Clearfield (CLFD) closed the last trading session at $36.36, gaining 37.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $46 indicates a 26.5% upside potential.The average comprises four short-term price targets ranging from a low of $44 to a high of $50, with a standard deviation of $2.71. While the lowest estimate indicates an increase of 21% from the current price level, the m ...

Financial Performance - Net sales for the three months ended March 31, 2025, were $47,168,000, an increase of approximately 28%, or $10,258,000, from $36,910,000 for the same period in 2024[106]. - For the six months ended March 31, 2025, net sales were $82,644,000, an increase of 16%, or $11,504,000, from $71,140,000 for the same period in 2024[117]. - Net sales to Broadband Service Providers increased to $44,384,000, up from $34,363,000, while international sales decreased to $7,323,000 from $9,947,000, representing 16% of total net sales in Q2 2025 compared to 27% in Q2 2024[106][117]. - Net sales in the Clearfield segment increased 47%, or $13,021,000, for the three months ended March 31, 2025, compared to the same period in 2024[128]. - Net sales in the Nestor Cables segment decreased 30%, or $2,763,000, for the three months ended March 31, 2025, compared to the same period in 2024[130]. Profitability - Gross profit for the three months ended March 31, 2025, was $14,191,000, a 401% increase from $2,832,000 in the same period in 2024, with a gross profit margin of 30.1% compared to 7.7%[110]. - Gross profit for the six months ended March 31, 2025, was $22,374,000, a 197% increase from $7,529,000 in the same period in 2024, with a gross profit margin of 27.1% compared to 10.6%[119]. - Net income for the three months ended March 31, 2025, was $1,327,000, or $0.09 per share, compared to a net loss of $5,911,000, or $0.40 per share, for the same period in 2024[116]. - Net income in the Clearfield segment for the three months ended March 31, 2025, increased 151%, or $7,524,000, from a net loss compared to the same period in 2024[129]. - Loss from operations for the six months ended March 31, 2025, was $3,713,000, a decrease of approximately 79% compared to a loss of $17,903,000 for the same period in 2024[121]. Expenses - Selling, general and administrative expenses increased by 11% to $13,929,000 for the three months ended March 31, 2025, compared to $12,573,000 for the same period in 2024[111]. - Selling, general and administrative expenses for the six months ended March 31, 2025, increased by 3% to $26,087,000 from $25,432,000 for the same period in 2024[120]. Cash Flow and Investments - Net cash provided by operating activities totaled $10,198,000 for the six months ended March 31, 2025, compared to $5,094,000 for the same period in 2024[134][135]. - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled $111,990,000, down from $130,992,000 as of September 30, 2024[132]. - The Company intends to utilize available cash primarily for continued organic growth, potential future strategic transactions, and a share repurchase program[133]. - The Company repurchased $11,015,000 of its common stock on the open market during the six months ended March 31, 2025[138]. Tax and Financial Ratios - The effective tax rate for the six months ended March 31, 2025, was (5.3%) compared to 21.3% for the same period in 2024, primarily due to decreased loss from operations[123]. - Days sales outstanding decreased by 8 days to 47 days as of March 31, 2025, compared to 55 days from March 31, 2024[134]. Market and Operational Risks - The company reported that inflationary pressures, including rising costs of wages, logistics, and components, are negatively impacting profitability[148]. - If the Euro had appreciated or depreciated by 10% relative to the U.S. Dollar, operating expenses would have increased or decreased by approximately $163,000 and $308,000, respectively, for the three and six months ended March 31, 2025[147]. - The company does not hedge against foreign currency fluctuations, which could materially impact financial statements[147]. - Market risks from adverse changes in interest rates, foreign currency exchange rates, and commodity prices could impact the company's financial condition[145]. - Rising commodity prices have outpaced the company's ability to reduce costs or increase prices, affecting profitability[148]. - The company relies on single-source suppliers, which could lead to delays and increased costs[145]. - A significant percentage of sales in the last three fiscal years have been made to a small number of customers, posing a risk if these customers are lost[145]. - The company faces risks associated with acquisitions that could adversely affect future operating results[145]. - The company does not hedge commodity prices, making it vulnerable to inflation impacts on cost of sales and operating expenses[148].

