Q3 2026 Clearfield Inc Earnings Call
Speaker #1: We'll be in less than 90 mode. Should you need any assistance, please signal the conference specialist by pressing the star key followed by 0.
Speaker #1: After today's presentation, there will be an opportunity to ask questions, to ask the question you may press star then 1 on your touchstone phone.
Speaker #1: Welcome to the Weight Watchers second quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Speaker #1: To withdraw your question, please press star then 2. Please note this event is being recorded. At this time, I'd like to turn the floor over to Gregory McNiff, Investor Relations.
Speaker #1: After today's presentation. There will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad.
Speaker #1: Sir, please go ahead.
Speaker #2: Thank you. Joining me on today's call are Cheryl Beranek, Clearfield's president and CEO, and Dan Herzog, Clearfield CFO. As a reminder, Clearfield publishes a quarterly shareholder letter which provides an overview of the company's financial results, operational highlights, and future outlook.
Speaker #1: withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Anna Kate Heller from Investor Relations.
Speaker #1: Please go ahead.
Speaker #2: You can find both the shareholder letter and the earnings release on clearfieldsinvestorrelations website. After brief prepared remarks, we will open the floor for a question-and-answer session.
Speaker #2: Thank you for joining us today for the Weight Watchers second quarter 2026 earnings conference call. We also release a shareholder letter and press release with our second quarter 2026 results, which are available on the company's corporate website located at corporate.ww.com.
Speaker #2: 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.
Speaker #2: The purpose of this call is to provide investors with some further details regarding the company's financial results, as well as to provide a general update on the company's progress, reconciliations of non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the shareholder letter and press release.
Speaker #2: These forward-looking statements are subject to risk 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.
Speaker #2: Before we begin, let me remind everyone that this call will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today.
Speaker #2: 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, shareholder letter, and on this conference call.
Speaker #2: These risk factors are explained in detail in the company's latest annual report on Form 10-K, quarterly reports on Form 10-Q, the earnings release, the shareholder letter, and this updated by the company's other filings with the securities and exchange commission.
Speaker #2: The risk factor section in Clearfield's most recent Form 10-K filing with the Securities and Exchange Commission and its subsequent filings on Form 10-Q provided description of these risks.
Speaker #2: Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today and accept as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Speaker #2: With that, I will turn the call over to Cheryl. Cheryl?
Speaker #3: Good afternoon, everyone, and thank you for joining us to discuss Clearfield's results for the third quarter of fiscal 2026. I'll begin with an overview of the quarter and our strategic priorities, and then I'll turn the call over to Dan to review the financial details and outlook.
Speaker #2: Joining today's call are Felicia Della Fortuna, Chief Financial Officer, and John Volkman, Chief Operations Officer. Both are members of the interim office of the Chief Executive.
Speaker #3: Third quarter net sales were 43.9 million dollars, gross margin was 31.8 percent, and net income for diluted share from continuing operations was 22 cents.
Speaker #3: Thanks, Anna Kate. Good afternoon, everyone. Thank you all for joining us. Before we get started, I encourage everyone to look at our shareholder letter, which we posted on our corporate website.
Speaker #3: Our results reflect continued progress, executing our strategic priorities while reinforcing the strengths that have defined Clearfield. We are increasingly focused on positioning the company for its next phase of growth as a strategic digital infrastructure connectivity provider within the data center marketplace.
Speaker #3: While the market today is increasingly filled with companies offering prescriptions without expert guidance and support, Weight Watchers provides the best of both worlds. Not only do our members have access to the most effective FDA-approved GLP-1 medications, they also benefit from the backing of an extraordinary team of experts who can guide them at every step along the way.
Speaker #3: That progress was highlighted shortly after the close of third quarter when we received our first significant order to support a hyperscale data center project accelerating our expansion into the data center connectivity market.
Speaker #3: That includes clinicians trained to support people with obesity, who are actively helping members understand and navigate the benefits and challenges of GLP-1 therapy. It includes registered dietitians who help members build tailored nutrition plans that balance caloric goals with protein, fiber, and healthy muscle preservation.
Speaker #3: The initial purchase order totals approximately 22 million dollars, which we expect to begin shipments in early fiscal 2027. Equally important was how this opportunity developed.
Speaker #3: We became involved early in the design process, working collaboratively to develop a connectivity solution tailored to the end user's deployment requirements. That collaboration led to an expansion of our NOVA platform with the addition of a new panel developed in conjunction with the customer, which we intend to standardize and introduce to the broader data center market later this calendar year.
