Q2 2024 Clearfield Inc Earnings Call Transcript
Key Points
- Clearfield Inc (CLFD) reported Q2 fiscal 2024 net sales of $36.9 million, surpassing the high end of their guidance range.
- Order backlog increased by 9% to $47.2 million as of March 31, 2024, from $43.5 million on December 31, 2023, indicating a potential normalization in ordering patterns.
- Clearfield Inc (CLFD) is expanding its product portfolio, including the introduction of the FiberFlex 600 cabinet, designed for flexible deployment in rural areas.
- The company is strategically investing in efficient manufacturing equipment and high-margin products to enhance productivity and improve gross margins.
- Clearfield Inc (CLFD) maintains a strong balance sheet with $149 million in cash and investments and minimal debt, positioning it well for strategic opportunities.
- Net sales in Q2 fiscal 2024 decreased by 49% year-over-year due to lingering inventory headwinds.
- Gross profit margin significantly declined to 7.7% in Q2 fiscal 2024 from 32.8% in the same quarter the previous year, impacted by unabsorbed overhead and increased inventory reserves.
- The company reported a net loss of $5.9 million in Q2 fiscal 2024, compared to a net income of $10.4 million in the same period last year.
- Operating expenses as a percentage of net sales increased to 34.1% in Q2 fiscal 2024 from 16% in the year-ago period, reflecting lower sales volumes.
- Revenue and gross margin in the second half of fiscal 2024 are expected to continue being impacted by elevated inventory levels at customers.
Ladies and gentlemen, greetings and welcome to the Clearfield's fiscal second-quarter 2024 earnings conference call. (Operator Instructions)
As a reminder, this conference is being recorded.
And it is now my pleasure to introduce your host, Greg McNiff, Investor Relations for Clearfield. Please go ahead, sir.
Thank you. Joining me on the call today are Cheryl Beranek, Clearfield's President and CEO; and Dan Herzog, Clearfield's CFO.
As a reminder, the slides in this presentation are controlled by you, the listener. Please advance forward through the presentation as the speaker presents their remarks.
Please note that during this call, management will be making remarks regarding future events and the future financial performance of the company. These remarks constitute forward-looking statements for purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could
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