Clearfield Inc (CLFD) 2024 Q3 法說會逐字稿

Good afternoon, and welcome to the Clearfield fiscal third quarter 2024 conference call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Greg McNiff, Investor Relations for Clearfield. Please go ahead.

下午好，歡迎參加 Clearfield 2024 財年第三季電話會議。（操作員說明）請注意，該事件正在被記錄。我現在想將會議交給克利爾菲爾德投資者關係部門的格雷格·麥克尼夫 (Greg McNiff)。請繼續。

Thank you. Joining me on the call today are Cheri 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.

謝謝。今天和我一起參加電話會議的是 Clearfield 總裁兼執行長 Cheri Beranek；以及 Clearfield 財務長 Dan Herzog。提醒一下，本簡報中的投影片由您（聽眾）控制。請在演講者發表演說時繼續進行示範。請注意，在這次電話會議中，管理層將就未來事件和公司未來的財務表現發表評論。

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 cause actual results to differ materially from those expressed in the forward-looking statements. It is important to also note that the company undertakes no obligation to update such statements, except as required by law.

這些言論構成《私人證券訴訟改革法案》安全港條款中的前瞻性聲明。這些前瞻性陳述存在風險和不確定性，可能導致實際結果與前瞻性陳述中表達的結果有重大差異。還需要注意的是，除非法律要求，否則公司不承擔更新此類聲明的義務。

The company cautions you to consider risk factors that could cause actual results to differ materially from those in the forward-looking statements contained in today's press release, earnings presentation and on this conference call. The Risk Factors section in Clearfield's most recent Form 10-K filing with the Securities and Exchange Commission and its subsequent filings on Form 10-Q provide a description of these risks. They are also summarized on slide 2 of the earnings presentation.

該公司提醒您考慮可能導致實際結果與今天的新聞稿、收益演示和本次電話會議中包含的前瞻性聲明存在重大差異的風險因素。Clearfield 最近向美國證券交易委員會提交的 10-K 表及其後續提交的 10-Q 表中的風險因素部分提供了這些風險的描述。在收益報告的投影片 2 中也對這些內容進行了總結。

With that, I'd like to turn the call over to Clearfield's President and CEO, Cheri Beranek. Cheri?

說到這裡，我想將電話轉給 Clearfield 的總裁兼執行長 Cheri Beranek。切裡？

Good afternoon everyone. Thank you for joining us today to discuss Clearfield's results for the fiscal third quarter 2024. We also intend to provide an update on our business and current market trends. Please turn to slide 4.

大家下午好。感謝您今天加入我們討論 Clearfield 2024 年第三季的表現。我們還打算提供有關我們業務和當前市場趨勢的最新資訊。請翻到幻燈片 4。

We continue to view 2024 as a transition year and believe that we remain in a gradual recovery as broadband service providers continue to deploy equipment and long-term end-user demand remains robust. In the following slides, I will discuss the latest market data that supports this view.

我們仍然將 2024 年視為過渡年，並相信隨著寬頻服務供應商繼續部署設備以及長期最終用戶需求依然強勁，我們仍處於逐步復甦之中。在接下來的幻燈片中，我將討論支持這一觀點的最新市場數據。

Total net sales for the third quarter of fiscal 2024 were $48.8 million, above the high end of our guidance range. Our outperformance was driven by strong sales in our international customer segment and higher than expected sales from our community broadband customers, including orders from new customers in the utility segment.

2024 財年第三季的淨銷售額總額為 4,880 萬美元，高於我們指導範圍的上限。我們的優異表現是由國際客戶細分市場的強勁銷售以及社區寬頻客戶高於預期的銷售（包括公用事業領域新客戶的訂單）所推動的。

Specifically, community broadband revenue is comparable to last year, driven by a higher percentage of revenue from homes connected relative to last year. We continue to expect ordering patterns for the remainder of the year to be impacted by the inventory overhang, predominantly in our large regional and MSO accounts. Dan will discuss our financial results for the quarter in more detail shortly.

具體來說，社區寬頻收入與去年相當，這是由於家庭連網收入的比例高於去年。我們仍然預計今年剩餘時間的訂購模式將受到庫存過剩的影響，主要是在我們的大型區域和 MSO 帳戶中。丹將很快更詳細地討論我們本季的財務表現。

We are encouraged by the growing interest in our active cabinets for new applications in adjacent markets, including transportation support and traffic monitoring, which will expand our customer base to new categories, such as municipalities. We see this as an emerging opportunity for Clearfield starting in fiscal 2025.

我們感到鼓舞的是，人們對我們的主動機櫃在鄰近市場的新應用（包括交通支援和交通監控）越來越感興趣，這將把我們的客戶群擴展到新的類別，例如市政當局。我們認為這是 Clearfield 從 2025 財政年度開始的新興機會。

As labor constraints continue to be an issue for our service provider customers, we are committed to helping them reduce installation time, errors, and field issues. To that end, our recently introduced 3D interactive fiber installation tool on the BILT mobile app is receiving very positive feedback from customers, with one large regional provider evaluating whether to make the app available to their entire technical team.

由於勞動力限制仍然是我們服務提供者客戶面臨的問題，我們致力於幫助他們減少安裝時間、錯誤和現場問題。為此，我們最近在 BILT 行動應用程式上推出的 3D 互動式光纖安裝工具收到了客戶非常積極的回饋，一家大型區域供應商正在評估是否將該應用程式提供給其整個技術團隊。

I would now like to provide a brief update on the BEAD process. We are seeing a significant increase in quoting activity for our BEAD-compliant products from both existing and new customers. As of earlier this week, 26 states and territories have been approved to move into the award process. We continue to expect to recognize initial revenue from customer participation in the BEAD program, starting late in calendar 2025, with more significant ramp in activity anticipated in fiscal 2026.

