UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16
Under
the Securities Exchange Act of 1934
For the
month of October 2009
EXFO
Electro-Optical Engineering Inc.
(Translation
of registrant’s name into English)
400
Godin Avenue, Quebec, Quebec, Canada G1M 2K2
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
|
Form
20-F þ
|
Form
40-F o
|
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
|
Yes
o
|
No
þ
|
If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-______.
Page 1 of
14
On
October 13, 2009, EXFO Electro-Optical Engineering Inc., a Canadian corporation,
reported its results of operations for the fourth fiscal quarter and year end
for the fiscal year ended August 31, 2009. This report on Form
6-K sets forth the news release relating to EXFO’s announcement and certain
information relating to EXFO’s financial condition and results of operations for
the fourth fiscal quarter of the 2009 fiscal year. This press release
and information relating to EXFO’s financial condition and results of operations
for the fourth fiscal quarter of the 2009 fiscal year are hereby incorporated as
a document by reference to Form F-3 (Registration Statement under the Securities
Act of 1933) declared effective as of July 30, 2001 and to Form F-3
(Registration Statement under the Securities Act of 1933) declared effective as
of March 11, 2002 and to amend certain material information as set
forth in these two Form F-3 documents.
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
EXFO
ELECTRO-OPTICAL ENGINEERING INC.
|
|
|
By: /s/ Benoit
Ringuette
Name: Benoit
Ringuette
Title: General
Counsel and Corporate Secretary
|
|
Date:
October 14, 2009
EXFO Reports Fourth-Quarter and Year-End Results for
Fiscal 2009
|
§
|
Annual
sales decrease 5.9% in the current economic
environment
|
|
§
|
Record
cash flows from operations attain US$22.6
million
|
|
§
|
Gross
margin improves for a seventh consecutive year to reach
61.3%
|
|
§
|
Cash
position of US$69.7 million and no
debt
|
QUEBEC
CITY, CANADA, October 13, 2009—EXFO Electro-Optical Engineering Inc. (NASDAQ:
EXFO, TSX: EXF) reported today fourth-quarter and year-end financial results for
the fiscal year ended August 31, 2009.
Annual
sales decreased 5.9% to US$172.9 million in fiscal 2009 from US$183.8 million in
2008. In the fourth quarter of 2009, sales reached US$36.5 million compared
to US$43.6 million in the previous quarter and US$50.9 million in the
fourth quarter of 2008. Overall for fiscal 2009, net bookings decreased 2.2% to
US$180.5 million from US$184.6 million in 2008 for an annual book-to-bill
ratio of 1.04. In the fourth quarter of 2009, net bookings totaled US$40.7
million for a book-to-bill ratio of 1.11 compared to US$40.2 million in the
third quarter of 2009 and US$45.7 million in the fourth quarter of
2008.
Gross
margin improved for a seventh consecutive year to reach 61.3% of sales in fiscal
2009. In the fourth quarter of 2009, gross margin amounted to 60.0% compared to
62.3% in the previous quarter and 59.9% in the fourth quarter of
2008.
In fiscal
2009, GAAP net loss totaled US$16.6 million, or US$0.27 per share, including
US$21.7 million for impairment of goodwill, US$5.1 million in amortization of
intangible assets, US$1.4 million in stock-based compensation costs and
US$1.2 million in restructuring charges. These items were partially offset by
US$1.9 million for the recognition of previously unrecognized R&D tax
credits and US$0.9 million for the net recovery of income taxes. These items
resulted in a net income tax recovery of US$2.6 million.
In fiscal
2008, GAAP net earnings reached US$18.4 million, or US$0.27 per diluted share,
including US$6.5 million for the net recovery of income taxes and an
extraordinary gain of US$3.0 million related to the negative goodwill on
the acquisition of Navtel Communications. These items were partially offset by
US$3.9 million in amortization of intangible assets and US$1.3 million in
stock-based compensation costs. These items resulted in a net income tax
recovery of US$0.9 million.
In the
fourth quarter of 2009, GAAP net loss amounted to US$1.2 million, or US$0.02 per
share, including US$1.2 million in restructuring charges,
US$1.1 million in amortization of intangible assets, and US$0.4 million in
stock-based compensation costs. These items were offset by US$1.9 million
for the recognition of previously unrecognized R&D tax credits and US$0.9
million for the net recovery of income taxes. These items resulted in a net
income tax expense of US$0.1 million.
