<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 2000
EXFO ELECTRO-OPTICAL ENGINEERING INC.
(Translation of registrant's name into English)
465 GODIN AVENUE, VANIER, QUEBEC, CANADA G1M 3G7
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-______.
<PAGE>
[LOGO] FOR IMMEDIATE RELEASE
EXFO REPORTS RECORD REVENUES AND OPERATING RESULTS FOR THE FOURTH QUARTER
AND FISCAL 2000
- REVENUES UP 85% IN THE QUARTER AND 70% FOR FISCAL 2000
- NET EARNINGS FROM OPERATIONS UP 76% IN THE QUARTER AND 71% FOR FISCAL 2000
QUEBEC CITY, CANADA, October 4, 2000--EXFO Electro-Optical Engineering Inc.
(NASDAQ: EXFO, TSE: EXF) today reported record revenues and operating results
for the fourth quarter and year ended August 31, 2000.
Revenues increased 85% to US$23.1 million in the fourth quarter from US$12.5
million for the same period in 1999, and 19% sequentially from US$19.4 million
in the third quarter.
Net earnings increased 76% to US$3.5 million, or $0.08 per share, for the
fourth quarter from US$2.0 million, or $0.05 per share, for the same period
in fiscal 1999, and 26% sequentially from US$2.8 million, or $0.07 per share,
for the third quarter in 2000.
Overall for fiscal 2000, revenues increased 70% to US$71.6 million from US$42.2
million in fiscal 1999. Net earnings, meanwhile, increased 71% to US$9.9
million, or $0.25 per share, for fiscal 2000 from US$5.8 million, or $0.14 per
share, for fiscal 1999.
"We are extremely pleased with our strong growth in the fourth quarter," said
Germain Lamonde, Chairman, CEO, and President of EXFO. "A few years ago, we
had set our sights on two growing market opportunities: DWDM and
High-Bandwidth Solutions and the Industrial and Scientific Market.
"We are now beginning to see evidence that we have a winning strategy."
EXFO began shipping a number of new products in the fourth quarter including the
DWDM Passive Component Test System dedicated to the production environment, the
second-generation Remote Fiber Test System with DWDM monitoring capabilities to
ensure network performance, and the second-generation Optical Spectrum Analyzer
for field deployment.
All of these products have quickly received market acceptance from customers,
especially the DWDM Passive Component Test System. This test system has been
well received by manufacturers of optical components, value-added optical
modules, and optical networking systems because it allows them to drastically
reduce their testing time from hours to less than one minute for a 40 or 80
channel multiplexer-demultiplexer, the essential building block of a DWDM
system.
"Test and measurement can account for as much as 60% of total production time
for some optical components or value-added optical modules," Lamonde added.
"Not surprisingly, manufacturers are turning to third-party vendors such as
EXFO to provide them with fully automated, off-the-shelf test systems so that
they can achieve substantial improvements in productivity, yields, and
manufacturing costs while concentrating their energies on product development.
<PAGE>
Selling and administrative expenses amounted to US$7.8 million, or 33.8% of
revenues, for the fourth quarter compared to US$3.9 million, or 30.8% of
revenues, for the same period in fiscal 1999 and US$6.5 million, or 33.7% of
revenues, in the third quarter of fiscal 2000. Overall for fiscal 2000, selling
and administrative expenses were at US$24.3 million, or 33.9% of revenues,
compared to US$13.3 million, or 31.5% of revenues, for fiscal 1999.
Gross research and development expenses were at US$2.4 million, or 10.5% of
revenues, in the fourth quarter compared to US$2.0 million, or 15.9% of
revenues, for the same period in fiscal 1999 and US$2.2 million, or 11.6% of
revenues, in the third quarter of fiscal 2000. Overall for fiscal 2000, gross
R&D expenses amounted to US$9.4 million, or 13.1% of revenues, compared to
US$6.4 million, or 15.2% of revenues, for fiscal 1999.
The audio Web cast of the fourth quarter and year-end conference call can be
accessed live on EXFO's Web site, under Investor Relations, at 8:00 a.m.
(Eastern time) on Oct. 5, 2000. Guests are invited to click on the Web cast
icon and enter 9799 as a password. A replay of the Web cast will be available
for 90 days.
The replay of EXFO's fourth quarter and year-end conference call can also be
accessed after 11:00 a.m. (Eastern time) October 5, 2000 until midnight (Eastern
time) October 12, 2000 via telephone. The replay numbers are (800) 558-5253 and
the password is 16401516, or (416) 626-4100 and the password is 16399799.
