Clearfield, Inc. Reports First Year of Profitability
Net Income of 13 cents per Share for Fiscal Year ended September 30, 2008
Net Sales: $23.5M, up 26% from previous year Gross Profit: $7.85M, up 41% from previous year Net Income $1.5M, or 13 cents per share, improved from a loss of $2.9M from previous year
MINNEAPOLIS--(BUSINESS WIRE)-- Clearfield, Inc. (Nasdaq: CLFD) today announced results for the fiscal year ended September 30, 2008. The Company reported net income of $1,514,000 compared to a loss of $2,925,000 in the same period of the previous year. Key to the Company's strong performance is a combination of strong market acceptance of the FieldSmart product line and the associated improved gross margins that accompany it.
Revenue for the year was $23,494,000 in comparison to $18,697,000 for 2007, an increase of 26 percent. Gross profit was $7,852,000 in comparison to $5,573,000 for the earlier period, an increase of 41 percent.
Revenue for the fourth quarter was $7,188,000 in comparison to $5,390,000 for the similar period in 2007, an increase of 33 percent. Gross profit was $2,529,000 in comparison to $1,768,000 for the earlier period, an increase of 43 percent.
Comments on Operations
"Our strong financial performance is a testament to the dedicated energy and professionalism of the Clearfield employee community," commented Cheri Beranek Podzimek, president and CEO of Clearfield. "We aim to separate ourselves from our competition through the nimble execution of an aggressive business plan as well as a dedicated effort to listen to the specific needs of our customers and prospective clients and adjust accordingly."
"The Fiber to the Premise marketplace continues to offer growth opportunities for companies with technologies designed for the future of broadband deployment. Fieldsmart is the only fiber management solution designed as a platform for the entire FTTH network. Our customers have recognized that a common platform, optimized for the deployment requirements of the inside plant, outside plant and access network, is crucial to lowering their operational costs associated with labor and installation."
"The Company continues to have a very strong balance sheet. In October a settlement with Credit Suisse resulted in the sale of our Auction Rate Securities (ARS) to Credit Suisse for cash at par value. Excess cash is now invested in highly liquid U.S. Treasury instruments. While the future impact of the current economic environment is difficult to predict, we are encouraged by our results and the success of the FieldSmart product line in the past year."
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 meeting 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.
FINANCIAL RESULTS (unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
2008 2007 2008 2007
Revenues $ 7,188,484 $ 5,389,634 $ 23,493,796 $ 18,697,245
Cost of sales 4,659,503 3,622,122 15,641,961 13,124,250
Gross profit 2,528,981 1,767,512 7,851,835 5,572,995
Operating
expenses
Selling,
general and 1,813,598 1,707,111 6,854,934 6,568,844
administrative
Goodwill
impairment - - - 852,000
charge
Gain on
disposal of - (13,079 ) - (13,806 )
assets
1,813,598 1,694,032 6,854,934 7,407,038
Income (loss)
from 715,383 73,480 996,901 (1,834,043 )
operations
Interest 51,052 81,293 268,063 331,843
income
Interest (2,219 ) (3,430 ) (10,721 ) (7,736 )
expense
Other income 12,799 - 55,881 (30,565 )
(expense)
61,632 77,863 313,223 293,542
Income (loss)
before income 777,015 151,343 1,310,124 (1,540,501 )
taxes
Income tax
expense 22,355 27,270 93,303 (229,103 )
(benefit)
Net income
(loss) from 754,660 124,073 1,216,821 (1,311,398 )
continuing
operations
Net income
(loss) from - (4,573 ) 352,690 (1,854,589 )
discontinued
operations
Net income
(loss) on
disposal of - - (55,251 ) 240,689
assets of
discontinued
operations
Total income
(loss) from - (4,573 ) 297,439 (1,613,900 )
discontinued
operations
Net income $ 754,660 $ 119,500 $ 1,514,260 $ (2,925,298 )
(loss)
Net income
(loss) per
share:
Continuing $ 0.06 $ 0.01 $ 0.10 ($0.11 )
operations
Discontinued $ 0.00 $ 0.00 $ 0.03 ($0.14 )
operations
Basic and $ 0.06 $ 0.01 $ 0.13 ($0.25 )
diluted
Weighted
average shares
outstanding:
Basic and 11,938,131 11,872,331 11,938,131 11,872,331
diluted
FINANCIAL RESULTS (unaudited -continued)
September 30, September 30,
2008 2007
Assets
Cash and cash equivalents $ 4,333,709 $ 3,304,645
Available for sale securities - 2,825,000
Accounts receivable, net 2,533,447 2,418,651
Inventories 2,088,769 1,595,282
Other current assets 115,344 102,473
Property plant and equipment, net 1,604,202 1,773,739
Investments 3,036,000 -
Other assets 3,287,666 3,321,778
Total assets $ 16,999,137 $ 15,341,568
Liabilities
Current liabilities $ 3,116,894 $ 2,515,612
Long-term liabilities 289,626 613,269
Shareholders' equity
Common stock 119,381 118,723
Additional paid-in capital 52,166,219 52,037,207
Accumulated deficit (38,428,983 ) (39,943,243 )
Accumulated other comprehensive (loss) (264,000 ) -
Total shareholders' equity 13,592,617 12,212,687
Total liabilities and shareholders' equity $ 16,999,137 $ 15,341,568
Source: Clearfield, Inc.
Released December 15, 2008