Core Insights - Clearfield (CLFD) reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of a loss of $0.19 per share, and showing improvement from a loss of $0.40 per share a year ago, resulting in an earnings surprise of 147.37% [1] - The company achieved revenues of $47.17 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 22.20%, compared to $36.91 million in the same quarter last year [2] - Clearfield has consistently outperformed consensus EPS estimates over the last four quarters, with a total of four beats [2] Financial Performance - The company has shown a positive trend in revenue estimates, having topped consensus revenue estimates three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $47.1 million, and for the current fiscal year, it is -$0.29 on revenues of $177.9 million [7] Market Position - Clearfield shares have increased by approximately 0.6% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The Zacks Industry Rank places the Wireless Equipment sector in the top 14% of over 250 Zacks industries, indicating a favorable market position [8] Future Outlook - The sustainability of Clearfield's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Clearfield is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - The company reported net sales of $47.2 million for the second quarter of fiscal 2025, representing a 28% increase compared to $36.9 million in the same period last year, and exceeding the guidance range of $37 million to $40 million [5][12] - Net income per share was $0.09, which was above the guidance range and showed significant improvement from the previous year [6][12] - The Clearfield segment net sales increased by 47% year over year to $40.6 million, while the NESTER segment net sales decreased by 30% year over year to $6.6 million [12] Business Line Data and Key Metrics Changes - The Clearfield segment experienced strong customer demand across all end markets, leading to faster conversion of quoting activity into revenue [12] - The NESTER segment is focusing on improving its cost structure and prioritizing higher gross margin solutions, particularly with the production of Microduct at the new facility in Estonia [12][13] Market Data and Key Metrics Changes - The company anticipates that the BEAD program will contribute materially to revenue in fiscal 2026, despite current administrative delays and regulatory uncertainties [9] - The Enhanced Alternative Connect America Cost Model (eACAM) is expected to contribute meaningfully in the upcoming build season, allowing providers to leverage both BEAD and eACAM funding across different areas of their networks [9] Company Strategy and Development Direction - The company is focused on diversifying its supply chain to maintain stable product availability amid fluctuating trade policies, with a proactive approach to sourcing and manufacturing [7][8] - The company aims to capitalize on current opportunities and is focused on identifying the next catalyst for growth, particularly in the connected home market [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from government funding programs and a return to a more normal ordering pattern in the industry [9][10] - The management highlighted a U-shaped recovery in the market, particularly within the Clearfield segment, with strong demand anticipated for connected home products [25] Other Important Information - The FieldSmart FiberFlex 600 active cabinet received recognition as one of the best in the industry, validating the company's approach to providing flexible and scalable solutions [10] - The company reiterated its fiscal 2025 outlook for net sales in the range of $170 million to $185 million, with expectations for annual revenue growth in the Clearfield segment to align with or exceed industry forecasts [13] Q&A Session Summary Question: Can you comment on the product mix and subscriber adds? - Management noted strong continuation in products for connecting homes and a resurgence in sales of cabinets, with expectations for increased home connections using Clearfield equipment [16] Question: How is traction coming along on new connected home products? - Management expressed excitement about the hybrid home deployment kits, which streamline the installation process and reduce labor requirements [17] Question: How is diversification within the regional customer category? - Management indicated that a large regional customer contributed approximately $3 million in business this quarter, with one large regional customer becoming a 10% customer [18] Question: Can you elaborate on the gross margin and E&O reserve? - Management clarified that there was a reduction in the excess and obsolete inventory reserve compared to the previous year, contributing to improved gross margins [19] Question: What are the cost reduction approaches for the NESTER segment? - Management discussed the focus on expanding the product mix and producing higher gross margin solutions primarily from the Estonia facility [20]