Speaker #3: And it includes expert coaches who lead workshops and experiences where members learn from one another on topics like dining out while on a GLP-1, in exchange practical advice like the best healthy midnight snacks, and perhaps most important of all, they remind each other they're not in this alone.
Speaker #3: This approach reflects the same design principles that have differentiated Clearfield for years in broadband deployments. As demand for high-density fiber infrastructure continues to grow, we believe our expertise in delivering modular, labor-efficient connectivity solutions positions us well to actively engage in this expanding market.
Speaker #3: Underscoring all of this human guidance is a reimagined digital experience that combines decades of science-led expertise with new technology to give members a clearer, more personalized view of their weight health and help them be more successful in reaching and sustaining their goals.
Speaker #3: With more than 1 in 10 Americans currently taking GLP-1 medications for weight loss, these therapies have fundamentally redefined our industry and transformed what is possible in obesity care.
Speaker #3: While it is too early to predict the size or timing of future opportunities, this initial engagement demonstrates that our strategy is resonating with customers and broadening our addressable market.
Speaker #3: And we are continuing to evolve our offering to help expand medication access and remove friction for those eligible for clinical weight loss. Patients can now access Weight Watchers Med Plus seamlessly through Lilly Direct, creating another meaningful channel for prospective members to discover our offering.
Speaker #3: We believe it represents an important step toward creating long-term shareholder value. Turning to the broadband market, the slow pace of the BEAD program continues to influence customer planning decisions across the broadband industry.
Speaker #3: While states have made meaningful progress developing deployment plans, continued delays in federal approvals and funding disbursements are affecting both BEAD-funded and other commercial projects.
Speaker #3: In addition, Weight Watchers Med Plus now supports eligible beneficiaries through the new Medicare GLP-1 bridge program, unlocking $50 per month branded GLP-1 medication coverage through late 2027.
Speaker #3: These headwinds, combined with higher deployment, labor, and material costs, as well as the constraint of limited fiber availability, have resulted in a slower deployment environment and extended project timelines across much of the industry.
Speaker #3: And we recently launched a new strategic collaboration with Sam's Club, bringing Weight Watchers to one of America's most trusted brands. These initiatives build on our broader commitment to help members find the best medication for them whether they're using insurance or paying out of pocket.
Speaker #3: The impact of the slower broadband deployment environment is reflected in our bookings for the quarter ended June 30, 2026. Despite these near-term dynamics, we continue to believe the long-term opportunity for fiber deployment remains intact.
Speaker #3: But while medication is a powerful tool, for many it is not the whole answer. Even with these medications, people still need to eat nutritious foods, they still need to move their bodies, and they still benefit from community, accountability, and education to support progress and sustain results.
Speaker #3: While the timing of broadband deployments remains uncertain, we continue to invest in technologies that solve our customers' challenges as broadband, wireless, data center, and edge computing networks continue to expand, customers increasingly look for ways to make deployments faster, simpler, and more efficient.
Speaker #3: We believe Weight Watchers' people-first, technology-powered offering is more relevant than ever as we support those navigating their journey with medication. Weight Watchers MedPlus members prescribed GLP-1 medications reported over 30% more body weight loss on average at 12 months than select industry competitors.
Speaker #3: One example of our new technology offerings is our recently announced fault-managed power portfolio, which enables customers to deliver both fiber connectivity and power to difficult-to-reach locations through a single coordinated solution.
Speaker #3: In addition, Weight Watchers Med Plus members who are prescribed GLP-1 medication and also regularly engage with our GLP-1 success program, whose 29% more body weight at 12 months on average, than those who use medication without engaging with our structured behavioral support program.
Speaker #3: By bringing fiber and power together, customers can reduce deployment complexity and create a more flexible foundation for future network growth. We believe this offering expands the role Clearfield can play in supporting our customers as their network needs continue to evolve.
Speaker #3: And studies indicate that Weight Watchers members reduce their calories from ultra-processed foods by 29%, a tangible marker of the real behavioral shifts from our approach.
Speaker #3: With that, I'll turn the call over to Dan to review our financials and outlook in more detail.
Speaker #2: Thank you, Cheryl, and good afternoon, everyone. As a reminder, in November we completed the sale of our Nestor Cables business. As a result, all financial results presented for fiscal year 2025 and all prior periods reflect the Clearfield segment as continuing operations only, with Nestor results reported under discontinued operations in our statement of earnings and statement of cash flows and reported as assets and liabilities held for sale in our balance sheet.
