- Annual sales increase 33.0% to US$269.7 million
- Annual bookings improve 28.8% to US$272.3 million
- Adjusted EBITDA* reaches US$30.6 million or 11.3% of sales
- Cash flows from operations attain US$23.3 million
QUEBEC CITY, Oct. 11, 2011 (GLOBE NEWSWIRE) -- EXFO Inc. (Nasdaq:EXFO) (TSX:EXF) reported today record sales and bookings for the fiscal year ended August 31, 2011.
Annual sales increased 33.0% to US$269.7 million in fiscal 2011 from US$202.8 million in 2010. In the fourth quarter of fiscal 2011, sales totaled US$64.4 million compared to US$67.6 million in the third quarter of 2011 and US$58.6 million in the fourth quarter of 2010. Sales exclude revenue from the divested Life Sciences and Industrial Division (referred to as "discontinued operations" in financial statements).
Overall for fiscal 2011, bookings improved 28.8% to US$272.3 million from US$211.4 million in 2010 for an annual book-to-bill ratio of 1.01. In the fourth quarter of 2011, bookings totaled US$62.5 million for a book-to-bill ratio of 0.97 compared to US$61.3 million in the third quarter of 2011 and US$55.8 million in the fourth quarter of 2010.
Gross margin reached 62.8% of sales in fiscal 2011 compared to 63.6% in 2010. In the fourth quarter of 2011, gross margin amounted to 63.6% of sales compared to 64.2% in the third quarter of 2011 and 64.8% in the fourth quarter of 2010.
In fiscal 2011, GAAP net earnings totaled US$19.3 million, or US$0.31 per diluted share, including a foreign exchange loss of US$3.8 million. Net earnings from continuing operations (Telecom business) amounted to US$6.4 million, or US$0.10 per diluted share. It should be noted that EXFO recorded an after-tax gain of US$13.1 million, or US$0.21 per diluted share, from the disposal of discontinued operations (Life Sciences and Industrial business) in fiscal 2011. GAAP net earnings in 2011 also included US$9.2 million in amortization of intangible assets and US$2.3 million in stock-based compensation costs. The former item resulted in an income tax recovery of US$0.5 million.
In fiscal 2010, GAAP net earnings totaled US$6.6 million, or US$0.11 per diluted share, including US$7.8 million in amortization of intangible assets and US$1.8 million in stock-based compensation costs. The former item resulted in an income tax recovery of US$1.3 million. GAAP net earnings included a loss of US$1.5 million in 2010.
In the fourth quarter of 2011, GAAP net earnings amounted to US$1.9 million, or US$0.03 per diluted share, including US$2.1 million in amortization of intangible assets and US$0.5 million in stock-based compensation costs. The former item resulted in an income tax recovery of US$0.1 million.
In the third quarter of fiscal 2011, GAAP net earnings totaled US$1.7 million, or US$0.03 per diluted share, including US$2.1 million in amortization of intangible assets and US$0.4 million in stock-based compensation costs. The former item resulted in an income tax recovery of US$0.1 million.
In the fourth quarter of 2010, GAAP net earnings amounted to US$5.0 million, or US$0.08 per diluted share, including US$2.5 million in amortization of intangible assets and US$0.5 million in stock-based compensation costs. The former item resulted in an income tax recovery of US$0.2 million.
"After posting exceptional 32% sales growth in fiscal 2010, I am quite pleased that we surpassed it with a 33% increase and solid earnings results in 2011, as we delivered robust growth across all geographic regions and product areas," said Germain Lamonde, EXFO's Chairman, President and CEO. "In the process, we expanded our percentage of business from two strategic sectors — the wireless industry at large and Tier-1 network operators — allowing us to increase revenues much faster than our end-markets. As a result, EXFO gained market share for a 26th consecutive year based on relentless innovation, customer delight and focus on execution. I remain confident that EXFO is uniquely positioned to benefit from key growth opportunities in the telecom industry, despite uncertainty in the global economy."