In the
third quarter of fiscal 2009, GAAP net loss totaled US$23.3 million, or US$0.39
per share. EXFO recorded a non-cash charge of US$21.7 million for
impairment of goodwill and a foreign exchange loss of US$4.7 million in the
third quarter of 2009. GAAP net loss in the third quarter of 2009 also included
US$1.4 million in amortization of intangible assets and US$0.4 million in
stock-based compensation costs. These items resulted in a net income tax
recovery of US$2.3 million.
In the
fourth quarter of 2008, GAAP net earnings amounted to US$3.3 million, or US$0.05
per diluted share, including US$1.4 million in amortization of intangible
assets and US$0.4 million in stock-based compensation costs. These items
resulted in a net income tax recovery of US$0.2 million.
“EXFO
made significant progress navigating through the severe global economic
recession in fiscal 2009 and I believe we continued to gain market share from a
reduced telecom test and service assurance pie,” said Germain Lamonde, EXFO’s
Chairman, President and CEO. “I’m particularly pleased with our Protocol
business which grew 63.1% on full-year revenue contributions from the Brix and
Navtel acquisitions and on our focus on IP convergence — both in fixed and
mobile communication networks — to account for more than one-third of Telecom
revenues. We also continued building for the future in key telecom growth
sectors with 26 new product introductions, including several game-changing
solutions.”
“It was
more challenging on the EBITDA side, given lower sales volume caused by the
recession, but actions were taken to align our operating expenses to market
conditions through a US$6 million annualized cost-reduction plan in the fourth
quarter,” Mr. Lamonde added. “I’m pleased we still raised our gross margin for a
seventh consecutive year to reach 61.3%, generated record cash flows from
operations of US$22.6 million, and maintained a healthy balance sheet. Now that
the worst of the economic recession seems to be behind us, I’m excited about
EXFO’s strong strategic position to take advantage of key market opportunities
and return to our profitable growth path, as reflected in our new corporate
performance metrics for the next three years.”
Selected
Financial Information
(In
thousands of US dollars)
|
Segmented
results:
|
Q4 2009 | Q3 2009 | Q4 2008 |
FY
2009
|
FY
2008
|
|||||||||||||||
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||
|
Sales:
|
||||||||||||||||||||
|
Telecom
Division
|
$ | 31,509 | $ | 39,047 | $ | 45,338 | $ | 153,082 | $ | 160,981 | ||||||||||
|
Life
Sciences & Industrial Division
|
4,998 | 4,589 | 5,605 | 19,796 | 22,809 | |||||||||||||||
|
Total
|
$ | 36,507 | $ | 43,636 | $ | 50,943 | $ | 172,878 | $ | 183,790 | ||||||||||
|
Earnings
(loss) from operations:
|
||||||||||||||||||||
|
Telecom
Division
|
$ | (3,238 | ) | $ | (21,990 | ) | $ | 2,867 | $ | (21,954 | ) | $ | 9,524 | |||||||
|
Life
Sciences & Industrial Division
|
2,020 | 438 | 721 | 3,876 | 2,459 | |||||||||||||||
|
Total
|
$ | (1,218 | ) | $ | (21,552 | ) | $ | 3,588 | $ | (18,078 | ) | $ | 11,983 | |||||||
|
Other
selected information:
|
||||||||||||||||||||
|
GAAP
net earnings (loss)
|
$ | (1,181 | ) | $ | (23,346 | ) | $ | 3,314 | $ | (16,585 | ) | $ | 18,424 | |||||||
|
Recognition
of previously unrecognized R&D tax credits
|
$ | (1,902 | ) | $ | − | $ | − | $ | (1,902 | ) | $ | − | ||||||||
|
Amortization
of intangible assets
|
$ | 1,147 | $ | 1,355 | $ | 1,402 | $ | 5,067 | $ | 3,871 | ||||||||||
|
Restructuring
charges
|
$ | 1,171 | $ | − | $ | − | $ | 1,171 | $ | − | ||||||||||
|
Impairment
of goodwill
|
$ | − | $ | 21,713 | $ | − | $ | 21,713 | $ | − | ||||||||||
|
Stock-based
compensation costs
|
$ | 379 | $ | 383 | $ | 368 | $ | 1,409 | $ | 1,272 | ||||||||||
|
Net
recovery of income tax
|
$ | (943 | ) | $ | − | $ | − | $ | (943 | ) | $ | (6,515 | ) | |||||||
|
Extraordinary
gain (negative goodwill)
|
$ | − | $ | − | $ | − | $ | − | $ | (3,036 | ) | |||||||||
|
Net
income tax effect of the
above
items
|
$ | 93 | $ | (2,273 | ) | $ | (225 | ) | $ | (2,613 | ) | $ | (915 | ) | ||||||
Operating
Expenses
Selling
and administrative expenses amounted to US$63.8 million, or 36.9% of sales, in
fiscal 2009 compared to US$61.2 million, or 33.3% of sales, in 2008. In the
fourth quarter of 2009, selling and administrative expenses totaled US$14.2
million, or 38.9% of sales, compared to US$16.7 million, or 38.3% of sales, in
the third quarter of 2009 and US$17.0 million, or 33.4% of sales, in the fourth
quarter of 2008.
