarter-end, EXFO announced that it is acquiring substantially all the assets of Consultronics in an all-cash transaction valued at C $22.8 million (US $19.8 million), including debt assumption and other acquisition-related costs.
Consultronics, a privately held company based in Toronto with operations in the UK and Hungary, is a leading vendor of xDSL, IPTV and VoIP test solutions for the broadband access market.
The transaction, which is slated to close before mid-March, is expected to be neutral for the remainder of fiscal 2006 and accretive in fiscal 2007, taking into account approximately US $2.0 million per year in additional amortisation of intangible assets.
"With nine consecutive quarters of sales growth and four consecutive quarters of GAAP profitability, I am excited about EXFO's growth prospects in key market segments as reflected by our strong sales, bookings and earnings numbers", said Germain Lamonde, EXFO's Chairman, President and CEO.
"The announced acquisition of Consultronics, as well as the launch of our modular FTB-200 compact platform and AXS-100 OTDR for access networks, should enable us to build on this momentum by significantly strengthening our product and technology offering in the fast-growing broadband access and triple-play test markets".
"Combined with our leading position in optical access testing, long-standing relationships with several network operators worldwide, and very strong innovation pipeline, I am optimistic that EXFO will continue gaining market approval from customers and ultimately create value for shareholders".
Selling and administrative expenses amounted to US $9.1 million, or 33.5% of sales, in the first quarter of fiscal 2006 compared with US $7.4 million, or 34.3% of sales, in the same period last year and US $8.1 million, or 30.7% of sales, in the fourth quarter of 2005.
Gross research and development expenses totalled US $4.0 million, or 14.8% of sales, in the first quarter of fiscal 2006 compared with US $3.8 million, or 17.6% of sales, in the first quarter of 2005 and US $4.1 million, or 15.8% of sales, in the fourth quarter of 2005.
Net R and D expenses totalled US $3.1 million, or 11.6% of sales, in the first quarter of fiscal 2006 compared with US $2.8 million, or 12.9% of sales, in the same period last year and US $3.3 million, or 12.5% of sales, in the fourth quarter of 2005.
"I am confident that our global sales channels will leverage Consultronics' rich product portfolio once the acquisition is closed, as well as our significant new product introductions, to increase our revenue streams", Lamonde said.
"As part of our growth strategy, this acquisition will be a key step in strongly positioning EXFO for the access and triple-play test markets".
"I look forward to welcoming Consultronics employees and continue delivering on our growth plan".
Although EXFO's second quarter is usually affected by seasonality, the company forecasts sales between US $26.0 million and US $29.0 million and GAAP net earnings (loss) between a net loss of US $0.01 per diluted share and net earnings of US $0.02 per diluted share for the second quarter ending 28th February 2006.
GAAP net earnings (loss) include US $0.02 per diluted share in amortisation of intangible assets and stock-based compensation costs.
The business outlook provided for the second quarter of fiscal 2006 excludes the Consultronics acquisition, as the transaction is expected to close by mid-March.
Key performance metrics set forth for fiscal 2006 will be updated at the end of the second quarter to reflect mid-year results and the impact of the Consultronics acquisition.
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