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EXFO shares took a hit in the extended session on Tuesday after the Canadian provider of wireless and wireline network testing services reported a year-over-year decline in quarterly sales and a sequential drop in bookings.
The company said it earned $1.04 million, or 2 cents a share, in its fiscal second quarter ended Feb. 29 on sales of $66.9 million. That performance was below its year-ago net income of $1.72 million, or 3 cents a share, on sales of $72 million. Wall Street's consensus view was for a profit of 4 cents a share in the latest quarter.
EXFO said bookings totaled $60.6 million for the three-month period, up slightly from $57.6 million in the same period a year earlier, but down from $71.4 million in its fiscal first quarter.
The stock was last quoted at $6.95, down 4.5%, on volume just shy of 15,000, according to
"EXFO performed well in the second quarter given typical seasonality, difficult European economic environment, near absence of year-end capital spending and some later approvals of 2012 spending budgets," said Germain Lamonde, the company's chairman, president and CEO, in a statement. "In the second half of our fiscal year, which is typically our strongest, we expect to benefit from major product launches, as well as continued market penetration with our wireless, 40G/100G and other Protocol solutions, to complete the year with at least single-digit sales growth."
For its fiscal third quarter, EXFO forecast earnings of 1 to 5 cents a share on sales ranging from $68 million to $73 million. The company said the third-quarter outlook reflects costs totaling 4 cents a share related to after-tax amortization of intangible assets and stock-based compensation.
Written by Michael Baron in New York.
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