Gross
research and development (R&D) expenses reached US$35.8 million, or 20.7% of
sales, in fiscal 2009 compared to US$32.5 million, or 17.7% of sales, in 2008.
In the fourth quarter of 2009, gross R&D expenses attained US$9.0 million,
or 24.7% of sales, compared to US$9.3 million, or 21.4% of sales, in the
previous quarter and US$8.6 million, or 16.8% of sales, in the fourth quarter of
2008.
Net
R&D expenses totaled US$27.7 million, or 16.0% of sales in fiscal 2009,
compared to US$26.9 million, or 14.6% of sales, in 2008. In the fourth quarter
of 2009, net R&D expenses amounted to US$5.4 million, or 14.7% of sales,
compared to US$7.8 million, or 17.8% of sales, in the third quarter of 2009 and
US$7.3 million, or 14.3% of sales, in the fourth quarter of 2008.
Fiscal
2009 Business Highlights
|
§
|
Market expansion —
EXFO’s annual sales decreased 5.9%, or 13.5% on an organic basis
(excluding acquisitions and gains or losses from forward exchange
contracts recorded in sales), largely due to the global economic recession
in 2009. Protocol sales, benefiting from full-year revenue contributions
from the Brix Networks and Navtel Communications acquisitions, IP
convergence and network capacity upgrades on wireline and wireless
networks, increased 63.1% year-over-year. The company’s Optical (-17.5%)
and Copper Access (-21.8%) businesses were more affected by challenging
market conditions, since many network operators deferred capital-intensive
deployment decisions. Likewise, the Life Sciences and Industrial Division
(-13.2%) was affected by difficult market conditions. In terms of
geographic diversification, the Americas accounted for 57.4% of sales in
2009 (vs. 55.8% in 2008), Europe, Middle East and Africa (EMEA) 26.9% (vs.
28.4% in 2008), and Asia-Pacific 15.7% (vs. 15.8% in 2008). EXFO’s largest
customer accounted for 11.6% of total sales, while the company’s top three
customers represented 17.8%.
|
|
§
|
Profitability —EXFO
raised its gross margin for a seventh consecutive year to reach 61.3%,
generated a record of US$22.6 million in cash flows from operations, and
closed fiscal 2009 with a cash position of US$69.7 million and no debt.
EBITDA dropped to US$14.5 million, or 8.4% of sales, mainly due to the
global economic recession. The company implemented a restructuring plan in
the fourth quarter that incurred a charge of US$1.2 million but will
provide US$6 million in annualized cost
savings.
|
|
§
|
Innovation
— EXFO
launched 26 new
products in fiscal 2009, including three in the fourth quarter, compared
to 27 in 2008. Key product introductions in 2009 included
laboratory and portable test solutions for characterizing 100 Gbit/s
Ethernet and 40/43 Gbit/s SONET/OTN networks; a distributed PMD analyzer
that allows network operators to cost-effectively upgrade their networks
to 40 Gbit/s and 100 Gbit/s; new software releases for the IMS InterWatch
platform and Packet Blazer product lines that support the migration of
voice and video applications to the IPv6 (Internet Protocol, version 6)
addressing scheme; and the next-generation FTB-500 multi-layer platform
for high-end test applications in the field and central office. Following
the year-end, the company released the industry’s first turnkey optical
modulation analyzer for complete characterization of signals up to 100
Gbaud/s. Sales from products on the
market two years or less accounted for 38.4% of total sales in fiscal
2009, including 38.8% in the fourth quarter, compared to 34.6% in fiscal
2008.
|
Business
Outlook
EXFO
forecasted sales between US$40 million and US$45 million and a GAAP net loss
between US$0.06 and US$0.02 per share for the first quarter of 2010. GAAP net
loss includes US$0.02 per share in after-tax amortization of intangible assets
and stock-based compensation costs and assumes a pre-tax foreign exchange loss
of US$0.03 per share to account for the significant decrease of the US dollar
compared to the Canadian dollars since the end of the fourth quarter of fiscal
2009.
