EXFO (Nasdaq: EXFO) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q2), EXFO missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted, and GAAP earnings per share dropped.

Gross margins increased, operating margins contracted, and net margins shrank.

Revenue details
EXFO tallied revenue of $66.9 million. The six analysts polled by S&P Capital IQ looked for net sales of $68.6 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $72 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.06. The five earnings estimates compiled by S&P Capital IQ forecast $0.08 per share on the same basis. GAAP EPS of $0.02 for Q2 were 33% lower than the prior-year quarter's $0.03 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 64.7%, 330 basis points better than the prior-year quarter. Operating margin was 5.7%, 370 basis points worse than the prior-year quarter. Net margin was 1.6%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $71.6 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $282.9 million. The average EPS estimate is $0.33.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 162 members rating the stock outperform and 11 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give EXFO a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EXFO is hold, with an average price target of $7.65.

The game is changing for makers of communications equipment, and some of the old guard may not make it. Where will EXFO fit in? Who's going to lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.