Corporate Performance Objectives for Fiscal 2010-2012
Following are EXFO's results after two years into its three-year plan:
|
Three-Year Objectives (Base year: FY 2009 which included divested LSI Division) |
Results After 2 Years |
| Increase sales by at least 25% CAGR | 25.4% CAGR |
| Raise gross margin from 61.3% to 65% | 62.7% |
| Increase adjusted EBITDA* in dollars by at least 30% CAGR: | 45.4% CAGR |
* EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets and impairment of goodwill. Adjusted EBITDA represents EBITDA excluding the gain from the disposal of discontinued operations.
Selected Financial Information (unaudited)
(In thousands of US dollars)
| Q4 2011 | Q3 2011 | Q4 2010 | FY 2011 | FY 2010 | |
| Sales: | |||||
| Continuing operations (formerly the Telecom Division) | $ 64,414 | $ 67,630 | $ 58,583 | $ 269,743 | $ 202,757 |
| Discontinued operations (formerly the Life Sciences & Industrial Division) | − | − | 6,653 | 1,991 | 25,359 |
| Total | $ 64,414 | $ 67,630 | $ 65,236 | $271,734 | $ 228,116 |
| Gross margin: | |||||
| Continuing operations | $ 40,967 | $ 43,387 | $ 37,954 | $ 169,447 | $ 128,856 |
| 63.6% | 64.2% | 64.8% | 62.8% | 63.6% | |
| Discontinued operations | $ − | $ − | $ 3,448 | $ 989 | $ 13,563 |
| −% | −% | 52.4% | 49.7% | 53.5% | |
| Total | $ 40,967 | $ 43,387 | $ 41,442 | $ 170,436 | $ 142,419 |
| 63.6% | 64.2% | 63.5% | 62.7% | 62.4% | |
| Other selected information: | |||||
| Net earnings: | |||||
| Continuing operations (formerly the Telecom Division) | $ 1,890 | $ 1,735 | $ 4,124 | $ 6,423 | $ 3,550 |
| Discontinued operations (formerly the Life Sciences & Industrial Division) | − | − | 838 | 12,926 | 3,069 |
| Total | $ 1,890 | $ 1,735 | $ 4,962 | $ 19,349 | $ 6,619 |
| Amortization of intangible assets | $ 2,122 | $ 2,128 | $ 2,493 | $ 9,187 | $ 7,818 |
| Stock-based compensation costs | $ 461 | $ 432 | $ 473 | $ 2,256 | $ 1,786 |
| Net income tax effect of the above items | $ (60) | $ (70) | $ (184) | $ (479) | $ (1,347) |
| Foreign exchange gain (loss) | $ (57) | $ (243) | $ (1,765) | $ (3,808) | $ (1,496) |
| Adjusted EBITDA* | $ 6,925 | $ 7,119 | $ 11,466 | $ 30,583 | $ 27,306 |
Operating Expenses
Selling and administrative expenses amounted to US$87.1 million, or 32.3% of sales, in fiscal 2011 compared to US$66.6 million, or 32.9% of sales, in 2010. In the fourth quarter of 2011, selling and administrative expenses totaled US$21.8 million, or 33.9% of sales, compared to US$23.1 million, or 34.1% of sales, in the third quarter of 2011 and US$18.9 million, or 32.3% of sales, in the fourth quarter of 2010.
Gross research and development (R&D) expenses reached US$57.2 million, or 21.2% of sales, in fiscal 2011 compared to US$44.6 million, or 22.0% of sales, in 2010. In the fourth quarter of 2011, gross R&D expenses attained US$14.3 million, or 22.3% of sales, compared to US$15.4 million, or 22.7% of sales, in the previous quarter and US$12.4 million, or 21.1% of sales, in the fourth quarter of 2010.
Net R&D expenses totaled US$47.9 million, or 17.7% of sales, in fiscal 2011 compared to US$37.8 million, or 18.7% of sales, in 2010. In the fourth quarter of 2011, net R&D expenses amounted to US$12.1 million, or 18.8% of sales, compared to US$12.9 million, or 19.2% of sales, in the third quarter of 2011 and US$10.5 million, or 17.9% of sales, in the fourth quarter of 2010.