ABOUT EXFO
EXFO is a leading designer, manufacturer, and marketer of fiber-optic test,
measurement, and monitoring instruments for the telecommunications industry.
EXFO develops products mainly for two markets. Its Portable and Monitoring
Division provides solutions primarily to telecommunications carriers, cable
television companies, public utilities, private network operators, as well as
third-party installers and equipment rental companies. Its Industrial and
Scientific Division designs an extensive line of more sophisticated and higher
performance instruments for manufacturers of optical components, value-added
optical modules, and optical networking systems, as well as for research and
development markets.
This news release may contain statements that constitute forward-looking
statements within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. Forward-looking statements are statements other than historical
information or statements of current condition. These statements may appear in a
number of places in this news release and include statements concerning our
intent, belief, or current expectations regarding future events. Forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and actual results may differ materially from those in the
forward-looking statements as a result of various factors. Although we believe
that the expectations reflected in the forward-looking statements are reasonable
based on information currently available to us, 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. In any event, these
statements speak only as of the date of this news release. We undertake no
obligation to revise or update any of them to reflect events or circumstances
after the date of this news release, or to reflect new information or the
occurrence of unanticipated events. Readers are referred to our Registration
Statement on Form F-1 and our other filings with the U.S. Securities and
Exchange Commission and the Canadian securities commissions for a discussion of
the various factors that may affect our future performance and other important
risk factors concerning us and our operations.
<PAGE>
FOR MORE INFORMATION:
Mike Lamanna
Manager, Investor Relations
(418) 683-0211
[email protected]
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
<TABLE>
<CAPTION>
AS AT AUGUST 31,
----------------------------
1999 2000
---------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 423 $ 729
Short-term investments 1,371 162,659
Accounts receivable
Trade 8,869 18,272
Other 1,026 2,790
Income taxes receivable 381 284
Inventories 7,591 18,868
Prepaid expenses and deposits 475 1,023
Future income taxes - 995
---------- ------------
20,136 205,620
CAPITAL ASSETS 2,639 8,694
GOODWILL AND OTHER ASSETS 65 2,320
FUTURE INCOME TAXES - 3,089
---------- ------------
$ 22,840 $ 219,723
---------- ------------
---------- ------------
LIABILITIES
CURRENT LIABILITIES
Bank advances $ - $ 10
Accounts payable and accrued liabilities 5,523 10,353
Dividend payable 51 -
Mandatorily redeemable preferred shares - 543
Loan from a company under common control 1,337 -
Deferred revenue 218 395
Current portion of long-term debt - 152
Future income taxes 262 -
--------- ------------
7,391 11,453
DEFERRED REVENUE 109 151
DEFERRED GRANTS 533 1,109
LONG-TERM DEBT - 16
FUTURE INCOME TAXES 128 -
---------- ------------
8,161 12,729
---------- ------------
SHAREHOLDERS' EQUITY
SHARE CAPITAL 87 198,459
CUMULATIVE TRANSLATION ADJUSTMENT - 1,555
RETAINED EARNINGS 14,592 6,980
---------- ------------
14,679 206,994
---------- ------------
$ 22,840 $ 219,723
----------- ------------
----------- ------------
</TABLE>
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
INTERIM CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of U.S. dollars, except share and per share data)
<TABLE>
<CAPTION>
THREE TWELVE THREE TWELVE
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1999 2000 2000
------------- ------------ ------------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
SALES $ 12,522 $ 42,166 $ 23,117 $ 71,639
COST OF SALES 4,224 14,998 7,756 24,712
------------- ------------ ------------ -------------
GROSS MARGIN 8,298 27,168 15,361 46,927
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
OPERATING EXPENSES
Selling and administrative 3,850 13,279 7,817 24,304
Net research and development 1,466 4,315 1,916 6,402
Amortization of capital assets and other assets 253 898 484 1,498
------------- ------------ ------------ -------------
TOTAL OPERATING EXPENSES 5,569 18,492 10,217 32,204
------------- ------------ ------------ -------------
EARNINGS FROM OPERATIONS 2,729 8,676 5,144 14,723
Interest income, net (57) (136) (1,625) (1,480)
Foreign exchange loss 6 506 1,073 684
------------- ------------ ------------ -------------
EARNINGS BEFORE INCOME TAXES AND AMORTIZATION OF
GOODWILL 2,780 8,306 5,696 15,519
INCOME TAXES 809 2,492 2,106 5,298
------------- ------------ ------------ -------------
EARNINGS BEFORE AMORTIZATION OF GOODWILL 1,971 5,814 3,590 10,221
AMORTIZATION OF GOODWILL - - 126 297
------------- ------------ ------------ -------------