This
guidance was established by management based on existing backlog as of the date
of this press release, seasonality and expected bookings for the remaining of
the quarter.
Corporate
Performance Objectives for Fiscal 2010-2012
Given the
global economic recession in fiscal 2009, EXFO has adjusted its corporate
performance metrics over a new three-year period extending from fiscal 2010 to
2012. The company has maintained its 20% sales CAGR objective, proposed to
double EBITDA in dollars, and raised its gross margin target to 64% for the
newly defined three-year period.
|
Corporate
Performance Objectives for FY 2010-2012
|
|
Increase
sales by a CAGR of 20% or more
|
|
Raise
gross margin to 64%
|
|
Double
EBITDA*
in dollars
|
|
*
|
EBITDA
is defined as net earnings (loss) before interest, income taxes,
amortization of property, plant and equipment, amortization of intangible
assets, impairment of goodwill and extraordinary gain. See the following
page on EXFO’s Website, www.EXFO.com/investors, for a
reconciliation with GAAP net earnings (loss) in previous fiscal
years.
|
Conference
Call and Webcast
EXFO will
host a conference call today at 5 p.m. (Eastern time) to review its
fourth-quarter and year-end financial results for fiscal 2009. To listen to the
conference call and participate in the question period via telephone,
dial 1-416-641-6654. Germain Lamonde,
Chairman, President and CEO, and Pierre Plamondon, CA, Vice-President of Finance
and Chief Financial Officer, will participate in the call. An audio replay will
be available one hour after the end of the conference call until 7 p.m. on
October 20, 2009. The replay number is 1-402-977-9141 and the reservation number
is 21434695. The live audio Webcast and replay of the conference call will also
be available on EXFO’s Website at www.EXFO.com/investors.
About
EXFO
EXFO is a
leading provider of test and service assurance solutions for network service
providers and equipment manufacturers in the global telecommunications industry.
The Telecom Division offers a wide range of innovative solutions extending across the full
technology lifecycle ― from design to technology deployment and onto service
assurance ― and covering all layers on a network infrastructure to enable
triple-play services and next-generation, converged IP networking. 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.
Forward-Looking
Statements
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
Vance
Oliver
Manager,
Investor Relations
(418)
683-0913, Ext. 3733
vance.oliver@exfo.com
EXFO Electro-Optical Engineering Inc.
Interim
Consolidated Balance Sheet
(in thousands of US dollars)
|
As
at August 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Assets
|
(unaudited)
|
|||||||
|
Current
assets
|
||||||||
|
Cash
|
$ | 10,611 | $ | 5,914 | ||||
|
Short-term
investments
|
59,105 | 81,626 | ||||||
|
Accounts
receivable
|
||||||||
|
Trade
|
22,946 | 31,473 | ||||||
|
Other
|
2,752 | 4,753 | ||||||
|
Income
taxes and tax credits recoverable
|
2,353 | 4,836 | ||||||
|
Inventories
|
30,863 | 34,880 | ||||||
|
Prepaid
expenses
|
2,043 | 1,774 | ||||||
|
Future
income taxes
|
5,538 | 9,140 | ||||||
| 136,211 | 174,396 | |||||||
|
Tax
credits recoverable
|
26,762 | 20,657 | ||||||
|
Forward
exchange contracts
|
428 | − | ||||||
|
Property,
plant and equipment
|
19,100 | 19,875 | ||||||
|
Intangible
assets
|
16,859 | 19,945 | ||||||
|
Goodwill
|
22,478 | 42,653 | ||||||
|
Future
income taxes
|
18,533 | 15,540 | ||||||
| $ | 240,371 | $ | 293,066 | |||||
|
Liabilities
|
||||||||
|
Current
liabilities
|
||||||||
|
Accounts
payable and accrued liabilities
|
$ | 21,650 | $ | 24,713 | ||||
|
Deferred
revenue
|
6,481 | 5,079 | ||||||
| 28,131 | 29,792 | |||||||
|
Deferred
revenue
|
4,195 | 3,759 | ||||||
| 32,326 | 33,551 | |||||||
|
Shareholders’
equity
|
||||||||
|
Share
capital
|
104,846 | 142,786 | ||||||
|
Contributed
surplus
|
17,758 | 5,226 | ||||||
|
Retained
earnings
|
43,909 | 60,494 | ||||||
|
Accumulated
other comprehensive income
|
41,532 | 51,009 | ||||||
| 208,045 | 259,515 | |||||||
| $ | 240,371 | $ | 293,066 | |||||
EXFO Electro-Optical Engineering Inc.
