UPDATE: EXFO (EXFO) Cuts Q3 Outlook; Says End-Markets Lagging, China Spending 'Sluggish'
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(Updated - June 1, 2012 2:44 PM EDT)
EXFO, Inc. (Nasdaq: EXFO) reports preliminary third-quarter 2012 revs of $60 million, down from prior guidance of $68 - $73 million.
Sees EPS below 1 - 5 cents outlook.
The Street is looking for EPS of 8 cents and revs of $70.2 million.
"Challenging macro-economic conditions, coupled with the tightening of capital spending among network operators during the first half of calendar 2012, have rendered EXFO's end-markets very difficult for the short term," explained Germain Lamonde, EXFO's Chairman, President and CEO.
"Europe turned out to be more impacted than expected, the anticipated pick-up of spending in the Americas did not materialize especially with Tier-I operators while spending in China has been sluggish. We believe this is not a company-specific issue, but rather a short-term industry spending pattern, since the requirement for wireline and wireless operators to invest in their networks in order to attract growing data revenue remains intact. We see a growing funnel of serious opportunities, but unfortunately they are being delayed and are taking longer to close."
EXFO, Inc. (Nasdaq: EXFO) reports preliminary third-quarter 2012 revs of $60 million, down from prior guidance of $68 - $73 million.
Sees EPS below 1 - 5 cents outlook.
The Street is looking for EPS of 8 cents and revs of $70.2 million.
"Challenging macro-economic conditions, coupled with the tightening of capital spending among network operators during the first half of calendar 2012, have rendered EXFO's end-markets very difficult for the short term," explained Germain Lamonde, EXFO's Chairman, President and CEO.
"Europe turned out to be more impacted than expected, the anticipated pick-up of spending in the Americas did not materialize especially with Tier-I operators while spending in China has been sluggish. We believe this is not a company-specific issue, but rather a short-term industry spending pattern, since the requirement for wireline and wireless operators to invest in their networks in order to attract growing data revenue remains intact. We see a growing funnel of serious opportunities, but unfortunately they are being delayed and are taking longer to close."
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