Speaker #3: These powerful results reinforce our position as the most trusted brand in weight loss. This foundation has enabled us to create an integrated ecosystem that supports members at every stage of their journey on or off medication.
Speaker #3: For members looking for our proven behavioral program, we offer CORE, our base behavioral offering, anchored by Weight Watchers signature points program. For members who want more guidance, we offer CORE Plus, our higher value behavioral offering that adds unlimited workshops, coaching, and our GLP-1 success program, which is available to members prescribed GLP-1s through an outside provider.
Speaker #2: Third quarter net sales were 43.9 million dollars, an increase of 13 percent from 38.8 million dollars in the third quarter of fiscal 2025. The increase was driven by higher revenue across the majority of our customer markets.
Speaker #3: And for members who qualify for clinical care, we offer Med Plus, our clinical offering that combines the above tools included in our GLP-1 success program with access to clinicians and GLP-1 prescriptions for qualified members.
Speaker #2: Revenue also increased 28 percent sequentially, reflecting the seasonal nature of our business. Gross profit margin for the third quarter of fiscal 2026 was 31.8 percent compared to 35.3 percent in the third quarter of fiscal 2025 and 32.5 percent in the second quarter of fiscal 2026, our gross margin reflected several one-time items during the quarter that, on a net basis, reduced gross margin by approximately 1.8 percentage points.
Speaker #3: The important point is this. People's needs change over time, and we've built a platform which enables our members to move seamlessly between levels of support, choosing the program that best fits their lives at any given time.
Speaker #3: Weight Watchers' unique combination of clinical care, behavioral support, and user-friendly technology all guided by actual people who are experts in the field is becoming an even stronger competitive advantage in this rapidly growing market.
Speaker #2: Operating expenses from continuing operations for the third quarter of fiscal 2026 decreased 6 percent to 11.4 million dollars, or 25.9 percent of net sales, compared to 12.1 million dollars, or 31.3 percent of net sales, in the third quarter of fiscal 2025.
Speaker #3: We're seeing compelling evidence that this approach is building momentum within our business. And as we look ahead, our opportunity has never been clearer. Losing weight is deeply personal, and it rarely follows a straight line.
Speaker #2: Operating expenses also decreased 14 percent, or 1.8 million dollars, from 13.2 million dollars in the second quarter of fiscal 2026. Net income in the third quarter of fiscal 2026 was 3 million dollars, or 22 cents per diluted share, compared to net income of 2.3 million dollars, or 16 cents per diluted share, in the third quarter of fiscal 2025.
Speaker #3: People need expertise, they need accountability, they need encouragement. And that is why we're confident in our ability to create lasting value for both our members and our shareholders.
Speaker #3: We'll continue to invest thoughtfully to make sure that every person who comes to Weight Watchers gets something that's becoming harder and harder to find elsewhere.
Speaker #2: This compares to a net loss of 500,000 dollars, or 4 cents per diluted share in the second quarter of fiscal 2026. We ended the quarter with approximately 155 million dollars in cash, short-term and long-term investments, and no debt.
Speaker #3: Real people, real expertise, real support, and a partner for the entire journey. With that, I'll turn it over to Felicia to cover the financials.
Speaker #2: During the quarter, we repurchased approximately 31,000 shares for 897,000 dollars as part of our share buyback program. For the fourth quarter of fiscal 2026, we anticipate net sales from continuing operations in the range of 38 million to 42 million dollars.
Speaker #2: Total operating expenses to remain relatively consistent with our second quarter and net income per diluted share in the range of break-even to 7 cents.
Speaker #2: As Cheryl mentioned, industry demand constraints are forcing us to reduce our guidance for the full fiscal year 2026. We expect net sales from continuing operations to be in the range of 151 million dollars to 155 million dollars, and net income per share to a range of 14 cents to 21 cents.
Speaker #2: And with that, we will open the call to your questions.
Speaker #1: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchstone phone.
Speaker #1: If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. Your first question.
Speaker #1: Comes from Ryan Koontz from Needham. Please go ahead.
Speaker #4: Great, thanks. Hi guys. I wanted to ask about the different customer segments here. Timothy Broadband, I had a decent uptick, probably a little less than seasonal.