Interim
Unaudited Consolidated Statements of Earnings
(in thousands of US dollars, except share and
per share data)
|
Three
months ended
August 31, 2009
|
Twelve
months ended
August 31, 2009
|
Three
months ended
August 31, 2008
|
Twelve
months ended
August 31, 2008
|
|||||||||||||
|
Sales
|
$ | 36,507 | $ | 172,878 | $ | 50,943 | $ | 183,790 | ||||||||
|
Cost of sales (1,2)
|
14,618 | 66,892 | 20,416 | 75,624 | ||||||||||||
|
Gross
margin
|
21,889 | 105,986 | 30,527 | 108,166 | ||||||||||||
|
Operating
expenses
|
||||||||||||||||
|
Selling
and administrative (1)
|
14,185 | 63,808 | 16,993 | 61,153 | ||||||||||||
|
Net
research and development (1,
3)
|
5,371 | 27,698 | 7,297 | 26,867 | ||||||||||||
|
Amortization
of property, plant and equipment
|
1,233 | 4,607 | 1,247 | 4,292 | ||||||||||||
|
Amortization
of intangible assets
|
1,147 | 5,067 | 1,402 | 3,871 | ||||||||||||
|
Restructuring
charges
|
1,171 | 1,171 | – | – | ||||||||||||
|
Impairment
of goodwill
|
– | 21,713 | – | – | ||||||||||||
|
Total
operating expenses
|
23,107 | 124,064 | 26,939 | 96,183 | ||||||||||||
|
Earnings
(loss) from operations
|
(1,218 | ) | (18,078 | ) | 3,588 | 11,983 | ||||||||||
|
Interest
income (expense)
|
(86 | ) | 597 | 576 | 4,639 | |||||||||||
|
Foreign
exchange gain
|
186 | 1,157 | 1,349 | 442 | ||||||||||||
|
Earnings
(loss) before income taxes and extraordinary gain
|
(1,118 | ) | (16,324 | ) | 5,513 | 17,064 | ||||||||||
|
Income
taxes
|
||||||||||||||||
|
Current
|
413 | 561 | (14 | ) | (7,094 | ) | ||||||||||
|
Future
|
22 | 72 | 2,213 | 14,094 | ||||||||||||
|
Recognition
of previously unrecognized future income tax assets
|
(372 | ) | (372 | ) | – | (5,324 | ) | |||||||||
| 63 | 261 | 2,199 | 1,676 | |||||||||||||
|
Earnings
(loss) before extraordinary gain
|
(1,181 | ) | (16,585 | ) | 3,314 | 15,388 | ||||||||||
|
Extraordinary
gain
|
– | − | – | 3,036 | ||||||||||||
|
Net
earnings (loss) for the period
|
$ | (1,181 | ) | $ | (16,585 | ) | $ | 3,314 | $ | 18,424 | ||||||
|
Basic
and diluted earnings (loss) before extraordinary gain per
share
|
$ | (0.02 | ) | $ | (0.27 | ) | $ | 0.05 | $ | 0.22 | ||||||
|
Basic
and diluted net earnings (loss) per share
|
$ | (0.02 | ) | $ | (0.27 | ) | $ | 0.05 | $ | 0.27 | ||||||
|
Basic
weighted average number of shares outstanding (000’s)
|
59,553 | 61,845 | 68,082 | 68,767 | ||||||||||||
|
Diluted
weighted average number of shares outstanding (000’s)
|
59,553 | 61,845 | 68,550 | 69,318 | ||||||||||||
|
(1)
Stock-based compensation
costs included in:
|
||||||||||||||||
|
Cost
of sales
|
$ | 40 | $ | 137 | $ | 36 | $ | 148 | ||||||||
|
Selling
and administrative
|
221 | 858 | 232 | 830 | ||||||||||||
|
Net
research and development
|
118 | 414 | 100 | 294 | ||||||||||||
| $ | 379 | $ | 1,409 | $ | 368 | $ | 1,272 | |||||||||
|
(2)
The cost of sales is exclusive of amortization, shown
separately.
