EXFO Announces Positive Preliminary Results for First Quarter of FY 2010
· GAAP net earnings and sales to finish above guidance range
· Book-to-bill ratio above 1
QUEBEC CITY, CANADA, November 30, 2009—EXFO Electro-Optical Engineering Inc. (NASDAQ: EXFO; TSX: EXF) announced today preliminary results for the first quarter ended November 30, 2009.
Given a stronger-than-anticipated US dollar versus Canadian dollar and higher sales volume, EXFO’s management now expects GAAP net earnings to finish between US$0.00 and US$0.01 per diluted share for the first quarter of fiscal 2010.
The company had previously forecasted a GAAP net loss between US$0.06 and US$0.02 per share, partially based on an anticipated pre-tax, foreign exchange loss of US$0.03 per share to account for the significant weakness of the US dollar in days preceding the issuing of company guidance on October 13, 2009.
EXFO also anticipates that revenues will fall between US$45 and US$46 million for the first quarter of fiscal 2010, slightly above the US$40 to US$45 million guidance range, due to stronger bookings than expected. The company’s book-to-bill ratio is expected to be above 1 for the quarter.
All financial numbers provided in this press release are preliminary and subject to review. EXFO will announce its complete results for the first quarter of fiscal 2010 after the close of markets on January 12, 2010.
EXFO is a leading provider of test and service assurance solutions for network operators and equipment manufacturers in the global telecommunications industry. The Telecom Division, which accounts for almost 90% of the company’s revenues, offers a wide range of innovative solutions to assess optical networks, from the core to access, as well as next-generation IP infrastructures and related triple-play services. The Life Sciences and Industrial Division offers solutions in medical device and opto-electronics assembly, fluorescence microscopy and other life science sectors. For more information, visit www.EXFO.com.
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, and we intend that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are statements other than historical information or statements of current condition. Words such as may, will, expect, believe, anticipate, intend, could, estimate, continue, or the negative or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events and circumstances are considered forward-looking statements. They are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in forward-looking statements due to various factors including the effect of the worldwide recession and the timing of the expected recovery on the telecom market for our customers and suppliers; fluctuating exchange rates and our ability to execute in these uncertain conditions; consolidation in the global telecommunications test, measurement and service assurance industry; capital spending levels in the telecommunications, life sciences and high-precision assembly sectors; concentration of sales; the effects of the additional actions we have taken in response to such economic uncertainty (including our ability to quickly adapt cost structures with anticipated levels of business, ability to manage inventory levels with market demand); market acceptance of our new products and other upcoming products; limited visibility with regards to customer orders and the timing of such orders; our ability to successfully integrate our acquired and to-be-acquired businesses; our ability to successfully expand international operations; the retention of key technical and management personnel; and future economic, competitive, financial and market condition. Assumptions relating to the foregoing involve judgments and risks, all of which are difficult or impossible to predict and many of which are beyond our control. Other risk factors that may affect our future performance and operations are detailed in our Annual Report, on Form 20-F, and our other filings with the U.S. Securities and Exchange Commission and the Canadian securities commissions. We believe that the expectations reflected in the forward-looking statements are reasonable based on information currently available to us, but we cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this document. Unless required by law or applicable regulations, we undertake no obligation to revise or update any of them to reflect events or circumstances that occur after the date of this document.
For more information
Manager, Investor Relations
(418) 683-0913, Ext. 3733