EXFO Inc (NASDAQ:EXFO) Q2 2020 Earnings Conference Call - Final Transcript
Apr 07, 2020 • 05:00 pm ET
is behind us. We turned this incident into an opportunity to also firm up our IT security systems.
With manufacturing and IT issues firmly under control, EXFO is open for business. We're very busy with customer meetings through virtual demos, webinars and conference calls. We're finding creative ways to meet our customer needs and we're continuing to book orders, albeit at a slower pace than last year at the same period. We also believe that EXFO's Test and Measurement solutions along with our SASS solutions are essential during these unprecedented times since our customers are being challenged by surging bandwidth demand while coping with reduced staff.
The telecom industry is mission critical more than ever with network capacity, reliability and scalability playing an increased role and creating opportunities for EXFO's innovative solutions. Several network operators and webscale companies, for example, have increased capital spending to meet the global trend of telecommunicating from home. EXFO with its wealth of test and service assurance solutions, enables the deployment of such bandwidth-intensive applications and virtualized cloud-based networks. Our solutions help customers maintain peak performance and we also help them with faster troubleshooting under these disruptive conditions by providing geolocation analytics, virtual VPN remote monitoring and active monitoring of network and subscriber anomalies just to name a few of our solutions.
Although we're open for business, government-imposed lockdown in many countries within the Americas, Europe and Asia have affected our visibility of future business. Therefore, EXFO has decided to suspend quarterly and annual guidance. We will do our best to provide the investment community with qualitative commentary about the Company's upcoming prospects, but it will not be possible to offer revenue and earnings guidance for the foreseeable future.
In addition, we're continuing through engagements with our customers and our partners to assess the medium to longer-term business impact of this coronavirus pandemic. And at present time we've decided to have tightened cost control measures, including a hold on all our future hires.
Now a little bit lost in the shuffle of this pandemic was our launch of Nova Adaptive Service Assurance in mid-February. It's the first intelligent automation platform enabling mobile operators to deliver ultra-reliable and high-quality service experience in 4G and 5G environment. At the heart of this Nova A/SA is a real-time automated assurance solution, Nova SensAI, acting as the central nervous systems for our platform. The combined offering leverages machine learning to provide mobile operators with heightened visibility into subscriber experience and network performance. The good news is we already trialed with this highly differentiated service assurance solution with three lead customers and the feedback has been extremely positive.
Now in closing, I'd like to express my heartfelt thanks to the entire EXFO team for delivering under trying conditions, not only in the second quarter, but as I know, as they will in the weeks ahead. What makes me most proud is that we've kept our global customer base appraised throughout and maintained the high level of customer support.