|
||||||||||||||||
|
(3)
Net research and development expenses for the three and twelve months
ended August 31, 2009 include recognition of previously unrecognized
research and development tax credits of $1,902.
|
||||||||||||||||
EXFO Electro-Optical Engineering Inc.
Interim
Unaudited Consolidated Statements of Comprehensive Income (Loss)
And Accumulated Other
Comprehensive Income
(in thousands of US dollars)
|
Comprehensive
income (loss)
|
||||||||||||||||
|
Three
months
ended
August 31, 2009
|
Twelve
months
ended
August 31, 2009
|
Three
months
ended
August 31, 2008
|
Twelve
months
ended
August 31, 2008
|
|||||||||||||
|
Net
earnings (loss) for the period
|
$ | (1,181 | ) | $ | (16,585 | ) | $ | 3,314 | $ | 18,424 | ||||||
|
Foreign
currency translation adjustment
|
(1,078 | ) | (10,671 | ) | (18,511 | ) | (2,289 | ) | ||||||||
|
Changes
in unrealized gains (losses) on short-term investments
|
− | 22 | (9 | ) | 31 | |||||||||||
|
Unrealized
gains (losses) on forward exchange contracts
|
(229 | ) | (1,467 | ) | (1,882 | ) | 962 | |||||||||
|
Reclassification
of realized gains (losses) on forward exchange contracts in net earnings
(loss)
|
84 | 3,167 | (770 | ) | (3,915 | ) | ||||||||||
|
Future
income taxes effect of the above items
|
44 | (528 | ) | 822 | 909 | |||||||||||
|
Comprehensive
income (loss)
|
$ | (2,360 | ) | $ | (26,062 | ) | $ | (17,036 | ) | $ | 14,122 | |||||
|
Accumulated
other comprehensive income
|
||||||||
|
Twelve months ended August 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Foreign
currency translation adjustment
|
||||||||
|
Cumulative
effect of prior periods
|
$ | 51,129 | $ | 53,418 | ||||
|
Current
period
|
(10,671 | ) | (2,289 | ) | ||||
| 40,458 | 51,129 | |||||||
|
Unrealized
gains (losses) on forward exchange contracts
|
||||||||
|
Cumulative
effect of prior periods
|
(96 | ) | 1,948 | |||||
|
Current
period, net of realized gains and future income taxes
|
1,172 | (2,044 | ) | |||||
| 1,076 | (96 | ) | ||||||
|
Unrealized
gains (losses) on short-term investments
|
||||||||
|
Cumulative
effect of prior periods
|
(24 | ) | (55 | ) | ||||
|
Current
period, net of future income taxes
|
22 | 31 | ||||||
| (2 | ) | (24 | ) | |||||
|
Accumulated
other comprehensive income
|
$ | 41,532 | $ | 51,009 | ||||
EXFO Electro-Optical Engineering Inc.
Interim
Unaudited Consolidated Statements of Retained Earnings
and
Contributed Surplus
(in thousands of US dollars)
|
Retained
earnings
|
||||||||
|
Twelve months ended August 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Balance
– Beginning of period
|
$ | 60,494 | $ | 42,330 | ||||
|
Add
(deduct)
|
||||||||
|
Net
earnings (loss) for the period
|
(16,585 | ) | 18,424 | |||||
|
Premium
on redemption of share capital
|
− | (260 | ) | |||||
|
Balance
– End of period
|
$ | 43,909 | $ | 60,494 | ||||
|
Contributed
surplus
|
||||||||
|
Twelve months ended August 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Balance
– Beginning of period
|
$ | 5,226 | $ | 4,453 | ||||
|
Add
(deduct)
|
||||||||
|
Stock-based
compensation costs
|
1,407 | 1,287 | ||||||
|
Reclassification
of stock-based compensation costs to share capital upon exercise of stock
awards
|
(540 | ) | (514 | ) | ||||
|
Discount
on redemption of share capital
|
11,665 | − | ||||||
|
Balance
– End of period
|
$ | 17,758 | $ | 5,226 | ||||
EXFO Electro-Optical Engineering Inc.