Financial Data and Key Metrics Changes - The company reported net sales of $47.2 million for the second quarter of fiscal 2025, representing a 28% increase compared to $36.9 million in the same period last year, and exceeding the guidance range of $37 million to $40 million [4][12] - Net income per share was $0.09, which was above the guidance range and showed significant improvement from the previous year [5][12] - The Clearfield segment net sales increased by 47% year over year to $40.6 million, while the NESTER segment net sales decreased by 30% year over year to $6.6 million [12] Business Line Data and Key Metrics Changes - The Clearfield segment experienced strong customer demand across all end markets, leading to a faster conversion of quoting activity into revenue [12] - The NESTER segment is focusing on improving its cost structure and prioritizing higher gross margin solutions, particularly with the production of Microduct at the new facility in Estonia [12][13] Market Data and Key Metrics Changes - The company anticipates that the BEAD program will contribute materially to revenue in fiscal 2026, despite current administrative delays and regulatory uncertainties [9] - The Enhanced Alternative Connect America Cost Model (eACAM) program is expected to contribute meaningfully in the upcoming build season, allowing providers to leverage both BEAD and eACAM funding across different areas of their networks [9] Company Strategy and Development Direction - The company is focused on diversifying its supply chain to maintain stable product availability amid fluctuating trade policies, with a proactive approach to sourcing and manufacturing [6][7] - The company aims to capitalize on current opportunities and is focused on identifying the next catalyst for growth, particularly in the connected home market [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market recovery, particularly within the Clearfield segment, and highlighted the demand for connected home products [26] - The evolving tariff situation is not expected to materially affect operating results, and the company is implementing tactics to address potential cost increases [7][13] Other Important Information - The FieldSmart FiberFlex 600 active cabinet received recognition as one of the best in the industry, validating the company's approach to providing flexible and scalable solutions [10] - The company reiterated its fiscal 2025 outlook of net sales in the range of $170 million to $185 million, with expectations for annual revenue growth in the Clearfield segment to align with or exceed industry forecasts [13] Q&A Session Summary Question: Can you comment on the product mix and subscriber adds? - Management noted strong sales of products for connecting homes and a resumption of cabinet sales, with expectations for increased home connections during the summer [16] Question: How is traction coming along on new connected home products? - Management expressed excitement about the hybrid home deployment kits, which streamline the installation process and reduce labor requirements [17] Question: How is diversification within the regional customer category? - Management indicated that a large regional customer contributed approximately $3 million in business this quarter, with one large regional customer becoming a 10% customer [18] Question: Can you clarify the gross margin improvements related to excess inventory reserves? - Management explained that there was a reduction in the excess inventory reserve compared to the previous year, contributing to improved gross margins [19] Question: What are the cost reduction approaches for the NESTER segment? - Management discussed expanding the product mix and focusing on higher gross margin solutions produced in Estonia, optimizing for flexibility and quicker shipping to the European market [21]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Clearfield achieved a significant turnaround in Q2 2025, with net sales up 28% to $47.2 million and a return to profitability Fiscal Q2 2025 Financial Summary (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $47.2M | $36.9M | $10.3M | 28% | | Gross Profit ($) | $14.2M | $2.8M | $11.4M | 401% | | Gross Profit (%) | 30.1% | 7.7% | 22.4% | 292% | | Net Income (Loss) | $1.3M | $(5.9)M | $7.2M | 122% | | Net Income (Loss) per Diluted Share | $0.09 | $(0.40) | $0.49 | 123% | Fiscal YTD 2025 Financial Summary (vs. YTD 2024) | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $82.6M | $71.1M | $11.5M | 16% | | Gross Profit ($) | $22.4M | $7.5M | $14.8M | 197% | | Gross Profit (%) | 27.1% | 10.6% | 16.5% | 156% | | Net Loss | $(0.6)M | $(11.2)M | $10.6M | -95% | | Net Loss per Diluted Share | $(0.04) | $(0.75) | $0.71 | -95% | - The company successfully returned to profitability in Q2 2025, generating a net income per diluted share of **$0.09**[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong Q2 performance to robust demand and execution, confident in market share gains and minimal tariff impact - CEO Cheri Beranek stated that the net sales outperformance was driven by strong customer demand and solid execution, with faster and higher conversion of quoting activity into revenue[5](index=5&type=chunk) - CFO Dan Herzog credited the strong bottom-line performance and gross margin improvements to lower excess inventory reserve costs and increased production volumes[7](index=7&type=chunk) - Despite macroeconomic uncertainty, management remains confident in its ability to gain market share as demand and ordering patterns normalize[7](index=7&type=chunk) - The company does not believe the tariffs in their present form will materially affect its operating results[7](index=7&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) This section details quarterly operational results, drivers of gross margin expansion, return to profitability, and financial outlook [Q2 Fiscal 2025 Performance](index=2&type=section&id=Q2%20Fiscal%202025%20Performance) Q2 fiscal 2025 saw net sales grow 28% to $47.2 million, gross margin surge to 30.1%, and a net income of $1.3 million Sales and Backlog Performance (as of March 31, 2025) | Metric | Q2 2025 | Change vs. Q2 2024 | Change vs. Q1 2025 | | :--- | :--- | :--- | :--- | | Net Sales | $47.2M | +28% | N/A | | Order Backlog | $34.1M | -28% | +31% | - The increase in gross margin to **30.1%** was driven by higher volumes in the Clearfield segment, leading to better manufacturing overhead utilization, and a **$4.5 million** reduction in excess inventory charges compared to the prior year[9](index=9&type=chunk) - The company repurchased approximately **$4.7 million** in shares during the quarter, with about **$14 million** remaining for future repurchases as of March 31, 2025[11](index=11&type=chunk) [Fiscal 2025 Outlook](index=2&type=section&id=Fiscal%202025%20Outlook) Clearfield reiterates fiscal 2025 annual revenue guidance of $170M-$185M and projects Q3 net sales of $45M-$50M Fiscal 2025 Guidance | Period | Metric | Guidance Range | | :--- | :--- | :--- | | **Full Year 2025** | Net Sales | $170M - $185M | | **Q3 2025** | Net Sales | $45M - $50M | | **Q3 2025** | Net Income per Share | $0.01 - $0.08 | - The provided guidance incorporates the company's current understanding of the tariff situation, which is not expected to have a material effect on operating results[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Clearfield's unaudited condensed consolidated financial statements for periods ended March 31, 2025 [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Clearfield reported Q2 2025 net sales of $47.2 million and a net income of $1.3 million, a significant improvement year-over-year Condensed Consolidated Statements of Earnings (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $47,168 | $36,910 | $82,644 | $71,140 | | Gross profit | $14,192 | $2,832 | $22,374 | $7,529 | | Income (Loss) from operations | $262 | $(9,741) | $(3,713) | $(17,903) | | Net income (loss) | $1,327 | $(5,911) | $(579) | $(11,179) | | Net income (loss) per share Diluted | $0.09 | $(0.40) | $(0.04) | $(0.75) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Clearfield's balance sheet shows total assets of $310.9 million, with increased cash and decreased inventories Selected Balance Sheet Items (in thousands) | | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,848 | $16,167 | | Inventories, net | $56,084 | $66,766 | | Total current assets | $206,268 | $229,595 | | Total Assets | $310,857 | $315,275 | | Total liabilities | $44,958 | $39,512 | | Total shareholders' equity | $265,899 | $275,763 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended March 31, 2025, Clearfield generated $10.2 million in operating cash flow, with cash increasing by $12.7 million Summary of Cash Flows (Six Months Ended March 31, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,198 | $5,094 | | Net cash provided by investing activities | $11,220 | $1,156 | | Net cash used in financing activities | $(8,755) | $(28,310) | | **Increase (decrease) in cash** | **$12,681** | **$(22,009)** | - The primary use of cash in financing activities was the repurchase of common stock, amounting to **$11.0 million** for the six-month period[24](index=24&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides supplementary company details, including conference call logistics, corporate overview, and forward-looking statement cautions [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Clearfield management will host a conference call on May 8, 2025, at 4:30 p.m. ET to discuss quarterly results, with replay available - A conference call hosted by CEO Cheri Beranek and CFO Dan Herzog is scheduled for May 8, 2025, at 4:30 p.m. Eastern Time[13](index=13&type=chunk) - Replay information is available for those unable to attend the live call, accessible through May 22, 2025[14](index=14&type=chunk) [About Clearfield, Inc.](index=3&type=section&id=About%20Clearfield%2C%20Inc.) Clearfield, Inc. designs, manufactures, and distributes fiber optic products for various communication network markets - Clearfield designs, manufactures, and distributes fiber optic products for communications networks[15](index=15&type=chunk) - The company's key markets include incumbent and competitive local exchange carriers, MSO/cable TV companies, utilities, enterprises, and data centers[15](index=15&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions on forward-looking statements, outlining key risks including supply chain, customer concentration, competition, and macroeconomic conditions - The document contains forward-looking statements regarding future performance, market trends, and the impact of trade policies, which are subject to risks and uncertainties[16](index=16&type=chunk) - Key risk factors include reliance on single-source suppliers, customer concentration, intense competition, potential impact of government programs (BEAD, RDOF), and global economic conditions[16](index=16&type=chunk)

Core Viewpoint - Clearfield, Inc. reported significant financial improvements in fiscal Q2 2025, including a return to profitability and strong revenue growth driven by customer demand across all segments [4][5][10]. Financial Performance - Net sales for Q2 2025 reached $47.2 million, a 28% increase from $36.9 million in Q2 2024 [2][7]. - Gross profit surged to $14.2 million, up 401% from $2.8 million year-over-year, resulting in a gross margin of 30.1%, compared to 7.7% in Q2 2024 [2][8]. - The company achieved net income of $1.3 million, or $0.09 per diluted share, compared to a net loss of $5.9 million, or ($0.40) per diluted share, in the same quarter last year [2][10]. Year-to-Date Performance - For the first half of fiscal 2025, net sales totaled $82.6 million, a 16% increase from $71.1 million in the same period of 2024 [3]. - Year-to-date gross profit was $22.4 million, reflecting a 197% increase from $7.5 million in 2024 [3]. - The company reported a reduced net loss of $0.6 million for the year-to-date period, significantly improved from a loss of $11.2 million in the prior year [3]. Operational Insights - The increase in gross margin was attributed to higher production volumes and reduced excess inventory reserve costs [6][8]. - The order backlog as of March 31, 2025, was $34.1 million, a 31% increase from $26.0 million at the end of 2024 [7]. Management Commentary - Management expressed confidence in capturing market share despite macroeconomic uncertainties, citing strong customer demand and effective execution [4][5]. - The company plans to maintain its fiscal 2025 net sales guidance in the range of $170 million to $185 million, anticipating Q3 net sales between $45 million and $50 million [5][11]. Shareholder Actions - Clearfield repurchased approximately $4.7 million in shares under its share repurchase program, with about $14 million remaining for future repurchases [10].

Core Viewpoint - Clearfield, Inc. will announce its financial results for the second quarter of fiscal 2025 on May 8, 2025, after market close, and will host a conference call to discuss these results with the investment community [1][2]. Company Overview - Clearfield, Inc. (NASDAQ: CLFD) specializes in designing, manufacturing, and distributing fiber optic management, protection, and delivery products for communications networks [3]. - The company operates a "fiber to anywhere" platform that meets the needs of various market segments, including traditional and alternative carriers, cable TV companies, utilities, municipalities, enterprises, data centers, and military markets [3]. - Clearfield is headquartered in Minneapolis, MN, and deploys over one million fiber ports annually [3].

