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Clearfield Reports Fiscal Fourth Quarter and Full Year 2024 Results

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Clearfield reported Q4 2024 financial results with net sales of $46.8 million, down 5.9% year-over-year, and a net loss of $(0.06) per share. The company's full-year 2024 showed net sales of $166.7 million, a 38% decrease from 2023, with a net loss of $(0.85) per share. Despite challenges, Clearfield achieved BABA self-certification from NTIA and generated positive cash flow from operations of $22.2 million for the year. The company provided guidance for fiscal 2025 with expected revenues between $170-185 million, and Q1 2025 revenue guidance of $33-38 million.

Clearfield ha riportato i risultati finanziari del quarto trimestre 2024 con vendite nette di 46,8 milioni di dollari, in calo del 5,9% rispetto all'anno precedente, e una perdita netta di $(0,06) per azione. I risultati annuali del 2024 mostrano vendite nette di 166,7 milioni di dollari, con una diminuzione del 38% rispetto al 2023, e una perdita netta di $(0,85) per azione. Nonostante le difficoltà, Clearfield ha ottenuto la certificazione BABA dall'NTIA e ha generato un flusso di cassa operativo positivo di 22,2 milioni di dollari per l'anno. L'azienda ha fornito indicazioni per il fisci 2025 con ricavi previsti tra 170 e 185 milioni di dollari, e una previsione di entrate per il primo trimestre 2025 di 33-38 milioni di dollari.

Clearfield reportó los resultados financieros del cuarto trimestre de 2024 con ventas netas de 46.8 millones de dólares, una baja del 5.9% en comparación con el año anterior, y una pérdida neta de $(0.06) por acción. Los resultados del año completo 2024 mostraron ventas netas de 166.7 millones de dólares, una disminución del 38% en relación a 2023, con una pérdida neta de $(0.85) por acción. A pesar de los desafíos, Clearfield logró la certificación BABA por parte de NTIA y generó un flujo de efectivo operativo positivo de 22.2 millones de dólares durante el año. La empresa proporcionó una guía para el ejercicio fiscal 2025 con ingresos esperados entre 170 y 185 millones de dólares, y una guía de ingresos para el primer trimestre de 2025 de 33-38 millones de dólares.

클리어필드는 2024년 4분기 재무 결과를 보고하며 순매출 4680만 달러로 전년 대비 5.9% 감소하고, 주당 순손실이 $(0.06)이라고 밝혔습니다. 2024년 전체 매출은 1억 6670만 달러로 2023년 대비 38% 감소했으며, 주당 순손실은 $(0.85)입니다. 어려움에도 불구하고 클리어필드는 NTIA로부터 BABA 자가 인증을 획득하고, 올해 운영에서 2220만 달러의 긍정적인 현금 흐름을 생성했습니다. 이 회사는 2025 회계년도에 예상 수익이 1억 7000만에서 1억 8500만 달러

Clearfield a publié ses résultats financiers pour le quatrième trimestre 2024, affichant des ventes nettes de 46,8 millions de dollars, en baisse de 5,9 % par rapport à l'année précédente, et une perte nette de $(0,06) par action. Les résultats de l'année complète 2024 montrent des ventes nettes de 166,7 millions de dollars, soit une baisse de 38 % par rapport à 2023, avec une perte nette de $(0,85) par action. Malgré les difficultés, Clearfield a obtenu la certification BABA de la NTIA et a généré un flux de trésorerie positif de 22,2 millions de dollars pour l'année. La société a fourni des prévisions pour l'exercice 2025 avec des revenus attendus entre 170 et 185 millions de dollars, et une prévision de revenus pour le premier trimestre 2025 de 33-38 millions de dollars.

Clearfield hat die finanziellen Ergebnisse des vierten Quartals 2024 mit einem Nettoumsatz von 46,8 Millionen Dollar veröffentlicht, was einem Rückgang von 5,9% im Vergleich zum Vorjahr entspricht, und einem Nettoverlust von $(0,06) pro Aktie. Die Ergebnisse für das Gesamtjahr 2024 zeigen einen Nettoumsatz von 166,7 Millionen Dollar, was einem Rückgang von 38% im Vergleich zu 2023 entspricht, mit einem Nettoverlust von $(0,85) pro Aktie. Trotz der Herausforderungen hat Clearfield die BABA-Selbstzertifizierung von der NTIA erhalten und einen positiven Cashflow aus dem Betrieb von 22,2 Millionen Dollar für das Jahr generiert. Das Unternehmen gab eine Prognose für das Geschäftsjahr 2025 ab, wobei mit Einnahmen zwischen 170 und 185 Millionen Dollar gerechnet wird und die Umsatzprognose für das erste Quartal 2025 bei 33-38 Millionen Dollar liegt.