Interim
Unaudited Consolidated Statements of Cash Flows
(in thousands of US dollars)
|
Three
months ended
August 31, 2009
|
Twelve
months ended
August 31, 2009
|
Three
months ended
August 31, 2008
|
Twelve
months ended
August 31, 2008
|
|||||||||||||
|
Cash
flows from operating activities
|
||||||||||||||||
|
Net
earnings (loss) for the period
|
$ | (1,181 | ) | $ | (16,585 | ) | $ | 3,314 | $ | 18,424 | ||||||
|
Add
(deduct) items not affecting cash
|
||||||||||||||||
|
Change
in discount on short-term investments
|
24 | 597 | (486 | ) | 1,035 | |||||||||||
|
Stock-based
compensation costs
|
379 | 1,409 | 368 | 1,272 | ||||||||||||
|
Amortization
|
2,380 | 9,674 | 2,649 | 8,163 | ||||||||||||
|
Deferred
revenue
|
(1,539 | ) | 1,706 | 482 | 47 | |||||||||||
|
Loss
on disposal of capital assets
|
− | 237 | − | − | ||||||||||||
|
Impairment
of goodwill
|
− | 21,713 | − | − | ||||||||||||
|
Future
income taxes
|
(350 | ) | (300 | ) | 2,213 | 8,770 | ||||||||||
|
Extraordinary
gain
|
− | − | − | (3,036 | ) | |||||||||||
|
Change
in unrealized foreign exchange loss (gain)
|
(414 | ) | (1,955 | ) | (1,619 | ) | (1,093 | ) | ||||||||
| (701 | ) | 16,496 | 6,921 | 33,582 | ||||||||||||
|
Change
in non-cash operating items
|
||||||||||||||||
|
Accounts
receivable
|
9,015 | 9,654 | (4,193 | ) | (4,338 | ) | ||||||||||
|
Income
taxes and tax credits
|
(1,202 | ) | (3,391 | ) | (1,396 | ) | (12,833 | ) | ||||||||
|
Inventories
|
1,935 | 2,624 | 712 | (2,166 | ) | |||||||||||
|
Prepaid
expenses
|
(12 | ) | (350 | ) | 379 | (127 | ) | |||||||||
|
Accounts
payable and accrued liabilities
|
(1,870 | ) | (2,409 | ) | 1,659 | (1,416 | ) | |||||||||
| 7,165 | 22,624 | 4,082 | 12,702 | |||||||||||||
|
Cash
flows from investing activities
|
||||||||||||||||
|
Additions
to short-term investments
|
(88,561 | ) | (438,460 | ) | (72,800 | ) | (717,020 | ) | ||||||||
|
Proceeds
from disposal and maturity of short-term investments
|
82,570 | 456,612 | 73,939 | 760,310 | ||||||||||||
|
Additions
to capital assets
|
(978 | ) | (6,945 | ) | (1,452 | ) | (6,508 | ) | ||||||||
|
Business
combinations, net of cash acquired
|
− | (2,414 | ) | (78 | ) | (41,016 | ) | |||||||||
| (6,969 | ) | 8,793 | (391 | ) | (4,234 | ) | ||||||||||
|
Cash
flows from financing activities
|
||||||||||||||||
|
Change
in bank loan
|
− | − | (1,485 | ) | − | |||||||||||
|
Redemption
of share capital
|
(793 | ) | (26,871 | ) | (4,675 | ) | (8,068 | ) | ||||||||
|
Exercise
of stock options
|
15 | 56 | − | 61 | ||||||||||||
| (778 | ) | (26,815 | ) | (6,160 | ) | (8,007 | ) | |||||||||
|
Effect
of foreign exchange rate changes on cash
|
110 | 95 | (199 | ) | (88 | ) | ||||||||||
|
Change
in cash
|
(472 | ) | 4,697 | (2,668 | ) | 373 | ||||||||||
|
Cash
– Beginning of period
|
11,083 | 5,914 | 8,582 | 5,541 | ||||||||||||
|
Cash
– End of period
|
$ | 10,611 | $ | 10,611 | $ | 5,914 | $ | 5,914 | ||||||||
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