Profits Up at Exfo Despite Currency Concerns
QUEBEC CITY — Telecommunications firm Exfo Inc. increased earnings dramatically in its last fiscal year, which ended Aug. 31.
The result came despite lower sales figures, which the company said resulted from unfavorable currency conversion rates. Sales decreased 3.8 percent to $222.1 million in fiscal 2015 from $230.8 million in fiscal 2014 but were stable year over year on a "constant currency" basis, the company said. All currency figures herein are reported in USD.
Net earnings reached $5.3 million, or 9 cents per diluted share, compared to $800,000, or 1 cent per diluted share, in fiscal 2014.
"While financial results for fiscal 2015 are below my expectations, mainly due to adverse conditions and the strength of the U.S. dollar against a basket of currencies, I am nonetheless quite pleased with the important internal transformations implemented during 2015 that will strongly contribute to value creation in 2016 and beyond," said Germain Lamonde, Exfo's chairman, president and CEO.
Exfo launched 13 new products or major enhancements in fiscal 2015, including optical communications test systems and management software.
Sales of physical-layer (optical and copper) products increased 9.1 percent year over year, but protocol-layer (transport and data communications, wireless, service assurance, and network visibility) sales decreased 19.1 percent.
Meanwhile the company implemented a restructuring plan in August, which it said has already reduced operating expenses by $6.7 million and should save $3.5 million in fiscal 2016. The company also recently chose Philippe Morin, a former Ciena Corp. executive, to be its chief operating officer.
Exfo is targeting EBITDA of $20 million from revenues of about $230 million in fiscal 2016.
The company offers products for the development, installation, management and maintenance of networks, including fiber to the premises and various optical technologies.