EXFO Swings To Profit Amid Revenue Growth

(RTTNews) - EXFO Inc (EXFO, EXF.TO) Wednesday reported third-quarter net earnings of $1.7 million or $0.03 per share compared with a loss of $0.9 million or $0.01 per share last year.

Analysts polled by Thomson Reuters estimated earnings of $0.04 per share on revenues of $61.3 million for the quarter. Analysts' estimates typically exclude special items.

Results for the recent quarter included $1 million in after-tax amortization of intangible assets, $0.4 million in stock-based compensation costs and a foreign exchange loss of $1.1 million.

Quebec-based EXFO provides test and service assurance solutions for wireline and wireless network operators and equipment manufacturers.

The company's revenues for the quarter were up 8.5% at $63.9 million compared with $58.9 million in the prior year. Analysts estimated revenues of $61.3 million for the quarter.

Revenue growth was due to the typical seasonal release of network operators' capital spending budgets and increased traction of EXFO's optical and wireless solutions, the company said.

Selling and administrative expenses for the quarter marginally fell to $21.7 million, and the company benefited from foreign exchange gains of $1.1 million.

Looking ahead to the fourth quarter, the company expects earnings of $0.00 to $0.04 per share, including $0.02 per share in after-tax amortization of intangible assets and stock-based compensation costs. Revenues are expected between $60 million and $65 million for the quarter.

Analysts expect earnings of $0.08 per share on revenues of $63.9 million for the quarter.

During the third quarter, EXFO acquired the assets of ByteSphere, a Boston-area software company specializing in global IT management and network monitoring solutions. Later, it acquired the business of Aito Technologies, a Finnish provider of customer experience analytics for mobile network operators, through an asset purchase deal.