EXFO announced today the company has streamlined its monitoring solutions portfolio to focus on testing, active service assurance, fiber monitoring and analytics.
QUEBEC CITY, CANADA, May 2, 2017 — EXFO Inc. (NASDAQ: EXFO, TSX: EXF) announced today the company has streamlined its monitoring solutions portfolio to focus on testing, active service assurance, fiber monitoring and analytics.
Accordingly, EXFO will significantly reduce investments in passive wireless monitoring which represented less than 5% of total sales. Staff reductions related to this product line and varied go-to-market adjustments will affect approximately 5% of EXFO’s global workforce.
Following this restructuring, which should be completed in the fourth quarter of fiscal 2017, EXFO intends to benefit from annual cost savings of US$8.0 million. The company will also incur one-time restructuring costs of US$4.0 million in the third quarter of 2017.
“EXFO has performed well overall with double-digit revenue growth at the halfway mark of fiscal 2017, but we needed to address an underachieving product line within our monitoring solutions portfolio,” said Philippe Morin, EXFO’s Chief Executive Officer. “By sharpening our focus on testing, active service assurance, fiber monitoring and analytics, we will better meet growing customer requirements for real-time visibility on virtualized and hybrid networks and, in the process, bolster profitability.”
EXFO develops smarter network test, monitoring and analytics solutions for the world’s leading communications service providers, network equipment manufacturers and web-scale companies. Since 1985, we’ve worked side by side with our clients in the lab, field, data center, boardroom and beyond to pioneer essential technology and methods for each phase of the network lifecycle. Our portfolio of test orchestration and real-time 3D analytics solutions turn complex into simple and deliver business-critical insights from the network, service and subscriber dimensions. Most importantly, we help our clients flourish in a rapidly transforming industry where “good enough” testing and data analytics just isn’t good enough anymore—it never was for us, anyway. For more information, visit EXFO.com and follow us on the EXFO Blog.
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