Speaker #4: In going from March to June. And can maybe expand on that, some of the trends you saw. Is it because your customers are holding back capital to wait for being matching, or is it because they're just in paralysis?
Speaker #4: Or can we maybe talk about what's happening in the rural territories?
Speaker #3: Right. Hi, Ryan. Yeah, the community broadband marketplace, I think, is principally being affected by two different issues. One is bead. And the uncertainty associated with it.
Speaker #3: And as a result, it's affecting not only the bead dollars, but other dollars that are where do they put their capital? And so they're waiting because they're waiting for bead, they can't put their capital into commercial other commercial environments in case bead would come into play.
Speaker #3: So it's kind of a double-edged sword in that world. But equally, a result is really the lack of fiber in the US. I mean, the we started the year really strong.
Speaker #3: We saw really strong excuse me, quoting activity. Early in the year, we had a really strong backlog. As we came into the bookings over the winter months, and then we saw everything kind of take a oh, they were we got our bookings, and we got our and our quotings from the environment, but the lack of being able to get fiber from US-based manufacturing, where most of the customers are waiting because they don't want to have multiple excuse me, want to make sure they've got what's available in their inventory for either direction they might go.
as Sherry mentioned industry, demand constraints are forcing us to reduce our guidance for the full fiscal year 2026,
We expect net sales from continuing operations to be in the range of $151 million to $155 million, and net income per share to be in the range of $0.14 to $0.21.
And with that, we will open the call to your questions.
Speaker #3: And so while there is fiber activity happening in the market, it's predominantly with the national carriers. That's who's getting the business or getting the fiber.
Thank you. We will now begin the question and answer session.
To ask a question.
Speaker #3: In the US, but you saw that even that corning earlier this week or last week, I guess it was, announced that their total carrier business was up only 1 percent.
Star then 1 on your touchtone phone, if you are using a speaker-phone please pick up your handset before pressing the keys.
To withdraw your question. Please. Press star. Then 2
Speaker #3: So you see the lack of fiber is actually not just in the carriers. It's because of the data centers have got all the fiber.
Your first question comes from Ryan coops from nem. Please, go ahead.
Speaker #3: So it's a frustrating approach in which the demand is there, but the market availability to get the fiber to make it happen just isn't there yet.
Speaker #3: And so as a result, the early indicators that we saw in the spring didn't materialize in the summer.
Great thanks. Hi guys. Uh, wanted to ask about the different, uh, customer segments here. Um, Community Broadband. Um, you know, I had a decent uptick probably a little less than seasonal in, you know, going from March to June. Um, and you know, can you be expand on that? Some of the trends you saw is it is it because your customers are
You know, holding back capital.
Speaker #4: Right. Yeah, so it sounds like the Tier 2 MSOs are pretty similar story to what you just outlined for community broadband.
to, to wait for bead matching or is it because
Speaker #3: Exactly. I mean, they're the same type of customer that they're not issuing 100 million dollar or a billion dollar purchase order to corning. They're looking for 50,000 dollars.
Speaker #3: And so they're not a strategic account for the big fiber provider. And as a result, they're getting second fiddle. They're getting allocations and those allocations are significantly less than what they started with.
Speaker #3: So we're seeing these projects either being delayed until next year or significantly reduced in size and scope.
Uh, they're just in paralysis or can we maybe talk about what's happening in the rural territories, right? Um, hi Ryan the um yeah. The community Broadband Marketplace I think is um principally being affected by 2 different issues. 1 is bead, you know and the uncertainty associated with it. Um and and as a result is that affecting not only the bead dollars but other dollars um that are um you know you know where do they put their capital? And so the the way because they're waiting for be they can't
Speaker #4: Got it. And then maybe lastly on the cancellation or decommit you got from your customer from backlog, did you mention what segment that was from?
Speaker #3: It's community broadband. Yeah. So it is.
Speaker #4: Please ask customer then.
Speaker #3: It absolutely was our largest customer in community broadband. A longstanding relationship with the customer. And we continue to do business with the customer for other products.
Speaker #3: But a management change within the customer resulted in the standpoint that they focused much more on not building out the network, but instead increasing the amount of subscribers on the network that they had.
Speaker #3: And so as a result, the type of product that they were being that they were buying from us significantly changed. Unfortunately, as they looked at their design parameters, they indicated to us that they would not be needing cabinets for a number of quarters up to years.
