EXFO Obtains Multi-Million Dollar Order for a Solution that Automatically Monitors Fiber Network

QUEBEC CITY, CANADA, August 12, 2015 — EXFO Inc. (NASDAQ: EXFO; TSX: EXF) announced today it has obtained a multi-million dollar order from a government entity in the Asia-Pacific region for a fiber monitoring system that will monitor a mission-critical, high-speed, IP/MPLS (Internet Protocol/Multiprotocol Label Switching) network spanning over nearly 3,000 kilometers.

EXFO’s fiber monitoring solution, branded as NQMSfiber, provides real-time surveillance of an optical network 24 hours per day, seven days per week. It is indispensable for detecting fiber bends, fiber cuts and fiber degradations over time, all of which can impede communications across a network.

NQMSfiber consists of optical time domain reflectometers (OTDRs), in the form of remote test units, providing high resolution and accurate loss measurements along fiber links. These units are combined with a web-based element management system (EMS), offering users a centralized access to results and an intuitive interface to analyze alarms and other events. This order is expected to be recognized into revenue in fiscal 2016.

“EXFO’s next-generation OTDR technology and innovative software, offering the highest level of automation and integration, played a major role in securing this deal, since they ensure unmatched network operation and maintenance,” said Stephane Chabot, Vice-President of EXFO’s Physical-Layer Division. “The added capabilities of our fiber monitoring system, with sophisticated functions like self-learning, programmable alarm management and dashboard reporting on fiber availability, placed our solution head-and-shoulders above the competition. In short, our fiber monitoring solution not only provides our customers with valuable, end-to-end visibility and key performance indicators (KPIs), but it also saves them precious time and money.”

About EXFO

EXFO enables extraordinary experiences on global networks. Our test, service assurance and network visibility solutions allow equipment manufacturers and network operators to deliver a wealth of services to consumers, while increasing network capacity and reducing operating costs. From a company executive holding a telepresence meeting with overseas staff to a runner transferring data from wearable technology, EXFO’s inherent expertise and powerful analytics render these events commonplace. Simply put, we have evolved over our 30-year history to ensure unmatched quality of service and quality of experience on next-generation fixed and mobile networks. EXFO has a staff of approximately 1600 people in 25 countries, supporting more than 2000 customers worldwide. For more information, visit www.EXFO.com and follow us on the EXFO Blog, Twitter, LinkedIn, Facebook, Google+ and YouTube. 

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 regards 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.