QUEBEC CITY – Both net earnings and sales at EXFO Inc. fell during the second quarter ended February 29, 2012.
The Canadian test and measurement maker reported a drop in net earnings from US$1.7 million in the second quarter of 2010 to $1.0million, which included $1.9 million in after-tax amortization of intangible assets and $0.5 million in stock-based compensation costs. EXFO also incurred a foreign exchange loss of $1.5 million this quarter.
Sales reached $66.9 million, down $72.0 million in the same period last year. Gross margin improved to 64.7% of sales compared to 61.4% year-over-year.
"EXFO performed well in the second quarter given typical seasonality, difficult European economic environment, near absence of year-end capital spending and some later approvals of 2012 spending budgets," said chairman, president and CEO Germain Lamonde, in a statement.
"In the second half of our fiscal year, which is typically our strongest, we expect to benefit from major product launches, as well as continued market penetration with our wireless, 40G/100G and other Protocol solutions, to complete the year with at least single-digit sales growth."
