Clearfield Inc (CLFD) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

In This Article:

  • Q4 2024 Revenue: $46.8 million, a 6% decrease from $49.7 million in the same period last year.

  • North American Net Sales: $35.7 million in Q4 2024.

  • International Net Sales: $11.1 million in Q4 2024.

  • Full Year 2024 Revenue: $166.7 million, a 38% decrease from $268.7 million in fiscal 2023.

  • Q4 2024 Cash Flow from Operations: Approximately $12.9 million.

  • Full Year 2024 Cash Flow from Operations: Approximately $22.2 million.

  • Q1 2025 Revenue Guidance: $33 million to $38 million.

  • Q1 2025 Net Loss per Share Guidance: $0.28 to $0.35.

  • Fiscal Year 2025 Revenue Guidance: $170 million to $185 million.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Clearfield Inc (NASDAQ:CLFD) exited fiscal 2024 with stronger customer relationships and launched several new products that reduce deployment time.

  • Revenue from homes connected continues to grow, indicating positive customer response to Clearfield Inc (NASDAQ:CLFD)'s active cabinet solutions.

  • The company is excited about opportunities from public and private funding for rural broadband expansion, which aligns with their long-term commitment to rural communities.

  • Clearfield Inc (NASDAQ:CLFD) introduced several new products aimed at reducing the cost and time of connecting homes, including innovative tools and solutions.

  • The company generated positive cash flow from operations of approximately $12.9 million in the fourth quarter, driven by a reduction in net inventory.

Negative Points

  • Consolidated net sales in the fourth quarter of fiscal 2024 decreased by 6% compared to the same period last year.

  • For the full fiscal year, consolidated net sales decreased by 38% from fiscal 2023.

  • Clearfield Inc (NASDAQ:CLFD) anticipates a slow start to fiscal 2025, with first-quarter net sales expected to be between $33 million to $38 million.

  • The company expects to generate a net loss per share in the range of $0.28 to $0.35 in the first quarter of fiscal 2025.

  • There is some level of conservatism on capital spending by service providers, impacting the company's growth outlook.

Q & A Highlights

Q: Can you provide more details on the financial performance for the fourth quarter and the full year 2024? A: Daniel Herzog, CFO, stated that consolidated net sales for the fourth quarter were $46.8 million, a 6% decrease from the previous year but above the guidance range. For the full fiscal year, net sales were $166.7 million, a 38% decrease from 2023. The company generated positive cash flow from operations of $12.9 million in the fourth quarter and $22.2 million for the full year.