EXFO Reports Record Financial Results for Fourth Consecutive Quarter

Anaheim, Calif., March 20 -- EXFO Electro-Optical Engineering Inc., citing its strategic position in high-growth markets in the fiber optic industry such as DWDM and high-bandwidth solutions as well as optical component manufacturing and testing, announced record sales and operating results for the second quarter of fiscal 2001. It marked the fourth consecutive quarter that EXFO has reported record financial results since becoming a public company.
    Sales increased 108 percent to $36.3 million in the second quarter from $17.4 million for the same period in fiscal 2000, and 27 percent sequentially from $28.5 million in the first quarter of 2001.
    Net earnings, excluding amortization of intangible assets and goodwill related to acquisitions, increased 205 percent to $7.5 million, or $0.14 per share, for the second quarter from $2.5 million, or $0.06 per share, for the same period last year. Compared with the first quarter of fiscal 2001, net earnings in the second quarter dropped 2 percent from $7.6 million, or $0.16 per share.
    It should be noted that net earnings in the first quarter of 2001 included an after-tax gain in foreign exchange of $0.03 per share and an after-tax gain in interest income of $0.04 per share. In the second quarter, net earnings included an after-tax gain in foreign exchange of $0.01 per share and an after-tax gain in interest income of $0.02 per share. As a result, EXFO increased its net earnings per share from operations $0.02 from the first to second quarter of fiscal 2001.
    Including amortization of intangible assets and goodwill, EXFO's net earnings in the second quarter are at $24,000, or $0.00 per share, compared with $2.4 million, or $0.06 per share, for the same period in fiscal 2000 and $7.5 million, or $0.16 per share, in the first quarter of 2001. The noncash charges related to acquisitions include $1.6 million in amortization of intangible assets and $6.4 million in amortization of goodwill in the second quarter of 2001.