Clearfield, Inc. Reports Third Quarter FY2010 Performance
Record Quarterly Operating Income is Fueled by Gross Margin Gains and Revenue
Stabilization
MINNEAPOLIS, Jul 29, 2010 (GlobeNewswire via COMTEX) --
* Revenue:$6.8 million, up 43.5% from last quarter; down 5.3% from
previous year's third quarter
* Gross profit:$2.6 million, up 50.2% from last quarter; down 3.0% from
previous year's third quarter
* Gross margin:38.4%, up from 37.5% in previous year's third quarter
$611,000, up $68,000 or 12.6% from previous year's third
* Operating income:quarter
$629,000, up $42,000 or 7.2% from previous year's third
* Net income:quarter
* Basic and diluted
net income per
share:$.05
Clearfield, Inc. (CLFD), the specialist in fiber management solutions for Fiber
to the Premises (FTTp) deployments, today announced results for the third fiscal
quarter of 2010 which ended June 30, 2010. Net income was $629,000 or $.05 per
basic and diluted income per share, up 7.2% from the previous year's third
quarter. Operating income rose 12.6% to $611,000, up $68,000 from the previous
year's third quarter. Gross margin improvements of nearly 1% as compared to prior
year's third quarter off-set a 5.3% reduction in revenue for the quarter as
compared to the third quarter of 2009. Revenue for the quarter ended June 30,
2010 was $6,778,000 in comparison to $7,160,000 for the quarter ended June 30,
2009. Gross profit dollars for the third quarter of fiscal 2010 were $2,603,000
in comparison to $2,684,000 for the third quarter of fiscal 2009, a decrease of
3.0%. Gross margins for the quarter improved one percent to 38.4% from the same
quarter of last fiscal year. The year-over-year improvement is the result of
product mix, material cost improvements and manufacturing efficiency. Operating
expenses were $1,993,000, a decrease of 7% from $2,142,000 in the same quarter of
fiscal 2009. While the Company continues to invest in sales, marketing and
engineering resources during this period, these increased costs were off-set by a
$300,000 reduction in incentive compensation expense.
Year to Date
Revenue for the first three quarters of fiscal 2010 was $16,446,000 in comparison
to $18,326,000 for the same period of 2009, a decrease of 10%. Gross profit for
the nine month period was $6,038,000 in comparison to $6,517,000 for the
comparable period for fiscal 2009, a decrease of 7%. Gross margins have continued
to improve year-to-date to 37% for the nine months ended June 30, 2010 compared
to 36% from the same period of last fiscal year. Operating expenses were
$5,747,000 for the nine months ended June 30, 2010 an increase of 2% from
$5,637,000 in the same period of fiscal 2009. The Company's operating income
through the first three quarters of fiscal 2010 was $291,000 compared to $880,000
in the same period of fiscal 2009 with net income for the same respective periods
of $361,000 and $936,000.
Comments on Operations
"Our market is building momentum as the economy strengthens," commented Cheri
Beranek, President and Chief Executive Officer of Clearfield. "Our continual
improvement programs focused on enhancing gross margins are fueling the
significant gains in operating income for the Company this quarter. Strong summer
fiber optic deployments and the funding associated with the broadband stimulus
programs are just now beginning to bear fruit for Clearfield."
"As our market landscape changes due to consolidation of our customers and
competitors, Clearfield's long-standing commitment to nimble product development
initiatives, aggressive sales strategies and a customer-first value system is
resonating strongly with customers and our pipeline of active quotes continues to
expand."
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
are based upon the patent pending technologies of the Clearview and xPAK
cassettes and 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. http://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 EndedNine Months Ended June
June 30,30,
----------------------------------------------
2010200920102009
------------------------------------------
Revenues$6,778,193$7,160,039$16,445,626$18,325,930
Cost of sales4,174,9984,475,57310,407,34711,809,104
------------------------------------------
Gross profit2,603,1952,684,4666,038,2796,516,826
Operating expenses
Selling, general and
administrative1,992,5762,142,0745,746,9135,637,002
------------------------------------------
Income from
operations610,619542,392291,366879,824
Other income
(expense)
Interest income36,49134,764112,12583,758
Interest expense--(1,260)(820)(4,751)
Other income11,49848,24335,85075,818
------------------------------------------
47,98981,747147,155154,825
------------------------------------------
Income before income
taxes658,608624,139438,5211,034,649
Income tax expense29,59537,11977,55999,093
------------------------------------------
Net income$629,013$587,020$360,962$935,556
==========================================
Net income per share:
------------------------------------------
Basic$.05$.05$.03$.08
==========================================
Diluted$.05$.05$.03$.08
==========================================
Weighted average
shares outstanding:
Basic11,995,33111,938,13111,987,79311,938,131
Diluted12,437,85311,945,41912,460,06912,945,419
CLEARFIELD, INC.
BALANCE SHEETS
UNAUDITED
June 30,September
201030, 2009
------------------------
Assets
Current Assets
Cash and cash
equivalents$4,886,316$4,731,735
Short-term investments1,345,5662,108,566
Accounts receivable, net2,473,8852,723,414
Inventories1,431,7921,153,862
Other current assets213,553180,635
------------------------
Total Current Assets10,351,11210,898,212
Property, plant and
equipment, net1,385,0621,319,492
Other Assets
Long-term investments3,760,1632,840,000
Goodwill2,570,5112,570,511
Intangibles27,649--
Deferred taxes --long
term2,168,6742,231,990
Other176,368568,554
------------------------
Total other assets8,703,3658,211,055
------------------------
Total Assets$20,439,539$20,428,759
========================
Liabilities and
Shareholders' Equity
Total current
liabilities$2,006,903$2,493,006
Deferred rent82,32087,942
------------------------
Total Liabilities2,089,2232,580,948
Shareholders' Equity
Common stock119,953119,746
Additional paid-in
capital52,513,47552,372,139
Accumulated deficit(34,283,112)(34,644,074)
------------------------
Total Shareholders'
Equity18,350,31617,847,811
------------------------
Total Liabilities and
Shareholders' Equity$20,439,539$20,428,759
========================
This news release was distributed by GlobeNewswire, http://www.globenewswire.com
SOURCE: Clearfield, Inc.
CONTACT:Clearfield, Inc.
Cheryl P. Beranek, Chief Executive Officer and President
763-476-6866
Investor-relations@clfd.net
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