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EXFO reports second quarter results for fiscal 2019

Apr 02, 2019
  • Sales increased 14.2% to US$73.9 million, high end of guidance range
  • Bookings improved 16.0% to US$76.1 million, book-to-bill ratio of 1.03
  • IFRS net earnings reached US$5.2 million, US$0.09 per share
  • Adjusted EBITDA totaled US$8.8 million, 11.9% of sales
  • Cash flows from operations surged to US$18.7 million

QUEBEC CITY, April 2, 2019 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO) (TSX: EXF), the communications industry's test, monitoring and analytics experts, reported today financial results for the second quarter ended February 28, 2019.

IFRS sales increased 14.2% to US$73.9 million in the second quarter of fiscal 2019 from US$64.7 million in the second quarter of 2018. Second-quarter sales for 2019 included a US$7.5 million revenue contribution from Astellia, which was reduced by US$0.6 million to account for acquisition-related fair value adjustment of deferred revenue. In comparison, Astellia had generated US$1.8 million in revenue for one month in the second quarter 2018.

Bookings, which included a US$10.3 million contribution from Astellia, improved 16.0% year-over-year to US$76.1 million in the second quarter of fiscal 2019 from US$65.6 million in the same period of 2018. In comparison, Astellia had delivered US$2.5 million in bookings for one month in the second quarter 2018. EXFO's book-to-bill ratio was 1.03 in the second quarter of 2019.

Gross margin before depreciation and amortization* amounted to 60.7% of sales in the second quarter of fiscal 2019 compared to 60.9% in the second quarter of 2018.

IFRS net earnings in the second quarter of fiscal 2019 totaled US$5.2 million, or US$0.09 per share, compared to a net loss attributable to the parent interest1 of US$4.7 million, or US$0.08 per share, in the second quarter of 2018. IFRS net earnings in the second quarter of 2019 included net expenses totaling US$3.9 million: US$1.9 million in after-tax amortization of intangible assets, US$0.5 million in stock-based compensation costs, US$0.5 million in after-tax restructuring charges, US$0.6 million for acquisition-related fair value adjustment of deferred revenue, and a foreign exchange loss of US$0.4 million.

These net expenses were offset by the sale of a building under EXFO's restructuring plan that generated a gain of US$1.7 million in the second quarter of 2019. The company also benefited from a deferred income tax recovery of US$2.4 million in the second quarter of 2019.

Adjusted EBITDA* totaled US$8.8 million, or 11.9% of sales, in the second quarter of fiscal 2019 compared to US$2.5 million, or 3.9% of sales, in the second quarter of 2018.

"EXFO delivered outstanding second quarter results with strong revenue and bookings growth, profitability and cash flow generation—all encouraging signs for our T&M and SASS product families and the leverage in our operating model," said EXFO's CEO Philippe Morin. "Our unique value propositions resonated very well with industry executives at Mobile World Congress and Optical Fiber Conference, as our solutions enable fiber buildouts deep into the network edge, 5G wireless deployments and network virtualization. Clearly, EXFO is on track with its profitable growth strategy amid a rapidly transforming industry."

 

Selected Financial Information

(In thousands of US dollars)

 

Q2 2019

 

Q2 2018

   

H1 2019

   

H1 2018

                       

Test and Measurement sales

$

50,407

 

$

49,884

 

$

100,171

 

$

100,070

Service Assurance, Systems and Services sales

 

23,701

   

14,457

   

43,117

   

27,425

Foreign exchange gains (losses) on forward exchange contracts

 

(181)

   

381

   

(160)

   

618

Total sales

$

73,927

 

$

64,722

 

$

143,128

 

$

128,113

                       

Test and Measurement bookings

$

45,320

 

$

47,386

 

$

109,316

 

$

100,240

Service Assurance, Systems and Services bookings

 

30,953

   

17,819

   

48,174

   

30,607

Foreign exchange gains (losses) on forward exchange contracts

 

(181)

   

381

   

(160)

   

618

Total bookings

$

76,092

 

$

65,586

 

$

157,330

 

$

131,465

Book-to-bill ratio (bookings/sales)

 

1.03

   

1.01

   

1.10

   

1.03

Gross margin before depreciation and amortization*

$

44,865

 

$

39,396

 

$

85,169

 

$

79,498

   

60.7%

   

60.9%

   

59.5%

   

62.1%

                       

Other selected information:

                     

IFRS net earnings (loss) attributable to the parent interest

$

5,193

 

