Clearfield, Inc. Continues Profitable Momentum in FY 09
Gross Profit Improvement Instrumental to Strong Operating Income Performance
MINNEAPOLIS--(BUSINESS WIRE)-- Clearfield, Inc. (NASDAQ: CLFD):
-- Net Sales: $5.2M, down 4% from previous year
-- Gross Profit: $1.8M, up 3% from previous year
-- Gross Margin: 35%, up from 32% from previous year
-- Income from Operations: $128K, 3x previous year
-- Net Income per share: $.01
Clearfield, Inc. (NASDAQ: CLFD) today announced results for the second fiscal quarter of 2009 which ended March 31, 2009. Revenue for the current quarter was $5,233,000 in comparison to $5,442,000 for the same period in 2008, a decrease of 4 percent. Gross profit was $1,818,000 in comparison to $1,766,000 for the earlier period, an increase of 3 percent. The Company reported net income of $131,000 or $.01 per share compared to $115,000 or $.01 per share for 2008.
Comments on Operations
"Despite challenging economic conditions and the seasonal orientation of our business cycle, we are satisfied with the bottom line performance of the Company," says Cheri Beranek Podzimek, president & CEO of Clearfield. "Ongoing productivity measures within our manufacturing and procurement groups has resulted in a significant gain in gross profit despite our lower revenues. Moreover, bookings exceeded revenue for the quarter by more than $500,000, resulting in a firm backlog for the upcoming quarter."
"While we have taken precautionary measures due to the economic slowdown, including the controlled reduction of inventory by $535,000, we continue to make significant investments in product development and have earned strong approval from our clients with the introduction of a number of new products within the FieldSmart fiber management platform as well as our new WaveSmart product portfolio of powered optical signal products."
"While the specifics of the Broadband funding program within the economic stimulus package have yet to be defined, the Company is tracking and prepared to respond to these opportunities. As many of our clients and prospects are engaged in the process of applying for the associated grants and/or loans, the immediate outlook and long-term result of this program is unclear."
About Clearfield, Inc. Clearfield, Inc., designs and manufactures FieldSmart - a modular fiber management platform using the patented Clearview Cassette as an "Any Application, Anywhere" multiplier to meet the fiber management needs of the broadband service provider. Product lines include the latest generation Fiber Distribution System (FDS) for the inside plant, the Fiber Scalability Center (FSC) for the outside plant, and Fiber Delivery Points (FDP) for access networks. The FDS, 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 and a complete line of fiber and copper assemblies for indoor plant, outside plant and access environments. 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, delays in or increased costs of production, delays in or lower than anticipated sales of the Company's new products, the Company's ability to sell such products at a profitable price, the Company's ability to fund operations, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update such statements to reflect actual events.
Clearfield, Inc.
FINANCIAL RESULTS (unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2009 2008 2009 2008
Revenues $ 5,232,604 $ 5,442,493 $ 11,165,891 $ 10,139,933
Cost of sales 3,414,452 3,676,929 7,333,531 6,924,898
Gross profit 1,818,152 1,765,564 3,832,360 3,215,035
Operating
expenses
Selling,
general and 1,689,950 1,721,252 3,494,928 3,143,711
administrative
Income from 128,202 44,312 337,432 71,324
operations
Interest 17,244 79,285 48,994 167,091
income
Interest (1,585 ) (2,836 ) (3,491 ) (5,972 )
expense
Other income 13,931 15,984 27,575 29,401
29,590 92,433 73,078 190,520
Income before 157,792 136,745 410,510 261,844
income taxes
Income tax 26,743 21,407 61,974 48,577
expense
Net income
from 131,049 115,338 348,536 213,267
continuing
operations
Net income
from - - - 342,390
discontinued
operations
Net loss on
disposal of
assets of - - - (44,951 )
discontinued
operations
Total income
from - - - 297,439
discontinued
operations
Net income $ 131,049 $ 115,338 $ 348,536 $ 510,706
Net income per
share:
Continuing $ .01 $ .01 $ .03 $ .02
operations
Discontinued $ .00 $ .00 $ .00 $ .02
operations
Basic and $ .01 $ .01 $ .03 $ .04
diluted
Weighted
average shares
outstanding:
Basic and 11,938,131 11,872,331 11,938,131 11,872,331
diluted
Clearfield, Inc.
FINANCIAL RESULTS (unaudited -continued)
March 31, 2009 September 30, 2008
Assets
Current Assets
Cash and cash equivalents $ 3,133,588 $ 4,333,709
Short-term investments 3,081,000 -
Accounts receivable, net 2,262,100 2,533,447
Inventories 1,553,256 2,088,769
Other current assets 218,084 115,344
Total current assets 10,248,028 9,071,269
Property plant and equipment, net 1,425,291 1,604,202
Other Assets
Long-term investments 1,839,663 3,143,941
Goodwill 2,570,511 2,570,511
Other 176,368 176,368
Notes receivable 412,755 432,846
Total other assets 4,999,297 6,323,666
Total Assets $ 16,672,616 $ 16,999,137
Liabilities and Shareholders' Equity
Current Liabilities
Current maturities of long-term debt $ 64,798 $ 62,126
Accounts payable 1,116,982 1,849,633
Accrued compensation 823,025 903,276
Accrued expenses 104,398 301,859
Total current liabilities 2,109,203 3,116,894
Long-term debt, net of current - 33,081
maturities
Deferred rent 89,758 89,641
Deferred income taxes 211,615 166,904
Total Liabilities 2,410,576 3,406,520
Shareholders' Equity
Undesignated shares, 4,999,500
authorized shares: no shares issued - -
and outstanding
Preferred stock, $.01 par value; 500 - -
shares; no shares outstanding
Common stock, authorized 50,000,000, $
.01 par value; 11,938,131 shares 119,381 119,381
issued and outstanding at March 31,
2009 and September 30, 2008
Additional paid-in capital 52,223,106 52,166,219
Accumulated deficit (38,080,447 ) (38,428,983 )
Accumulated other comprehensive loss - (264,000 )
Total shareholders' equity 14,262,040 13,592,617
Total Liabilities and Shareholders' $ 16,672,616 $ 16,999,137
Equity
Source: Clearfield, Inc.
Released May 11, 2009