QUEBEC CITY, CANADA, October 8, 2003 EXFO Electro-Optical Engineering Inc. recently announced fourth-quarter and year-end results for fiscal 2003. Sales decreased 5% to US$14.3 million in the fourth quarter ended August 31, 2003 from $15.1 million in the previous quarter and 17% from US$17.2 million in the fourth quarter of 2002. Overall for fiscal 2003, sales fell 9% to US$61.9 million from US$68.3 million in 2002.
EXFO's pro forma net loss in the fourth quarter of fiscal 2003 amounted to US$2.7 million, or US$0.04 per share, compared to a pro forma net loss of US$4.1 million, or US$0.06 per share, in the third quarter of 2003 and a pro forma net loss of US$1.2 million, or US$0.02 per share, in the fourth quarter of 2002. Net loss in the fourth quarter of fiscal 2003 totaled US$10.1 million, or US$0.16 per share, compared to a net loss of US$38.4 million, or US$0.61 per share, in the previous quarter and a net loss of US$3.0 million, or US$0.05 per share, in the fourth quarter of 2002.
Pro forma net loss for fiscal 2003 amounted to US$11.5 million, or US$0.18 per share, compared to a pro forma net loss of US$11.2 million, or US$0.19 per share, for 2002. Net loss for fiscal 2003 was US$55.0 million, or US$0.87 per share, compared to a net loss of US$308.5 million, or US$5.09 per share, for fiscal 2002.
Gross margin increased to 45.8% of sales in the fourth quarter of fiscal 2003, excluding inventory write-offs of US$2.5 million and a non-recurring gain of US$473,000. Including inventory write-offs and the non-recurring gain, gross margin was 31.8% in the fourth quarter. In comparison, gross margin represented 41.7% of sales in the third quarter of 2003, excluding inventory write-offs, or 34.7% including inventory write-offs. In the fourth quarter of 2002, gross margin was 49.2%.
Overall for fiscal 2003, gross margin declined to 47.4% of sales, excluding inventory write-offs of US$4.1 million and the non-recurring gain. Including inventory write-offs and the non-recurring gain, gross margin was 41.6% in 2003. In comparison, gross margin was 50.4% in 2002, excluding inventory write-offs, or 23.4% including inventory write-offs. In the fourth quarter of 2003, a new presentation was adopted with certain expenses reclassified from selling and administrative expenses to cost of sales. Consequently, comparative figures have been reclassified.
EXFO forecasted sales between US$13.0 million and US$16.0 million and a GAAP net loss between US$0.10 and US$0.07 per share for the first quarter of fiscal 2004. GAAP net loss includes a loss representing amortization of intangible assets and income tax recovery that is expected to amount to US$0.01 per share in the first quarter of 2004.
EXFO designs and manufacturers innovative test and measurement solutions for the global communications industry. The Telecom Division, which represents the company's main business activity, offers fully integrated and complete test solutions to network service providers, system vendors and component manufacturers in approximately 70 countries. One of EXFO's strongest competitive advantages is its modular platform design, providing PC-based, Windows-centric test solutions that maximize technology reuse across several market segments. The Photonics and Life Sciences Division mainly leverages core telecom technologies to offer value-added solutions in high-tech industrial manufacturing and research sectors.
For more information, www.exfo.com