$

(4,660)

 

$

(2,274)

 

$

(1,981)

Amortization of intangible assets

$

2,130

 

$

3,056

 

$

5,070

 

$

4,175

Stock-based compensation costs

$

461

 

$

438

 

$

879

 

$

840

Restructuring charges

$

577

 

$

-

 

$

3,318

 

$

-

Change in fair value of cash contingent consideration

$

-

 

$

(561)

 

$

-

 

$

(716)

Acquisition-related deferred revenue fair value adjustment

$

571

 

$

309

 

$

1,435

 

$

309

Income tax expense for US tax reform

$

-

 

$

1,528

 

$

-

 

$

1,528

Gain on disposal of capital assets

$

(1,732)

 

$

-

 

$

(1,732)

 

$

-

Deferred income tax recovery

$

(2,383)

 

$

-

 

$

(2,383)

 

$

-

Net income tax effect of the above items

$

(348)

 

$

(394)

 

$

(771)

 

$

(566)

Foreign exchange (gain) loss

$

416

 

$

(8)

 

$

201

 

$

(1,226)

Adjusted EBITDA*

$

8,784

 

$

2,492

 

$

11,512

 

$

8,551

 

Operating Expenses
Selling and administrative expenses reached US$25.5 million, or 34.4% of sales in the second quarter of fiscal 2019 compared to US$24.9 million, or 38.5% of sales, in the same period last year.

Net R&D expenses attained US$12.2 million, or 16.5% of sales, in the second quarter of fiscal 2019 compared to US$13.1 million, or 20.2% of sales, in the second quarter of 2018.

Second-Quarter Highlights

  • Growth. Sales increased 14.2% year-over-year mainly due to a full-quarter contribution from the Astellia acquisition, compared to one month for the same period in 2018, and revenue recognition of a US$4.9 million order for EXFO's real-time network topology software. Test and measurement sales accounted for 68% of total revenue in the second quarter of 2019, while SASS sales totaled 32%. Revenue breakdown among the three main selling regions amounted to 50% in the Americas, 34% in Europe, Middle East and Africa (EMEA) and 16% in Asia-Pacific. EXFO's top customer accounted for 14.9% of sales, while the top three represented 24.7%.
  • Profitability. IFRS net earnings totaled US$5.2 million in the second quarter of 2019, while adjusted EBITDA amounted to US$8.8 million, or 11.9% of sales. The company also generated US$18.7 million in cash flows from operations in the second quarter.
  • Innovation.EXFO showcased its new product introductions at Mobile World Congress (MWC) and Optical Fiber Conference (OFC), high-profile tradeshows held during and after the quarter-end. At MWC, EXFO provided an overview of its highly differentiated service assurance and analytics platform, including automated assurance, diagnostics and troubleshooting of 5G networks. At OFC, EXFO demonstrated the breadth and depth of its market-leading optical test offering, including its recently released Open Transceiver System for 400G testing, to allow for successful, high-speed network transformations. The company also presented its latest field test automation, cloud reporting and remote testing capabilities.

    On the recognition front, EXFO received Frost & Sullivan's 2018 Customer Value Leadership Award for Global Data Analytics Solutions. This fifth award for EXFO's Service Assurance, Systems and Services (SASS) portfolio during the past year recognizes the company's ability to optimize subscriber experience and maximize benefits for communications service providers at every level of these organizations, from engineering to customer care.

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

Business Outlook
EXFO forecasts IFRS sales between US$70.0 million and US$75.0 million for the third quarter of fiscal 2019. IFRS net loss is expected to range between US$0.04 and US$0.00 per share in the third quarter of 2019. IFRS net loss includes US$0.05 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 Webcast
EXFO will host a conference call today at 5 p.m. (Eastern time) to review second 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: 8906152. 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 April 9, 2019. The replay number is 1-719-457-0820 and the required participant passcode is 8906152. 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 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. For more information, visit EXFO.com and follow us on the EXFO Blog.

