Clearfield Reports First Quarter Fiscal 2025 Results

Core Viewpoint - Clearfield, Inc. reported a strong performance in fiscal Q1 2025, with increased revenues and improved gross margins, driven by demand for connected home products and effective cost management strategies [3][4][6]. Financial Performance - Net sales for Q1 2025 were $35.5 million, a 4% increase from $34.2 million in Q1 2024 [2][4]. - Gross profit rose to $8.2 million, up 74% from $4.7 million in the same quarter last year, resulting in a gross margin of 23.1%, compared to 13.7% in Q1 2024 [2][5]. - The company reported a net loss of $1.9 million, or $(0.13) per diluted share, significantly improved from a net loss of $5.3 million, or $(0.35) per diluted share, in Q1 2024 [2][8]. Operational Highlights - 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 earlier [4]. - 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]. Management Insights - The company expressed optimism about strong quoting activity and new multi-year projects, indicating a robust demand environment [3]. - Management anticipates revenue growth for the Clearfield segment to align with or exceed the industry forecast of 12.5% for fiscal 2025 [3]. Future Outlook - Clearfield maintains its annual revenue guidance for fiscal 2025 between $170 million and $185 million, with expected net sales for Q2 2025 projected to be between $37 million and $40 million [9]. - The company is closely monitoring the evolving tariff situation, which may impact future operations, but believes its manufacturing strategy provides some mitigation against potential cost increases [10][11][12].