Financial Performance - Net sales for Q3 2024 were $48.79 million, a 20% decrease from $61.28 million in Q3 2023[97] - Net sales for the nine months ended June 30, 2024 were $119.93 million, a 45% decrease from $219.04 million in the same period of 2023[105] - Gross profit margin for Q3 2024 was 21.9%, down from 31.1% in Q3 2023[100] - Gross profit margin for the nine months ended June 30, 2024 was 15.2%, down from 33.5% in the same period of 2023[107] - Net loss for Q3 2024 was $447,000, compared to net income of $5.22 million in Q3 2023[104] - Loss from operations for the nine months ended June 30, 2024 was $20.21 million, compared to income of $35.57 million in the same period of 2023[108] - The company recorded a net loss of $11,626,000 for the nine months ended June 30, 2024, compared to a net income of $29,837,000 in the same period of 2023[110] Segment Performance - Net sales from the Clearfield segment decreased by 30% to $33,670,000 for the three months ended June 30, 2024, and by 52% to $89,371,000 for the nine months ended June 30, 2024[114] - Net income (loss) in the Clearfield segment decreased by 109% to $(196,000) for the three months ended June 30, 2024, and by 129% to $(8,464,000) for the nine months ended June 30, 2024[115] - Net sales in the Nestor Cables segment increased by 13% to $15,123,000 for the three months ended June 30, 2024, but decreased by 6% to $30,562,000 for the nine months ended June 30, 2024[116] - Net loss in the Nestor Cables segment increased by 55% to $(252,000) for the three months ended June 30, 2024, and by 549% to $(3,162,000) for the nine months ended June 30, 2024[117] International Sales and Currency Impact - International sales accounted for 34% of total net sales in Q3 2024, up from 23% in Q3 2023[97] - If the Euro had appreciated or depreciated by 10% relative to the U.S. Dollar, the company's operating expenses would have increased or decreased by approximately $164,000 and $544,000 for the three and nine months ended June 30, 2024, respectively[131] Order Backlog and Capital - Order backlog as of June 30, 2024 was $32.58 million, a 56% decrease from $107.29 million in June 2023[99] - The company completed a capital raise of $130.26 million in Q1 2023[108] Cash Flow and Investments - The company's cash, cash equivalents, and short-term investments totaled $123,819,000 as of June 30, 2024, compared to $168,113,000 as of September 30, 2023[118] - Net cash provided by operating activities totaled $8,464,000 for the nine months ended June 30, 2024, compared to $13,481,000 in the same period of 2023[120][121] - The company used $33,374,000 to repurchase common stock under its stock repurchase program for the nine months ended June 30, 2024[124] - Net investment income for the nine months ended June 30, 2024 was $5.65 million, up from $3.33 million in the same period of 2023[108] Cost and Profitability Challenges - Rising costs including wages, logistics, components, and commodity prices are negatively impacting the company's profitability[132] - The company does not hedge commodity prices, which may have a material impact on its financial statements[132] Internal Controls and Legal Matters - The company's disclosure controls and procedures were effective as of June 30, 2024[133] - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2024[134] - No pending legal proceedings are likely to have a material adverse effect on the company's financial position or results of operations[135] Interest Expense - Interest expense decreased to $381,000 for the nine months ended June 30, 2024, from $551,000 in the same period of 2023, due to the repayment of the company's line of credit[109]