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 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 Measures
EXFO 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 represent 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:

 

Adjusted EBITDA

 

   Q2 2019

 

   Q2 2018

 

H1 2019

 

H1 2018

               

IFRS net earnings (loss) attributable to the parent interest for the period

$

5,193

 

$

(4,660)

 

$

(2,274)

 

$

(1,981)

               

Add (deduct):

             
               

Depreciation of property, plant and equipment

1,390

 

1,263

 

2,819

 

2,417

Amortization of intangible assets

2,130

 

3,056

 

5,070

 

4,175

Interest and other (income) expense

(1,514)

 

334

 

(1,137)

 

672

Income taxes

(440)

 

2,321

 

1,201

 

4,061

Stock-based compensation costs

461

 

438

 

879

 

840

Restructuring charges

577

 

-

 

3,318

 

-

Change in fair value of cash contingent consideration

-

 

(561)

 

-

 

(716)

Acquisition-related deferred revenue fair value adjustment

571

 

309

 

1,435

 

309

Foreign exchange (gain) loss

416

 

(8)

 

201

 

(1,226)

Adjusted EBITDA for the period (1)

$

8,784

 

$

2,492

 

$

11,512

 

$

8,551

               

Adjusted EBITDA in percentage of sales

11.9%

 

3.9%

 

8.0%

 

6.7%

 

(1) Includes acquisition-related costs of US$1.4 million and US$2.1 million for the three months and six months ended February 28, 2018 (nil in fiscal 2019)

 

EXFO Inc.

Condensed Unaudited Interim Consolidated Balance Sheets

             

(in thousands of US dollars)

 
             
     

As at

February 28,

2019

   

As at

August 31,

2018

             

Assets

           
             

Current assets

           

Cash

 

$

24,763

 

$

12,758

Short-term investments

   

2,238

   

2,282

Accounts receivable

           

Trade

   

41,227

   

47,273

Other

   

3,490

   

4,137

Income taxes and tax credits recoverable

   

5,124

   

4,790

Inventories

   

38,598

   

38,589

Prepaid expenses

   

5,049

   

5,291

Other assets

   

2,583

   

2,279

     

123,072

   

117,399

             

Tax credits recoverable

   

46,727

   

47,677

Property, plant and equipment

   

42,036

   

44,310

Intangible assets

   

24,904

   

29,866

Goodwill

   

39,707

   

39,892

Deferred income tax assets

   

5,708

   

4,714

Other assets

   

828

   

686

   

$

282,982

 

$

284,544

Liabilities

           
             

Current liabilities

           

Bank loan

 

$

9,001

 

$

10,692

Accounts payable and accrued liabilities

   

47,560

   

47,898

Provisions

   

1,314

   

2,954

Income taxes payable

   

687

   

873

Deferred revenue

   

23,914

   

16,556

Other liabilities

   

1,656

   

3,197

Current portion of long-term debt

   

2,724

   

2,921

     

86,856

   

85,091

             

Provisions

   

2,517

   

2,347

Deferred revenue

   

9,345

   

6,947

Long-term debt

   

4,578

   

5,907

Deferred income tax liabilities

   

4,572

   

5,910

Other liabilities

   

327

   

421

     

108,195

   

106,623

             

Shareholders' equity

           

Share capital

   

92,878

   

91,937

Contributed surplus

   

18,277

   

18,428

Retained earnings

   

112,379

   

114,906

Accumulated other comprehensive loss

   

(48,747)

   

(47,350)

     

174,787

   

177,921

             
   

$

282,982

 

$

284,544

 

 

EXFO Inc.

Condensed Unaudited Interim Consolidated Statements of Earnings

                         

(in thousands of US dollars, except share and per share data)

 
                         
     

Three months

ended

February 28,

2019

   

Six months

ended

February 28,

2019

   

Three months

ended

February 28,

2018

   

Six months

ended

February 28,

2018

                         

Sales

 

$

73,927

 

$

143,128

 

$

64,722

 

$

128,113

                         

Cost of sales (1)

   

29,062

   

57,959

   

25,326

   

48,615

Selling and administrative

   

25,474

   

51,849

   

24,916

   

48,109

Net research and development

   

12,216

   

27,440

   

13,087

   

24,339

Depreciation of property, plant and equipment

   

1,390

   

2,819

   

1,263

   

2,417

Amortization of intangible assets

   

2,130

   

5,070

   

3,056

   

4,175

Change in fair value of cash contingent consideration

   

   

   

(561)

   

(716)

Interest and other (income) expense

   

(1,514)

   

(1,137)

   

334

   

672

Foreign exchange (gain) loss

   

416

   

201

   

(8)

   

(1,226)

Share in net loss of an associate

   

   

   

2,080

   

2,080

Gain on the deemed disposal of the investment in an associate

   

   

   

(2,080)

   

(2,080)

Earnings (loss) before income taxes

   

4,753

   

(1,073)

   

(2,691)

   

1,728

                         

