EXFO (EXFO) 7 Oct 202020 Q4 Earnings call transcript

Good day, everyone and welcome to today’s EXFO's Fourth Quarter and Year End Conference Call for the Fiscal Year 2020. A quick reminder before we begin that today’s program is being recorded and at this time, I would like to turn the floor over to Ms. Michelle O'Brodovich. Please go ahead, ma’am.

Thank you. to fiscal quarter XXXX. welcome conference year and for call afternoon, EXFO's and fourth end Good CFO of With Philippe Executive Plamondon, Morin, on EXFO's Vice me the Chief Officer; line and Finance. today are and President Pierre Germain available the answer be will to Founder Lamonde, questions and EXFO's period. Chairman also Executive Q&A during conference will affect certain beliefs future that may forward-looking expectations reminder or and/or estimates A regarding call that statements EXFO. this intents, include concerning our events the including of Please and by such risks pandemic note our the comments affected on uncertainties, that coronavirus be global will and/or operations. impact employees, customers This to may or from cause implied the materially expressed actual results of the those be Company today. different

For the more view with Securities to and you Exchange I information about Commission. encourage filed our Form XX-F EXFO,

on as during note be QX, in results to in And release Our I numbers may conference news CEO. otherwise our non-IFRS this with well. available indicated. pass Please of - annual is with with IFRS Securities call information form that U.S. Morin, these used unless that the A in over available it call. reconciliation with conference is XXXX expressed will this non-IFRS dollar dollars numbers And Commission amounts Canadian Philippe that, website. all are

profitability. year and everyone. good and good. the Very Michelle, Thanks, experienced In XXXX, our the pandemic the afternoon affected global revenues adversely our fiscal on EXFO coronavirus of impact economy, which

note with and am EXFO quarter revenues see call a to strong However, positive pleased cash fourth operations. I flow this strong from on

our progress We also made strategic plan on XXXX. in significant

X% $XXX with fiscal new service half we wins. virtualized affected to the adapt of by a five full environment transformation annually the generated million, selling second and Altogether, EXFO digital secure pandemic. contract allowed down quickly ongoing revenue of year the Our assurance to

of lower fiber, August, create realigned in our were cost XXXX, accelerate These Regarding drivers towards position the reduced our freeze. impact XXXX. initiatives cloud-native In high financial growth growth in business company-wide million restructuring the a growth EBITDA IFRS to $XX.X of areas deployments we bottom-line, profitable loss will transformation. adjusted million. pandemic Investments discipline $X while including the through hiring amounted for annual delivered an $X.X resilient company more net strict We we like to and reduced. model million expected and the XG in savings of our company’s we resources

and ahead, XXXX. our test measurement in and we how opportunities performed that for product for a mind, about year groups more Looking SASS you families. excited prospects about are me let both available their the in tell With bit past the and

of terms deliver this in measures considering measurement, less fell triggered preventive ship services. to and achievement the products X% and revenues ability In affected test than XXXX. a pandemic consider by EXFO’s that We solid

revenues of in work. a large-scale Our pause deployments maintenance fiber affected favor were in also by

second growth lockdown test the manufacturing testing region an the demand share and lab on major bring projects with component increased robust deployment field delivered should XXXX the for for of a On the market Asia-Pac XXXX, throughout fiber provided wave sales and manufacturing where we strong. side, horizon in Demand doesn’t mainly that is recover extensive equipment virus optical in restrictions.

component InOpticals critical to test XXX-Gig rate manufacturers. We fast-growing and to and to and the XXX-Gig expect share market bit-error equipment also in test manufacturing the and other of expand testers, network pending acquisition our leverage markets. lab ultra-high-speed InOpticals instruments supplies optical oscilloscopes,

expect manufacturing, which and in our need fiber-to-the-antennas, and fiber fiber-to-the-home, for for optical XXXX. leadership XG position to a optical datacenter deployment component well from we as strong comes in on build strong need connectivity testing the as Given infrastructure

