Terrific results for the quarter:
EXFO Posts Records for Sales and Net Income in Third Quarter
biz.yahoo.com
QUEBEC CITY, Canada, July 11 /CNW/ - EXFO Electro-Optical Engineering Inc. (NASDAQ: EXFO, TSE: EXF) announced today records for sales and net income for the third quarter ended May 31, 2000.
Sales increased 78% to US$19.4 million for the third quarter of 2000 from US$10.9 for the same period in fiscal 1999, and 11% from US$17.4 million in the second quarter of 2000.
Net income increased 69% to US$2.75 million, or $0.07 per share, for the third quarter of 2000 from US$1.62 million, or $0.04 per share, for the same period in fiscal 1999, and 14% from US$2.41 million, or $0.06 per share, in the previous quarter of 2000.
``We are pleased to announce that this quarter marks another period of records for sales and net income for EXFO,'' said Germain Lamonde, chairman, president, and chief executive officer of EXFO. ``As we enter our life as a public company, we will strive to increase shareholder value by focusing our development activities on dense wavelength division multiplexing (DWDM) test and measurement solutions, by increasing our production capacity to meet customer demand, and by pursuing strategic opportunities that complement our product offering.''
EXFO introduced several new products during the third quarter including a single-slot optical time domain reflectometer platform and related test modules, an optical spectrum analyzer for the FTB-300 Universal Test System and IQ-200 Optical Test System platforms, a second-generation remote fiber test system for network monitoring, a DWDM passive component test system for optical components and value-added optical modules, and a tunable laser source for DWDM testing.
``New products are the lifeblood of our company,'' Lamonde added. ``Our goal is to support the latest technological developments in the fiber-optic industry with high-performance and reliable test, measurement, and monitoring solutions.''
Selling and administrative expenses amounted to US$6.5 million, or 33.7% of revenues, for the third quarter compared to US$5.8 million, or 33.4% of revenues, in the previous quarter and US$3.5 million, or 31.7% of revenues, in the third quarter of fiscal 1999. The increase is mainly due to the increase in personnel and commissions on higher sales volume.
Gross research and development expenses for the third quarter amounted to US$2.2 million compared to US$1.6 million in the third quarter of fiscal 1999. This increase in gross R&D expenses is mainly due to the hiring of research engineers. However, as a percentage of revenues, gross R&D expenses dropped from 15.3% in the second quarter of fiscal 2000 to 11.6% in the third quarter. This temporary decrease is primarily due to a lower consumption of materials and less outsourcing and consulting directly related to the nature of projects and to their development phase.
The replay of EXFO's third quarter conference call can be accessed after 7:30 p.m. (Eastern time) July 11, 2000 until midnight (Eastern time) July 18. The replay numbers are (800) 408-3053 or (416) 695-5800. The password for both numbers is 514995. |
