- Exfo announced its financial results for the fourth quarter of 2017 and its fiscal year 2017 ending August 31,2017.
- The sales of the Canadian company, which grew by 4.6% compared to 2016, reached $243 million (approximately €206 million).
- For the first quarter of the 2018 fiscal year, Exfo expects to achieve sales of US$60 million to US$65 million (approximately €51 million to €55 million).
Overview of Exfo’s results for the fourth quarter of 2017:
- Sales of US$63 million (approximately €53.4 million)
- Orders of US$66.3 million (approximately €56.2 million)
- Adjusted EBITDA (1) of US$8.5 million (approximately €7.2 million) or 13.6% of sales
Overview of Exfo’s results for the year 2017:
- Sales of US$243.3 million (approximately €206.4 million), up 4.6% from 2016
- Orders of US$251.8 million (approximately €213.6 million), up 4.8% from 2016
- Adjusted EBITDA of US$22.0 million (approximately €18.66 million), representing 9.1% of sales
Sales in the fourth quarter of fiscal 2017 reached US$63.0 million compared to US$58.5 million in the third quarter of 2017 and US$62.9 million in the fourth quarter of 2016. Annual sales increased 4.6% to US$243.3 million in fiscal 2017 from US$232.6 million in 2016.
Sales of Physical-layer solutions (optical and copper access) increased 6.6% year-over-year, while sales of Protocol-layer solutions (transport, datacom, service assurance, analytics and wireless products) dipped 1.7%.
Annual sales in the Americas as well as Europe, Middle East and Africa (EMEA) increased by 5.6% and 8.6%, respectively, while sales in the Asia-Pacific region dropped 2.9%.
Gross margin before depreciation and amortization (2) attained 61.9% of sales in the fourth quarter of fiscal 2017 compared to 58.0% in the third quarter of 2017 and 61.6% in the fourth quarter of 2016. Gross margin included restructuring charges of 0.2% of sales in the fourth quarter of 2017, 2.7% of sales in the third quarter of 2017 and nil in the fourth quarter of 2016. In fiscal 2017, gross margin reached 61.2% of sales compared to 62.6% in 2016. Gross margin included restructuring charges of 0.7% of sales in 2017 and nil in 2016.
In the fourth quarter of fiscal 2017, IFRS (International Financial Reporting Standards) net earnings amounted to US$0.8 million compared to a net loss of US$4.3 million in the third quarter of 2017 and net earnings of US$2.3 million in the fourth quarter of 2016. Net earnings in the fourth quarter of 2017 included net expenses totaling US$5.3 million: US$0.9 million in after-tax amortization of intangible assets, US$0.4 million in stock-based compensation costs, US$1.2 million in after-tax restructuring changes, US$0.4 million for the positive change in the fair value of the cash contingent consideration related to the Ontology Systems acquisition, US$0.3 million in after-tax acquisition-related costs, and a foreign exchange loss of US$2.9 million.
In fiscal 2017, IFRS net earnings totaled US$0.9 million compared to US$8.9 million in 2016. Net earnings in 2017 included net expenses totaling US$10.6 million: US$2.7 million in after-tax amortization of intangible assets, US$1.4 million in stock-based compensation costs, US$4.8 million in after-tax restructuring charges, US$0.4 million for the positive change in the fair value of the cash contingent consideration related to the Ontology Systems acquisition, US$1.1 million in after-tax acquisition-related costs, and a foreign exchange loss of US$1.0 million.
Adjusted EBITDA totaled US$8.5 million, or 13.6% of sales, in the fourth quarter of fiscal 2017 compared to US$2.3 million, or 3.9% of sales, in the third quarter of 2017 and US$6.2 million, or 9.8% of sales, in the fourth quarter of 2016. In fiscal 2017, adjusted EBITDA totaled US$22.0 million compared to US$22.0 million in 2016.
On September 8, 2017, Exfo acquired a 33.1% stake in Astellia, a global leader in the performance analysis of mobile networks and subscriber experience. Exfo intends to purchase publicly traded Astellia’s remaining equity through a public tender offer. On October 2, 2017, Exfo closed the acquisition of Yenista Optics, a supplier of high-end optical test equipment for the laboratory and manufacturing markets.
(1) Adjusted EBITDA represents net earnings (loss) before interest, income taxes, depreciation and amortization, stock-based compensation costs, restructuring charges, change in fair value of cash contingent consideration, and foreign exchange gain or loss.
(2) Gross margin before depreciation and amortization represents sales less cost of sales, excluding depreciation and amortization.
