From the Wires
EXFO Renews Normal Course Issuer Bid
Nov. 7, 2012 09:01 AM
QUEBEC CITY, Nov. 7, 2012 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO) (TSX:
EXF) announced today that its Board of Directors has authorized the
renewal of its share repurchase program, by way of a normal course
issuer bid ("NCIB") on the open market, of up to 10% (2,072,721
subordinate voting shares) of the public float (20,727,212 subordinate
voting shares) as defined by the Toronto Stock Exchange ("TSX").
EXFO had 28,822,515 subordinate voting shares outstanding on November 1,
2012. As of November 1, 2012, EXFO has repurchased in the course of the
previous renewal of its NCIB a total of 468,148 shares, being 275,596
shares on the TSX at an average amount of CA$ 4.99 and 192,552 shares
on the NASDAQ at an average amount of US$ 5.00. The previous renewal of
the NCIB has been effective since November 10, 2011 and will expire on
November 9, 2012.
The TSX has accepted a notice filed by EXFO of its intention to renew
its NCIB. EXFO may use cash, short-term investments and future cash
flows from operations to fund the repurchase of shares. Repurchases
under the bid will be made on the open market, through the facilities
of the TSX and NASDAQ Global Market, at the prevailing market price.
The timing of such repurchases, if any, will depend on price, market
conditions and applicable regulatory requirements.
The NCIB will become effective on November 12, 2012 and end on November
11, 2013 or on an earlier date if EXFO repurchases the maximum number
of shares permitted. The average daily trading volume (ADTV) of EXFO's
subordinate voting shares was 25,293 on the TSX and 24,504 on the
NASDAQ over the last six completed calendar months. Accordingly, EXFO
is entitled to repurchase up to 25% of the ADTV on any trading day
(being 6,323 subordinate voting shares on the TSX and 6,126 subordinate
voting shares on the NASDAQ). The program does not require the company
to repurchase a minimum number of shares and it may be modified,
suspended or terminated at any time without prior notice. All shares
acquired by EXFO under the bid will be cancelled.
EXFO believes that the repurchase of some of its subordinate voting
shares is an appropriate and desirable use of its available cash.
Consequently, EXFO believes that the offer is made in the best
interests of the company and its shareholders.
Listed on the NASDAQ and TSX stock exchanges, EXFO is among the leading
providers of next-generation test and service assurance solutions for
wireline and wireless network operators and equipment manufacturers in
the global telecommunications industry. The company offers innovative
solutions for the development, installation, management and maintenance
of converged, IP fixed and mobile networks—from the core to the edge.
Key technologies supported include 3G, 4G/LTE, IMS, Ethernet, OTN,
FTTx, VDSL2, ADSL2+ and various optical technologies accounting for an
estimated 35% of the portable fiber-optic test market. EXFO has a staff
of approximately 1700 people in 25 countries, supporting more than 2000
telecom customers worldwide. For more information, visit www.EXFO.com.
This press release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995
and we intend that such forward-looking statements be subject to the
safe harbors created thereby. Forward-looking statements are statements
other than historical information or statements of current condition.
Words such as may, will, expect, believe, anticipate, intend, could,
estimate, continue, or the negative or comparable terminology are
intended to identify forward-looking statements. In addition,
any statements that refer to expectations, projections or other
characterizations of future events and circumstances are considered
forward-looking statements. They are not guarantees of future
performance and involve risks and uncertainties. Actual results may
differ materially from those in forward-looking statements due to
various factors including macro-economic uncertainty and/or recession
(including our ability to quickly adapt cost structures with
anticipated levels of business and our ability to manage inventory
levels with market demand); capital spending and network deployment
levels in the telecommunications industry; future economic,
competitive, financial and market conditions; limited visibility with
regards to customer orders and the timing of such orders; fluctuating
exchange rates; consolidation in the global telecommunications test and
service assurance industry and increased competition among vendors;
concentration of sales; timely release and market acceptance of our new
products and other upcoming products; our ability to successfully
integrate our acquired and to-be-acquired businesses; our ability to
successfully expand international operations; and the retention of key
technical and management personnel. Assumptions relating
to the foregoing involve judgments and risks, all of which are
difficult or impossible to predict and many of which are beyond our
control. Other risk factors that may affect our future performance and
operations are detailed in our Annual Report, on Form 20-F, and our
other filings with the U.S. Securities and Exchange Commission and the
Canadian securities commissions. We believe that the expectations
reflected in the forward-looking statements are reasonable based on
information currently available to us, but 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.
These statements speak only as of the date of this document. Unless
required by law or applicable regulations, we undertake no obligation
to revise or update any of them to reflect events or circumstances that
occur after the date of this document.
SOURCE EXFO INC.