Clearfield Continues Growth in Revenue
and Net Income
Revenues: |
$9,165,000, up 26% from fiscal
year 2011 |
Gross Profit: |
$3,794,000, up 28% from fiscal
year 2011 |
Net Income: |
$1,000,000, up 99% from fiscal
year 2011 |
Net Income per Share: |
$0.08 cents per diluted
share |
Balance Sheet December 31, 2011 |
Remains strong with $16,567,000
in cash and investments and no debt. |
Clearfield, Inc. (Nasdaq:CLFD), the specialist in fiber management
and connectivity platforms for communications providers, today
announced results for its first quarter of fiscal year 2012, which
ended December 31, 2011.
Revenue for the first quarter 2012 was $9,165,000 in comparison
to $7,247,000 for the first quarter 2011, an increase of 26%. Gross
profit was $3,794,000 for the first quarter of 2012, in comparison
to $2,966,000 for the first quarter of 2011, an increase of
approximately 28%. Gross margin for the first quarter 2012 was
41.4%, up from 40.9% in first quarter 2011. Operating expenses were
$2,773,000 for the first quarter 2012, an increase of 13% from the
first quarter of 2011. Operating income was $1,021,000, up
$515,000, or 102%, from $507,000 recorded in the first quarter of
2011. Net income was $1,000,000 for the first quarter 2012,
compared to net income of $501,000 in the first quarter 2011.
Orders in Backlog and Select Balance Sheet
Highlights
Orders in backlog as of December 31, 2011 totaled $1,698,000 in
comparison to $2,388,000 as of December 31, 2010, a decrease of
$690,000, or 29%. Cash and investments at December 31, 2011 totaled
$16,567,000 compared to $15,837,000 for the quarter ending
September 30, 2011, an increase of $730,000. The Company has no
long-term debt.
Commentary- Cheryl Beranek, President & CEO of
Clearfield
"Our revenue gains continue to be a positive indicator of the
acceptance of our product line within our target markets," comments
Cheryl Beranek, president and CEO of Clearfield. "We typically see
some seasonal weakness in our winter quarters due to customer
budget cycles and winter-build challenges, but our continued growth
over the same period last year is within our targets for the
quarter. We continue to increase our investment in sales, marketing
and product development initiatives while enhancing our net income
position."
"While low in relationship to historical figures, our backlog
numbers are consistent with our expectations. The long-lead times
and limited availability of fiber has resulted in some customers
shying away from the placement of blanket or project orders with
any supplier outside of their long-haul fiber vendors," Beranek
continues.
"Stimulus-based activity continues to contribute revenue on a
small scale with projects targeted for a ramp-up in the
summer-build season. In addition to our FTTp market development
projects, our work associated with the development of business
class services in the cable-television markets as well as providing
cell-backhaul connectivity for the community servicing the wireless
broadband providers, is continuing to take root.
"Over the past months, we have been able to bring a number of
new products to market. I am especially pleased that Clearfield has
been able to extend our product lines as well as develop new
markets while enhancing our year-over-year gross profit
position. Moving forward, we are continuing to invest in new
product technologies that will be introduced in the months and
quarters ahead."
About Clearfield, Inc
Clearfield, Inc. (Nasdaq:CLFD) designs, manufactures and
distributes fiber optic management products for the communications
networks of leading ILECS, CLECs, MSO/cable TV companies and mobile
broadband providers. We help service providers solve the Fiber
Puzzle, which is how to reduce high costs associated with
deploying, managing, protecting and scaling a fiber optic network
to deliver the mobile, residential and business services customers
want. Based on the patented Clearview™ Cassette, our unique
single-architected, modular fiber management platform is designed
to lower the cost of broadband deployment and maintenance by
consolidating, protecting and distributing incoming and outgoing
fiber circuits and enable our customers to scale their operations
as their subscriber revenues increase. Headquartered in Plymouth,
MN, Clearfield deploys more than a million fiber ports each
year.
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 and the availability of raw
materials, particularly fiber; 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, 2011 as well as other filings with the Securities and
Exchange Commission. The Company undertakes no obligation to update
these statements to reflect actual events.
CLEARFIELD,
INC. |
CONDENSED STATEMENTS OF
OPERATIONS |
UNAUDITED |
|
|
|
|
Three Months Ended |
|
December 31 |
|
2011 |
2010 |
|
|
|
Revenues |
$ 9,165,201 |
$ 7,246,669 |
|
|
|
Cost of sales |
5,370,919 |
4,280,716 |
|
|
|
Gross profit |
3,794,282 |
2,965,953 |
|
|
|
Operating expenses |
|
|
Selling, general and
administrative |
2,773,114 |
2,459,319 |
Income from operations |
1,021,168 |
506,634 |
|
|
|
Other income |
|
|
Interest income |
27,182 |
29,508 |
Other income |
-- |
500 |
|
27,182 |
30,008 |
Income before income taxes |
1,048,350 |
536,642 |
|
|
|
Income tax expense |
48,751 |
35,484 |
|
|
|
Net income |
$ 999,599 |
$ 501,158 |
|
|
|
Net income per share: |
|
|
Basic |
$0.08 |
$0.04 |
Diluted |
$0.08 |
$0.04 |
|
|
|
Weighted average shares outstanding: |
|
|
Basic |
12,299,554 |
12,019,289 |
Diluted |
12,726,293 |
12,629,943 |
|
CLEARFIELD,
INC. |
CONDENSED BALANCE
SHEETS |
UNAUDITED |
|
|
|
|
December 31, 2011 |
September 30, 2011 |
Assets |
|
|
Current Assets |
|
|
Cash and cash equivalents |
$ 7,375,003 |
$ 11,281,027 |
Short-term investments |
3,878,000 |
1,849,000 |
Accounts receivable, net |
2,026,758 |
3,228,864 |
Inventories |
2,528,067 |
2,757,151 |
Other current assets |
1,222,551 |
1,164,243 |
Total current assets |
17,030,379 |
20,280,285 |
|
|
|
Property, plant and equipment, net |
930,690 |
986,031 |
|
|
|
Other Assets |
|
|
Long-term investments |
5,314,000 |
2,707,000 |
Goodwill |
2,570,511 |
2,570,511 |
Deferred taxes –long term |
3,537,692 |
3,558,797 |
Other |
199,467 |
199,467 |
Total other assets |
11,621,670 |
9,035,775 |
Total Assets |
$ 29,582,739 |
$ 30,302,091 |
|
|
|
Liabilities and Shareholders' Equity |
|
|
Current Liabilities |
|
|
Accounts payable |
969,756 |
1,439,611 |
Accrued compensation |
1,035,146 |
2,465,132 |
Accrued expenses |
72,726 |
106,383 |
Total current liabilities |
2,077,628 |
4,011,126 |
Commitment and contingencies |
-- |
-- |
Deferred rent |
56,202 |
61,794 |
Total Liabilities |
2,133,830 |
4,072,920 |
|
|
|
Shareholders' Equity |
|
|
Common stock |
123,262 |
122,707 |
Additional paid-in capital |
53,621,722 |
53,402,138 |
Accumulated deficit |
(26,296,075) |
(27,295,674) |
Total Shareholders' Equity |
27,448,909 |
26,229,171 |
Total Liabilities and Shareholders'
Equity |
29,582,739 |
30,302,091 |
CONTACT: Clearfield, Inc. Contact Information:
Cheryl P. Beranek
Chief Executive Officer and President
Investor-relations@clfd.net
763-476-6866
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