Record sales for IP test/measurement company

Aug. 1, 2008
Telecom network testing solution provider EXFO ( reports record sales for the third quarter 2008 ...

Telecom network testing solution provider EXFO ( reports record sales for the third quarter 2008, and its highest gross margin in seven years.

The Quebec City, PQ company says sales increased 23.9% to a record-high $48.6 million in the third quarter, compared to $39.2 million for the same period a year ago. EXFO claims its record growth was more than 75% organic, since the recent acquisitions of Navtel Communications and Brix Networks (which closed early into the third quarter) contributed $2.2 million in total revenue.

The two acquisitions, says EXFO chairman, president, and CEO Germain Lamonde, "are accelerating the transformation of EXFO into the leading sup-plier of next-generation IP-based test and monitoring solutions. They allow us to cover the full technology life cycle,extending from advanced test equipment for network equipment manufacturers and carrier labs onto portable field-test gear and service assurance solutions for network service providers."

Markham, Ontario-based Navtel Communications manufactures communications test solutions for Voice over IP and IMS networks, while Brix Networks—now known as EXFO Service Assurance, and located in Chelmsford, MA—is developer of the real-time IP service monitoring and verification technology known as The Brix System.

Lamonde adds that the acquisitions "enable us to support the higher margin application and service layers on a network infrastructure to enable triple-play services and next-generation IP networking."

EXFO launched five new products during the record-setting quarter, and 20 after nine months into the fiscal year. They include an IP test module for the installation and troubleshooting of Ethernet-based triple play deployment, and Fiber Guardian, a remotely controllable test head and related software that allows real-time monitoring of optical-fiber networks.

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