我現在想簡要介紹一下 BEAD 流程的最新情況。我們發現現有客戶和新客戶對我們符合 BEAD 的產品的報價活動顯著增加。截至本週早些時候，已有 26 個州和地區獲準進入頒獎程序。我們繼續預計從 2025 年底開始，透過客戶參與 BEAD 計畫確認初始收入，預計 2026 財年活動將出現更顯著的成長。

We recently enhanced the company's manufacturing facilities in Minnesota to accommodate BABA requirements and ensure customers have the products needed to meet their deployment schedules. We expect the majority of our portfolio to be BEAD-compliant by the end of this current fiscal year.

我們最近增強了該公司在明尼蘇達州的製造設施，以滿足 BABA 的要求，並確保客戶擁有滿足其部署計劃所需的產品。我們預計到本財年結束時，我們的大部分投資組合將符合 BEAD 標準。

Additionally, we are working with the Fiber Broadband Association to lobby the NTIA and reduce complexity and streamline the BEAD award process. While we wait for the ramp in BEAD orders, we are currently receiving orders from service providers eligible for the $18 billion in funds allocated to the Enhanced Alternative Connect America Cost Model, or ACAM, this program, as well as private funding sources.

此外，我們正在與光纖寬頻協會合作遊說 NTIA，降低複雜性並簡化 BEAD 授予流程。在我們等待BEAD 訂單增加的同時，我們目前正在收到來自服務提供者的訂單，這些服務提供者有資格獲得分配給增強型替代連接美國成本模型(ACAM) 的180 億美元資金，以及該計劃以及私人資金來源。

Turning to the overall industry outlook, as illustrated on slide 5, industry forecasts from RVA remain unchanged in that they indicate that the next five-year period will see up to 59 million additional homes passed with Fiber, which equates to a 12.5% compound annual growth rate.

轉向整體產業前景，如幻燈片 5 所示，RVA 的產業預測保持不變，因為它們表明，未來五年內將有多達 5,900 萬戶家庭使用光纖，相當於年複合成長率 12.5%成長率。

Of these 59 million homes, roughly a third are forecast to have access to more than one fiber provider. We believe the introduction of two-fiber competition among providers is a very healthy development and also expands our total addressable market.

在這 5,900 萬個家庭中，預計大約有三分之一的家庭將使用多個光纖提供者。我們相信，供應商之間引入雙纖競爭是一個非常健康的發展，也擴大了我們的總目標市場。

Turning to Clearfield's performance, I'd now like to pass the call over to our CFO, Dan Herzog, who will walk us through our financial results for the fiscal third quarter 2024.

談到 Clearfield 的業績，我現在想將電話轉給我們的財務長 Dan Herzog，他將向我們介紹 2024 年第三季的財務表現。

Thank you, Cheri, and good afternoon, everyone. Please turn to slide 7 to look at our fiscal third quarter 2024 results in more detail.

謝謝你，Cheri，大家下午好。請前往投影片 7，更詳細地了解我們 2024 年第三季的業績。

Consolidated net sales in the third quarter of fiscal 2024 were $48.8 million, a 20% decrease from $61.3 million in the same year-ago period, but above our guidance range of $40 million to $44 million. Net sales exceeded our expectations, driven by an increase in orders during the build season from both existing and new customers.

2024 財年第三季的合併淨銷售額為 4,880 萬美元，比去年同期的 6,130 萬美元下降 20%，但高於我們 4,000 萬美元至 4,400 萬美元的指導範圍。由於現有客戶和新客戶在建造季節的訂單增加，淨銷售額超出了我們的預期。

Additionally, we are pleased that Nestor Cables had a strong quarter in our international market, benefiting from a seasonal push. While the industry continues to navigate inventory headwinds, we remain dedicated to reducing costs and enhancing margins across the company.

此外，我們很高興內斯特電纜受益於季節性推動，在我們的國際市場上取得了強勁的季度業績。儘管該行業繼續應對庫存逆風，但我們仍然致力於降低成本並提高整個公司的利潤率。

In Europe, this continues to involve strategic investments in more efficient manufacturing equipment and the introduction of higher margin plug-and-play connectivity products.

在歐洲，這繼續涉及對更高效的製造設備的戰略投資以及引入更高利潤的即插即用連接產品。

Additionally, we are focused on optimizing labor utilization to improve productivity and gross margins at all our manufacturing locations.

此外，我們也致力於優化勞動力利用率，以提高所有製造基地的生產力和毛利率。

Finally, we are also actively working to reduce our inventory levels to enhance cash flow from operations. Order backlog decreased 31% to $32.6 million on June 30, 2024, from $47.2 million on March 31, 2024.

最後，我們也積極努力降低庫存水平，以增強營運現金流。截至 2024 年 6 月 30 日，積壓訂單從 2024 年 3 月 31 日的 4,720 萬美元減少了 31% 至 3,260 萬美元。

As we transitioned out of the build season, we anticipated a reduction in backlog as broadband service providers realigned their outstanding purchase orders to current deployment schedules, preparing for winter operations and year-end planning.

隨著建造季節的結束，我們預計積壓訂單將會減少，因為寬頻服務提供者將其未完成的採購訂單重新調整為當前的部署計劃，為冬季營運和年終規劃做準備。

As we indicated last quarter, our customers are asking us to align their open orders with their current deployment schedules, which has resulted in some order cancellations in the quarter. This effort will help our customers reduce excess inventory and return to normalized ordering patterns. We do not consider this lost business as we are actively working with these customers to better realign their calendar year 2025 requirements. We are working with these and other key customers to put in place multi-year supply agreements that will provide better mutual visibility going forward.