Fiscal 2011 Highlights
-
IP Fixed and Mobile Network Convergence and Broadband Deployments — Growth in optical and high-speed networking, Ethernet/OTN, and 2G/3G/LTE revenues, market-share gains, a full-year revenue contribution from NetHawk, and calendar 2010 year-end budget spending contributed to deliver an annual sales increase of 33.0% to US$269.7 million in fiscal 2011. Optical, Protocol and Copper Access sales improved 27.9%, 38.4%, and 37.8%, respectively, in fiscal 2011. Geographically, sales increased 29.3% in the Americas, 41.7% in Europe, Middle East and Africa (EMEA), and 29.8% in Asia-Pacific in 2011. EXFO's largest customer accounted for 7.2% of sales in 2011, while the company's top three customers represented 16.3%.
- Profitable Growth Path — Adjusted EBITDA* in dollars increased 12.0% to $30.6 million in fiscal 2011 on total sales of US$271.7 million. Adjusted EBITDA* was negatively affected by a foreign exchange loss of US$3.8 million. Cash flows from operations reached US$23.3 million in 2011.
Business Outlook
EXFO forecasts sales between US$65 million and US$70 million for the first quarter of fiscal 2012, while net earnings should range between US$0.01 and US$0.05 per diluted share. Net earnings include US$0.04 per share in after-tax amortization of intangible assets and stock-based compensation costs. The company also anticipates a pre-tax, foreign exchange gain of US$0.02 per share following the significant decrease in the value of the Canadian dollar since August 31, 2011.
This guidance was established by management based on existing backlog as of the date of this press release, seasonality, expected bookings for the remaining of the quarter, as well as exchange rates as of the day of this press release.
Conference Call and Webcast
EXFO will host a conference call today at 5 p.m. (Eastern time) to review its fourth-quarter and year-end financial results for fiscal 2011. To listen to the conference call and participate in the question period via telephone, dial 1-416-981-9017. Germain Lamonde, Chairman, President and CEO, and Pierre Plamondon, CA, Vice-President of Finance and Chief Financial Officer, will participate in the call. An audio replay will be available one hour after the end of the conference call until 7 p.m. on October 18, 2011. The replay number is 1-402-977-9141 and the reservation number is 21537842. The live audio Webcast and replay of the conference call will also be available on EXFO's Website at www.EXFO.com/investors.
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 1800 people in 25 countries, supporting more than 2000 telecom customers worldwide. For more information, visit www.EXFO.com.
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 our forward-looking statements due to various factors including economic uncertainty (including our ability to quickly adapt cost structures with anticipated levels of business, ability to manage inventory levels with market demand); future economic, competitive, financial and market conditions; capital spending levels in the telecommunications industry; limited visibility with regards to customer orders and the timing of such orders; fluctuating exchange rates; our ability to successfully integrate our acquired and to-be-acquired businesses; consolidation in the global telecommunications test and service assurance industry and increased competition among vendors; concentration of sales; market acceptance of our new products and other upcoming products; 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 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.
Non-GAAP Financial Measures
EXFO provides non-GAAP financial measures (EBITDA and Adjusted EBITDA*) as supplemental information regarding its operational performance. The company uses these measures for the purposes of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help EXFO's management to plan and forecast for future periods as well as to make operational and strategic decisions. EXFO believes that providing this information, in addition to GAAP measures, allows investors to see the company's results through the eyes of management, and to better understand the company's historical and future financial performance.
The presentation of this additional information is not prepared in accordance with GAAP. Therefore, the information may not necessarily be comparable to that of other companies and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with GAAP.
The following table summarizes the reconciliation of EBITDA and Adjusted EBITDA to GAAP net earnings (loss) in thousands of US dollars:
* EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets, impairment of goodwill. Adjusted EBITDA represents EBITDA excluding the gain from the disposal of discontinued operations.