NET EARNINGS FOR THE PERIOD $ 1,971 $ 5,814 $ 3,464 $ 9,924
------------- ------------ ------------ -------------
------------- ------------ ------------ -------------
BASIC AND FULLY DILUTED EARNINGS PER SHARE
Earnings before amortization of goodwill 0.05 0.14 0.08 0.26
Net earnings 0.05 0.14 0.08 0.25
BASIC WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING (000'S) 38,002 38,001 44,220 39,951
</TABLE>
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
INTERIM CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(in thousands of U.S. dollars, except per share data)
<TABLE>
<CAPTION>
THREE TWELVE THREE TWELVE
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1999 2000 2000
------------ ------------- ------------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
BALANCE - BEGINNING OF PERIOD $ 15,547 $ 12,044 $ 21,052 $ 14,592
ADD
Net earnings for the period 1,971 5,814 3,464 9,924
------------ ------------- ------------ -------------
17,518 17,858 24,516 24,516
------------ ------------- ------------ -------------
DEDUCT
Dividends
Class A shares 2,926 2,926 17,216 17,216
Class C share - 340 - -
Class F shares - - 320 320
------------ ------------- ------------ -------------
2,926 3,266 17,536 17,536
------------ ------------- ------------ -------------
BALANCE - END OF PERIOD $ 14,592 $ 14,592 $ 6,980 $ 6,980
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
DIVIDENDS PER SHARE
Class A shares $ 0.08 $ 0.08 $ 0.43 $ 0.43
Class C share $ - $ 340 $ - $ -
Class F shares $ - $ - $ 0.45 $ 0.45
</TABLE>
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED AUGUST 31,
----------------------------------
1999 2000
----------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings for the period $ 5,814 $ 9,924
Add (deduct) items not affecting cash and cash equivalents
Amortization of discount on short-term investments - (807)
Amortization of capital assets 857 1,451
Amortization of goodwill and other assets 41 344
Future income taxes (42) (33)
Change in non-cash operating working capital items
Accounts receivable (3,875) (10,476)
Income taxes receivable (381) 2,149
Inventories (1,259) (10,732)
Prepaid expenses and deposits (205) (519)
Accounts payable and accrued liabilities 1,965 3,917
Income taxes payable (115) -
Deferred revenue 327 215
Deferred grants 533 567
----------- ------------
3,660 (4,000)
----------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Bank advances (136) (357)
Repayment of loan from a company under common control - (1,349)
Repayment of long-term debt (20) (812)
Issuance of share capital 86 209,690
Share issue expenses - (16,743)
Dividends paid (3,215) (17,587)
----------- ------------
(3,285) 172,842
----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to short-term investments (33) (519,645)
Proceeds from disposal of short-term investments - 359,886
Additions to capital and other assets (1,181) (7,180)
Business combination, net of cash and cash equivalents acquired - (2,108)
----------- ------------
(1,214) (169,047)
----------- ------------
CHANGE IN CASH AND CASH EQUIVALENTS (839) (205)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS - 511
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 1,262 423
----------- ------------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 423 $ 729
----------- ------------
----------- ------------
SUPPLEMENTARY INFORMATION
Interest paid $ 148 $ 480
Income taxes paid $ 2,801 $ 3,761
</TABLE>
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in thousands of U.S. dollars, except share and per share data
and as otherwise noted)
1 INTERIM FINANCIAL INFORMATION
The financial information as at August 31, 1999 and 2000 and for the
twelve months ended August 31, 1999 and 2000 is derived from our audited
consolidated financial statements.
The financial information for the three months ended August 31, 1999 and
2000 is unaudited; however, in the opinion of management, all adjustments
necessary to present fairly the results of these periods have been
included. The adjustments made were of a normal recurring nature. Interim
results may not necessarily be indicative of results anticipated for the
year.
2 ADDITIONAL DISCLOSURES REQUIRED BY U.S. GAAP AND
DIFFERENCES BETWEEN CANADIAN GAAP AND U.S. GAAP
CHANGE IN REPORTING CURRENCY
On September 1, 1999, the company adopted the U.S. dollar as its reporting
currency. Under U.S. GAAP, the financial statements, including prior
years, are translated according to the current rate method. Under Canadian
GAAP, at the time of change in reporting currency, the historical
financial statements are presented using a translation of convenience.
Under Canadian GAAP, the statements of earnings for the periods ended
August 31, 1999 were translated into U.S. dollar using an exchange rate
of US$1.00 = Cdn$1.4958. Under U.S. GAAP, revenue and expenses would be
translated at exchange rates prevailing at the respective transaction
dates. Average exchange rates for the three months and the twelve months
ended August 31, 1999 were US$1.00 = Cdn$1.4834 and Cdn$1.5068
respectively.
