QUEBEC CITY – Despite a drop in net earnings, EXFO reported “record” sales and bookings for its second quarter ended February 28, 2010.
Sales increased by 16.7% to US$54.1 million from $46.4 million in the second quarter of 2009, and were up 18.8% from $45.6 million in the first quarter of 2010. Net bookings improved 22.2% to $57.8 this quarter from $47.3 million in the same period last year, and up 10.8% from $52.2 million in the first quarter of 2010. The company’s book-to-bill ratio was 1.07 this quarter.
Gross margin decreased to 60.0% of sales quarter-over-quarter, from 63.9% in the first quarter of 2010. Net earnings for the quarter totaled $1.2 million, compared to $2.7 million in the same period last year. EXFO recorded a pre-tax, foreign exchange loss of $1.0 million in the second quarter of fiscal 2010, compared to a gain of US$1.1 million in the second quarter of 2009 and a loss of US$1.1 million in the first quarter of 2010.
Following the quarter-end, EXFO announced the acquisition of NetHawk Oyj, the second-largest provider of 2G, 3G and 4G/LTE protocol analyzers and network simulators in the wireless test industry, in an all-cash transaction estimated at (euro)37.3 million.
"I’m certainly delighted with the NetHawk acquisition, since its leading 3G and 4G/LTE technologies transform EXFO into a major force in the high-growth, high-margin wireless space and a top-five player in the global telecom test and service assurance industry," said chairman, president and CEO Germain Lamonde, in a statement. "I’m equally pleased with our record level of sales and bookings in the second quarter. Given our enhanced strategic positioning and overall improvement in our end-markets, I’m confident this will enable us to accelerate revenues and earnings even faster in the near future."
