In This Article:
-
Net Sales: $47.2 million, a 28% increase from the prior-year second quarter.
-
Clearfield Segment Net Sales: $40.6 million, up 47% year over year.
-
Nestor Segment Net Sales: $6.6 million, down 30% year over year.
-
Net Income Per Share: $0.09, above guidance range.
-
Fiscal 2025 Net Sales Outlook: $170 million to $185 million.
-
Third Fiscal Quarter 2025 Net Sales Guidance: $45 million to $50 million.
-
Third Fiscal Quarter 2025 Net Income Per Share Guidance: $0.01 to $0.08.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Clearfield Inc (NASDAQ:CLFD) reported a 28% increase in net sales for the second quarter of fiscal 2025, reaching $47.2 million, which was above their guidance range.
-
The Clearfield segment saw a significant 47% year-over-year increase in net sales, highlighting strong customer demand and effective execution.
-
The company successfully maintained stable product availability despite evolving tariff dynamics by diversifying its supply chain and leveraging dual sourcing strategies.
-
Clearfield Inc (NASDAQ:CLFD) anticipates the BEAD program as a long-term growth catalyst, particularly for community broadband and Tier 3 service providers, with expected material contributions to revenue in fiscal 2026.
-
The FieldSmart FiberFlex 600 active cabinet was recognized among the best in the industry, validating Clearfield Inc (NASDAQ:CLFD)'s approach to providing flexible, scalable solutions.
Negative Points
-
The Nestor segment experienced a 30% year-over-year decline in net sales, indicating challenges in that part of the business.
-
Clearfield Inc (NASDAQ:CLFD) anticipates increased costs due to recent tariff policies, which could potentially impact demand from customers.
-
There are administrative delays and regulatory uncertainties surrounding the BEAD program, which could affect the timing of its impact on revenue.
-
The company expects annual revenue from the Nestor segment to fall slightly year over year as they focus on improving margins.
-
Clearfield Inc (NASDAQ:CLFD) faces potential challenges in maintaining growth momentum as they navigate evolving trade policies and market conditions.
Q & A Highlights
Q: Can you comment on the product mix and how new passings were in your first quarter? A: Cheryl Beranek, President and CEO, explained that the quarter ending in March saw strong continuation of products for connecting homes. The surplus of fiber distribution hubs or cabinets in the market has been resolved, and sales of cabinets are resuming. Moving forward, especially over the summer, there will be a focus on connected homes, which is more labor-intensive, leading to an increase in homes connected using Clearfield equipment.