EXFO Inc (NASDAQ:EXFO) Q2 2020 Earnings Conference Call - Final Transcript

Apr 07, 2020 • 05:00 pm ET


EXFO Inc (NASDAQ:EXFO) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen. Welcome to EXFO's Second Quarter Conference Call for Fiscal Year 2020. Today's conference is being recorded.

At this time, I would like to hand things over to Vance Oliver, Director of Investor Relations. Please go ahead, sir.

Vance Oliver

Good afternoon and welcome to EXFO's second quarter conference call for fiscal 2020. With me on the line today are Philippe Morin, EXFO's Chief Executive Officer and Pierre Plamondon, CFO and Vice President of Finance. Mr. Germain Lamonde, EXFO's Founder and Executive Chairman will also be available to answer questions during the Q&A period.

A reminder that this conference call will include certain forward-looking statements and/or estimates concerning our intents, beliefs or expectations regarding future events that may affect EXFO. Please note that such comments will be affected by risks and/or uncertainties, including the impact of the coronavirus pandemic on our employees, customers and global operations. This may cause the actual results of the Company to be materially different from those expressed or implied today. For more information about EXFO, I encourage you to review our Form 20-F filed with the Securities and Exchange Commission. Our annual information form is available with Canadian Securities Commission as well. Please note that non-IFRS numbers may be used during this conference call. A reconciliation of these non-IFRS results with IFRS numbers is available in the Q2 2020 news release on our website. All dollar amounts in this conference call are expressed in US dollars unless otherwise indicated.

So without further delay, I will turn the call over to Philippe.

Philippe Morin

Thank you, Vance and good afternoon everyone. First, during this difficult period I hope that you and your families are all safe and sound. I would also like to extend my deepest gratitude to the first responders, doctors, nurses and medical staff who are putting their lives at risk daily to combat this coronavirus pandemic. They deserve our thanks and our praise.

Now turning our attention to EXFO. Despite the temporary shutdown of our manufacturing operations in China due to the coronavirus outbreak, we delivered solid bookings of $72.9 million in the second quarter of 2020, including a double-digit increase in Test and Measurement orders. We also reported sales of $55.3 million in the second quarter while IFRS net loss amounted to $9 million.

We consider these quarterly results a momentary setback to our long-term profitable growth strategy. The good news is that we have returned to full manufacturing capacity in China. All EXFO sites are operational and our staff is committed to helping global network operators and large [Phonetic] webscale companies to thrive during this challenging period. Throughout this global pandemic, the safety of our employees, communities and customers remains and will continue to remain at the center of all of our actions.

Following up on an IT issue that we initially reported in February, a virus was detected and quickly contained at EXFO. IT specialists were brought in to help to resolve the situation, and I can safely say this matter