EBITDA and Adjusted EBITDA (including discontinued operations)
|
Year ended August 31, 2011 |
Year ended August 31, 2010 |
Year ended August 31, 2009 |
|
| GAAP net earnings (loss) for the year | $ 19,349 | $ 6,619 | $ (16,585) |
| Add (deduct): | |||
| Amortization of property, plant and equipment | |||
| Continuing operations | 6,772 | 5,757 | 4,453 |
| Discontinued operations | 14 | 154 | 154 |
| Amortization of intangible assets | |||
| Continuing operations | 9,183 | 7,773 | 5,033 |
| Discontinued operations | 4 | 45 | 34 |
| Interest and other income (expenses) | |||
| Continuing operations | (511) | 292 | (592) |
| Discontinued operations | – | 1 | (5) |
| Income taxes | |||
| Continuing operations | 8,783 | 5,529 | 266 |
| Discontinued operations | 201 | 1,136 | (5) |
| Impairment of goodwill (continuing operations) | – | – | 21,713 |
| EBITDA for the year | 43,795 | 27,306 | 14,466 |
| Gain on disposal of discontinued operations | (13,212) | – | – |
| Adjusted EBITDA for the year | $ 30,583 | $ 27,306 | $ 14,466 |
| Adjusted EDITDA in percentage of total sales | 11.3% | 12.0% | 8.4% |
| EXFO Inc. | ||
| Unaudited Interim Consolidated Balance Sheet | ||
| (in thousands of US dollars) | ||
| As at August 31 | ||
| 2011 | 2010 | |
| Assets | ||
| Current assets | ||
| Cash | $ 22,771 | $ 21,440 |
| Short-term investments | 47,091 | 10,379 |
| Accounts receivable | ||
| Trade | 45,151 | 50,190 |
| Other | 6,329 | 5,217 |
| Income taxes and tax credits recoverable | 5,414 | 2,604 |
| Inventories | 52,754 | 40,328 |
| Prepaid expenses | 3,237 | 2,816 |
| Future income taxes | 6,130 | 6,191 |
| Current assets held for sale | – | 3,991 |
| 188,877 | 143,156 | |
| Tax credits recoverable | 36,627 | 29,397 |
| Forward exchange contracts | 149 | – |
| Property, plant and equipment | 30,566 | 23,455 |
| Intangible assets | 22,901 | 27,947 |
| Goodwill | 30,942 | 29,355 |
| Future income taxes | 11,024 | 12,884 |
| Long-term assets held for sale | – | 7,308 |
| $ 321,086 | $ 273,502 | |
| Liabilities | ||
| Current liabilities | ||
| Bank loan | $ 784 | $ – |
| Accounts payable and accrued liabilities | 32,137 | 30,870 |
| Income taxes payable | 876 | 426 |
| Current portion of long-term debt | 645 | 568 |
| Deferred revenue | 10,590 | 10,354 |
| Current liabilities related to assets held for sale | – | 2,531 |
| 45,032 | 44,749 | |
| Deferred revenue | 5,704 | 5,775 |
| Long-term debt | 968 | 1,419 |
| Other liabilities | 723 | 603 |
| Future income taxes | 4,913 | – |
| Long-term liabilities related to assets held for sale | – | 537 |
| 57,340 | 53,083 | |
| Shareholders' equity | ||
| Share capital | 110,341 | 106,126 |
| Contributed surplus | 18,017 | 18,563 |
| Retained earnings | 69,877 | 50,528 |
| Accumulated other comprehensive income | 65,511 | 45,202 |
| 263,746 | 220,419 | |
| $ 321,086 | $ 273,502 | |
| EXFO Inc. | |||||
| Unaudited Interim Consolidated Statements of Earnings | |||||
| (in thousands of US dollars, except share and per share data) | |||||
|
Three months ended August 31, 2011 |
Twelve months ended August 31, 2011 |
Three months ended August 31, 2010 |
Twelve months ended August 31, 2010 |
||
| Sales | $64,414 | $269,743 | $58,583 | $202,757 | |
| Cost of sales (1,2) | 23,447 | 100,296 | 20,629 | 73,901 | |
| Gross margin | 40,967 | 169,447 | 37,954 | 128,856 | |
| Operating expenses | |||||
| Selling and administrative (1) | 21,846 | 87,062 | 18,931 | 66,612 | |
