Clearfield, Inc. Reports Unaudited Earnings Results for the First Quarter Ended December 31, 2017; Provides Earnings Guidance for the Second Quarter and Updates Earnings Guidance for the Full Year of Fiscal 2018
January 26, 2018 at 02:35 am IST
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Clearfield, Inc. reported unaudited earnings results for the first quarter ended December 31, 2017. For the quarter, the company's revenues were $16,866,884 compared with $18,266,162 a year ago. The decrease was primarily due to lower sales to the Company's Tier 1 wireline and wireless customers, and was partially offset by an increase in sales to the Company's cable TV and domestic core wireline customers. Income from operations was $644,436 compared with $1,191,196 a year ago. Income before income taxes was $740,158 compared with $1,243,930 a year ago. Net income was $943,158 or $0.07 per basic and diluted share compared with $876,930 or $0.06 per basic and diluted share a year ago. Net cash provided by operating activities was $2,004,522 compared with net cash used in operating activities of $605,304 a year ago. Purchases of property, plant and equipment and intangible assets were $229,999 compared with $529,302 a year ago. Earnings per share was negatively impacted by approximately $0.03 per diluted share due to increased SG&A expense associated with the defense of the patent infringement litigation and positively impacted by $0.03 per diluted share due to a one-time income tax benefit resulting from the Tax Cuts and Jobs Act.
For the second quarter of fiscal 2018, the company expects revenue to be flat compared to the same year-ago quarter. Net income for the second quarter 2018 is expected to be approximately $500,000, or 3% as a percentage of revenue.
The company updated its revenue outlook for fiscal 2018. The company now expects that revenue for the first half of fiscal 2018 will be down approximately 5% compared to the first half of fiscal 2017, but the company is not changing its previously issued guidance for full year fiscal 2018 of 5% total revenue growth. In addition, the company continues to expect gross profit percent to remain within its target range of 40% to 42%, with some variability on a quarter-to-quarter basis. Due to the recently enacted U.S. tax reform legislation which has lowered the corporate tax rate, for fiscal 2018, the company now expects net income as a percentage of revenue of 5.5%, with quarter-to-quarter fluctuations due to costs related to the CommScope litigation.
Clearfield, Inc. designs, manufactures and distributes fiber protection, fiber management and fiber delivery solutions to enable fiber-fed deployment throughout the broadband service provider space primarily across North America. It has two segments: the Clearfield Operating (Clearfield) and the Nestor Cables Operating (Nestor). Clearfield segment is focused on providing fiber management, fiber protection and fiber delivery products that accelerate the turn-up of fiber-based networks in residential homes, businesses and network infrastructure on the wireline and wireless access network. It offers a portfolio of fiber products that allow service providers to build fiber networks faster, meet service delivery demands, and align build costs with take rates. Nestor segment manufactures fiber optic and copper telecommunication cables and equipment, which it distributes to telecommunication operators, network owners, electric companies, building contractors and industrial companies.
Clearfield, Inc. Reports Unaudited Earnings Results for the First Quarter Ended December 31, 2017; Provides Earnings Guidance for the Second Quarter and Updates Earnings Guidance for the Full Year of Fiscal 2018