EXFO Inc. Tanks on Q3 Earnings Results

Shares of EXFO Inc. EXFO are falling in the after-hours following the release of its Q3 earnings results. Currently, shares are off by 10.95%, trading at $7.97; they closed the regular session higher by 4.19%, at $8.95. EXFO Inc. reported Q3 GAAP EPS of $0.03 on a diluted basis on revenues of $67.6 million. Sales increased 20.9% year over year. "EXFO is remarkably well-positioned to benefit from intermediate and long-term market trends as both wireless and wireline operators must continue to invest in converged, IP networking technologies in order to meet growing bandwidth demand," said Germain Lamonde, EXFO's Chairman, President and CEO. "Given our outlook for the fourth quarter, we should generate annual revenue growth greater than 30% for our telecom business, which demonstrates once again our ability to grow faster than our end-markets. Based on EXFO's strong innovation leadership and business development initiatives, I'm confident we will overcome the short-term, softer spending environment to keep delivering superior results as demand for bandwidth expansion and IP networking is not going away." EXFO Inc. is a provider of next-generation test and service assurance solutions for wireless and wireline network operators and equipment manufacturers. The company offers core-to-edge solutions that assess the performance and reliability of converged, Internet protocol (IP) fixed and mobile networks.