In decreased close this ability in pandemic deals install premises. at our XXXX. product SASS revenue XX% and service systems to and restricted customer Regarding our assurance the and case, services families, our

did in year. we large a software from benefit didn’t also the for We previous like topology contract network

quarter SASS in did SASS network increased dollar operators fiscal strength our logos, new the a These multi-year, We orders five fourth five positive this for momentum. the market. our will business multimillion in deals and new assurance increase backlog XXXX. with mobile activity solution XXXX Our highlighting closed with secured of service

We with that expect Service anomalies even Nova powered disruptive they to troubleshoot occur. by benefit functionalities highly our resonating the and machine-learning platform platform. Assurance differentiated networks. this This to launched monitor are is and before These transforming momentum outages predicting mobile networks recently and operators algorithms are capabilities well by based Adaptive detecting automation

anticipate demand network XXXX This the heightened mobile as our begin architecture. our should cloud-native standalone Adaptive increased Assurance in platform also momentum solution. Nova Nova We and accelerate for core XG in SensAI activity operators migrating Service to troubleshooting

a great our a as approaching for result, of SASS XXXX with deal optimism we So business. are

have the currently intent monitoring number the system our firm to market. share XX% on global We two build of position, fragmented at in based probe market

the uncertainty of Turning duration our and the on annual to surrounding macroeconomic has ongoing environment. to impact business and quarterly outlook. due breadth EXFO the the suspended guidance its pandemic to indefinitely and

to at insights this more so like on can and I’d So point, discuss financials. he the our Pierre, to call over details turn Pierre?

In pandemic. afternoon X.X% XXXX, million reached to fiscal $XX.X fourth Thank to $XXX.X million, than in last XX.X% Annual Bookings XXXX. you, quarter higher sales a the Philippe, of of despite ratio million $XXX.X book-to-bill decreased for year and the dropped sales X. slightly everybody. good

bookings to QX However, million $XX XXXX. to compared decreased

to quarter the in worldwide. and amounted XXXX. reduced to sales gross depreciation decrease annual margin XX.X% compared of mentioned, which negative pandemic, charges sales before the of XXXX, and including of restructuring previously Gross XX.X% bookings the X.X%. economic XX.X% coronavirus XXXX reached sales can fourth amortization of in of be As the In impact margins activity in mainly to attributed

absorption as On negatively would pandemic down, shut the outbreak an as margin virus. February to been well XX.X% EXFO’s in from dip forced gross charges. in we for and in not our did fixed as the pandemic also of in effect did margin margin last gross and annual on the XXXX software network XXXX. we of were our the affected contract our the a QX charges, have consumption facility lower we these as XXXX. the churn was shut in by in mix Excluding sales manufacturing due an product was benefit in unfavorable sales down demand basis, resulted topology by gross as China lower of This in XXXX affected the to

$X.X XX% including Canadian in a offset margins gross XXXX XXXX. amounting margin by and Finally, XX% positive million believe We fourth from to IFRS-X charge the of restructuring range wage negatively our between fiscal gross a of subsidy was and our These the quarter quarter unfavorable $X.X impacted number factors by the the of $X.X in items of million. million. third the that government in of effect would were

and The XXXX on operating million included expenses, the paid levels effects expenses XXXX year fourth lower and in can XX.X% the from sales of compared million, pandemic, tight charges compared slightly totaled $XX.X restructuring on XXXX. the decrease million to $X.X $XX.X hiring In the in to SG&A in amounted factors selling expenses XX.X% our sales of percentage million in expenses administrative attributed expenses of due Moving fiscal million in in and quarter freeze. $XX.X commissions expenses $X.X subsidy $X.X XXXX, charges. and net lower administrative the fiscal XXXX higher $X.X SG&A a wage to in selling on year-over-year. sale of increases and These increased to some million, attributed up to XXXX. to travel by provided restructuring be lower million significantly positive control SG&A to as and IFRS-XX XXXX, by to expenses Canadian government of expenses

