EXFO (NASDAQ:EXFO) (TSE:EXF), which markets fiber optic test and monitoring instruments for the telecommunications industry, swung to a first-quarter profit. Shares gained.
Net income was $1.5 million, or $0.02 per diluted share, in the three months ended ended November 30, compared to a net loss of $0.7 million, or $0.01 per diluted share, a year earlier, the Quebec City, Quebec-based company said in a statement late yesterday.
Sales slightly improved to $56.7 million in the first quarter, from $56.0 million a year earlier. Analysts were looking for revenue of $60.3 million.
"Although market demand remained muted, we recorded year-over-year increases in sales, gross margin and earnings in the first quarter of fiscal 2015," chief executive officer Germain Lamonde said in the statement. "The telecom industry continued morphing from hardware-centric to SDN and NFV architectures (virtualized networks) and from fixed to mobile networking, while industry consolidation is ongoing in the background.”
Looking ahead, EXFO forecasts sales between $52.0 million and $57.0 million for the fiscal second quarter. Analysts are looking for sales of $60 million on average.
The company is also expecting in the range of a net loss of $0.03 per share and net earnings of $0.01 per share. IFRS net loss/earnings include $0.02 per share in after-tax amortization of intangible assets and stock-based compensation costs.
Shares jumped 6.4 percent to C$4.15 at 1:10 p.m. in Toronto, paring losses over the past 12 months to C$4.15.