正如我們上季度所指出的，我們的客戶要求我們將他們的未結訂單與當前的部署計劃保持一致，這導致本季度取消了一些訂單。這項努力將幫助我們的客戶減少多餘的庫存並恢復正常的訂購模式。我們不考慮這種業務損失，因為我們正在積極與這些客戶合作，以更好地重新調整他們 2025 年的要求。我們正在與這些和其他主要客戶合作，制定多年供應協議，以提供更好的相互可見度。

As a reminder, we continue to expect our quarterly backlog balance to become less of an indicator for future sales as most orders will be fulfilled within the quarter they are received. Our lead times continue to average four weeks across most product lines. Turning to slide 8, I will now review net sales by our key markets. Sales to our primary market, community broadband, comprised 40% of our net sales in the third quarter fiscal 2024.

提醒一下，我們仍然預計季度積壓餘額將不再是未來銷售的指標，因為大多數訂單將在收到的季度內完成。大多數產品線的交貨時間仍然平均為四週。轉向幻燈片 8，我現在將回顧我們主要市場的淨銷售額。我們的主要市場－社區寬頻的銷售額佔 2024 財年第三季淨銷售額的 40%。

In Q3, we generated net sales of $19.6 million in community broadband, up 2% from the prior year third quarter. As Cheri mentioned, our community broadband market experienced a sequential uptick of 22%, driven by an increase in orders related to normal seasonality, as well as from new customers in the utility sectors, where we are seeing strong momentum. Net sales in our MSO business were $5.8 million, which comprised 12% of our net sales in the third quarter and decreased by approximately 39% in the third quarter of this fiscal year versus the prior year third quarter.

第三季度，我們的社區寬頻淨銷售額為 1,960 萬美元，比去年第三季成長 2%。正如 Cheri 所提到的，我們的社區寬頻市場環比增長了 22%，這是由於與正常季節性相關的訂單增加以及公用事業領域新客戶的推動，我們在該領域看到了強勁的勢頭。我們的 MSO 業務淨銷售額為 580 萬美元，佔第三季淨銷售額的 12%，本財年第三季與去年第三季相比下降了約 39%。

Net sales for the third quarter in our large regional service provider market were $3.8 million, comprising 8% of our total net sales and declined by approximately 76% in the third quarter of this fiscal year versus the prior year third quarter. These customers still hold substantial inventory levels from which they are deploying. We continue to expect future quarters in this segment to be lumpy due to product mix concentrations and potential changes in their deployment schedules and strategies.

我們的大型區域服務供應商市場第三季的淨銷售額為 380 萬美元，占我們總淨銷售額的 8%，本財年第三季與去年第三季相比下降了約 76%。這些客戶仍然擁有大量的庫存水準來進行部署。由於產品組合集中度以及部署計劃和策略的潛在變化，我們仍然預計該領域未來幾季將出現波動。

As mentioned previously, our long-term focus remains on collaborating closely with these customers to help them effectively manage their inventory levels and procurement strategies. Net sales in our national carrier market for the third quarter were $2.3 million, accounting for 5% of total net sales and were up 17% in the third quarter of this fiscal year versus the prior year third quarter.

如前所述，我們的長期重點仍然是與這些客戶密切合作，以幫助他們有效管理庫存水準和採購策略。第三季我們全國營運商市場的淨銷售額為 230 萬美元，佔總淨銷售額的 5%，與去年第三季相比成長了 17%。

Finally, net sales in our international market were $16.5 million and comprised 34% of total net sales in the third quarter. Net sales in this market increased by approximately 16% in the third quarter fiscal 2024 versus the prior year third quarter.

最後，我們國際市場的淨銷售額為 1,650 萬美元，佔第三季總淨銷售額的 34%。2024 財年第三季該市場的淨銷售額與去年第三季相比成長了約 16%。

On a sequential basis, our international market was up 66% due to a strong seasonal uptick during the build season in Europe. We anticipate that this quarter will represent our international market's peak revenue performance for the year as the build season begins to wind down during our fiscal fourth quarter. Consequently, we expect revenue from our international market to decline sequentially in the fourth quarter.

由於歐洲建造季節的強勁季節性成長，我們的國際市場較上季成長了 66%。我們預計，隨著第四財季建造季節開始結束，本季將代表我們國際市場今年的最高收入表現。因此，我們預計第四季國際市場的營收將環比下降。

As illustrated on slide 9, gross profit margin in the third quarter was 21.9% of net sales, down from 31.1% of net sales in the same year-ago quarter and up from 7.7% in the prior quarter.

如投影片 9 所示，第三季毛利率佔淨銷售額的 21.9%，低於去年同期的 31.1%，高於上一季的 7.7%。

The sequential uptick in gross margin was due to increased production capacity utilization in our manufacturing facilities from higher revenue associated with the build season, as well as lower non-cash excess inventory charges, which in the third quarter decreased sequentially by $3.2 million to about $1.7 million in the quarter due to better inventory utilization from higher revenue in the quarter.

毛利率環比上升是由於與建造季節相關的收入增​​加導致我們的製造設施產能利用率提高，以及非現金過剩庫存費用降低，第三季度環比減少 320 萬美元至約 1.7 美元由於本季度收入增加帶來更好的庫存利用率，本季的銷售額增加了100 萬美元。

Now please turn to slide 10. Operating expenses for the third quarter were $13 million, down from $13.4 million in the same year-ago quarter due to lower variable costs. We remain committed to strategically investing in the organization while maintaining a prudent and disciplined approach to our cost controls. As a percentage of net sales, operating expenses for the third quarter were 26.6%, down from 34.1% in the second quarter and up from 21.9% in the same year-ago period. The sequential decrease in operating expenses as a percentage of net sales was due to increased sales volumes.

