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[January 24, 2013]
Clearfield, Inc. Reports Fiscal 2013 1st Quarter Results
MINNEAPOLIS, Jan 24, 2013 (GLOBE NEWSWIRE via COMTEX) -- 12% Revenue Gain Sets New Record for 1 Quarter Sales Revenues: $10,265,000, up 12% from comparable prior year quarter Gross Profit: $3,924,000, up 3% from comparable prior year quarter Operating Income: $886,000, down 13% from comparable prior year quarter Net Income per Diluted Share: $0.04 Balance Sheet: $19,325,000 in cash, cash equivalents and investments at December 31, 2012 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 2013, which ended December 31, 2012. Revenue for the first quarter 2013 was $10,265,000 in comparison to $9,165,000 for the first quarter 2012, an increase of 12%. Gross profit was $3,924,000 for the first quarter of 2013, in comparison to $3,794,000 for the first quarter of 2012, an increase of 3%. Gross margin for the first quarter 2013 was 38.2%, down from 41.4% in first quarter 2012. Operating expenses were $3,039,000 for the first quarter 2013, in comparison to $2,773,000 from the first quarter 2012, an increase of 10%. Operating income was $886,000 for the first quarter of fiscal 2013, down $135,000, or 13%, from $1,021,000 recorded in the first quarter of 2012. Income tax expense was $366,000 for the first quarter of 2013, an increase of $317,000 from $49,000 recorded in the first quarter of 2012. Net income was $545,000 for the first quarter 2013, compared to net income of $1,000,000 in the first quarter 2012.
Orders in Backlog and Select Balance Sheet Highlights Orders in backlog as of December 31, 2012 totaled $2,003,000 in comparison to $1,698,000 as of December 31, 2011, an increase of $305,000, or 18%. Cash, cash equivalents and investments at December 31, 2012 totaled $19,325,000 compared to $19,357,000 for the quarter ending September 30, 2012. The Company has no debt.
Commentary- Cheryl Beranek, President & CEO of Clearfield "We are exceptionally pleased to report record first quarter revenue numbers during a period of considerable uncertainty in the telecommunication and overall global economic markets. Revenue growth was throughout our product categories and customer base. While continuing to penetrate the wireline requirements for FTTH builds within the independent telephone market, Clearfield is expanding its presence with multi-site telco and cable providers. In addition, the flexibility of our patented Clearview technology and FieldSmart architecture is allowing us to enter new application environments, including the fiber distribution requirements for cell backhaul and distributed antennas providing wireless services." "Due to a lack of regulatory clarity within the U.S. carrier market, our customer base has continued to be very cautious in its capital equipment investments. The resulting price pressure from our competitors among some product categories was one factor in the Company's lower gross margin performance for the quarter. The Company is continuing to make investments in the capital equipment necessary to streamline manufacturing processes and reduce cost of goods for our technologies." "The Company continues to invest in market and product development activities. The increase in operating expenses for the quarter reflects Clearfield's continued expansion into adjacent territories and markets. Our development activities in markets outside of the United States continue with ongoing bookings and revenue in Caribbean and Latin America markets. We are evaluating additional international markets and are pursuing distribution agreements in target locations. Looking forward, Clearfield is embarking into additional product development and certification initiatives that will enable us to broaden our reach within the telecommunications marketplace." "First quarter 2013 net income was affected by the impact of the higher tax expense compared to a year ago, resulting from the release of the deferred tax valuation allowance in fiscal 2012. We do not anticipate further changes to the valuation allowance for deferred taxes in fiscal 2013; as a result, our income statement will now reflect increased income tax expense over the fiscal year 2012. A majority of the tax expense has a non-cash effect on the operating cash flow of the business." 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(TM) 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, 2012 as well as other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements to reflect actual events.
CONDENSED STATEMENTS OF OPERATIONS UNAUDITED Three Months Ended December 31 2012 2011 Revenues $ 10,265,362 $ 9,165,201 Cost of sales 6,341,102 5,370,919 Gross profit 3,924,260 3,794,282 Operating expenses Selling, general and administrative 3,038,511 2,773,114 Income from operations 885,749 1,021,168 Interest income 25,462 27,182 Income before income taxes 911,211 1,048,350 Income tax expense 366,000 48,751 Net income $ 545,211 $ 999,599 Net income per share: Basic $0.04 $0.08 Diluted $0.04 $0.08 Weighted average shares outstanding: Basic 12,476,173 12,299,554 Diluted 12,798,314 12,726,293 CLEARFIELD, INC.
CONDENSED BALANCE SHEETS UNAUDITED December 31, 2012 September 30, 2012 Assets Current Assets Cash and cash equivalents $ 6,136,169 $ 5,678,143 Short-term investments 10,003,000 9,107,000 Accounts receivable, net 3,203,850 3,022,636 Inventories 3,625,909 2,971,614 Other current assets 1,841,180 1,965,204 Total current assets 24,810,108 22,744,597 Property, plant and equipment, net 1,293,037 1,107,468 Other Assets Long-term investments 3,186,000 4,572,000 Goodwill 2,570,511 2,570,511 Deferred taxes -long term 6,165,490 6,498,250 Other 255,560 247,512 Total other assets 12,177,561 13,888,273 Total Assets $ 38,280,706 $ 37,740,338 Liabilities and Shareholders' Equity Current Liabilities Accounts payable 1,520,522 1,492,294 Accrued compensation 1,145,189 1,470,232 Accrued expenses 131,437 54,268 Total current liabilities 2,797,148 3,016,794 Deferred rent -- 37,643 Total Liabilities 2,797,148 3,054,437 Commitment and contingencies -- -- Shareholders' Equity Common stock 128,549 124,711 Additional paid-in capital 54,404,278 54,155,670 Accumulated deficit (19,049,269) (19,594,480) Total Shareholders' Equity 35,483,558 34,685,901 Total Liabilities and Shareholders' Equity $ 38,280,706 $ 37,740,338 CONTACT: Clearfield, Inc. Contact Information: Cheryl P. Beranek Chief Executive Officer and President Investoremail@example.com 763-476-6866
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