of subsidy of million of the in XXXX attributed XX% R&D $X.X our to restructuring our again $X.X net positive totaled $XX R&D as expenses control expenses and SG&A XX% amounted $X.X charges wage quarter $XX.X $XX.X Likewise, Net $X.X as expect XXXX. decrease of We expenses by the range R&D to and In million. government on million, in compared the on of XXXX. million fourth expenses in XXXX, effect million, between be tight million in will in net cost net provided the can year-over-year million to well IFRS-XX expenses. Canadian XXXX R&D

after-tax a range R&D in that to in amounted As In charges XXXX, of of share XX% sales of the net compared sales, think $X.XX after-tax XX.X% XXXX, will and We restructuring Net net million stock-based US$X.X and expenses compensation in a of per percentage granted XX% reached in IFRS $X.X for XX.X% includes between XXXX. subsidy expenses include share. million R&D million XXXX. by net or after-tax $X.X amortization in million in or loss US$X.X US$X.X includes or charges, to wage quarter Net per US$X.X in In foreign costs, US$X.X US$X.X intangible government. namely net totaled the XXXX XXXX, share. restructuring assets, of an per fourth million US$X.XX after-tax million, loss which of the million loss loss exchange loss expenses IFRS also Canadian million. $X.XX million totaling US$XX.X

geography of fiscal and terms Asia-Pacific and in XX.X%, improved XX.X% sales being while In in the COVID. more in respectively XX% by sales Americas EMEA sales the impacted XXXX,

America sales, Asia-Pacific XX%. of has represented XX% for accounted the totaled Looking EMEA at while the sales, XX%,

SASS for sales. represented XXXX, XX.X% while top-three to Turning customer of our of customer diversification, accounted our X.X% in sales

were balance raised a $X.X by on operator and XXXX by at the million the Q&A. $X.X million offset $XX.X flow other increased for the will by in the this points million capital in to our on by and the of turn loan million for for of liability and XXXX. our million $XX.X start key bank cash long-term $X.X million. the liabilities. investments repayment Moving to the At items These partially of of We operations, by sheet, increased few the I time, used over end assets, cash million call purchase $X.X to $XX.X short-term while debt

question first Markets. Moschopoulos [Operator Instructions] Folks BMO from Capital our comes Thanos today with

Maybe some had off products. Thanks. for the you color us versus the XG then in terms operation Hi, maybe provide factors of and the the drove key starting of Any and wins as future color competition? good can those other on wins the that solution also you additional afternoon. geographies

Okay, thanks, Thanos.

is these against we its and in were you familiar and to place are we Europe Americas are Thanos, incumbents and and exceed they able So, fact own. five players that and some wins Empirix yes, that what of then customer the predominantly are the NETSCOUT like are the with

a - the Adaptive us key was the to for value adaptive of wins. whole aspect platform providing able Nova Platform of those be our that So, to new prove

we So, QX. in of in these But in our in and again, – backlog then our our in and of XXXX. multi-year also therefore are about be strength $X represented part as deals August, million release, our press mentioned bookings these they will

InOpticals or giving be you on deal us color that some it’s because And will Okay. when provided any material closes? haven’t or Is acquisition regarding metrics that. financial the metrics the you not

provide that, segments, expanding the photonic get month market providers. research couple shown really we all, of expect complementing believe last or InOpticals approval proven still color mainly nice on be us coupling the address be impact we and really into the at optical years, regulatory InOpticals the first our this the that’s assets, So, Thanos, really by the more until itself to will by beginning our in acquisition one acquisition share until if our product of continuing, some portfolio solutions PIC the improvement which to and nice you then, of with market, later some at and what on manufacturing for the November in and the be helps we able some electrical strategy look point and we able for with growth which we’ve is October we market market behind wider will is. and of and have momentum, that a results pending the But where integration to of we us it’s manufacturing

into for So, our us development our – again, then and addressable manufacturing share of important us research share terms market helping the pretty deal market and grow market segment. in market

quarter? I the impacts, impacts, factor QX? that? guess, the then do restructuring on here runrate OpEx, think a we assume we next restructuring how little if think being that about had kind we And from should that I be all in strip we case into in difficulties OpEx the and do quarter. bit Okay. some heading moving down leaving How mean, about no between I parts seasonal that what just should the charges, of maybe think the some out now you then

you Thanos, right. Yes, are

You is an vacation in impact summer the of actually This this. assumed time time.

