QUEBEC CITY — Telecom testing and monitoring solution provider EXFO Inc. this afternoon reported its sales increased 9.8% year-over-year to reach US$72.6 million in the third quarter ended May 31, 2021.
The Quebec City-based company attributed the sales increase primarily to increased spending on fibre deployments in the Americas and Europe, the Middle East and Africa (EMEA) region following a period of reduced investments in 2020 due to the Covid-19 pandemic. (The company reports its financial results in U.S. dollars.)
EXFO’s test and measurement sales grew 13.9% to reach US$57.3 million in Q3 2021, compared to the same quarter of 2020. Sales for the company’s service assurance, systems and services segment fell 9.6% year-over-year to US$14.8 million in the third quarter, compared to the prior year.
The company reported its sales in the Americas and EMEA region increased 18.4% and 20.6% year-over-year, respectively, while sales in the Asia-Pacific region dropped 23.8%.
EXFO says its top customer accounted for 5.6% of sales in Q3 2021, while the top three represented 14.1%.
The company’s total bookings improved 47.2% to US$87 million in the third quarter of 2021 from US$59.1 million in the same period of 2020.
However, EXFO reported a net loss of US$3.7 million in Q3 2021, compared to net earnings of US$3.2 million in the same quarter of 2020.
Adjusted EBITDA was US$4.3 million in Q3 2021, down from US$10.7 million in Q3 2020.
“In the third quarter of 2021, EXFO delivered sales and adjusted EBITDA consistent with expectations while strong bookings were mainly driven by a recovery from the coronavirus pandemic and a good performance in EMEA,” said EXFO’s CEO Philippe Morin, in a press release.
EXFO was recently the target of an attempted hostile takeover by American network test and monitoring solution provider Viavi Solutions, following EXFO’s announcement in June the company is going private.
Today, EXFO said a proxy circular containing full details of the offer will be distributed to shareholders shortly and, due to the going-private transaction having been initiated, the company is not holding a conference call or webcast to discuss its financial results.
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