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Dec 31, 2024
Clearfield Q1 2025 Earnings Report
Clearfield reported a 4% increase in net sales and a significant improvement in net loss for the first quarter of fiscal 2025.
Key Takeaways
Clearfield's first quarter of fiscal 2025 saw net sales increase by 4% year-over-year to $35.5 million, aligning with guidance. The company significantly reduced its net loss to $1.9 million, or $(0.13) per diluted share, driven by lower inventory charges and reduced SG&A spend. Gross profit margin improved to 23.1%.
Net sales for Q1 FY25 increased by 4% year-over-year to $35.5 million, meeting guidance expectations.
Net loss significantly improved to $1.9 million, or $(0.13) per diluted share, compared to a $5.3 million loss in the prior year.
Gross profit margin rose to 23.1% from 13.7% in the prior year, primarily due to reduced non-cash excess inventory charges.
Operating expenses decreased to $12.2 million, reflecting successful cost management efforts.
Clearfield
Clearfield
Clearfield Revenue by Segment
Clearfield Revenue by Geographic Location
Revenue by Segment
Clearfield Segment Revenue
CapyFin.comRevenue by Geographic Location
Large Regional Service Providers Revenue
CapyFin.comMSO Cable TV Revenue
CapyFin.com Forward Guidance
Clearfield reiterates its fiscal 2025 outlook for net sales and provides Q2 FY25 guidance, while actively monitoring potential tariff impacts.
Positive Outlook
- Anticipates fiscal 2025 net sales in the range of $170 million to $185 million.
- Clearfield segment annual revenue growth expected to be in line with or above industry forecasts of 12.5% for fiscal 2025.
- Strong quoting activity observed for the build season, indicating continued demand.
- Q2 FY25 net sales anticipated in the range of $37 million to $40 million.
- Company is well-positioned to pursue larger customer opportunities and strategic initiatives due to a healthy balance sheet.
Challenges Ahead
- Nestor segment annual revenue for fiscal 2025 expected to be flat year over year.
- Anticipates a net loss per share in the range of $(0.16) to $(0.21) for Q2 FY25.
- Full-year and Q2 FY25 guidance does not account for potential impacts from tariffs due to uncertainty.
- Ongoing economic challenges and geopolitical tensions in Europe negatively affecting fiber spending.
- Potential lumpiness in future quarters from the Large Regional Service Provider market due to product mix and deployment shifts.