as OpEx well, dollar stronger to restructuring QX to and plan be why see cost benefit, tends Canadian expenses. the plan. be the role in the in where the the could have because side, plan QX to get expense the and the quarter. tends have know we that’s other stand it’s increase So million QX XX play for starting depending that compared where should that announced, averages an as in At currency, time, benefits QX The that will will same have $X a dollar lower you in On and announced the that our that restructuring second Canadian QX big the our of impact with with okay? another some next reduction we the over be that we we see to we have months with in

is deployments that for with how state guess in in of the of seeing and COVID I characterize, kind Philippe, of to that you are me, function What I you geography Okay. I question? And now mean, the would front? closer are the last deployments, various the current progressing mean, everything or field one normal field

to we of caveat but with high-speed the like overall wave that to I’ll again second see did kind put, and look XXX now really the well. Yes, you is are come to portfolio, solutions kind the back at XXX-Gig going normality, our T&M in when starting of

up. share is mentioned as we infrastructure especially of start to seeing but we ��� earlier, and countries market that back the out actually deployment, some XG growth on the the connectivity also XG high-speed challenges in we with portfolio really build I the had broadband demand high going manufacturing normality where fiber where nice as building highlighted fiber seeing getting certain to feel increased are Our in it’s are the do broadband, we into with and market

build do type that increase the we in second saw that to get the again – and see lockdown fiber out, that us the we of and So, see assuming to wave expect are until starting spring. in doesn’t funnel momentum we that

Alright. Pierre. Thanks, and Phil

Alright.

from Canaccord Young. we Genuity Moving on have Robert

Was quarter the a little in factor bookings are bit T&M other seasonality there? The was Hi. some or weaker. that’s there

to being bit a I cycle seasonality mean, then, the Robert, projects and some again, bit, I think Yes, do impacted, again QX normality that of health mentioned for are careful the of as into I saw it’s their we of of that to a and characterization and their combination as a fiber get the that operators impacting the employees being back bit contractors experienced business. we

equipment on sales something activity of terms the is And and what I else so are guess being underlying and from the that by handheld work or that’s pushed not that’s stresses an home at network, driver putting logistics is in T&M out and COVID?

being that’s Yes, is be demand and wireless fixed for so will access the Robert, then I fundamental But well, of think broadband an connectivity effects fundamental and impact the that big part could XG as a demand the someone and that increasing fiber do that of the delivery that is sales as of think but strong. pandemic cycles and just on. the I argue

also though more It even takes view a this highlighted business. network is impacted. takes is it – time the doing a being the you from time of demand connectivity point more being broadband of bit But now. nature for just So, as is

the areas specific think pieces? that there And net are and suggest area component what’s – plan, any for as lab the other open for business, T&M that to there this going you about any probably some taking that lot to Yenista new Like guess a then InOpticals by up going then are business? talked you areas and business, I or grow? the new do acquisition I the closes in you? that’s that you strength Okay. you of share MEM was you driven the now of of Are

– of on. transceivers components datacenter Asia manufacturing more demand again demand as And of optical China and are driving, about and connectivity we the then that driving so combination you opportunity of platform. Chip InOpticals, increased is really Yes, an broadband portfolio or and we then, further combination with our market really for more these fiber-to-the-home, fiber-to-the-antenna PIC and to business components, moving to our and technology capture And that for predominantly are just able saw really Asia we market components felt for share complement do more as technology the need complement an the optical know, a Integrated so, the of market Photonic these it. and portfolio, and then optical and into Robert, that’s to into we were more opportunity connectivity, Yenista acquisition, with existing talked the into

turn pending or acquisition, I color it I’ll on I his can think Germain, the – it sure to a or so Germain? over the Germain, more I or in he provide involved am InOpticals. acquisition bit leave activity

