Friday, January 12, 2007
Exfo grows sales, earnings and margins
Exfo Electro-Optical Engineering has reported significant year-over-year growth in sales, net earnings and gross margin for the first quarter.
Exfo Electro-Optical Engineering has reported significant year-over-year growth in sales, net earnings and gross margin for the first quarter ended 30th November 2006. Sales increased 31.4% to US $35.5 million in the first quarter of fiscal 2007 from US $27.0 million in the first quarter of 2006, but decreased 0.5% from US $35.7 million in the fourth quarter of 2006. Excluding Consultronics, which was acquired in January 2006, sales increased organically 21.8% year-over-year.
Net bookings improved by 21.0% year-over-year to US $37.0 million for a book-to-bill ratio of 1.04 in the first quarter of fiscal 2007 from US $30.6 million in the same period last year and 13.3% from US $32.6 million in the fourth quarter of 2006.
Gross margin increased to its highest level in five years to 57.2% of sales in the first quarter of fiscal 2007 from 55.4% in the first quarter of 2006 and 54.3% in the fourth quarter of 2006.
GAAP net earnings in the first quarter of fiscal 2007 totalled US $3.5 million, or US $0.05 per diluted share, compared with US $0.4 million, or US $ 0.01 per diluted share, in the same period last year and US $2.9 million or US $0.04 per diluted share, in the fourth quarter of 2006.
GAAP net earnings in the first quarter of fiscal 2007 included US $0.9 million in amortisation of intangible assets and US $0.3 million in stock-based compensation costs.
'We continue to execute our profitable growth strategy with solid year-over-year progression in terms of sales, gross margin and net earnings, without sacrificing our long-term plan as we keep strengthening our global sales organisation and accelerating our new product development programmes', said Germain Lamonde, Exfo's Chairman, President and CEO.
'Within our Telecom Division, our protocol business unit, which generated more than 80% sales growth from 2005 to 2006, continued to demonstrate solid traction in the first quarter on the strength of our strong product offering, accelerating roadmap and developments in the triple-play test market'.
'Overall, the sale of new products contributed about one-third to our revenues in the first quarter, while five new test solutions were released with several major product launches still to come'.
'Given these data points, I am optimistic about the full fiscal year and our long-term prospects'.
Selling and administrative expenses amounted to US $11.5 million, or 32.5% of sales, in the first quarter of fiscal 2007 compared with US $9.1 million, or 33.5% of sales, in the same period last year and US $10.9 million, or 30.4% of sales, in the fourth quarter of 2006.
Gross research and development expenses totaled US $5.5 million, or 15.5% of sales, in the first quarter of fiscal 2007 compared with US $4.0 million, or 14.8% of sales, in the first quarter of 2006 and US $5.2 million, or 14.6% of sales, in the fourth quarter of 2006.
Net R and D expenses totaled US $4.4 million, or 12.2% of sales, in the first quarter of fiscal 2007 compared with US $3.1 million, or 11.6% of sales, in the same period last year and US $4.3 million, or 12.0% of sales, in the fourth quarter of 2006.
Exfo has forecasted sales between US $34.0 million and US $37.0 million and GAAP net earnings between US $0.02 and US $0.05 per diluted share for the second quarter ending 28th February 2007.
GAAP net earnings include US $0.01 per diluted share in amortisation of intangible assets and stock-based compensation costs.
'We are maintaining sales guidance between $34 and $37 million despite a typically weak start of a new calendar year, which indicates our confidence in reaching our growth metric of 20% or more for fiscal 2007', Lamonde added.
Exfo Electro-Optical Engineering has reported significant year-over-year growth in sales, net earnings and gross margin for the first quarter ended 30th November 2006. Sales increased 31.4% to US $35.5 million in the first quarter of fiscal 2007 from US $27.0 million in the first quarter of 2006, but decreased 0.5% from US $35.7 million in the fourth quarter of 2006. Excluding Consultronics, which was acquired in January 2006, sales increased organically 21.8% year-over-year.
Net bookings improved by 21.0% year-over-year to US $37.0 million for a book-to-bill ratio of 1.04 in the first quarter of fiscal 2007 from US $30.6 million in the same period last year and 13.3% from US $32.6 million in the fourth quarter of 2006.
Gross margin increased to its highest level in five years to 57.2% of sales in the first quarter of fiscal 2007 from 55.4% in the first quarter of 2006 and 54.3% in the fourth quarter of 2006.
GAAP net earnings in the first quarter of fiscal 2007 totalled US $3.5 million, or US $0.05 per diluted share, compared with US $0.4 million, or US $ 0.01 per diluted share, in the same period last year and US $2.9 million or US $0.04 per diluted share, in the fourth quarter of 2006.
GAAP net earnings in the first quarter of fiscal 2007 included US $0.9 million in amortisation of intangible assets and US $0.3 million in stock-based compensation costs.
'We continue to execute our profitable growth strategy with solid year-over-year progression in terms of sales, gross margin and net earnings, without sacrificing our long-term plan as we keep strengthening our global sales organisation and accelerating our new product development programmes', said Germain Lamonde, Exfo's Chairman, President and CEO.
'Within our Telecom Division, our protocol business unit, which generated more than 80% sales growth from 2005 to 2006, continued to demonstrate solid traction in the first quarter on the strength of our strong product offering, accelerating roadmap and developments in the triple-play test market'.
'Overall, the sale of new products contributed about one-third to our revenues in the first quarter, while five new test solutions were released with several major product launches still to come'.
'Given these data points, I am optimistic about the full fiscal year and our long-term prospects'.
Selling and administrative expenses amounted to US $11.5 million, or 32.5% of sales, in the first quarter of fiscal 2007 compared with US $9.1 million, or 33.5% of sales, in the same period last year and US $10.9 million, or 30.4% of sales, in the fourth quarter of 2006.
Gross research and development expenses totaled US $5.5 million, or 15.5% of sales, in the first quarter of fiscal 2007 compared with US $4.0 million, or 14.8% of sales, in the first quarter of 2006 and US $5.2 million, or 14.6% of sales, in the fourth quarter of 2006.
Net R and D expenses totaled US $4.4 million, or 12.2% of sales, in the first quarter of fiscal 2007 compared with US $3.1 million, or 11.6% of sales, in the same period last year and US $4.3 million, or 12.0% of sales, in the fourth quarter of 2006.
Exfo has forecasted sales between US $34.0 million and US $37.0 million and GAAP net earnings between US $0.02 and US $0.05 per diluted share for the second quarter ending 28th February 2007.
GAAP net earnings include US $0.01 per diluted share in amortisation of intangible assets and stock-based compensation costs.
'We are maintaining sales guidance between $34 and $37 million despite a typically weak start of a new calendar year, which indicates our confidence in reaching our growth metric of 20% or more for fiscal 2007', Lamonde added.
# posted by Swathi @ 8:57 PM 