現在請翻到投影片 10。由於變動成本下降，第三季營運費用為 1,300 萬美元，低於去年同期的 1,340 萬美元。我們仍然致力於對組織進行策略性投資，同時保持審慎和嚴格的成本控制方法。第三季營運費用佔淨銷售額的比例為26.6%，低於第二季的34.1%，高於去年同期的21.9%。營業費用佔淨銷售額的百分比連續下降是由於銷售增加。

Turning to slide 11, net loss in the third quarter was $447,000, compared to net income of $5.2 million in the same year-ago period and net loss of $5.9 million in the second quarter of fiscal 2024. The sequential decline in net loss was primarily driven by increased revenue, higher productivity levels, and lower non-cash inventory reserves in the third quarter that I had mentioned earlier.

轉向投影片 11，第三季淨虧損為 44.7 萬美元，而去年同期淨利為 520 萬美元，2024 財年第二季淨虧損為 590 萬美元。淨虧損環比下降主要是由於我之前提到的第三季收入增加、生產力水準提高和非現金庫存儲備減少所致。

As illustrated on slide 12, our balance sheet remains healthy with $148 million of cash, short-term and long-term investments, and just $2.1 million of debt. We had $1.2 million in capital expenditures in the quarter, mainly to support our manufacturing operations, and $5.6 million year-to-date. Our inventory balance decreased from $84 million at the end of the second quarter of fiscal 2024 to $75 million in the third quarter of fiscal 2024.

如投影片 12 所示，我們的資產負債表保持健康，擁有 1.48 億美元的現金、短期和長期投資，以及僅 210 萬美元的債務。本季我們的資本支出為 120 萬美元，主要用於支持我們的製造業務，年初至今為 560 萬美元。我們的庫存餘額從 2024 財年第二季末的 8,400 萬美元減少到 2024 財年第三季的 7,500 萬美元。

Our cash, short-term and long-term investments reflect a net reduction of just $1 million from March 31, of which $5.5 million was associated with the repurchase of shares in the third quarter. We recorded positive cash flow from operations of approximately $3.9 million in the third quarter, and year-to-date we have generated $8.5 million from operations, mainly due to a reduction in inventory of approximately $9 million in the quarter and $23 million year-to-date.

自 3 月 31 日起，我們的現金、短期和長期投資僅淨減少 100 萬美元，其中 550 萬美元與第三季的股票回購有關。第三季我們的營運現金流為正，約390 萬美元，年初至今我們的營運現金流為850 萬美元，主要是因為本季庫存減少了約900 萬美元，年初至今庫存減少了2,300 萬美元。

We are well-positioned to competitively pursue large customer prospects and strategic opportunities to enhance our market position and product portfolio, supported by our healthy balance sheet. Our strong cash balance also enables us to manage our business for the long term, including through the ability to repurchase shares, ensuring sustainable reinvestment and growth.

在我們健康的資產負債表的支持下，我們處於有利地位，可以競爭性地追求大客戶前景和策略機會，以增強我們的市場地位和產品組合。我們強勁的現金餘額也使我們能夠長期管理我們的業務，包括透過回購股票的能力，確保可持續的再投資和成長。

Please turn to slide 13. We anticipate fourth quarter fiscal 2024 net sales to be in the range of $40 million to $43 million. We expect to generate a net loss per share in the range of $0.17 to $0.22. This loss per share range is based on the number of shares outstanding at the end of the third quarter and does not reflect share repurchases that could occur in the fourth quarter.

請翻到投影片 13。我們預計 2024 財年第四季淨銷售額將在 4,000 萬美元至 4,300 萬美元之間。我們預計每股淨虧損在 0.17 美元至 0.22 美元之間。這一每股虧損範圍是根據第三季末已發行股票數量計算的，並不反映第四季可能發生的股票回購。

As we mentioned on our last call, we expect our North American revenue in fiscal third and fourth quarters to be consistent with each other. Our visibility remains limited beyond this quarter, as the industry is working through remaining inventory-related challenges.

正如我們在上次電話會議中提到的，我們預計第三財季和第四財季的北美收入將保持一致。本季度之後，我們的能見度仍然有限​​，因為該行業正在應對剩餘的庫存相關挑戰。

As I indicated earlier, we repurchased an additional $5.5 million in stock in the third quarter as part of our share buyback program, which represented 184,751 shares at an average price of $29.91. This leaves $24.9 million remaining for future repurchases as of June 30, 2024. Our ongoing share repurchases underscore our confidence in the value of our company and the market opportunity ahead.

正如我之前指出的，作為股票回購計劃的一部分，我們在第三季額外回購了 550 萬美元的股票，相當於 184,751 股，平均價格為 29.91 美元。截至 2024 年 6 月 30 日，尚有 2,490 萬美元可供未來回購。我們正在進行的股票回購凸顯了我們對公司價值和未來市場機會的信心。

That concludes my prepared remarks for our fiscal third quarter 2024. We appreciate the support of our investors as we continue to work to drive shareholder value.

我為 2024 年第三財季準備的演講到此結束。在我們持續努力提高股東價值的過程中，我們感謝投資人的支持。

I will now turn the call back over to Cheri.

我現在將把電話轉回給 Cheri。

Thanks for the financial update, Dan.

感謝您提供最新的財務信息，丹。

Turning to slide 15, I would now like to provide a brief update on our strategy. A core aspect of the value Clearfield brings to the market is our decades-long commitment to supporting the homes and businesses in rural and small-town communities. We focus on providing solutions which are scalable and reduce the cost of deployment by lowering the level of skilled labor required. We recently announced a new addition to our portfolio of products which reflects these qualities.