EXFO We’ve an or few this for some has This internal Thanks, test, extensively. area manufacturing, internally in – acquisition call been our in we with Philippe. made years development, strategic strong which actually of us is of a as well terms quite the, the both focus area research. speed development test, in last the moves and important in Yenista. what Robert, both is Well, in involved the high optical our MDRs

combination by us complete we component with what speed testing, and very most products within high one So do is, of InOpticals, it’s the forth. this industry here system this for so giving of portfolio adding testing the

pretty a in range against which embrace capabilities key create them do larger compete unmatched that we to and as we a for that’s So well industry markets million sites. bringing we can continue organization we within $XXX really and kind which of basically players difficult the the was which in is smaller InOpticals to market be that would in global the the as that done it’s to the are EXFO an well expecting has solutions think have. with area that now advanced are

InOpticals is SSS we so capabilities, So it’s what me acquisition, often the call time think a this very I synergistic. EXFO’s with for combination of

and strategic us synergy also for generated. It’s could a easily small a of the So segment acquisition. it’s be level

So SSS. that's the

So Yenista. we a really and with acquisition bring additional can as create small value that it's shareholders to we leverage did for

then about you couple business, activity in just good. said the that was you SASS you there so of are funnel good general a seeing going lot a and had I last the maybe is wondering and think, trends the in Okay, not relatively And talk And you so times, I in RFP great. could of if this bookings, quarter quarter, business forward? T&M the growing,

Yes.

business, see – and their were the are XG that through going moving service to So, And our Robert core made to activities continue lot good of able we phase decisions the are using XG now of assurance of A now momentum we fact are that the their RFQs, customers now they again for around assurance of actually on service RFQs going around QX. of we activities. RAN, five close see they they a lot there. into who a them in the And kind to there. the next be

them and across some see technology to Now we of Europe. increased activity starting Americas but XG were to mainly for our are in an case, evolving XG, there

well $X.X some we at auctions was happy operators so, that in to places accelerating to really will the are believe us spectrum billion. looking bodes for deployment. – because up customers and CBRS do And really I reaching am that I XXXX, their – see XG

ultimately our more market. solution this to leverage and deployments network are So and investment therefore translated into business in more that more for will going us opportunity be we seeing into spectrum

say more a is trends trends, those that factor the RFQ or overall would that's RFP Okay. driving the And business? business the around you that and SASS

some be It's XG around build we business, had we because see, growth do infrastructure on out. T&M tend SASS but RFQs predominantly to a their our nice longer,

fiberized. but products saw on optical there we know, you our new a it's the fiber more all we top that's again as the towers optics of to our radio, visibility deployment being which growth is side our really all of new putting to going and as believe the install put greater fiber, more the in move all install antenna providing we whether are you nice bit as up as and you more to continue XG, some of more it's and whole way there So due products, density T&M as the in is RF, is the platforms

have does T&M our on it So positive a impact business.

Okay.

a And so, for for into And it that RFQs the indicator to radio like line. the sign something is pass is to a before I'll then are if would bookings, standalone happen of takeoff? that investors it or lead looking starts turn

right is, for as they the the decision customers leading provider on Yes, indicator made indicator T&M Once that start now absolutely said for there behind they you then, to and once the have know business. us the indicator business, is SASS side, and a that we activities. made is XG is have some And our who us to the is deployment, a for need around be core with the as therefore, XG – decisions core now leading on on for indicator seeing assurance will a that's leading for off SASS the deployment. have now start for selected the service which leading I've T&M

Okay. for the questions. all answering Thanks

Thank you.

