Stock News in Focus: EXFO Inc. (NASDAQ:EXFO)

EXFO Inc. (NASDAQ:EXFO) changed 1.45% to recent value of $4.9. The stock transacted 288287 shares during most recent day however it has an average volume of 29.59K shares. It spotted trading -1.41% off 52-week high price. On the other end, the stock has been noted 63.33% away from the low price over the last 52-weeks.

On Jan. 7, 2020, EXFO Inc. (NASDAQ:EXFO) the communications industry’s test, monitoring and analytics experts, revealed financial results for the first quarter ended November 30, 2019.

EXFO delivered a strong first-quarter performance to begin fiscal 2020, highlighted by sales above the midpoint of guidance for a fifth consecutive reporting period and adjusted EBITDA margin in double-digits, said EXFO’s CEO Philippe Morin. These results demonstrate the heightened leverage in our business model through a combination of increased revenue and lower cost structure. Although we are operating within a highly dynamic and transforming industry, we are confident about achieving our profitable growth strategy for the full fiscal year.

First-Quarter Highlights

  • Sales increased 6.3% in the first quarter of fiscal 2020 mainly due to a more linear influx of Test and Measurement (T&M) orders compared to the same period in 2019, and stronger demand for the company’s solutions in the Asia-Pacific region. T&M sales accounted for 76% of revenue in the first quarter of 2020, while Service Assurance, Systems and Services (SASS) sales totaled 24%. Revenue distribution among the three main selling regions amounted to 54% in the Americas, 29% in Europe, Middle East and Africa (EMEA) and 17% in Asia-Pacific. EXFO’s top customer accounted for 11.9% of sales, while the top three represented 19.7%.
  • IFRS net loss amounted to US$0.1 million, or US$0.00 per share, in the first quarter of fiscal 2020, while adjusted EBITDA totaled US$7.5 million, or 10.3% of sales. EXFO adopted IFRS 16, Leases, on Sept. 1, 2019, using the modified retrospective method which had a positive impact on adjusted EBITDA of US$0.9 million, or 1.2% of sales, in the first quarter of 2020. Prior period amounts were not adjusted.
  • EXFO introduced the Optical Wave Expert, the first test solution to integrate DWDM (dense wavelength division multiplexing) channel power validation and OTDR (optical time domain reflectometry) fault-locating capabilities on a single port. Designed to reduce mean-time-to-repair, this instrument enables field technicians to automatically troubleshoot optical fiber links.

EXFO has a gross margin of 58.10% and an operating margin of 1.70% while its profit margin remained -0.90% for the last 12 months. Its earnings per share (EPS) expected to touch remained 76.20% for this year while earning per share for the next 5-years is expected to reach at 5.00%.

The company has 55.77M of outstanding shares and 19.29M shares were floated in the market. According to the most recent quarter its current ratio was 1.5 that represents company’s ability to meet its current financial obligations. The price moved ahead of 9.44% from the mean of 20 days, 12.22% from mean of 50 days SMA and performed 21.07% from mean of 200 days price. Company’s performance for the week was 6.99%, 11.74% for month and YTD performance remained 5.97%.

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