轉向投影片 15，我現在想簡單介紹一下我們的策略。Clearfield 為市場帶來的核心價值是我們數十年來對支持農村和小鎮社區的家庭和企業的承諾。我們專注於提供可擴展的解決方案，並透過降低所需的熟練勞動力等級來降低部署成本。我們最近宣布了我們產品組合中的新成員，它體現了這些品質。

The craft-friendly CraftSmart Deploy Reel TAP Box features an all-in-one flexibility that enables the technician to deploy the exact amount of cable from the curb as well as into the home with the remainder stored safely on the reel for future use quickly and efficiently. These benefits documented in a recent Clearfield customer deployment study which surveyed over 150 installations utilizing the fast pass method resulted in time savings between 35% and 38% versus the baseline method for outside and inside work performed.

工藝友好型 CraftSmart 部署捲軸 TAP 盒具有一體化靈活性，使技術人員能夠將精確數量的電纜從路邊部署到家中，並將其餘電纜安全地存儲在捲軸上，以供將來快速使用。Clearfield 最近的一項客戶部署研究記錄了這些優勢，該研究調查了150 多個使用快速通過方法的安裝，與所執行的外部和內部工作的基準方法相比，節省了35% 到38% 的時間。

Second, we continue to invest in our European operations including our lower cost manufacturing facility in Estonia and a high-speed fiber line for Finland. These investments will expand the skill set within our operations including introducing the FieldShield Pushable MPO assembly to that market.

其次，我們繼續投資歐洲業務，包括愛沙尼亞的低成本製造工廠和芬蘭的高速光纖生產線。這些投資將擴展我們營運中的技能組合，包括將 FieldShield Pushable MPO 組件引入該市場。

Finally, as the future BEAD market will require an expanded utilization of our US manufacturing footprint, we continue to rationalize and streamline our product portfolio to ensure we have the optimal product mix to drive growth and margin expansion.

最後，由於未來的 BEAD 市場將需要擴大對我們美國製造足跡的利用，我們將繼續合理化和精簡我們的產品組合，以確保我們擁有最佳的產品組合來推動成長和利潤擴張。

As we expressed last quarter, we remain confident that the long-term demand for fiber is as strong as ever and Clearfield is well-positioned to help service providers meet that demand.

正如我們上季度所表示的那樣，我們仍然相信，對光纖的長期需求一如既往地強勁，而 Clearfield 處於有利地位，可以幫助服務提供者滿足這一需求。

And with that, we will open the call to your questions.

接下來，我們將開始電話詢問您的問題。

(Operator Instructions) Ryan Koontz, Needham & Company.

（操作員說明）Ryan Koontz，Needham & Company。

Thanks for the questions. A few to start out with on the timing on the BEAD, it sounds like a little more push out there. Not super surprising given the pace of Louisiana and some of the early guys moving through the process. But it sounds like there is some optimism in the industry about projects beginning mid '25. Does that still align with your expectations or is there something specific with your commentary about late '25 in your prepared remarks?

感謝您的提問。首先從 BEAD 上的計時開始，聽起來像是有更多的推動。考慮到路易斯安那州的步伐和一些早期完成這一過程的人，這並不奇怪。但聽起來業界對 25 年中期開始的計畫持樂觀態度。這仍然符合您的期望嗎？

Yes. Hi, Ryan. I think it's just being realistic. I think everybody is hoping for summer. But everyone that we talk to, if we really look through a chart of deliverables as to what has to happen in order for that to succeed, it's more likely than not that we're looking at quite late in the year. And one of our challenges for our fiscal year, in fact, is that since we closed, in September, it will be difficult for us to see revenue next year within the fiscal year. So we're hopeful, but realistically, probably not.

是的。嗨，瑞安。我認為這只是現實而已。我想每個人都對夏天充滿期待。但與我們交談過的每個人，如果我們真的仔細查看可交付成果圖表，了解要實現這一目標必須採取哪些措施，那麼我們很可能會在今年稍後考慮。事實上，我們本財年面臨的挑戰之一是，自 9 月關閉以來，我們很難在本財年內看到明年的收入。所以我們充滿希望，但實際上，可能不會。

Got it. And on the international front, any specific geographies or products you might call out as a strength from Nestor there?

知道了。在國際方面，您認為 Nestor 的任何特定地理位置或產品具有優勢嗎？

Well, of course, Finland, which is always our core and our home base. But also moving into the German market, which is certainly an opportunity in that Germany is underway with their build. They're late to the build process because of how they originally were able to maximize their copper infrastructure, but now are strongly investing in that space. And our success there is more in the alternative carriers. Early success is with Microduct and the ability to provide a high-quality solution there as a make-ready solution, and then look forward to leverage that in future quarters and years for the actual build-out process.

嗯，當然是芬蘭，它始終是我們的核心和大本營。而且也進入了德國市場，這無疑是一個機會，因為德國正在進行他們的建設。他們在建設過程中姍姍來遲，因為他們最初能夠最大限度地利用銅基礎設施，但現在正在大力投資該領域。我們的成功更多來自於替代運營商。早期的成功在於 Microduct 以及提供高品質解決方案作為準備解決方案的能力，然後期待在未來的幾個季度和幾年中將其用於實際的建造過程。

That's great. And on the community broadband, I see that bounce back nicely. I heard your comment about product mix a little more around homes connected. Do you think that this -- can you give us an idea of the magnitude of the kind of mix shift year-over-year at a high level? And then how should we think about that mix going forward the next several quarters?

那太棒了。在社區寬頻上，我看到這種情況反彈得很好。我聽到您對互聯家庭產品組合的評論。您是否認為這一點 - 您能否讓我們了解這種混合變化在高水平上逐年變化的程度？那麼我們應該如何考慮未來幾季的這種組合呢？

Right. I think there's been a bit of a -- I mean, it's a pretty concentrated sway toward connected homes in that overall due to the concentration of homes passed for all of our customers. And so, I would say our cabinet business has definitely been -- is more down, whereas our connected business sales is definitely up. Within community broadband itself, it's close to probably to a 50-50 mix, which I think is really healthy. That's exactly where you'd kind of like it to see, because you're going to pass a home and then you're going to connect a series of homes along that line over the next two to three years.

