EXFO Inc. (NASDAQ:EXFO) spotted trading -9.21% off 52-week high price. On the other end, the stock has been noted 51.88% away from the low price over the last 52-weeks. The stock changed 4.73% to recent value of $4.04. The stock transacted 82511 shares during most recent day however it has an average volume of 11.67K shares. The company has 55.92M of outstanding shares and 19.03M shares were floated in the market.

EXFO Inc. (NASDAQ:EXFO) (TSX: EXF) released financial results for the second quarter ended February 28, 2019.

IFRS sales increased 14.2% to US$73.9 million in the second quarter of fiscal 2019 from US$64.7 million in the second quarter of 2018. Second-quarter sales for 2019 included a US$7.5 million revenue contribution from Astellia, which was reduced by US$0.6 million to account for acquisition-related fair value adjustment of deferred revenue. In comparison, Astellia had generated US$1.8 million in revenue for one month in the second quarter 2018.

Bookings, which included a US$10.3 million contribution from Astellia, improved 16.0% year-over-year to US$76.1 million in the second quarter of fiscal 2019 from US$65.6 million in the same period of 2018. In comparison, Astellia had delivered US$2.5 million in bookings for one month in the second quarter 2018. EXFO’s book-to-bill ratio was 1.03 in the second quarter of 2019.

 

Gross margin before depreciation and amortization* amounted to 60.7% of sales in the second quarter of fiscal 2019 compared to 60.9% in the second quarter of 2018.

IFRS net earnings in the second quarter of fiscal 2019 totaled US$5.2 million, or US$0.09 per share, compared to a net loss attributable to the parent interest1 of US$4.7 million, or US$0.08 per share, in the second quarter of 2018. IFRS net earnings in the second quarter of 2019 included net expenses totaling US$3.9 million: US$1.9 million in after-tax amortization of intangible assets, US$0.5 million in stock-based compensation costs, US$0.5 million in after-tax restructuring charges, US$0.6 million for acquisition-related fair value adjustment of deferred revenue, and a foreign exchange loss of US$0.4 million.

These net expenses were offset by the sale of a building under EXFO’s restructuring plan that generated a gain of US$1.7 million in the second quarter of 2019. The company also benefited from a deferred income tax recovery of US$2.4 million in the second quarter of 2019.

Adjusted EBITDA totaled US$8.8 million, or 11.9% of sales, in the second quarter of fiscal 2019 compared to US$2.5 million, or 3.9% of sales, in the second quarter of 2018.

EXFO’s CEO Philippe Morin said “EXFO delivered outstanding second quarter results with strong revenue and bookings growth, profitability and cash flow generation—all encouraging signs for our T&M and SASS product families and the leverage in our operating model”. “Our unique value propositions resonated very well with industry executives at Mobile World Congress and Optical Fiber Conference, as our solutions enable fiber buildouts deep into the network edge, 5G wireless deployments and network virtualization. Clearly, EXFO is on track with its profitable growth strategy amid a rapidly transforming industry.”

Operating Expenses

Selling and administrative expenses reached US$25.5 million, or 34.4% of sales in the second quarter of fiscal 2019 compared to US$24.9 million, or 38.5% of sales, in the same period last year.

Net R&D expenses attained US$12.2 million, or 16.5% of sales, in the second quarter of fiscal 2019 compared to US$13.1 million, or 20.2% of sales, in the second quarter of 2018.

Its earnings per share (EPS) expected to touch remained 371.40% for this year while earning per share for the next 5-years is expected to reach at 5.00%. EXFO has a gross margin of 60.00% and an operating margin of -5.70% while its profit margin remained -8.00% for the last 12 months.

According to the most recent quarter its current ratio was 1.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of 13.94% from the mean of 20 days, 16.56% from mean of 50 days SMA and performed 16.54% from mean of 200 days price. Company’s performance for the week was 12.53%, 16.09% for month and YTD performance remained 42.25%.

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