QUEBEC CITY – EXFO Inc. is back in the black after posting US$1.7 million in net earnings for the third quarter of fiscal 2014, versus net losses in the previous quarter and year-over-year of $1.3 million and $0.9 million, respectively.
The Canadian test and measurement maker said third quarter net earnings included $1.0 million in after-tax amortization of intangible assets, $0.4 million in stock-based compensation costs and a foreign exchange loss of $1.1 million. Adjusted EBITDA amounted to $7.3 million, or 11.5% of sales, this quarter compared to $3.1 million, or 5.3% of sales, in the same period last year.
Sales for the three month period ended May 31, 2014 reached $63.9 million, up from $58.9 million year-over-year, and bookings attained were $66.5 million compared to $61.8 million in the third quarter of 2013. The company's book-to-bill ratio was 1.04.
Gross margin before depreciation and amortization improved to 63.3% of sales this quarter from 61.7% in the third quarter of 2013 and 60.8% in the second quarter of 2014.
"I am really pleased with our strong sequential and year-over-year sales growth, the strengthening of our backlog for a third consecutive quarter and leverage in our operating model with an adjusted EBITDA margin of 11.5% in the third quarter," said chairman, president and CEO Germain Lamonde, in the news release. "I am also delighted with our improved market position in the wireless industry, both through the recent acquisitions of ByteSphere and Aito Technologies but also with several recently introduced solutions. All these initiatives have greatly elevated EXFO's strategic relevance in the wireless industry as reflected by three recent contract wins, two of which occurred with tier-1 network operators after the quarter-end."
