QUEBEC CITY, June 1 /PRNewswire-FirstCall/ -- EXFO Electro-Optical Engineering Inc. (NASDAQ: EXFO; TSX: EXF) announced today preliminary results for the third quarter ended May 31, 2009.
EXFO's third quarter was marked by a significant 16.4% decrease of the US dollar versus the Canadian dollar, including 15.4% in April and May. Guidance for the third quarter of fiscal 2009 had been established on March 31, 2009, based on the relative stability of the Canadian/US exchange rate.
This major fluctuation will create a pre-tax foreign exchange loss of approximately US$5 million, or US$0.08 per diluted share, in the third quarter of 2009 and an additional negative impact on operating expenses and cost of goods sold. Consequently, EXFO expects to incur a GAAP net loss between US$0.07 and US$0.06 per diluted share compared to forecasted GAAP net earnings between US$0.01 and US$0.05 per diluted share.
EXFO also anticipates that revenues will finish between US$43 million and US$44 million for the third quarter of 2009, slightly below the forecasted range due to the global economic recession.
All financial numbers provided in this press release are preliminary and subject to review. EXFO will announce its complete results for the third quarter of fiscal 2009 after the close of markets on June 30, 2009.
About EXFO
EXFO is a leading provider of test and service assurance solutions for network service providers and equipment manufacturers in the global telecommunications industry. The Telecom Division offers a wide range of innovative solutions extending across the full technology lifecycle - from design to technology deployment and onto service assurance - and covering all layers on a network infrastructure to enable triple-play services and next-generation, converged IP networking. The Life Sciences and Industrial Division offers solutions in medical device and opto-electronics assembly, fluorescence microscopy and other life science sectors. For more information, visit http://www.exfo.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, and we intend that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are statements other than historical information or statements of current condition. Words such as may, will, expect, believe, anticipate, intend, could, estimate, continue, or the negative or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events and circumstances are considered forward-looking statements. They are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in forward-looking statements due to various factors including consolidation in the global telecommunications test, measurement and service assurance industry; capital spending levels in the telecommunications, life sciences and high-precision assembly sectors; concentration of sales; fluctuating exchange rates and our ability to execute in these uncertain conditions; the effects of the additional actions we have taken in response to such economic uncertainty (including our ability to quickly adapt cost structures with anticipated levels of business, ability to manage inventory levels with market demand); market acceptance of our new products and other upcoming products; limited visibility with regards to customer orders and the timing of such orders; our ability to successfully integrate our acquired and to-be-acquired businesses; our ability to successfully expand international operations; the retention of key technical and management personnel; and future economic, competitive, financial and market conditions, including slow-down or recession in the global economy. Assumptions relating to the foregoing involve judgments and risks, all of which are difficult or impossible to predict and many of which are beyond our control. Other risk factors that may affect our future performance and operations are detailed in our Annual Report, on Form 20-F, and our other filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. We believe that the expectations reflected in the forward-looking statements are reasonable based on information currently available to us, but we cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this document. Unless required by law or applicable regulations, we undertake no obligation to revise or update any of them to reflect events or circumstances that occur after the date of this document.
EXFO ELECTRO-OPTICAL ENGINEERING INC.
CONTACT: Vance Oliver, Manager, Investor Relations, (418) 683-0913, Ext.
3733, vance.oliver@exfo.com
