Exfo announced a restructuring of its business. The Canadian company will focus on testing, active service assurance, fiber monitoring and analytics solutions for fiber optic communication networks.
Exfo announced its intent to significantly reduce its investments in passive wireless monitoring solutions. These solutions represent less than 5% of its sales. This decision, with various market-related adjustments, will result in a reduction of approximately 5% of all staff.
Exfo employs 1,560 people in 25 countries and generated revenues of US $ 232.6 million for its fiscal year 2016.
The restructuring, which is expected to be completed in the fourth quarter of fiscal year 2017, is expected to generate an annual savings of US $ 8 million. The company will also incur one-time restructuring costs of US$ 4 million in the third quarter of 2017.
According to Philippe Morin, its Chief Executive Officer, who has held that position since April 1, 2017, Exfo recorded double-digit revenue growth in the first half of its 2017 financial year, but this range of monitoring solutions has “underperformed”. The purpose of this restructuring is to bolster profitability of the Canadian company.