ACCOUNTING FOR STOCK-BASED COMPENSATION
To conform with U.S. GAAP, the company measures stock-based compensation
costs using the intrinsic value method (APB 25 "Accounting for Stock
Issued to Employees").
Stock purchase plan
Under APB 25, compensation cost related to the stock purchase plan is
measured as the difference between the fair value of the purchased stock
and the purchase price paid by plan participants. Compensation cost is
amortized to expense over a period of five years, being the restriction
period.
During the twelve months ended August 31, 1999 and 2000, the weighted
average fair value per share under the stock purchase plan amounted to
approximately $0.68 and $10.80, respectively. The fair value per share
since inception of the plan ranged between $0.68 and $18.00. As at
August 31, 1999 and 2000, the balance of deferred stock-based
compensation amounted to $40,000 and $2,144,000, respectively.
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in thousands of U.S. dollars, except share and per share data
and as otherwise noted)
Stock option plan
In accordance with APB 25, the company's stock option plan is considered
to be a variable plan. Accordingly, subsequent increases in the fair value
of the underlying stock, in excess of the exercise price of the option,
are accounted for as additional compensation costs. Compensation cost is
amortized to expense over the estimated vesting period to a maximum of
four years. As at August 31, 2000, the balance of deferred stock-based
compensation amounted to $17,285,000.
Under Canadian GAAP, no compensation cost is recognized for these
stock-based compensation plans.
RECONCILIATION OF NET EARNINGS TO CONFORM WITH U.S. GAAP
<TABLE>
<CAPTION>
THREE MONTHS TWELVE MONTHS THREE MONTHS TWELVE MONTHS
ENDED ENDED ENDED ENDED
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1999 2000 2000
------------ ------------- ------------ -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net earnings for the period in $ 1,971 $ 5,814 $ 3,464 $ 9,924
accordance with Canadian GAAP
Non-cash stock-based compensation
costs related to stock purchase
plan * (3) (10) (101) (538)
Non-cash stock-based compensation
costs related to stock option
plan under variable accounting * - - (1,464) (1,464)
Change in reporting currency 161 (44) - -
Unrealized gains on forward exchange
contracts - 208 71 -
Future income taxes on forward
exchange contracts - (67) (27) -
------------ ------------- ------------ -------------
Net earnings for the period in
accordance with U.S. GAAP 2,129 5,901 1,943 7,922
Other comprehensive income (loss)
Foreign currency translation
adjustments (415) 606 1,753 1,555
Unrealized holding gains on
short-term investments, net
of related income taxes 36 36 37 1
------------ ------------- ------------ -------------
Comprehensive income $ 1,750 $ 6,543 $ 3,733 $ 9,478
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
Basic and diluted net earnings per
share in accordance with U.S. GAAP $ 0.06 $ 0.15 $ 0.04 $ 0.20
* Required under APB 25.
</TABLE>
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in thousands of U.S. dollars, except share and per share data
and as otherwise noted)
Earnings available to common shareholders is reconciled as follows:
<TABLE>
<CAPTION>
THREE MONTHS TWELVE MONTHS THREE MONTHS TWELVE MONTHS
ENDED ENDED ENDED ENDED
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1999 2000 2000
------------ ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net earnings for the period $ 2,129 $ 5,901 $ 1,943 $ 7,922
Dividend on Class C share - (333) - -
------------ ------------- ------------- -------------
Earnings available to common
shareholders $ 2,129 $ 5,568 $ 1,943 $ 7,922
------------ ------------- ------------- -------------
------------ ------------- ------------- -------------
</TABLE>
The diluted weighted average number of common shares outstanding
calculated according to U.S. GAAP is as follows:
<TABLE>
<CAPTION>
THREE MONTHS TWELVE MONTHS THREE MONTHS TWELVE MONTHS
ENDED ENDED ENDED ENDED
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1999 2000 2000
------------ ------------- ------------- -------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Weighted average number of common
shares outstanding - Basic
(000's) 38,002 38,001 44,220 39,951
Conversion of preferred shares
Series 1 - - 45 26
Exercise of stock options - - 418 109
------------ ------------- ------------- -------------
Weighted average number of common
shares outstanding -Diluted
(000's) 38,002 38,001 44,683 40,086
------------ ------------- ------------- -------------
------------ ------------- ------------- -------------
</TABLE>
The number of common shares issuable upon the assumed conversion of
preferred shares Series 1 has been determined by dividing the paid-in
value of the preferred shares Series 1 (previously Class G shares) by the
estimated fair value of the former Class A shares as at February 4, 2000
(the date the Class G shares were issued), or $18.00 per Class A share,
weighted from the date of issuance of the Class G shares to the end of the
year.
