QUEBEC CITY – The gross margin for EXFO Electro-Optical Engineering Inc. reached 60.9%, the highest in seven years, according to financial results for the third quarter ended May 31 released Friday.
Sales increased 23.9% to US$48.6 million in the third quarter from US$39.2 million in the third quarter of 2007.
The growth, said the company, was more than 75% organic, since its acquisitions of Navtel Communications and Brix Networks, which closed about one month and two months respectively into the third quarter of 2008, contributed US$2.2 million in total revenue.
Net bookings improved 16% year-over-year to a record-high of US$50.7 million in the third quarter of fiscal 2008 for a book-to-bill ratio of 1.04, excluding the backlogs of Brix Networks and Navtel Communications at their acquisition dates.
Net bookings in the third quarter a year earlier were US$43.7 million.
GAAP net earnings in the third quarter totaled US$11.2 million compared with GAAP net earnings of US$2.6 million in the same quarter a year earlier. GAAP net earnings in this latest third quarter included US$5.3million for the recognition of previously unrecognized future income tax assets in the United States.
“Our strategic acquisitions of Navtel Communications and Brix Networks are accelerating the transformation of EXFO into the leading supplier of next-generation, IP-based test and monitoring solutions,” said EXFO Chair, President and CEO Germain Lamonde. “They allow us to cover the full technology lifecycle, extending from advanced test equipment for network equipment manufacturers (NEMs) and carrier labs onto portable field-test gear and service assurance solutions for network service providers (NSPs). These acquisitions also enable us to support the higher-margin application and service layers on a network infrastructure to enable triple-play services and next-generation, converged IP networking.”
