Exfo Posts Loss As Sales, Margins Falter - Update

(RTTNews) - Canadian telecommunication solutions provider Exfo Inc (EXFO) (EXF.TO), Tuesday reported a slip to loss in the second quarter, hurt mainly by lower sales and margins. Sales for the quarter came in below Wall Street estimates.

Exfo provides test and service assurance solutions for wireline and wireless network operators and equipment manufacturers.

The Quebec City-based company posted a quarterly net loss of $1.3 million or $0.02 per share, compared with a profit of $39 thousand or breakeven per share last year.

On average, nine analysts polled by Thomson Reuters expected breakeven earnings per share for the quarter. Analysts' estimates typically exclude special items.

Results for the recent quarter included $1 million in after-tax amortization of intangible assets, $0.4 million in stock-based compensation costs and a foreign exchange gain of $2.3 million.

Sales for the quarter slid to $51.2 million from $62.6 million a year ago. Analysts expected sales of $55.73 million for the quarter.

Results were further dented by gross margins that dropped to 60.8 percent from 62.2 percent a year ago.

For the third quarter, the company expects earnings of $0.00 to $0.04 per share and sales of $60 million to $65 million. Analysts currently expect earnings of $0.05 per share on sales of $59.89 million.

The company's earnings guidance includes $0.02 per share in after-tax amortization of intangible assets and stock-based compensation costs.

EXFO stock closed Tuesday at $4.62, up $0.01 or 0.22%, on the Nasdaq. In Canada, the stock closed at C$5.20, up C$0.02 or 0.39%.