Clearfield(CLFD)2025-02-06 21:05Financial Performance - Net sales for Q1 2025 increased by 4% to $35.5 million compared to $34.2 million in Q1 2024[3]. - Gross profit rose to $8.2 million, a 74% increase from $4.7 million in the same quarter last year, resulting in a gross margin of 23.1%[3][7]. - Net loss narrowed to $1.9 million, or $(0.13) per diluted share, compared to a net loss of $5.3 million, or $(0.35) per diluted share, in Q1 2024[3][8]. - The company anticipates revenue growth in line with or above the industry forecast of 12.5% for fiscal 2025, maintaining annual revenue guidance of $170 million to $185 million[4][9]. - Expected net sales for Q2 2025 are projected to be between $37 million and $40 million, with a net loss per share range of $(0.16) to $(0.21)[9]. Operational Metrics - Order backlog as of December 31, 2024, was $26.0 million, reflecting a 3.6% increase from $25.1 million as of September 30, 2024, but a 40.1% decrease from $43.4 million a year ago[5]. - Operating expenses decreased by 5.5% to $12.2 million, representing 34.3% of net sales, down from 37.6% in the prior year[7]. - The company reported strong quoting activity and the initiation of new multi-year projects beyond connected homes and government-funded initiatives[4]. Cash Flow and Assets - Net cash provided by operating activities was $7,150 thousand, down from $10,800 thousand year-over-year[24]. - Cash and cash equivalents at the end of the year increased to $30,453 thousand from $34,484 thousand, reflecting a decrease of approximately 11.8%[24]. - Total current liabilities decreased from $24,352 million to $18,728 million, a reduction of about 23.2%[22]. - Long-term investments increased significantly from $24,505 million to $41,916 million, representing a growth of approximately 71.5%[22]. - Net cash provided by investing activities rose to $13,392 thousand compared to $908 thousand in the previous year[24]. Shareholder Equity and Stock Activity - Total assets decreased from $315,275 million to $303,230 million, a decline of approximately 3.3%[22]. - The total shareholders' equity decreased from $275,763 million to $267,435 million, a decline of about 3.0%[22]. - Share buy-backs totaled $6.2 million, with $18.7 million remaining available for future repurchases[6][8]. - The company engaged in a cashless exercise of stock options amounting to $9 thousand, indicating ongoing employee stock option activity[24]. Depreciation and Expenses - The company reported a depreciation and amortization expense of $1,838 thousand, up from $1,651 thousand year-over-year[24]. - Net loss for the three months ended December 31, 2024, was $1,906 thousand, an improvement from a net loss of $5,268 thousand in the same period of 2023[23]. Manufacturing and Cost Management - Clearfield's manufacturing sites are designed for redundancy and cost optimization, with a focus on mitigating potential tariff impacts on operations[11][12].