正確的。我認為有一點——我的意思是，由於我們所有客戶的家庭集中，總體而言，聯網家庭的影響相當集中。因此，我想說，我們的櫥櫃業務肯定是下降了，而我們的互聯業務銷售額肯定是上升的。在社區寬頻本身中，大約接近 50-50 的比例，我認為這非常健康。這正是您希望看到的地方，因為您將經過一個房屋，然後在接下來的兩到三年內您將沿著該線連接一系列房屋。

That's great. And would you call out any share gains you're seeing there, or is it really more just about spend still at this point in terms of connected?

那太棒了。您是否會指出您在那裡看到的任何份額收益，或者在這一點上實際上更多的是在互聯方面的支出？

I think it's a standpoint, but I wouldn't go so far as share gain yet. I would say it's a standpoint of being able to get a share of pocketbook at this point. We're monitoring the share gain process as we look to see, since most of these customers were not customers that we had worked -- you would assume share gain, because since they didn't buy from us for connected home, but we also want -- or previously, but we want to be careful to quantify those who were kind of connecting their first homes, especially those through distribution, so that we can accurately provide that information to the market.

我認為這是一個觀點，但我還不會談到股票收益。我想說，這是一個能夠在這一點上分享錢包的立場。正如我們所看到的那樣，我們正在監控份額成長過程，因為這些客戶中的大多數都不是我們曾經合作過的客戶——你會假設份額成長，因為他們沒有從我們這裡購買連網家庭產品，但我們也想要——或之前，但我們想要小心地量化那些連接他們的第一個家庭的人，特別是那些透過分銷的人，這樣我們就可以準確地向市場提供這些資訊。

Great. And nice improvement in gross margin there sequentially. Did I -- just a clarification here. Did I hear that the E&O write-off was maybe a little lower than expected in the quarter?

偉大的。毛利率也持續改善。我只是在這裡澄清一下嗎？我是否聽說本季的 E&O 沖銷可能略低於預期？

Yeah, it definitely was. I think we had forecasted something up like towards $3 million, and we were closer to about a $1.7 million. So, much better utilization. That's what happens when you have higher demand, and so we're happy about that.

是的，確實如此。我想我們之前的預測是 300 萬美元，而我們更接近 170 萬美元。因此，利用率更高。當您有更高的需求時就會發生這種情況，因此我們對此感到高興。

Got it. And then maybe a couple quick product questions. On the fiber front from Nestor, are you seeing much of an opportunity in data centers? I'm sure you saw the quoting results earlier in the week, and the strong attach rate, the new share gains are seen in these AI clusters. Is that something you're evaluating?

知道了。然後也許是幾個簡單的產品問題。在 Nestor 的光纖方面，您是否看到資料中心有很多機會？我確信您在本週早些時候看到了報價結果，並且在這些人工智慧叢集中看到了強勁的附加率和新的份額收益。這是你正在評估的嗎？

The product would definitely fit into those spaces. To date, we don't have a channel into the data center world, so I would say, yes, we're evaluating, but not something that I think shareholders should take into consideration as being a near-term opportunity.

該產品肯定適合這些空間。到目前為止，我們還沒有進入資料中心世界的管道，所以我想說，是的，我們正在評估，但我認為股東不應該將其視為近期機會。

Jaeson Schmidt, Lake Street Capital.

傑森·施密特，湖街資本。

Hey, guys. Thanks for taking my questions. Obviously, a really strong June quarter here, and I know you highlighted sort of the drivers there, but do you think any revenue was pulled into June?

嘿，夥計們。感謝您回答我的問題。顯然，六月季度非常強勁，我知道您強調了那裡的驅動因素，但您認為六月有任何收入嗎？

Only in the international markets, there was couple of million dollars that we had a customer in the European space who asked to take some product that was in backlog early for -- to maximize their build season period. And that's why we are forecasting the fourth quarter to be a little less than third quarter in the European markets, but consistent in the US markets, the North American markets in third and fourth quarter.

光是在國際市場上，我們在歐洲地區就有一位價值數百萬美元的客戶，他們要求提前購買一些積壓的產品，以最大限度地延長他們的建造季節。這就是為什麼我們預測歐洲市場第四季的業績將略低於第三季度，但美國市場、北美市場第三季和第四季的業績將保持一致。

Okay. That's helpful. And looking at the Nestor Cables business, is the gross margin for that business where you guys originally thought it could be once this business was fully ramped, or is there still potential upside on the gross margin line within Nestor?

好的。這很有幫助。看看 Nestor 電纜業務，該業務的毛利率是否達到了你們最初認為的，一旦該業務全面啟動後可能達到的水平，或者 Nestor 的毛利率線是否仍有潛在的上升空間？

There's significantly more upside. And no, it's not where we want it to be. That's why we're investing in the Estonia plant. Why we're investing in the high-speed fiber line. There's some things we could do, certainly, with capacity, but mostly it's about being able to continue to lower the cost of manufacturing in that environment.

還有更多的好處。不，這不是我們想要的地方。這就是我們投資愛沙尼亞工廠的原因。我們為何投資高速光纖線路。當然，我們可以利用產能做一些事情，但主要是為了能夠繼續降低在這種環境下的製造成本。

Okay. That's helpful. And then just the last one for me, and I'll jump back into queue. On your inventory, Dan, should we look for levels to continue to decline here in September?