Income taxes

   

(440)

   

1,201

   

2,321

   

4,061

                         

Net earnings (loss) for the period

   

5,193

   

(2,274)

   

(5,012)

   

(2,333)

Net loss for the period attributable to non-controlling interest

   

   

   

(352)

   

(352)

                         

Net earnings (loss) for the period attributable to parent interest

 

$

5,193

 

$

(2,274)

 

$

(4,660)

 

$

(1,981)

                         

Basic and diluted net earnings (loss) attributable to parent interest per share

 

$

0.09

 

$

(0.04)

 

$

(0.08)

 

$

(0.04)

                         

Basic weighted average number of shares outstanding (000's)

   

55,343

   

55,263

   

54,975

   

54,890

                         

Diluted weighted average number of shares outstanding (000's)

   

56,160

   

55,263

   

54,975

   

54,890

                         
   

(1)

The cost of sales is exclusive of depreciation and amortization, shown separately.

 

EXFO Inc.

Condensed Unaudited Interim Consolidated Statements of Comprehensive Income (Loss)

 

(in thousands of US dollars)

                         
                         
     

Three months

ended

February 28,

2019

   

Six months

ended

February 28,

2019

   

Three months

ended

February 28,

2018

   

Six months

ended

February 28,

2018

                         

Net earnings (loss) for the period

 

$

5,193

 

$

(2,274)

 

$

(5,012)

 

$

(2,333)

Other comprehensive income (loss), net of income taxes

                       

Items that may be reclassified subsequently to net earnings

                       

Foreign currency translation adjustment

   

1,807

   

(1,549)

   

2,286

   

(1,844)

Unrealized gains/losses on forward exchange contracts

   

496

   

(191)

   

39

   

(485)

Reclassification of realized gains/losses on forward exchange contracts in net earnings

   

210

   

301

   

(225)

   

(608)

Deferred income taxes on gains/losses on forward exchange contracts

   

(167)

   

42

   

48

   

263

Other comprehensive income (loss)

   

2,346

   

(1,397)

   

2,148

   

(2,674)

                         

Comprehensive income (loss) for the period

   

7,539

   

(3,671)

   

(2,864)

   

(5,007)

                         

Comprehensive loss for the period attributable to non-controlling interest

   

   

   

(352)

   

(352)

                         

Comprehensive income (loss) for the period attributable to parent interest

 

$

7,539

 

$

(3,671)

 

$

(2,512)

 

$

(4,655)

 

 

 

EXFO Inc.

Condensed Unaudited Interim Consolidated Statements of Changes in Shareholders' Equity

     

(in thousands of US dollars)

     
   

Six months ended February 28, 2018

     

Share

capital

   

Contributed surplus

   

Retained earnings

   

Accumulated other comprehensive loss

   

Non-controlling interest

   

Total

shareholders' equity

                                     

Balance as at September 1, 2017

 

$

90,411

 

$

18,184

 

$

127,160

 

$

(38,965)

 

$

 

$

196,790

Reclassification of stock-based compensation costs

   

1,273

   

(1,273)

   

   

   

   

                   ‒

Stock-based compensation costs

   

   

856

   

   

   

   

856

Business combination

   

   

   

   

 ‒

   

(3,662)

   

(3,662)

Acquisition of non-controlling interest

   

   

   

(352)

   

   

4,014

   

3,662

Net loss for the period

   

   

   

(1,981)

   

   

(352)

   

(2,333)

Other comprehensive loss

                                   

Foreign currency translation adjustment

   

   

   

   

(1,844)

   

   

(1,844)

Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $263

   

   

   

   

(830)

   

   

(830)

                                     

Comprehensive loss for the period

                                 

(5,007)

                                     

Balance as at February 28, 2018

 

$

91,684

 

$

17,767

 

$

124,827

 

$

(41,639)

 

$

 

$

192,639

 

 

   

Six months ended February 28, 2019

     

Share

capital

   

Contributed surplus

   

Retained earnings

   

Accumulated other comprehensive loss

   

Total

shareholders' equity

                               

Balance as at September 1, 2018

 

$

91,937

 

$

18,428

 

$

114,906

 

$

(47,350)

 

$

177,921

Adoption of IFRS 9

   

   

   

(253)

   

   

(253)

Adjusted balance as at September 1, 2018

   

91,937

   

18,428

   

114,653

   

(47,350)

   

177,668

Reclassification of stock-based compensation costs

   

1,067

   

(1,067)

