EXFO Trims Losses

In the fourth quarter of 2009, EXFO Electro-Optical Engineering Inc (EXFO - Snapshot Report) reported net loss of $1.2 million, or 2 cents per share, beating the Zacks Consensus Estimate of a loss of 6 cents per share. Annual sales decreased 5.9% to $172.9 million in fiscal 2009 from $183.8 million in 2008. 

In the fourth quarter of 2009, sales reached $36.5 million compared to $43.6 million in the previous quarter and $50.9 million in the fourth quarter of 2008. Overall for fiscal 2009, net bookings decreased 2.2% to $180.5 million from $184.6 million in 2008 for an annual book-to-bill ratio of 1.04. In the fourth quarter of 2009, net bookings totaled $40.7 million for a book-to-bill ratio of 1.11 compared to $40.2 million in the third quarter of 2009 and $45.7 million in the fourth quarter of 2008. 

Gross margin was 60.0% compared to 62.3% in the previous quarter and 59.9% in the fourth quarter of 2008. Net income for the quarter included $1.2 million in restructuring charges, $1.1 million in amortization of intangible assets, and $0.4 million in stock-based compensation costs. 

These items were offset by $1.9 million for the recognition of previously unrecognized R&D tax credits and $0.9 million for the net recovery of income taxes. EXFO launched 26 new products in fiscal 2009, including three in the fourth quarter, compared to 27 in 2008. 

Key product introductions in 2009 included laboratory and portable test solutions for characterizing 100 Gbit/s Ethernet and 40/43 Gbit/s SONET/OTN networks and a distributed PMD analyzer that allows network operators to cost-effectively upgrade their networks to 40 Gbit/s and 100 Gbit/s, among others. 

EXFO Electro-Optical Engineering, Inc. designs, manufactures, and markets various test and monitoring solutions for network service providers and equipment manufacturers in the telecommunications industry worldwide. 

The company offers these products for the installation, maintenance, monitoring and troubleshooting of optical networks. It sells its products through sales representatives and distributors. The company was founded in 1985 and is headquartered in Quebec City , Canada . Major competitors include Agilent Technologies Inc. (A - Analyst Report) and JDS Uniphase Corporation (JDSU - Snapshot Report).