Positive
  • Q4 revenue of $46.8M exceeded guidance
  • Positive cash flow from operations of $22.2M for full year
  • Achieved BABA self-certification for BEAD Program participation
  • Gross margin improved to 22.8% from 21.9% in previous quarter
Negative
  • Q4 net loss of $0.8M compared to $2.7M profit year-over-year
  • Full-year net sales decreased 38% to $166.7M
  • Order backlog decreased 56.1% year-over-year to $25.1M
  • Operating expenses increased 33.1% to $13.7M in Q4
  • Expecting Q1 2025 net loss of $0.28-$0.35 per share

Insights

Clearfield's Q4 results paint a challenging picture with $46.8M in revenue, down 5.9% YoY and a net loss of $0.8M. The full year performance shows deeper concerns with revenue declining 38% to $166.7M and gross margins deteriorating significantly from 31.7% to 17.3%. However, positive cash flow from operations of $22.2M and inventory reduction efforts demonstrate effective cash management.

The $170M to $185M FY2025 guidance suggests modest growth from FY2024 levels, though Q1 guidance indicates continued near-term pressure. The 56.1% YoY reduction in backlog to $25.1M raises concerns about demand sustainability. The BABA certification positions the company well for BEAD program opportunities, but meaningful revenue impact isn't expected until late 2025.

  • Q4 Revenue of $46.8 million and net loss per share of $(0.06) in Q4 exceeded guidance

  • Achieved BABA self-certification recognition from the NTIA, the federal government agency administering BEAD

  • Revenue guidance of $170 million to $185 million for fiscal year 2025

MINNEAPOLIS, Nov. 07, 2024 (GLOBE NEWSWIRE) --  Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fourth quarter and fiscal year 2024.  

Fiscal Q4 2024 Financial Summary  
(in millions except per share data and percentages)Q4 2024vs. Q4 2023Change Change (%) 
Net Sales$ 46.8 $49.7 $(2.9)-6% 
      
Gross Profit ($)$ 10.7 $12.0 $(1.3)-11% 
Gross Profit (%) 22.8% 24.1% -1.3%-5% 
      
(Loss) Income from Operations$ (3.0)$1.7 $(4.7)-276% 
Income Tax (Benefit) Expense $ (0.5)$0.6 $(1.1)-187% 
      
Net (Loss) Income $ (0.8)$2.7 $(3.5)-131% 
Net (Loss) Income per Diluted Share$ (0.06)$0.17 $(0.23)-135% 
      


Fiscal YTD 2024 Financial Summary  
(in millions except per share data and percentages)2024 YTDvs. 2023 YTD Change Change (%) 
Net Sales$ 166.7 $268.7 $(102.0)-38% 
      
Gross Profit ($)$ 28.9 $85.3 $(56.4)-66% 
Gross Profit (%) 17.3% 31.7% -14.4%-45% 
      
(Loss) Income from Operations$ (23.2)$37.3 $(60.5)-162% 
Income Tax (Benefit) Expense $ (3.8)$9.1 $(12.9)-142% 
      
Net (Loss) Income $ (12.5)$32.5 $(45.0)-138% 
Net (Loss) Income per Diluted Share$ (0.85)$2.17 $(3.02)-139% 
      

Management Commentary

"As we close out the fiscal year, we are proud of how well-positioned Clearfield is to capitalize on the significant opportunities ahead. Our quarterly outperformance was driven by stronger-than-expected sales in the MSO and Large Regional service provider markets," said Company President and Chief Executive Officer, Cheri Beranek. "Our revenue from products for homes connected continues to grow and we are encouraged by the positive response to our active cabinet solutions. Looking forward, we are excited about the opportunities from both public and private funding for rural broadband expansion. Our recent NTIA recognition for self-certification to the Build America Buy America (“BABA”) requirements further prepares us for the significant Broadband Equity, Access, and Deployment (“BEAD”) Program opportunity ahead, with initial revenue expected in late 2025," said Beranek.

“We are pleased to report positive cash flow from operations of approximately $22.2 million for the full year, reflecting our commitment to strategically investing in the organization, while maintaining a prudent and disciplined approach to our cost controls. We’ve made significant progress in reducing our inventory levels, and we will continue to prioritize this effort to further enhance cash flow from operations,” said Chief Financial Officer Dan Herzog. “Pockets of inventory remain at some customer sites, however, the successful transition of Clearfield becoming a full portfolio supplier of products for both passing and connecting homes has positioned the company for growth consistent with the general industry outlook. As a result, we are guiding to revenues of $170 million to $185 million in fiscal year 2025, with revenue growth expected to be primarily driven by the U.S. market as we concentrate on gross profit improvements in our international markets.