who We'll is Tim Savageaux to [Operator move Instructions] with Capital Markets. Northland on

decent sharply that Hello, everybody. with this. to the question try the you're looks suppliers pretty that from it perspective carrier revenues your like in what I'll it what previously My some we've in good pretty looks revenues the actually is mentioned, seeing at quarter All seen pretty right, were quarter. surprising, across appears although and basis was your down be weak sequential T&M a in spending as Americas a least customers on through of your bookings from the on customer not struggle largest were might and industry various given in afternoon

dynamics and there. pandemic any the your market rural network, your kind called customers question world is traditional fourth are kind whether segments can if guess some revenue Were fiber you AT&Ts the test trends you differing issues of work results in across characterize and at related or at those of I broadband, Verizons of that's that the and seeing quarter? of spending and environment, overall putting you guess So, the Europe cable, the environments I of regard field demand large bookings access with my aside strength versus whether look out as other any especially you've to of

Yes.

you at when T&M a tend of overall of quarter from T&M side. a it's the impact on QX, have look it's view, the an Tim, well seasonality bookings where our always we So, point for always to

aspect. that are is seeing seeing fiscal we is America. are in there and So geographies, of some North our a What though, terms depending in activities move I XXXX, depending would lot as and that, are of demand seasonality acceleration seeing on year we deployment. overall on we into countries tell you, we of

Western are at We of other the spend. more a the but that if seeing terms But lot are look in of see parts again, activity Europe, we in there places conservatism you maybe fiber where the really funnel increase activities. seeing comes from connectivity, is by high-speed other governments, put momentum together we being that all and programs the of rural these to home, that are

and is transceiver MDR us us network Asia-Pac high-speed the important solution. component optical equipment that lives manufacturing, are of to talk to XXX-Gig, for the - going XXX-Gig tends when the with those type we about to be market, manufacturing, again now really solutions very vendors

some activities seeing well. as that are of We

Korea, we in And as the what Where I get Japan, accelerating China, XG on are their like get the like have countries, XG it slowed – their seeing countries a also and investments, on delay that an believe countries will impact or as Some – will example, we but certain in an is delay Spain, previous seeing monitoring are acceleration. XG U.S., of other these calls, deployment. a we some are will so in auctions, accelerated XG of Africa mentioned will down. of now terms they a spectrum

fiscal we'll mix, we bit I So momentum momentum around some a activities core, nice expect in to that that be whole to from that going at to continue do the think the our of and that's connectivity, And we momentum XXXX. seeing do XG when I continue our our behind really point RAN that service look XXXX, market. assurance, see think assurance service of XG for around nice MDR as year that fiber it's Tim, be view, our we

follow has you more seem the that could forward bookings a kind larger been I than any carriers. broad dynamic be factor seasonality pull at Measurement spend Test slowdown indicate in if And so Okay. U.S. briefly, a based up of might and or in to of

Just want expect, you least kind growth XXXX, into given to rate on of Test return it to nature of like mid-single-digit at of confirm the a then, a overall somewhat your that. And and sounds side. normalized commentary the heading might Measurement

want be probably that any that in of far would You don't terms but on Thanks. expectations, to great. go comment

Yes.

I in to out around XG be the deployment, continues the around to fiber So, strong. activities the build think US continues infrastructure be

seasonality on. As I saw to POs creating mentioned so in the activities nature earlier, T&M you compound QX. released, and our of deals, we what the all it’s having in That that takes bookings Tim, of every the all is a get the effectively there with lot is sales quote of customers just and is and working to cycle more home that get time to from – a our

environment so whole on. pandemic get what what as will us figure how won't be that into and it's for So wave business growing impact the with what's XXXX. will for second of the we in around me whole creating the the of to the are and the that's be on but surprised, And the unknown year, a that's our we unknown evolve is and and you out macro unknown the happen will and our bit challenge fiscal

thank Okay, you.

you. Thank

TD Chan next from and it Daniel comes our Securities. on move We'll to Right. question with

