CLFD - $2.10 Quarterly Earnings:
Clearfield, Inc. Reports Quarterly Performance
Date : 01/28/2010 @ 11:00AM
Source : Business Wire
Stock : Clearfield, Inc. (CLFD)
Quote : 2.11 0.01 (0.48%) @ 7:22AM
Clearfield, Inc. Reports Quarterly Performance
Clearfield, Inc. (NASDAQ: CLFD):
Net Sales:
$4.9 million, down 17% from previous year
Gross Profit:
$1.7 million, down 16% from previous year
Gross Margin:
34.4%, up from 34.0% in previous year
Net Loss:
$160,000
Net loss per share:
$.01 Clearfield, Inc. (NASDAQ: CLFD) today announced results for the first fiscal quarter of 2010 which ended December 31, 2009. Revenue for the quarter was $4,943,000 in comparison to $5,933,000 for the quarter ended December 31, 2008, a decrease of 17 percent. Gross profit for the first quarter of fiscal 2010 was $1,702,000 in comparison to $2,014,000 for the first quarter for fiscal 2009, a decrease of 16 percent. The Company reported a net loss of $160,000 for the first quarter of fiscal 2010, or $.01 per share, compared to income of $217,000, or $.02 per share, for the first fiscal quarter of 2009
Revenue decreased in the broadband and commercial data networks market as well as the contract manufacturing market. Revenue in the broadband and commercial data networks market was $4.1 million in the first quarter of fiscal 2010, down from $4.7 million in the previous year’s first quarter. The revenue decrease was primarily associated with decreased demand from a single distributor in the Eastern region of the U.S. Revenue from that distributor accounted for 19% of total quarter revenue for the first quarter of fiscal 2010 in comparison to 25% for the first quarter for fiscal 2009. This decrease overshadowed stable revenue performance in the Midwest and revenue gains in regions of the U.S. where the Company has invested in additional sales personnel in recent quarters. Revenue associated with contract manufacturing, principally copper cable assembles produced to the design specifications of OEM’s outside of the telecommunications market, also contributed to the overall quarterly revenue decline, as revenue to that market was $814,000 for the first quarter of fiscal 2010 down from $1.1 million in the first quarter for fiscal 2009
In the first fiscal quarter of 2010, gross margins improved nearly one half of one percent to 34.4% from the same quarter of last fiscal year. The year-over-year improvement is the result of material cost improvements and manufacturing efficiency
Operating expenses were $1.9 million, an increase of 5% from $1.8 million in the same quarter 2009. The Company continues to invest in revenue growth, with the hiring of field sales personnel along with product and market managers
Comments on Operations “Our recent revenue performance is indicative of a market that is hampered by economic conditions,” explains Cheri Beranek, President and Chief Executive Officer of Clearfield. “While our largest customers continue to offer kudos to our product line and have told us they remain committed to the return on investment they expect from the FTTH marketplace, the availability of capital and funding to our customers has slowed some major initiatives in some of our historically strongest markets.” “We are just beginning to see the initial grant and loan awards from the American Recovery and Reinvestment Act. We are actively tracking both award winners and applications that are still under review. However, grant and loan award recipients are just initiating their Requests For Vendor Quotation and we do not expect them to begin receiving funds until later this spring.” “During this time, we are continuing to make strategic investments in sales personnel and marketing initiatives to broaden our reach within our markets. In addition, we are aggressively pursuing new products that will allow us to enter new markets and address an expanding range of customer requirements,” concluded Beranek
About Clearfield, Inc Clearfield, Inc. designs and manufactures the FieldSmart Fiber Management Platform, which includes its latest generation FieldSmart Fiber Crossover Distribution System (FxDS), FieldSmart Fiber Scalability Center (FSC) and FieldSmart Fiber Delivery Point (FDP) series. The FxDS, FSC and FDP product lines support a wide range of panel configurations, densities, connectors and adapter options, and are offered alongside an assortment of passive optical components. Clearfield provides a complete line of fiber and copper assemblies for inside plant, outside plant and access networks. Clearfield is a public company, traded on Nasdaq:CLFD. www.ClearfieldConnection.com Forward-Looking Statements Forward-looking statements contained herein are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. 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 the effect of the significant downturn in the U.S. economy on Clearfield’s customers; the impact of the American Recovery and Reinvestment Act or any other legislation on customer demand and purchasing patterns; cyclical selling cycles; need to introduce new products and effectively compete against competitive products; dependence on third-party manufacturers; limited experience in manufacturing, reliance on key customers; rapid changes in technology; the negative effect of product defects; the need to protect its intellectual property; the impact on its financial results or stock price of its ability to use its deferred tax asset, consisting primarily of net operating loss carryforwards, to offset future taxable income; the valuation of its goodwill and the effect of its stock price, among other factors, on the evaluation of goodwill; and other factors set forth in Clearfield’s Annual Report on Form 10-K for the year ended September 30, 2009 as well as other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update such statements to reflect actual events
CLEARFIELD, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS UNAUDITED Three Months Ended December 31, 2009 2008 Revenues $ 4,942,667 $ 5,933,287 Cost of sales 3,240,959 3,919,079 Gross profit 1,701,708 2,014,208 Operating expenses Selling, general and administrative 1,889,615 1,804,978 Income (loss) from operations (187,907 ) 209,230 Other income (expense) Interest income 38,056 31,750 Interest expense (584 ) (1,906 ) Other income 14,515 13,644 51,987 43,488 Income before income taxes (135,920 ) 252,718 Income tax expense 23,761 35,231 Net income (loss) $ (159,681 ) $ 217,487 Net income (loss)per share: Basic ($.01 ) $ .02 Diluted ($.01 ) $ .02 Weighted average shares outstanding: Basic 11,977,266 11,938,131 Diluted 11,977,266 11,938,131 CLEARFIELD, INC
BALANCE SHEETS UNAUDITED December 31, 2009 September 30, 2009 Assets Current Assets Cash and cash equivalents $ 4,375,289 $ 4,731,735 Short-term investments 1,153,566 2,108,566 Accounts receivable, net 1,739,721 2,723,414 Inventories 1,241,314 1,153,862 Other current assets 217,376 180,635 Total current assets 8,727,266 10,898,212 Property, plant and equipment, net 1,255,763 1,319,492 Other Assets Long-term investments 3,876,000 2,840,000 Goodwill 2,570,511 2,570,511 Deferred taxes –long term 2,209,745 2,231,990 Other 557,921 568,554 Total other assets 9,214,177 8,211,055 Total Assets $ 19,197,206 $ 20,428,759 Liabilities and Shareholders’ Equity Total current liabilities 1,376,749 2,493,006 Deferred rent 86,068 87,942 Total Liabilities 1,462,817 2,580,948 Shareholders’ Equity Common stock 119,788 119,746 Additional paid-in capital 52,418,356 52,372,139 Accumulated deficit (34,803,755 ) (34,644,074 ) Total shareholders’ equity 17,734,389 17,847,811 Total Liabilities and Shareholders’ Equity $ 19,197,206 $ 20,428,759
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