   

   

   

Redemption of share capital

   

(126)

   

21

   

   

   

(105)

Stock-based compensation costs

   

   

895

   

   

   

895

Net loss for the period

   

   

   

(2,274)

   

   

(2,274)

Other comprehensive income (loss)

                             

Foreign currency translation adjustment

   

   

   

   

(1,549)

   

(1,549)

Changes in unrealized gains/losses on forward exchange contracts, net of deferred income taxes of $42

   

   

   

   

152

   

152

                               

Total comprehensive loss for the period

                           

(3,671)

                               

Balance as at February 28, 2019

 

$

92,878

 

$

18,277

 

$

112,379

 

$

(48,747)

 

$

174,787

 

 

EXFO Inc.

Condensed Unaudited Interim Consolidated Statements of Cash Flows

                         

(in thousands of US dollars)

 
                         
     

Three months

ended

February 28,

2019

   

Six months

ended

February 28,

2019

   

Three months

ended

February 28,

2018

   

Six months

ended

February 28,

2018

                         

Cash flows from operating activities

                       

Net earnings (loss) for the period

 

$

5,193

 

$

(2,274)

 

$

(5,012)

 

$

(2,333)

Add (deduct) items not affecting cash

                       

Stock-based compensation costs

   

461

   

879

   

438

   

840

Depreciation and amortization

   

3,520

   

7,889

   

4,319

   

6,592

Gain on disposal of capital assets

   

(1,732)

   

(1,732)

   

   

Write-off of capital assets

   

261

   

261

   

124

   

248

Change in fair value of cash contingent consideration

   

   

   

(561)

   

(716)

Deferred revenue

   

6,021

   

9,943

   

3,016

   

2,234

Deferred income taxes

   

(2,124)

   

(2,153)

   

2,384

   

2,144

Share in net loss of an associate

   

   

   

2,080

   

2,080

Gain on deemed disposal of the investment in an associate

   

   

   

(2,080)

   

(2,080)

Changes in foreign exchange gain/loss

   

76

   

(453)

   

611

   

364

     

11,676

   

12,360

   

5,319

   

9,373

Changes in non-cash operating items

                       

Accounts receivable

   

9,871

   

5,819

   

4,255

   

5,340

Income taxes and tax credits

   

1,031

   

33

   

(3,018)

   

(2,959)

Inventories

   

999

   

(362)

   

779

   

(1,174)

Prepaid expenses

   

22

   

205

   

(129)

   

189

Other assets

   

(327)

   

(339)

   

(528)

   

(524)

Accounts payable, accrued liabilities and provisions

   

(3,114)

   

18

   

(447)

   

(1,816)

Other liabilities

   

(1,470)

   

(1,521)

   

22

   

210

     

18,688

   

16,213

   

6,253

   

8,639

Cash flows from investing activities

                       

Additions to short-term investments

   

(292)

   

(292)

   

(248)

   

(482)

Proceeds from disposal of short-term investments

   

   

342

   

234

   

234

Purchases of capital assets

   

(1,797)

   

(4,679)

   

(2,258)

   

(4,249)

Proceeds from disposal of capital assets

   

3,318

   

3,318

   

   

Investment in an associate

   

   

   

(2,219)

   

(12,530)

Business combinations, net of cash acquired

   

   

   

(9,580)

   

(19,120)

     

1,229

   

(1,311)

   

(14,071)

   

(36,147)

Cash flows from financing activities

                       

Bank loan

   

(12,501)

   

(1,244)

   

2,064

   

2,066

Repayment of long-term debt

   

(735)

   

(1,452)

   

(200)

   

(270)

Redemption of share capital

   

(105)

   

(105)

   

   

     

(13,341)

   

(2,801)

   

1,864

   

1,796

Effect of foreign exchange rate changes on cash

   

100

   

(96)

   

56

   

(170)

                         

Change in cash during the period

   

6,676

   

12,005

   

(5,898)

   

(25,882)

Cash – Beginning of the period

   

18,087

   

12,758

   

18,451

   

38,435

Cash – End of the period

 

$

24,763

 

$

24,763

 

$

12,553

 

$

12,553

 

EXFO-F

 

Cision View original content:http://www.prnewswire.com/news-releases/exfo-reports-second-quarter-results-for-fiscal-2019-300823365.html

SOURCE EXFO Inc.

Vance Oliver, Director, Investor Relations, (418) 683-0913, Ext. 23733, vance.oliver@exfo.com