‘Long-Time Drivers,’ Including 5G, ‘Remain Intact' Despite Pandemic, Says Exfo CEO

COVID-19 caused communication service providers to “pause” large-scale fiber installations, including fiber to the home, said Exfo CEO Philippe Morin on a Wednesday investor call. The Quebec City company supplies test equipment and services to wireless carriers. Sales declined 10.1% in fiscal Q3 ended May 31. “As economies are gradually reopening around the world, we are witnessing an increase in our funnel in our opportunities for optical and high-speed test solutions,” said Morin. Exfo’s “advanced optical test solutions” for its manufacturing and lab clients is delivering “healthy growth, mainly in China, where we've seen an acceleration of 5G investment,” he said. It “remains difficult” to forecast the pandemic’s impact on the global economy, he said. “long-term drivers,” including fiber and 5G deployments, “remain intact,” he said. Customers AT&T and Verizon “think it's so critical” to speed their 5G deployments in North America, he said. “In certain countries in Europe, you've seen a bit of delays.” Exfo’s factories are “up and running” and “fully operational,” said Morin. There remain bottlenecks in “the whole logistics side of things,” he said. “There's still some challenges in terms of flights and trucks.”