EXFO Closes Acquisition of Yenista Optics

QUEBEC CITY, Oct. 2, 2017 /PRNewswire/ - EXFO Inc. (NASDAQ: EXFO, TSX: EXF), the network test, monitoring and analytics experts, announced today the company has closed its acquisition of Yenista Optics S.A.S. in an all-cash transaction valued at US$11.1 million.

Yenista Optics, a privately held company based in Lannion, France, supplies advanced optical test equipment for the R&D and manufacturing markets. Its product portfolio includes benchtop optical spectrum analyzers, tunable lasers, tunable filters and passive optical component test systems for network equipment manufacturers and optical component vendors. The company was profitable in 2016, generating revenue of US$5.8 million and growing.

Yenista Optics' high-end product offering, which increases EXFO's addressable market by more than $100 million in optical testing, will be integrated into the parent company's Physical-layer product family.

"EXFO has been the market leader for several years in portable optical testing, according to third-party estimates from Frost & Sullivan," said Germain Lamonde, EXFO's Executive Chairman. "Based on our internal numbers, Yenista's additional revenue raises EXFO to the No. 1 position in the global fiber-optic test equipment market. We intend to leverage Yenista's technology leadership, EXFO's global sales presence and strong brand to further increase market share in optical testing, especially in lab and manufacturing use cases for network equipment and component vendors."

About Yenista Optics
Yenista Optics designs and manufactures high-performance, fiber-optic test equipment for a broad range of applications in the R&D and manufacturing markets. Founded in 2003, the company owns more than 20 patents protecting its proprietary technologies on measurement techniques, optical filters and external cavity lasers.

About EXFO
EXFO develops smarter network test, monitoring and analytics solutions for the world's leading communications service providers, network equipment manufacturers and webscale companies. Since 1985, we've worked side by side with our customers in the lab, field, data center, boardroom and beyond to pioneer essential technology and methods for each phase of the network lifecycle. Our portfolio of test orchestration and real-time 3D analytics solutions turns complex into simple and delivers business-critical insights from the network, service and subscriber dimensions. Most importantly, we help our customers flourish in a rapidly transforming industry where "good enough" testing, monitoring and analytics just aren't good enough anymore—they never were for us, anyway. For more information, visit EXFO.com and follow us on the EXFO Blog.

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, expect, believe, plan, anticipate, intend, could, estimate, continue or similar expressions or the negative of such expressions are intended to identify forward-looking statements. In addition, any statement that refers 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, but not limited to, macroeconomic uncertainty as well as capital spending and network deployment levels in the telecommunications industry (including our ability to quickly adapt cost structures with anticipated levels of business and our ability to manage inventory levels with market demand); future economic, competitive, financial and market conditions; consolidation in the global telecommunications test and service assurance industry and increased competition among vendors; capacity to adapt our future product offering to future technological changes; limited visibility with regard to timing and nature of customer orders; longer sales cycles for complex systems involving customers' acceptances delaying revenue recognition; fluctuating exchange rates; concentration of sales; timely release and market acceptance of our new products and other upcoming products; our ability to successfully expand international operations; our ability to successfully integrate businesses that we acquire; 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 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.

EXFO-F

SOURCE EXFO inc.