Put their Capital into a commercial other commercial environment in case b would come into play. So it's, um, kind of a double-edged sword in that world, but equally, uh, a result is really the lack of fiber, uh, in the, in the US. I mean, the, you know, we started the year really strong. Um, you know, we saw really strong, um, excuse me quoting activity, you know, early in the year. You know, we had a really strong backlog, um, as we came into, you know, the bookings over the winter months, and then we saw everything kind of take a oh, you know, you know, they were, we got our bookings and we got our in our quotes quotes from, um, from the environment but they'll the lack of being able to get fiber, you know, from us-based manufacturing, where most of the customers are are waiting because they don't want to have multiple, um, excuse me. Uh, want to make sure they've got what's available in their inventory for either direction, they might, they might go. And so, while there is fiber activity happening in the market, it's pretty
Speaker #3: Moving forward. And accounting regulations require us to be able to make that reversal. We continue to work with our legal team to evaluate what our options are in this scenario.
Speaker #4: Gotcha.
Speaker #3: But I think it's important to note that this.
Speaker #4: But fairly custom product?
dominantly, you know, with the National Carriers that's that's who's getting the business or getting the fiber, um, in the US. Um, but you saw that, you know, even that, um, Corning earlier this week or last week, I guess it was, you know, announced that their, their total carrier business was up only 1%. So, you see the lack of fiber is actually not just in the carriers, it's because it's because of the data centers or have got all the fiber. So it's a, it's a, um, you know, a frustrating approach in which
Speaker #3: It was a custom product. Designed for them. We've worked for 15 years with the customer. So there's as you saw in the reserve in the inventory reserve, it did result in about a 2.6 million dollar write-off after we took we could really put into inventory what is standard, but there is a write-off associated with product that is custom or unique to that individual customer.
It's the demand is there, but the market availability to get the fiber to make it happen. Um, just isn't there yet. And so um, as a result, the early indicators that we saw, you know, in the spring uh didn't materialize in the summer.
Right? And so it sounds like the uh, tier 2 msos are a pretty similar story to what we just outlined for Community broadband.
Speaker #3: But we want to emphasize that this is not a trend, not an issue associated with a broader demand line. This is a customer's business model that changed after 15 years of deployment in one direction.
Speaker #3: Because we've worked with this customer since the beginning of Clearfield.
Speaker #4: Got it. Great. And then maybe one last one on some good news. The win for your data center business got a nice this is an order you have in is it in backlog now, or is it an opportunity?
For the big fiber provider. Uh, and as a result, you know, they're getting second fiddle. Um, they're getting allocations and those allocations are significantly less than what they that, what they started with. So we're seeing these projects either being delayed until next year or significantly reduced in size and scope.
Speaker #3: Oh, yes. No, no, no. It is an order in hand. And we wouldn't provide speculation of that type. So order in hand for 22 million dollars.
Got it and then maybe lastly on the the the cancellation or decommit. You got from your customer from backlog. Did you mention what? Um, segment that was from.
Its Community Partners.
Yeah, so it is 3. Large customer then.
Speaker #3: It is the first part of the first stage of the first building on a campus for this hyperscale environment. So we're really excited to be able to be part of this build and potentially chosen for an ongoing part of the build as they continue to issue RFPs for the build-out of where they're going.
Speaker #3: As I signaled I think last quarter when we talked about the really welcome reception we were receiving in the hyperscale market, I think this order now comes in to validate that strategy.
Speaker #3: So because of the significance of it, we wouldn't normally discuss the simply an order or an individual customer. But I think the significance of this pivot and our place in the marketplace is something that we wanted to share with our shareholder community.
Um, it's it, it absolutely was our largest customer and Community Broadband, a long strand. Long-standing relationship with the or, um, with the customer and we continue to do business with the customer for other products. Um, but um, a management change within the customer, um, resulted in the standpoint that they focused much more on, not building out the network. But instead, uh, use, uh, increasing the amount of subscribers on the network that they had. And so, as a result, the type of product that they were being, that they were buying from us, significantly changed the, um, um, unfortunately, you know, as they looked at their design parameters, you know, they indicated to us that they would not be needing cabinets for, you know, a number of, you know, quarters up to years. Um, you know, moving forward and uh, accounting regulations require
Speaker #4: Yeah. Super exciting. It sounds like the use case is still some outside plant, a campus-type environment, or can you give us any idea on the use case?
Us to be able to make that reversal. Um, you know, we continue to work with um, you know, with our legal team to evaluate what our options are in this scenario.