Financial Results for the Three Months Ended September 30, 2024

Net sales for the fourth quarter of fiscal 2024 decreased 5.9% to $46.8 million from $49.7 million in the same year-ago quarter.

As of September 30, 2024, order backlog (defined as purchase orders received but not yet fulfilled) was $25.1 million, a decrease of $7.5 million, or 23%, compared to $32.6 million as of June 30, 2024, and a decrease of $32.2 million, or 56.1%, from September 30, 2023.

Gross margin for the fourth quarter of fiscal 2024 was 22.8%, compared to 24.1% in the fourth quarter of fiscal 2023. While gross margin was down from the year ago quarter, it was slightly improved from the previous quarter gross margin of 21.9% due to lower excess inventory charges as a result of better utilization in the quarter.

Operating expenses for the fourth quarter of fiscal 2024 increased 33.1% to $13.7 million, or 29.3% of net sales, from $10.3 million, or 20.7% of net sales, mainly due to higher variable compensation and professional fees than in the same year-ago quarter.

Net loss for the fourth quarter of fiscal 2024 totaled $0.8 million, or ($0.06) per diluted share, compared to net income of $2.7 million, or $0.17 per diluted share, in the same year-ago quarter.

Outlook
At this time and after considering the expected impacts of seasonality and the current state of the industry, the Company expects net sales for the first quarter of fiscal 2025 to be in the range of $33 million to $38 million and net loss per share to be in the range of $0.28 to $0.35. This loss per share range is based on the number of shares outstanding at the end of the fourth quarter and does not reflect potential share repurchases completed in the first quarter of fiscal 2025. Additionally, the Company expects net sales in fiscal year 2025 to be in the range of $170 million to $185 million.

Conference Call
Management will hold a conference call today, November 7, 2024, at 5:00 p.m. Eastern Time (4:00 p.m. Central Time) to discuss these results and provide an update on business conditions.

U.S. dial-in: 1-833-816-1424
International dial-in: 1-412-317-0517
Conference ID: 10192600

The live webcast of the call can be accessed at the Clearfield Investor Relations website along with the company's earnings press release and presentation.

A replay of the call will be available after 8:00 p.m. Eastern Time on the same day through November 21, 2024, while an archived version of the webcast will be available on the Investor Relations website for 90 days.

U.S. replay dial-in: 1-844-512-2921
International replay dial-in: 1-412-317-6671
Replay ID: 10192600

About Clearfield, Inc.
Clearfield, Inc. (NASDAQ: CLFD) designs, manufactures, and distributes fiber optic management, protection, and delivery products for communications networks. Our “fiber to anywhere” platform serves the unique requirements of leading incumbent local exchange carriers (traditional carriers), competitive local exchange carriers (alternative carriers), and MSO/cable TV companies, while also catering to the broadband needs of the utility/municipality, enterprise, and data center markets. Headquartered in Minneapolis, MN, Clearfield deploys more than a million fiber ports each year. For more information, visit www.SeeClearfield.com.

Cautionary Statement Regarding Forward-Looking Information
Forward-looking statements contained herein and in any related presentation or in the related Earnings Presentation are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as “may,” “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could,” “outlook,” or “continue” or comparable terminology are intended to identify forward-looking statements. Such forward looking statements include, for example, statements about the Company’s future revenue and operating performance, expected customer ordering patterns and future supply agreements with customers, anticipated shipping on backlog and future lead times, future availability of components and materials from the Company’s supply chain, compliance with Build America Buy America (“BABA”) Act requirements, future availability of labor impacting our customers’ network builds, the impact of the Broadband Equity, Access, and Deployment (BEAD) Program, Rural Digital Opportunity Fund (RDOF) or other government programs on the demand for the Company’s products or timing of customer orders, the Company’s ability to match capacity to meet demand, expansion into new markets and trends in and growth of the FTTx markets, market segments or customer purchases and other statements that are not historical facts. These statements are based upon the Company's current expectations and judgments about future developments in the Company's business. Certain important factors could have a material impact on the Company's performance, including, without limitation: inflationary price pressures and uncertain availability of components, raw materials, labor and logistics used by us and our suppliers could negatively impact our profitability; we rely on single-source suppliers, which could cause delays, increase costs or prevent us from completing customer orders; we depend on the availability of sufficient supply of certain materials and global disruptions in the supply chain for these materials could prevent us from meeting customer demand for our products; a significant percentage of our sales in the last three fiscal years have been made to a small number of customers, and the loss of these major customers could adversely affect us; further consolidation among our customers may result in the loss of some customers and may reduce sales during the pendency of business combinations and related integration activities; we may be subject to risks associated with acquisitions, and the risks could adversely affect future operating results; we have exposure to movements in foreign currency exchange rates; adverse global economic conditions and geopolitical issues could have a negative effect on our business, and results of operations and financial condition; growth may strain our business infrastructure, which could adversely affect our operations and financial condition; product defects or the failure of our products to meet specifications could cause us to lose customers and sales or to incur unexpected expenses; we are dependent on key personnel; cyber-security incidents, including ransomware, data breaches or computer viruses, could disrupt our business operations, damage our reputation, result in increased expense, and potentially lead to legal proceedings; our business is dependent on interdependent management information systems; natural disasters, extreme weather conditions or other catastrophic events could negatively affect our business, financial condition, and operating results; pandemics and other health crises, including COVID-19, could have a material adverse effect on our business, financial condition, and operating results; to compete effectively, we must continually improve existing products and introduce new products that achieve market acceptance; if the telecommunications market does not continue to expand, our business may not grow as fast as we expect, which could adversely impact our business, financial condition and operating results; changes in U.S. government funding programs may cause our customers and prospective customers to delay, reduce, or accelerate purchases, leading to unpredictable and irregular purchase cycles; intense competition in our industry may result in price reductions, lower gross profits and loss of market share; our success depends upon adequate protection of our patent and intellectual property rights; we face risks associated with expanding our sales outside of the United States; expectations relating to environmental, social and governance matters may increase our cost of doing business and expose us to reputational harm and potential liability; our operating results may fluctuate significantly from quarter to quarter, which may make budgeting for expenses difficult and may negatively affect the market price of our common stock; our stock price has been volatile historically and may continue to be volatile - the price of our common stock may fluctuate significantly; anti-takeover provisions in our organizational documents, Minnesota law and other agreements could prevent or delay a change in control of our Company; and other factors set forth in Part I, Item IA. Risk Factors of Clearfield's Annual Report on Form 10-K for the year ended September 30, 2023 as well as other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements to reflect actual events unless required by law.

Investor Relations Contact:
Greg McNiff
The Blueshirt Group
773-485-7191
clearfield@blueshirtgroup.com


 CLEARFIELD, INC.      
 CONSOLIDATED BALANCE SHEETS      
 (IN THOUSANDS, EXCEPT SHARE DATA)      
        
   September 30,  September 30,  
   2024  2023  
 Assets      
 Current Assets      
 Cash and cash equivalents$16,167 $37,827  
 Short-term investments 114,825  130,286  
 Accounts receivable, net 21,309  28,392  
 Inventories, net 66,766  98,055  
 Other current assets 10,528  1,695  
 Total current assets 229,595  296,255  
        
 Property, plant and equipment, net 23,953  21,527  
        
 Other Assets      
 Long-term investments 24,505  6,343  
 Goodwill 6,627  6,528  
 Intangible assets, net 6,343  6,092  
 Right of use lease assets 15,797  13,861  
 Deferred tax asset 6,135  3,039  
 Other 2,320  1,872  
 Total other assets 61,727  37,735  
 Total Assets$315,275 $355,517  
        
 Liabilities and Shareholders' Equity      
 Current Liabilities      
 Current portion of lease liability$3,357 $3,737  
 Current maturities of long-term debt -  2,112  
 Accounts payable 6,720  8,891  
 Accrued compensation 6,977  5,571  
 Accrued expenses 4,378  2,404  
 Factoring liability 2,920  6,289  
 Total current liabilities 24,352  29,004  
        
 Other Liabilities      
 Long-term debt, net of current maturities 2,228  -  
 Long-term portion of lease liability 12,771  10,629  
 Deferred tax liability 161  721  
 Total Liabilities 39,512  40,354  
        
 Shareholders' Equity      
 Common stock 140  153  
 Additional paid-in capital 159,582  188,218  
 Accumulated other comprehensive income (loss) 1,079  (544) 
 Retained earnings 114,962  127,336  
 Total Shareholders' Equity 275,763  315,163  
 Total Liabilities and Shareholders' Equity$315,275 $355,517  
        


             
CLEARFIELD, INC.            
CONSOLIDATED STATEMENTS OF OPERATIONS          
(IN THOUSANDS, EXCEPT SHARE DATA)          
 (Unaudited)       
 Three Months Ended Year Ended 
 September 30, September 30, 
  2024   2023   2024   2023  
             
Net sales$46,772  $49,685  $166,705  $268,720  
             
Cost of sales 36,104   37,692   137,816   183,441  
             
Gross profit 10,668   11,993   28,889   85,279  
             
Operating expenses            
Selling, general and            
administrative 13,681   10,277   52,111   47,992  
(Loss) Income from operations (3,013)  1,716   (23,222)  37,287  
             
Net investment income 1,819   1,878   7,472   5,206  
Interest expense (124)  (330)  (506)  (881) 
(Loss) Income before income taxes (1,318)  3,264   (16,256)  41,612  
             
Income tax (benefit) expense (492)  568   (3,803)  9,079  
             
Net (loss) income$(827) $2,696  $(12,453) $32,533  
             
Net (loss) income per share:            
Basic$(0.06) $0.16  $(0.85) $2.17  
Diluted$(0.06) $0.17  $(0.85) $2.17  
             
Weighted average shares outstanding:          
Basic 14,234,506   15,258,782   14,582,450   14,975,972  
Diluted 14,234,506   15,258,782   14,582,450   15,012,527  
             


Clearfield, Inc.       
Consolidated Statement of Cashflows       
(In Thousands)       
     Year Ended  Year Ended
     September 30,  September 30,
     2024   2023 
 Cash flows from operating activities       
 Net (loss) income  $(12,453) $32,533 
 Adjustments to reconcile net income to cash provided by operating activities:       
 Depreciation and amortization   7,411   6,054 
 Amortization of discount on investments   (4,406)  (3,512)
 Deferred income taxes   (4,078)  (2,114)
 Stock-based compensation expense   4,641   3,578 
 Changes in operating assets and liabilities       
 Accounts receivable   7,799   26,277 
 Inventories, net   31,990   (15,083)
 Other assets   (9,225)  (1,466)
 Accounts payable and accrued expenses   544
   (27,843)
 Net cash provided by operating activities   22,223
   18,424
 
         
 Cash flows from investing activities:       
 Purchases of property, plant and equipment and intangible assets   (9,567)  (8,384)
 Purchase of investments   (159,393)  (210,923)
 Proceeds from sales and maturities of investments   162,064   107,060 
 Net cash used in investing activities   (6,896)  (112,247)
         
 Cash flows from financing activities:       
 Issuance of long-term debt   2,171   - 
 Repayment of long-term debt   (2,171)  (16,700)
 Proceeds from issuance of common stock under employee stock purchase plan   586   611 
 Repurchase of shares for payment of withholding taxes for vested restricted stock grants   (493)  (1,220)
 Tax withholding and proceeds related to exercise of stock options   (9)  (491)
 Issuance of stock under equity compensation plans   1   954 
 Net borrowings and repayments of factoring liability   (3,617)  1,586 
 Net proceeds from issuance of common stock   -   130,262 
 Repurchase of common stock   (33,374)  - 
 Net cash (used in) provided by financing activities   (36,906)  115,002
 
         
 Effect of exchange rates on cash   (81)  (2)
 (Decrease) Increase in cash and cash equivalents   (21,660)  21,177 
 Cash and cash equivalents, beginning of period   37,827   16,650 
 Cash and cash equivalents, end of period  $16,167  $37,827 
         
 Supplemental disclosures for cash flow information       
 Cash paid during the year for income taxes  $159  $12,967 
 Cash paid for interest  $394  $463 
 Right of use assets obtained through lease liabilities  $4,731  $3,776 
         
 Non-cash financing activities       
 Cashless exercise of stock options  $19  $566 
         

FAQ

What was Clearfield's (CLFD) Q4 2024 revenue?

Clearfield reported Q4 2024 revenue of $46.8 million, representing a 5.9% decrease from $49.7 million in Q4 2023.

What is Clearfield's (CLFD) revenue guidance for fiscal year 2025?

Clearfield provided revenue guidance of $170 million to $185 million for fiscal year 2025.

What was Clearfield's (CLFD) order backlog as of September 30, 2024?

Clearfield's order backlog was $25.1 million as of September 30, 2024, down 56.1% from the previous year.

What is Clearfield's (CLFD) Q1 2025 earnings guidance?

Clearfield expects Q1 2025 net sales of $33-38 million with a net loss per share between $0.28 and $0.35.

Clearfield, Inc.

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