| Net research and development (1) | 12,139 | 47,927 | 10,508 | 37,847 | |
| Amortization of property, plant and equipment | 1,697 | 6,772 | 1,623 | 5,757 | |
| Amortization of intangible assets | 2,122 | 9,183 | 2,478 | 7,773 | |
| Total operating expenses | 37,804 | 150,944 | 33,540 | 117,989 | |
| Earnings from operations | 3,163 | 18,503 | 4,414 | 10,867 | |
| Interest and other income (expense) | 21 | 511 | (116) | (292) | |
| Foreign exchange gain (loss) | (57) | (3,808) | 1,765 | (1,496) | |
| Earnings before income taxes | 3,127 | 15,206 | 6,063 | 9,079 | |
| Income taxes | 1,237 | 8,783 | 1,939 | 5,529 | |
| Net earnings from continuing operations | 1,890 | 6,423 | 4,124 | 3,550 | |
| Net earnings from discontinued operations | – | 12,926 | 838 | 3,069 | |
| Net earnings for the period | $1,890 | $19,349 | $4,962 | $6,619 | |
| Basic net earnings from continuing operations per share | $0.03 | $0.11 | $0.07 | $0.06 | |
| Diluted net earnings from continuing operations per share | $0.03 | $0.10 | $0.07 | $0.06 | |
| Basic net earnings from discontinued operations per share | $ – | $0.22 | $0.01 | $0.05 | |
| Diluted net earnings from discontinued operations per share | $ – | $0.21 | $0.01 | $0.05 | |
| Basic net earnings per share | $0.03 | $0.32 | $0.08 | $0.11 | |
| Diluted net earnings per share | $0.03 | $0.31 | $0.08 | $0.11 | |
| Basic weighted average number of shares outstanding (000's) | 60,253 | 60,000 | 59,569 | 59,479 | |
| Diluted weighted average number of shares outstanding (000's) | 61,607 | 61,488 | 60,910 | 60,616 | |
| (1) Stock-based compensation costs included in: | |||||
| Cost of sales | $62 | $224 | $42 | $138 | |
| Selling and administrative | $275 | $1,281 | $272 | $1,042 | |
| Net research and development | $124 | $487 | $125 | $470 | |
| Net earnings from discontinued operations | $ – | $264 | $34 | $136 | |
| (2) The cost of sales is exclusive of amortization, shown separately. | |||||
| EXFO Inc. | ||||
|
Unaudited Interim Consolidated Statements of Comprehensive Income (Loss) and Accumulated Other Comprehensive Income |
||||
| (in thousands of US dollars) | ||||
| Comprehensive income (loss) | ||||
|
Three months ended August 31, 2011 |
Twelve months ended August 31, 2011 |
Three months ended August 31, 2010 |
Twelve months ended August 31, 2010 |
|
| Net earnings for the period | $1,890 | $19,349 | $4,962 | $6,619 |
| Foreign currency translation adjustment | (1,872) | 19,399 | (2,418) | 3,728 |
| Reclassification of realized losses on short-term investments in net earnings | 2 | 2 | – | – |
| Unrealized gains (losses) on forward exchange contracts | (13) | 3,413 | (927) | 940 |
| Reclassification of realized gains on forward exchange contracts in net earnings | (746) | (2,191) | (281) | (1,022) |
| Future income taxes effect of the above items | 217 | (314) | 374 | 24 |
| Comprehensive income (loss) | $ (522) | $ 39,658 | $ 1,710 | $ 10,289 |
| Accumulated other comprehensive income | ||||
|
Twelve months ended August 31, |
||||
| 2011 | 2010 | |||
| Foreign currency translation adjustment | ||||
| Cumulative effect of prior periods | $ 44,186 | $ 40,458 | ||
| Current period | 19,399 | 3,728 | ||
| 63,585 | 44,186 | |||
| Unrealized gains (losses) on forward exchange contracts | ||||
| Cumulative effect of prior periods | 1,018 | 1,076 | ||
| Current period, net of realized gains and future income taxes | 908 | (58) | ||
| 1,926 | 1,018 | |||
| Unrealized losses on short-term investments | ||||