Well. questions. for taking my Hi. Thanks

Just quickly what or like do wins cross time is bookings period revenue? in addition those in and bookings, five for what to get initial And the the that, on in of for how color were million upsell that quickly customer think into new the - deployments? some other what you've $X gotten, these the on and these those or words, converted is extent you of the will following initial deployments, opportunity to be how what

the assurance a and you over profile revenue systems as to on next order the months. be takes cover of and purchase projects business, Dan, install the over usually XX the So, that get milestones to type service tends the

month level. be just so, projects. But a And into high at XX revenues the will that recognized of the you the kind give next depending on

that more important these ultimately continue multi-year so, that by network, of the important put contracts that And these the then one then you – you get with to once network, we why you the are of supporting they more to the kind expansion that footprint. be into you we tend of from these orders, network. contract because region, our - why to that's probes that's And that's deployment, being are software into up there seeing really get with it stress purchase and they a the and have and contract, momentum you wins we upgrades ends wanted the – and are just that not are subscriber scale to into start the then and you then important and maintenance network more either virtual number five that's the you grow specific ultimately specific year are

So – can grow your was what the you the second is business. What Dan? question,

addressing do initial Is this certain existing that, of the this deployment? to answered you partially number to initial just of think but size the it's like of you deployment, opportunity or beyond say regions. subscribers, trying of think certain you number you a do would are like mean, here, XX% network the are I what you Well, seeing you extent what networks percentage it,

Yes.

So I'll give it.

we've Italy on these off One AIRCOM Ireland five provided, was it of our to and with the the first in will win of depending geography. starts size triple then it and double terms in accounts actually

as geography on. the way And have in smaller three software and then backlog But again, we our service footprint into the you basis contracts to ultimately we is of the is million so up so as assurance the includes can their and put Dan, backlog subscribers healthy maintenance high our us important one head the are is, you and to have do included on. with started as milestone. and business still What be of business in we very it our for times. that factors you you number got the the monitor, maintain you've backlog and to double and everything that we translates on we as of $XX for of projects that on that the So that it the a get XXXX, increase

just that's contract more why footprint, you it about and start more sometimes triple. it's, and of renewals geography, the adding the it's why then that's more to value the subscribers sometimes so and but initial not more maintenance and And doubles then and

RAN vendors better Is also helpful. Okay, there you core vendor a business mentioned to much the attach tend some pretty the leading included And or Thanks. rates indicators that you for selections. agnostic? and of that get are that's particular vendor then SASS XG to you

the that monitors monitoring the voice that that from the and including information RAN, vendor are RAN customers pick pick operator, will point bring have to the including capability is to troubleshooting. and end-to-end provides our and that the core the Well, will an in another often end-to-end visibility, and fact value a we view, the independent that provide we of that core, we the operator

we we solutions again, value-add obviously be that provide we or so these of actually complement also But possible tend as or because tend with vendors looking how be – bring as can how of more agnostic value. always and do some vendor RAN closely neutral are vendors. want working context. ways RAN And at to core vendor for some additional of we by core we we sometimes that But to these in to

you. Great. Thank

remaining And nothing looks like in Instructions] Q&A [Operator right. the will then, session. it that All our with conclude queue

over floor the for remarks. additional over closing turn to or I'll back any Philippe So

right. All

So a before conclude few call key just today. we this takeaways

we've our pandemic. to progress environment the the selling virtualized And despite in a our that advisor revenue. EXFO adapted plan we've as on first, XXXX quickly significant and strategic made consolidated healthy trusted generated So role

wealth profitable of in the and our we're Second, opportunities for like we in finally, and by fiber, efforts the company investments on drivers XXXX. And cloud-native excited growth deployment focus restructuring areas. reducing XG about while positioned strengthening growth other

side, expect architectures. up And anticipate SASS the fiber-to-the-antenna, interconnect On as mobile the begin earlier on T&M I XG migrating fiber-to-the-home, deployments. and infrastructure cloud-native to fiber momentum to XG datacenter we side, order and should we products operators as stand-alone said major the accelerate ramp

thank concludes very XXXX call. point, you joining conference entire this team, at QX us much this behalf EXFO of So On the our for today.

appreciate us Again for care. may ladies joining We Take you that today. phone disconnect our you call and and do lines. now concludes your gentlemen,