Clearfield, Inc. has recently released its 10-Q report, which provides insights into the company's financial performance and operations for the three months ended December 31, 2024. Clearfield, Inc. is a manufacturer and seller of fiber connectivity products, offering a wide range of solutions for fiber management, protection, and delivery to enable rapid and cost-effective fiber-fed deployment primarily across North America.
In the three months ended December 31, 2024, Clearfield reported net sales of $35,476,000, representing a 4% increase from the same period in 2023. The company's net sales to Broadband Service Providers were $33,440,000, and it recorded $6,144,000 in international sales during the period. Notably, the company's order backlog as of December 31, 2024, increased by 3.6% compared to the previous quarter.
The cost of sales for the three months ended December 31, 2024, was $27,294,000, reflecting a decrease of 8% from the same period in 2023. Clearfield's gross profit margin improved to 23.1% of net sales, representing an increase from 13.7% in the previous year. The company's loss from operations for the three months ended December 31, 2024, decreased by approximately 51% compared to the same period in 2023, primarily driven by increased net sales and gross profit margin, as well as lower selling, general, and administrative expenses.
The report also provides insights into Clearfield's reportable segments, namely the Clearfield Segment and the Nestor Cables Segment. The Clearfield Segment's net sales increased by 6% for the three months ended December 31, 2024, compared to the same period in 2023, driven by increased sales to National Carrier and Community Broadband customers. On the other hand, the Nestor Cables Segment reported a 6% decrease in net sales for the same period, primarily due to decreased demand.
As of December 31, 2024, Clearfield's principal source of liquidity was its cash, cash equivalents, and short-term investments, which totaled $113,014,000. Additionally, the company had a line of credit for $40 million with no outstanding borrowing as of December 31, 2024.
The 10-Q report provides a detailed overview of Clearfield, Inc.'s financial condition and results of operations, including its revenue sources, cost management efforts, and segment performance, offering investors and stakeholders valuable insights into the company's performance and prospects. Today the company's shares have moved -7.1% to a price of $34.33. For more information, read the company's full 10-Q submission here.