好的。這很有幫助。然後是我的最後一個，我會跳回隊列。Dan，您的庫存水準是否應該在 9 月繼續下降？

I think I feel good about us declining a little bit more, maybe not at the rate that we just did in this quarter here. But obviously, we had some good utilization, including at Nestor. So I would decline it by a lesser factor than what you saw, but yes, on that ramp.

我認為我對我們的下降幅度更大感到高興，也許不是以我們本季剛剛下降的速度。但顯然，我們有一些很好的利用率，包括在內斯特。所以我會以比你看到的更小的因素拒絕它，但是是的，在那個坡道上。

(Operator Instructions) Scott Searle, ROTH Capital Partners.

（操作員說明）Scott Searle，ROTH Capital Partners。

Hey, good afternoon. Thanks for taking my questions. Nice to see the business bottoming and starting to recover. I apologize I got a little bit late on the call. But Dan, I was wondering if you could just -- I'm not sure if I heard a number in terms of Nestor sales with international. And was there a gross margin number that you provided for the September quarter? And then I had several follow-ups.

嘿，下午好。感謝您回答我的問題。很高興看到業務觸底並開始復甦。我很抱歉我打電話有點晚了。但丹，我想知道你是否可以 - 我不確定我是否聽過 Nestor 在國際上的銷售數字。你們是否提供了九月份季度的毛利率數據？然後我進行了幾次後續行動。

For the September quarter? So Nestor, we had about $15 million of our international pool.

九月季度？Nestor，我們的國際資金池中有約 1500 萬美元。

Got you.

明白你了。

And you were looking for our guide on our gross margin or --?

您正在尋找我們的毛利率指南或——？

Correct. Yes.

正確的。是的。

Our guide at mid was, I think it's around [21.3%].

我們中間的指南是，我認為它就在附近[21.3%]。

Okay, perfect.

好的，完美。

At midpoint.

在中點。

Got you. And then, Cheri, diving in a little bit on the BEAD front, coming out of Fiber Connect this week, I'm wondering, initially when we started to talk about BEAD, probably going back 12 or 18 months ago, there started to be momentum swinging towards the Tier 1s. Now it feels like that there's been a shift back, just in terms of the states are getting to allocate the funding.

明白你了。然後，Cheri，本週從 Fiber Connect 中出來，深入探討了 BEAD 的前沿，我想知道，最初當我們開始談論 BEAD 時，可能要追溯到 12 或 18 個月前，開始有勢頭向一級傾斜。現在感覺好像已經發生了轉變，只是就各州開始分配資金而言。

How are you seeing this ultimately play out in terms of the impact and the market share that it has into the community broadband providers, so the Tier 3s and Tier 2s that benefit more so. Are you seeing a share shift there versus early expectations? And how are you thinking about that?

您如何看待這最終對社區寬頻提供者的影響和市場份額，因此受益更多的第 3 層和第 2 層。與早期預期相比，您是否看到那裡的份額發生變化？你對此有何看法？

I think the qualification process continues to change. I think the NTA has done a phenomenal job of listening and trying to adapt to try to meet the original intention of the program. So early on, the thought was that we would see small providers close to the customer being the heavy user. Then because of the complexity of the application process and the length of the requirement, as well as the original letter of credit that was required, that was shifting away from the small provider and back to the Tier 1s and the large provider.

我認為資格認證流程不斷在變化。我認為 NTA 在傾聽和努力適應方面做了出色的工作，努力滿足節目的初衷。很早就，我們的想法是，我們會看到靠近客戶的小型提供者成為重度用戶。然後，由於申請流程的複雜性和要求的長度，以及所需的原始信用證，這一點正在從小型提供者轉移回一級提供者和大型提供者。

Now through our efforts at the FBA and many others, as well as, like I said, the reasonableness of the environment, they've taken a lot of that complexity away and they continue to try to be able to streamline the process. And so as a result, I think it's more of an equal playing ground than it was ever before. So I think it's going to be a very heterogeneous award. You're going to see things very different from state-to-state. I think that's going to be the biggest challenge for the large providers is that the application process is going to be done census map by census map.

現在，透過我們在亞馬遜物流和其他許多方面的努力，以及正如我所說的環境的合理性，他們已經消除了許多複雜性，並且他們繼續努力簡化流程。因此，我認為現在比以往任何時候都更加平等。所以我認為這將是一個非常多樣化的獎項。你會看到各州的情況非常不同。我認為對於大型提供者來說，最大的挑戰是申請流程將逐個人口普查地圖完成。

And so a large provider really doesn't necessarily have a huge administration advantage because of the fact they got to do it 56 times, and whereas a small provider is going to hone in on the areas that make the most sense for them. One of the things that we have been talking to customers about is how BEAD is complex, but it may be strategic if they have an island of unserved customers that is bracketed by two middle mile lines that are really been established, that makes perfect sense for them to go after and zero sense for a large provider.

因此，大型提供者確實不一定擁有巨大的管理優勢，因為他們必須這樣做 56 次，而小型提供者則會專注於對他們最有意義的領域。我們一直在與客戶討論的一件事是 BEAD 是多麼複雜，但如果他們有一個未得到服務的客戶島，並且被真正建立的兩條中英里線包圍起來，這可能是戰略性的，這對於他們對大型供應商的追求和零意識。

On the concourse, on that contrary, if you've got a serving area that might be 500 square miles, I mean, that's going to be a different scenario and you're probably going to see the big guys come in. So we're anxious to work with all of them. We don't think we're cut out of even a Tier 1, because they still have to be deployed in a rural way. And our understanding of the rural markets or ability to provide products that fit that footprint, I think will be to our advantage.