Company Overview - Breezeline is the eighth-largest cable operator in the United States, providing Internet, TV, and Phone services across 13 states, including Pennsylvania [5] - The company is a subsidiary of Cogeco Communications, which also operates in Canada under the Cogeco Connexion name [5] Fiber Deployment - Breezeline will soon deploy fiber-to-the-home (FTTH) internet services in several Pennsylvania counties, including Johnstown, Altoona, Uniontown, and Clearfield [1] - The fiber activation aims to enhance internet connectivity for both homes and businesses in these areas [1] Technological Investment - The company is continuously investing in advanced technologies to accommodate the growing demand for internet data usage, aiming to deliver faster speeds and improved reliability [2] - High-speed internet is expected to provide significant economic benefits to local communities by attracting employers, fostering business innovation, and enhancing job growth and productivity [2] Community Impact - Breezeline's FTTH technology will offer ultrafast and reliable connectivity, which is essential for online learning, telemedicine, remote work, and cloud computing [2][3] - Current customers will have the opportunity to transition to the new fiber platform with free installation [3] Industry Recognition - The Broadband Communications Association of Pennsylvania commended Breezeline for its investment in state-of-the-art internet connectivity, highlighting the importance of fiber for future scalability [3]

Financial Performance - Net sales for the three months ended December 31, 2024, were $35,476,000, an increase of approximately 4%, or $1,246,000, from $34,230,000 for the same period in 2023[105] - Net sales to Broadband Service Providers increased to $33,440,000, up from $31,915,000, while sales to Legacy customers decreased to $2,036,000 from $2,376,000[105] - The Clearfield segment net sales increased by 6%, or $1,597,000, to $29,698,000 for the three months ended December 31, 2024, driven by increased demand from National Carrier and Community Broadband customers[120] - The Nestor Cables segment net sales decreased by 6%, or $351,000, to $5,778,000 for the three months ended December 31, 2024, due to decreased demand[122] Cost and Expenses - Cost of sales decreased by $2,239,000, or 8%, to $27,294,000 for the three months ended December 31, 2024, resulting in a gross profit increase of $3,486,000, or 74%, to $8,182,000[109] - Selling, general and administrative expenses decreased by $701,000, or 6%, to $12,158,000 due to cost management efforts[110] Loss and Net Income - Loss from operations decreased by approximately 51% to $3,975,000 for the three months ended December 31, 2024, compared to a loss of $8,162,000 for the same period in 2023[111] - Net loss for the three months ended December 31, 2024, was $1,906,000, or $0.13 per share, down from a net loss of $5,268,000, or $0.35 per share, for the same period in 2023[115] - The income tax benefit decreased to $426,000 for the three months ended December 31, 2024, from $951,000 for the same period in 2023, primarily due to decreased loss from operations[114] Cash Flow and Investments - As of December 31, 2024, the company's cash, cash equivalents, and short-term investments totaled $113,014,000, a decrease from $130,992,000 as of September 30, 2024[124] - The company reported net cash provided by operating activities of $7,150,000 for the three months ended December 31, 2024, compared to $10,800,000 for the same period in 2023[126][127] - The decrease in inventory was $6,871,000 for the three months ended December 31, 2024, attributed to reduced inventory purchases as the company utilized existing stock[126] - The company received proceeds from the maturity of investment securities of $54,476,000 during the three months ended December 31, 2024, compared to $51,068,000 in the same period of 2023[128][129] - Cash used for stock repurchases was $6,275,000 for the three months ended December 31, 2024, down from $12,184,000 in the same period of 2023[130][132] - The company invested $39,015,000 in investment securities during the three months ended December 31, 2024, compared to $47,748,000 in the same period of 2023[128][129] Operational Metrics - Order backlog as of December 31, 2024, was $26,028,000, an increase of 3.6% from $25,133,000 as of September 30, 2024, but a decrease of 40% from $43,451,000 as of December 31, 2023[107] - Days sales outstanding decreased by 11 days to 36 days as of December 31, 2024, compared to 47 days as of December 31, 2023[126] Market Risks - The company is exposed to market risks from fluctuations in foreign currency exchange rates, with a potential impact of approximately $144,000 on operating expenses if the Euro fluctuated by 10% against the U.S. Dollar[138]