EXFO posts quarterly sales of US$55.3 million, citing drop from COVID-19

EXFO reported total sales of US$55.3 million in the second quarter of fiscal 2020 compared to US$50.4 million for the same period a year earlier. The company attributed the drop mainly to the negative impact of the coronavirus outbreak that forced EXFO to temporarily shut down its manufacturing operations in China.

Test and Measurement (T&M) sales accounted for 68% of revenue in the second quarter of 2020, while Service Assurance, Systems and Services (SASS) sales represented 32%. Revenue distribution among the three main selling regions amounted to 48% in the Americas, 31% in Europe, Middle East and Africa (EMEA) and 21% in Asia-Pacific.

EXFO’s top customer accounted for 8.2% of sales, while the top three totaled 19.5%.

Profitability. IFRS net loss amounted to US$9.0 million, or -US$0.16 per share, in the second quarter of fiscal 2020, while adjusted EBITDA totaled -US$4.9 million, or -8.9% of sales. The company generated US$7.1 million in cash flows from operations.

Due to the coronavirus pandemic, EXFO has suspended issuing quarterly and annual guidance.

“Despite the temporary shutdown of our manufacturing operations in China, which negatively impacted our revenues, EXFO delivered solid bookings in the second quarter of 2020 with double-digit growth for our Test and Measurement business,” said EXFO’s CEO Philippe Morin. “Throughout the coronavirus pandemic, the safety of our employees, communities and customers remains at the center of all our actions. All EXFO sites are fully operational and committed to helping global network operators and webscale companies thrive during this challenging period. More than ever, the telecom industry is mission-critical in which network capacity, reliability, and scalability will play a growing role in creating real opportunities for EXFO’s innovative solutions.”