EXFO Profit Falls; Q4 Guidance Weak

(RTTNews) - EXFO Inc (EXFO) on Tuesday reported third-quarter net earnings of $563 thousand or $0.01 per share compared with $1.7 million or $0.03 per share last year.

Revenues for the quarter were $57.8 million compared with $63.9 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.03 per share on revenues of $57.7 million for the quarter. Analysts' estimates typically exclude special items.

Gross margin for the quarter fell to 61.4% from 63.3% a year ago.

For the fourth quarter, the company expects net results to range between a loss of $0.02 per share and a profit of $0.02 per share. The guidance includes $0.01 per share in after-tax amortization of intangible assets and stock-based compensation costs as well as $0.02 per share in restructuring charges. The company projects fourth-quarter revenues of$55 million to $60 million.

Analysts expect earnings of $0.06 per share on revenues of $60.4 million for the fourth quarter.

EXFO, based in Quebec City, Canada, manufactures, and markets test, service assurance, and quality of experience solutions for wireline and wireless network operators and equipment manufacturers.