相反，在大廳，如果你的服務區域可能有 500 平方英里，我的意思是，那將是一個不同的場景，你可能會看到大傢伙進來。因此，我們渴望與他們所有人合作。我們認為我們甚至沒有被排除在第一級之外，因為它們仍然必須以農村方式部署。我認為我們對農村市場的了解或提供適合該足跡的產品的能力將對我們有利。

Very helpful. And if I could follow-up just in terms of some of the inventory levels with your customers, the community broadband guys seems like at least they've bottomed and started to recover a little bit, but I think you had some comments specifically that inventories remain elevated to large service providers and MSOs. I'm wondering what your early thoughts are in terms of when you think that inventory clears, and we start to get back to equilibrium in terms of end market demand and shipments in.

非常有幫助。如果我可以跟進您的客戶的一些庫存水平，那麼社區寬頻人員似乎至少已經觸底並開始恢復一點，但我認為您有一些具體的評論，庫存仍然提升為大型服務提供者和 MSO。我想知道當您認為庫存清理並且我們開始在終端市場需求和出貨量方面恢復平衡時，您的早期想法是什麼。

Like you highlighted, community broadband, I think is very close, is not there by the end of this build season. Unfortunately, I would say the large regionals and the MSOs have a way to go. They had big pocketbooks when we started. The MSOs have traditionally been, at least the small regionals, have been cash rich. And so they use that to their advantage. So I think we have a period of time yet in the MSO market. I think the large regionals are getting close. And by the end of this build season, I am anticipating that we would potentially see a new range of orders by first quarter of our next fiscal year.

正如您所強調的那樣，我認為社區寬頻已經非常接近，但到本建設季節結束時還沒有實現。不幸的是，我想說大型地區和 MSO 仍有很長的路要走。當我們開始時，他們的錢包很大。傳統上，至少在小型地區，MSO 一直現金充裕。所以他們利用這一點來發揮自己的優勢。所以我認為我們在 MSO 市場上還有一段時間。我認為大型地區正在接近。到本建造季結束時，我預計到下一財年第一季我們可能會看到一系列新的訂單。

Great. Very helpful. And last, if I could, just in terms of cash utilization, kind of how you're thinking about things in terms of buyback, we're starting to look elsewhere. As the market is normalized now and you found the bottom, are you starting to think about inorganic opportunities? Thanks.

偉大的。非常有幫助。最後，如果可以的話，就現金利用率而言，就像你在回購方面的思考方式一樣，我們開始尋找其他地方。隨著市場現已正常化並且您已經觸底，您是否開始考慮無機機會？謝謝。

Go ahead, Dan.

繼續吧，丹。

I was going to say, we always are going to be evaluating inorganic opportunities as well. We're really happy with the share buyback actions that we've taken and continue to watch that. But absolutely putting a little bit more focus on the inorganic as well as something that is always in our playbook.

我想說的是，我們也總是會評估無機機會。我們對所採取的股票回購行動感到非常滿意，並將繼續關注這項行動。但絕對要更專注於無機物以及我們劇本中始終存在的東西。

Yes, I would just augment that by saying that we continue to evaluate adjacent markets and the adjacent markets being areas of non-Telco environment where we already have pockets of success. What we wouldn't want to do is to be able to go into an entirely new space where it's foreign to us. The best acquisitions are ones in you have a base that you can build upon.

是的，我想補充一下，我們將繼續評估鄰近市場，而鄰近市場則是我們已經取得了一些成功的非電信環境領域。我們不想做的是能夠進入一個對我們來說陌生的全新空間。最好的收購是那些你有可以繼續發展的基礎的收購。

You see some of the things that we're doing with the active cabinets and our use of the active cabinets in transportation, as we highlighted in traffic monitoring. Perhaps we've always used our active cabinets in backhaul. So there's a variety of options. I would say that's not a commitment for an inorganic opportunity, but rather a standpoint that is as any prudent public company, we're evaluating those adjacent markets and looking for the best match.

正如我們在交通監控中所強調的那樣，您會看到我們對有源機櫃所做的一些事情以及我們在運輸中使用有源機櫃的情況。也許我們一直在回程使用有源機櫃。所以有多種選擇。我想說，這並不是對無機機會的承諾，而是一種立場，即與任何謹慎的上市公司一樣，我們正在評估這些相鄰市場並尋找最佳匹配。

Ladies and gentlemen, it appears we have no further questions in the question queue. Scott, would you like to go ahead with the next question if you have one?

女士們先生們，問題隊列中似乎沒有其他問題了。史考特，如果你有一個問題，你願意繼續下一個問題嗎？

No, I'm good. Thank you.

不，我很好。謝謝。

Thank you. Ladies and gentlemen, that concludes today's question-and-answer session. I will now hand over to Cheri Beranek for closing remarks.

謝謝。女士們、先生們，今天的問答環節到此結束。我現在請 Cheri Beranek 致閉幕詞。

Well, thank you all for joining us. We absolutely treasure the investment and the trust that you have placed in us as investors in Clearfield. We're reaching an opportunity here in front of us. We talk about this as being a generational build but having just come home from the Fiber Broadband Association meetings in Nashville, I couldn't be more excited about the opportunities in front of us. So pleased to meet you again in this year, to meet you over the airwaves and look forward to meeting you in person in the near future. Goodbye for now.

好的，謝謝大家加入我們。我們絕對珍惜您作為克利爾菲爾德投資者對我們的投資和信任。我們正在面臨一個機會。我們談論這是一個世代相傳的建設，但我剛從納許維爾舉行的光纖寬頻協會會議回家，我對我們面前的機會感到非常興奮。很高興今年再次與您見面，透過廣播與您見面，並期待在不久的將來與您見面。暫時再見了。

Thank you. That concludes today's event. Thank you for attending and you may now disconnect your lines.

謝謝。今天的活動到此結束。感謝您的出席，您現在可以斷開線路了。