EXFO Renews Normal Course Issuer Bid
November 05 2010 - 9:00AM
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% (2,012,562 subordinate voting shares) of the
public float (20,125,629 subordinate voting shares) as defined by
the Toronto Stock Exchange ("TSX").
EXFO had 23,105,977 subordinate voting shares outstanding on
November 1, 2010. As of the date of this notice, EXFO has
repurchased in the course of the previous renewal of its NCIB a
total of 3,600 shares, all of which were repurchased on the TSX at
an average amount of C$3.95. The previous renewal of the NCIB has
been effective since November 10, 2009 and will expire on November
9, 2010.
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 10, 2010 and end on
November 9, 2011 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 23,567 on the
TSX and 17,893 on the NASDAQ over the last six completed calendar
months. Accordingly, EXFO is entitled to purchase up to 25% of the
ADTV on any trading day (being 5,891 subordinate voting shares
on the TSX and 4,473 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.
About EXFO
Listed on the NASDAQ and TSX stock exchanges, EXFO is among the
leading providers of next-generation test and service
assurance solutions for wireless and wireline 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, and various optical technologies (accounting for an estimated
35% of the portable fiber-optic test market). EXFO has a staff of
approximately 1600 people in 25 countries, supporting more than
2000 telecom customers worldwide. For more information, visit
www.EXFO.com.
EXFO Brand Name
The corporate name of the company is EXFO Inc. The company
requests that all media outlets and publications use the
corporate name ("EXFO Inc.") or abbreviated name ("EXFO") in
capital letters for branding purposes. EXFO would like to thank all
parties in advance for their cooperation.
Forward-Looking Statements
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 our
ability to successfully integrate our acquired and to-be-acquired
businesses; fluctuating exchange rates; consolidation in the global
telecommunications test, measurement and service assurance industry
and increased competition among vendors; capital spending levels in
the telecommunications industry; concentration of sales; the
effects of the additional actions we have taken in response to
economic uncertainty (including our ability to quickly adapt cost
structures with anticipated levels of business, ability to manage
inventory levels with market demand); market acceptance of our new
products and other upcoming products; limited visibility with
regards to customer orders and the timing of such orders; our
ability to successfully expand international operations; the
retention of key technical and management personnel; and future
economic, competitive, financial and market condition. 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 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 press release. 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.
CONTACT: EXFO Inc.
Vance Oliver, Manager, Investor Relations
(418) 683-0913, Ext. 3733
vance.oliver@exfo.com
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