| Cumulative effect of prior periods | (2) | (2) | ||
| Current period | 2 | – | ||
| – | (2) | |||
| Accumulated other comprehensive income | $ 65,511 | $ 45,202 | ||
| EXFO Inc. | ||
|
Unaudited Interim Consolidated Statements of Retained Earnings and Contributed Surplus |
||
| (in thousands of US dollars) | ||
| Retained earnings | ||
|
Twelve months ended August 31, |
||
| 2011 | 2010 | |
| Balance – Beginning of the period | $50,528 | $43,909 |
| Add | ||
| Net earnings for the period | 19,349 | 6,619 |
| Balance – End of the period | $69,877 | $50,528 |
| Contributed surplus | ||
|
Twelve months ended August 31, |
||
| 2011 | 2010 | |
| Balance – Beginning of the period | $18,563 | $17,758 |
| Add (deduct) | ||
| Stock-based compensation costs | 2,217 | 1,756 |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards | (2,763) | (954) |
| Discount on redemption of share capital | – | 3 |
| Balance – End of the period | $18,017 | $18,563 |
| EXFO Inc. | ||||
| Unaudited Interim Consolidated Statements of Cash Flows | ||||
| (in thousands of US dollars) | ||||
|
Three months ended August 31, 2011 |
Twelve months ended August 31, 2011 |
Three months ended August 31, 2010 |
Twelve months ended August 31, 2010 |
|
| Cash flows from operating activities | ||||
| Net earnings for the period | $1,890 | $19,349 | $4,962 | $6,619 |
| Add (deduct) items not affecting cash | ||||
| Change in discount on short-term investments | 4 | (42) | (6) | 19 |
| Stock-based compensation costs | 461 | 2,256 | 473 | 1,786 |
| Amortization | 3,819 | 15,973 | 4,158 | 13,729 |
| Gain on disposal of discontinued operations | – | (13,212) | – | – |
| Gain on disposal of capital assets | – | (568) | – | – |
| Deferred revenue | (3,543) | (1,262) | 1,264 | 3,672 |
| Future income taxes | 774 | 7,032 | 1,529 | 5,787 |
| Change in unrealized foreign exchange gain/loss | 113 | 2,130 | 518 | 471 |
| 3,518 | 31,656 | 12,898 | 32,083 | |
| Change in non-cash operating items | ||||
| Accounts receivable | 3,891 | 10,066 | (4,265) | (22,522) |
| Income taxes and tax credits | (1,714) | (6,714) | 942 | (4,073) |
| Inventories | 200 | (8,751) | (2,205) | (9,302) |
| Prepaid expenses | 600 | (232) | 262 | 105 |
| Accounts payable and accrued liabilities | (4,506) | (2,775) | 3,216 | 5,168 |
| Other liabilities | (187) | 60 | 308 | 308 |
| 1,802 | 23,310 | 11,156 | 1,767 | |
| Cash flows from investing activities | ||||
| Additions to short-term investments | (95,023) | (516,674) | (20,506) | (233,388) |
| Proceeds from disposal and maturity of short-term investments | 100,613 | 481,945 | 16,656 | 285,805 |
| Additions to capital assets | (5,079) | (12,164) | (2,746) | (8,966) |
| Proceeds from disposal of capital assets | – | 568 | – | – |
| Net proceeds from disposal of discontinued operations | – | 22,063 | – | – |
| Business combination, net of cash acquired | (289) | (1,049) | (346) | (33,042) |
| 222 | (25,311) | (6,942) | 10,409 | |
| Cash flows from financing activities | ||||
| Bank loan | – | 772 | – | – |
| Repayment of long-term debt | (323) | (619) | (274) | (274) |
| Exercise of stock options | 5 | 1,452 | 49 | 343 |
| Redemption of share capital | – | – | – | (14) |
| (318) | 1,605 | (225) | 55 | |
| Effect of foreign exchange rate changes on cash | (76) | 1,058 | (336) | (733) |
| Change in cash | 1,630 | 662 | 3,653 | 11,498 |
| Cash – Beginning of period | 21,141 | 22,109 | 18,456 | 10,611 |
| Cash – End of period | $22,771 | $22,771 | $22,109 | $22,109 |