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EXFO at a Glance


Corporate Overview

EXFO is a leading provider of next-generation test and service assurance solutions for wireless and wireline network operators and equipment manufacturers in the global telecommunications industry. The Telecom Division, which accounts for about 90% of the company’s revenues, offers core-to-edge solutions that assess the performance and reliability of converged, IP fixed and mobile networks. Key technologies supported include 3G, 4G/LTE, IMS, Ethernet, OTN, xDSL, and various optical technologies accounting for an estimated 33% of the portable fiber-optic test market. The Life Sciences and Industrial Division provides solutions in medical device and opto-electronics assembly, fluorescence microscopy and other life science sectors. EXFO has a staff of approximately 1,600 people in 25 countries, supporting more than 2,000 customers worldwide.

Strong Investment Proposition

Five good reasons to invest in EXFO (click for more info)
1. EXCELLENT TRACK RECORD OF SALES GROWTH
  • Sales CAGR of 18.3% in last five years and 15.2% in last 10 years
  • Gained market share in a down market
2. WELL POSITIONED FOR KEY GROWTH DRIVERS
  • Migration toward next-generation, IP networks
  • Bandwidth demand driving fiber deployments in access and core
3. HISTORY OF GROWING EBITDA* MARGIN
  • Increased EBITDA margin from -1.1% in FY 2004 to 11.2% in FY 2008
  • Dropped to 8.4% in FY 2009 due to economic recession
4. SOLID BALANCE SHEET
  • Cash position of $25.2 M – as of May 31, 2010
5. EXPERIENCED AND DISCIPLINED MANAGEMENT TEAM
  • Average of 8.5 years at EXFO and 21 years in telecom industry

* Click here for a reconciliation of EBITDA to GAAP net earnings (loss).

Long-Term Vision and Strategy

VISION: Become the market leader in the global telecom test and service assurance industry.

Three-Year Corporate Performance Goals

Corporate Performance Objectives for FY 2010-20121
Increase sales by a CAGR of at least 25%
Raise gross margin to 64%
Increase EBITDA2 in dollars by a CAGR of at least 30%

1. Corporate performance objectives were updated following the acquisition of NetHawk in March 2010.

2. EBITDA is defined as net earnings before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets, impairment of goodwill and extraordinary gain.