Gotcha. Um, but if I think it's important to note that fairly custom products
Speaker #3: Oh, no. This is in the middle of the data center. So we were put in a given an opportunity to we've been part of the central office in the telecom market for 15 years as well.
Speaker #3: And so our ability to what was exciting about this, I think, in many different there's many different things exciting about it, but we had a large group of people visit our Clearfield headquarters associated with this opportunity.
Speaker #3: And one of the things that people don't talk about is the broadband marketplace has a lot of expertise in that expertise just being pulled into the data center market.
Um, it it was a customer product. Does you know designed for for them? Um, we've worked for 15 years, you know, with the customer. So there's um, as you saw in the, uh, Reserve in in the inventory. We reserved, um, it did result in about a 2.6 million dollar. Um, right off after we've took, uh, we we can re put into inventory. What is standard? But there is a write off associated with, um, you know, product that is customer unique to that individual customer.
yeah, but we want to emphasize that this is
Speaker #3: And so many, many people in that room had worked with Clearfield before recognized the scalability and labor savings of our product line, the quality, reliability, of the products and the people that they work with.
Uh, not a trend, not a not issues, are associated with a broader demand Line. This is a, a customer's business model that changed, uh, after 15 years of deployment. And what, in, in 1 Direction, um, because we, we've worked with this customer since the beginning of perfield,
Speaker #3: That we work with that our organization and the customer service and responsiveness that they can expect from us. So I think this is a wonderful example of how we can get started and just the opportunities within the data center to come.
Got it, great. Um, and then, um, maybe 1 last 1 on some good news, um, the, uh,
Speaker #4: Super. I'll get back into Q. Nice to hear.
Speaker #3: Thank you.
Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Cheryl Beranek for any closing remarks.
The win for your data center business. You got to go. Nice. That's is this is an order you have. And is it in backlog now? Or is it an opportunity? No, no, no. It it is. It is an order in hand, um, uh, in that we wouldn't provide, you know, speculation of that type. Um, so order in hand for 22 million dollars. Um, it is the first
Speaker #5: Good afternoon, everyone. There are a lot of balls in the air right now for us. And while we are disappointed to not meet the guidance for the year, within the broadband market, I want to reassure everyone on the call that Clearfield continues to work strongly with our customer base, continues to have a very strong presence within the base of broadband.
Speaker #5: And I am confident that we are maintaining our share of business within the market. I want to also reassure you that this is really an exciting time for us while we can't predict the future of where we're going in the data center market.
Speaker #5: We are extremely grateful and appreciative of the response that we received thus far. And our look forward to speaking with you again in November about our progress in three months.
Um you know, part of the first stage of the first building on a campus um for this, you know, hypers scale environment. So we're really excited to be able to be part of uh, of this build and potentially, you know, chosen for an ongoing part of the build as they continue to to issue rfps for the um the buildout um, of where they're going. You know? You, you know, as a signal, you know. I think last quarter when we talked about the really welcome reception, we were receiving in the hyperscale market. I think, you know, this order now comes in to validate that strategy. Uh, so because of the significance of it, we wouldn't normally uh, discuss the uh, you know, simply an order or an individual customer. But uh, I think the significance of this pivot and our place in the marketplace is something that we wanted to share with our uh, our shareholder community.
Speaker #5: For now, have a great summer and we'll talk to you soon.
And labor Savings of our product line. Um, the quality reliability, you know, of of the products and the people that they work with um, that we work with that, you know, our organization and, you know, the customer service and responsiveness so they can expect from us
So I think uh, this is a wonderful example of how we can get started and just the opportunities within the data center to come.
Super, I'll get back in the queue. Nice to hear. Thank you.
Thank you. There are no further questions at this time. I'll now hand back to Sherry bar. Next, any closing remarks.
Good afternoon everyone. You know, I uh, there are a lot of balls in the air right now for us. And uh while we are disappointed to not, uh, meet the guidance for the year within the Broadband Market, I want to reassure everyone on the call that uh, Clearfield continues to work strongly with our customer base continues to have a very strong presence uh, within the base of broadband. And I am confident that we are maintaining our share, uh, of business. You know, within the market. I wanted to also reassure you that this is really an exciting time for us while we can't predict the future of where we're going and the data center Market. We are extremely grateful and resp um, appreciative of the response that we received this far and our, uh, look forward to speaking with you again, in November about our progress,
Uh, in 3 months.
For now, have a great summer, and we'll talk to you soon.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect