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in thousands of U.S. dollars, except share and per share data
and as otherwise noted)
SHARE CAPITAL
<TABLE>
<CAPTION>
AS AT AUGUST 31,
---------------------
1999 2000
--------- ---------
<S> <C> <C>
Share capital in accordance with Canadian GAAP $ 87 $ 198,459
Stock-based compensation costs related to stock purchase plan
Current period 10 538
Cumulative effect of prior periods - 10
--------- ---------
Share capital in accordance with U.S. GAAP $ 97 $ 199,007
--------- ---------
--------- ---------
</TABLE>
OTHER CAPITAL
<TABLE>
<CAPTION>
AS AT AUGUST 31,
---------------------
1999 2000
--------- ---------
<S> <C> <C>
Other capital in accordance with Canadian GAAP $ - $ -
Stock-based compensation costs related to stock option plan under
variable accounting - 1,464
--------- ---------
Other capital in accordance with U.S. GAAP $ - $ 1,464
--------- ---------
--------- ---------
</TABLE>
RETAINED EARNINGS
<TABLE>
<CAPTION>
AS AT AUGUST 31,
---------------------
1999 2000
--------- ---------
<S> <C> <C>
Retained earnings in accordance with Canadian GAAP $ 14,592 $ 6,980
Stock-based compensation costs
Current period (10) (2,002)
Cumulative effect of prior periods - (10)
Change in reporting currency
Current period
Net earnings (44) -
Dividends 24 -
Cumulative effect of prior periods 1,036 1,016
--------- ---------
Retained earnings in accordance with U.S. GAAP $ 15,598 $ 5,984
--------- ---------
--------- ---------
</TABLE>
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in thousands of U.S. dollars, except share and per share data
and as otherwise noted)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
<TABLE>
<CAPTION>
TWELVE MONTHS ENDED
AUGUST 31,
---------------------
1999 2000
--------- ---------
<S> <C> <C>
Foreign currency translation adjustments
Balance - Beginning of period $ (1,622) $ (1,016)
Change during the period 606 1,555
--------- ---------
Balance - End of period (1,016) 539
--------- ---------
Unrealized holding gains on short-term investments, net of income taxes
Balance - Beginning of period - 36
Unrealized gains arising during the period, net of related income
taxes of $23,000 in 1999 and 2000 36 37
Reclassification adjustment for amounts included in net earnings,
net of related income taxes of $23,000 - (36)
--------- ---------
Balance - End of period 36 37
--------- ---------
--------- ---------
Accumulated other comprehensive income (loss) $ (980) $ 576
--------- ---------
--------- ---------
</TABLE>
<PAGE>
EXFO ELECTRO-OPTICAL ENGINEERING INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(tabular amounts in thousands of U.S. dollars, except share and per share data
and as otherwise noted)
BALANCE SHEETS
<TABLE>
<CAPTION>
AS AT AUGUST 31,
---------------------
1999 2000
--------- ---------
<S> <C> <C>
Current assets
Cash and cash equivalents $ 423 $ 729
Available for sale securities 1,430 162,719
Accounts receivable 9,895 21,062
Inventories 7,591 18,868
Other current assets 856 1,307
Future income taxes - 972
--------- ---------
20,195 205,657
Capital assets 2,639 8,694
Goodwill and other assets 65 2,320
Future income taxes - 3,089
--------- ---------
$ 22,899 $ 219,760
--------- ---------
--------- ---------
Current liabilities
Bank advances $ - $ 10
Accounts payable and accrued liabilities 5,523 10,353
Other current liabilities 1,891 1,090
--------- ---------
7,414 11,453
Long-term liabilities 770 1,276
--------- ---------
8,184 12,729
--------- ---------
Shareholders' Equity
Share capital 97 199,007
Other capital - 1,464
Accumulated other comprehensive income (loss) (980) 576
Retained earnings 15,598 5,984
--------- ---------
14,715 207,031
--------- ---------
` $ 22,899 $ 219,760
--------- ---------
--------- ---------
</TABLE>
STATEMENTS OF CASH FLOWS
For the twelve months ended August 31, 1999 and 2000, there are no
material differences between the statement of cash flows under Canadian
GAAP as compared to U.S. GAAP.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
EXFO ELECTRO-OPTICAL ENGINEERING INC.
By: ____________________________________________
Name: Germain Lamonde
Title: President and Chief Executive Officer
Date: October 5, 2000
