EXFO Reveals First-Quarter Results for Fiscal 2012

EXFO, a provider of next-generation test and service assurance solutions for wireless and wireline network operators and equipment manufacturers, has announced its financial results for the first quarter which ended November 30, 2011.

The company reported that it achieved $66.4 million in sales in the first quarter of fiscal 2012 compared to $65.7 million in the first quarter of 2011 and $64.4 million in the fourth quarter of 2011. The gross margin has improved to 64.8 percent of sales in the first quarter of fiscal 2012 from 62.2 percent in the first quarter of 2011 and 63.6 percent in the fourth quarter of 2011, said officials with the company.

Germain Lamonde, EXFO's chairman, president and CEO said that the company is pleased with its second-highest bookings level in company history.

"We also raised our gross margin close to our target of 65 percent on higher sales of software-intensive Protocol solutions and increased year-over-year sales across our main product groups with the exception of Copper Access which had benefited from a multi-million dollar, lower-margin order last year. These data points combined to generate healthy profitability in the first quarter of 2012 despite an uncertain global economic environment. I believe that our strategy to push ahead with game-changing solutions and a more aggressive access to key markets will pay off in the second half of the fiscal year, which is typically our strongest," Lamonde added.

This quarter, the company has obtained multiple contracts for 4G/LTE simulators, analyzers and service assurance solutions, including the announced win with Finnish network operator DNA for the BrixHawk Service Assurance solution that combines Brix and NetHawk's technologies to deliver unique monitoring and reporting capabilities. The company also introduced five new products in the first quarter to stimulate the business.

On the whole, the company has achieved an after-tax gain of $13.1 million, or $0.21 per diluted share, from the disposal of discontinued operations (Life Sciences and Industrial Division) in the first quarter of 2011. The net earnings in the first quarter of 2012 included $1.9 million in after-tax amortization of intangible assets, and $0.6 million in stock-based compensation costs.

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