Financial Data and Key Metrics - Total net sales for Q3 2024 were $48.8 million, a 20% decrease from $61.3 million in the same year-ago period but above the guidance range of $40 million to $44 million [9] - Gross profit margin in Q3 was 21.9%, down from 31.1% in the same year-ago quarter but up from 7.7% in the prior quarter [14] - Net loss in Q3 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 Q2 2024 [16] - Inventory balance decreased from $84 million at the end of Q2 2024 to $75 million in Q3 2024 [17] - Cash flow from operations was positive at $3.9 million in Q3, with year-to-date cash flow from operations at $8.5 million [17] Business Line Performance - Community broadband revenue was $19.6 million in Q3, up 2% year-over-year and comprising 40% of total net sales [12] - MSO business revenue was $5.8 million, down 39% year-over-year and comprising 12% of total net sales [12] - Large regional service provider revenue was $3.8 million, down 76% year-over-year and comprising 8% of total net sales [13] - National carrier revenue was $2.3 million, up 17% year-over-year and comprising 5% of total net sales [13] - International market revenue was $16.5 million, up 16% year-over-year and comprising 34% of total net sales [13] Market Performance - International market saw a 66% sequential increase in revenue due to a strong seasonal uptick during the build season in Europe [14] - The company expects international market revenue to decline sequentially in Q4 as the build season winds down [14] - Community broadband market experienced a 22% sequential uptick in orders, driven by seasonality and new customers in the utility sector [12] Strategy and Industry Outlook - The company views 2024 as a transition year, with a gradual recovery expected as broadband service providers continue to deploy equipment [4] - The company is focusing on reducing installation time and errors for service provider customers through tools like the 3D interactive fiber installation tool on the BILT mobile app [5] - The company is enhancing its manufacturing facilities to accommodate BEAD requirements and expects the majority of its portfolio to be BEAD-compliant by the end of the fiscal year [6] - Industry forecasts indicate that up to 59 million additional homes will be passed with Fiber over the next five years, representing a 12.5% compound annual growth rate [7] Management Commentary on Operating Environment and Future Outlook - Management expects Q4 2024 net sales to be in the range of $40 million to $43 million, with a net loss per share in the range of $0.17 to $0.22 [18] - The company anticipates initial revenue from the BEAD program starting late in calendar 2025, with a more significant ramp in activity expected in fiscal 2026 [6] - Management remains confident in the long-term demand for fiber and believes the company is well-positioned to help service providers meet that demand [21] Other Important Information - The company repurchased $5.5 million in stock in Q3 as part of its share buyback program, leaving $24.9 million remaining for future repurchases as of June 30, 2024 [18] - The company is working with the Fiber Broadband Association to lobby the NTIA and reduce complexity in the BEAD award process [6] Q&A Session Summary Question: Timing of BEAD revenue recognition - Management expects initial BEAD revenue to start late in calendar 2025, with a more significant ramp in fiscal 2026 [23] Question: International market performance - Strong performance in Finland and early success in the German market, particularly with Microduct products [24] Question: Community broadband revenue mix - Revenue mix in community broadband is close to 50-50 between homes passed and homes connected, which is considered healthy [25] Question: Gross margin improvement - Gross margin improved due to better inventory utilization and lower non-cash inventory reserves [27] Question: Inventory levels - Inventory levels are expected to decline further, but at a slower rate than in Q3 [31] Question: BEAD market dynamics - The BEAD market is expected to be heterogeneous, with both large and small providers participating, depending on the specific geographic and strategic fit [37] Question: Inventory levels in large service providers and MSOs - Inventory levels remain elevated in large service providers and MSOs, with normalization expected by the end of the build season [40] Question: Cash utilization and inorganic opportunities - The company is evaluating inorganic opportunities, particularly in adjacent markets where it already has a presence [42][43]

Earnings Performance - Clearfield reported a quarterly loss of $0 04 per share, significantly better than the Zacks Consensus Estimate of a loss of $0 34, representing an earnings surprise of 88 24% [1] - The company's revenue for the quarter ended June 2024 was $48 79 million, surpassing the Zacks Consensus Estimate by 15 90%, compared to year-ago revenues of $61 28 million [2] - Over the last four quarters, Clearfield has surpassed consensus EPS estimates four times and topped consensus revenue estimates four times [2] Stock Performance and Market Comparison - Clearfield shares have gained approximately 49 2% since the beginning of the year, outperforming the S&P 500's gain of 15 8% [3] - The company's stock performance is influenced by management's commentary on earnings calls and future earnings expectations [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate for the coming quarter is -$0 20 on $43 85 million in revenues, and -$1 26 on $157 05 million in revenues for the current fiscal year [7] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5] - The estimate revisions trend for Clearfield is mixed, translating into a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - Clearfield belongs to the Zacks Wireless Equipment industry, which is currently in the bottom 23% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Ubiquiti Inc, another company in the same industry, is expected to post quarterly earnings of $1 67 per share, representing a year-over-year change of -3 5%, with revenues expected to be $534 43 million, up 8 8% from the year-ago quarter [9]

EXHIBIT 99.1 Clearfield Reports Third Quarter Fiscal 2024 Results Revenue of $48.8 million and net loss per share of $(0.04) exceeded guidance Outperformance driven by strong sales in International and Community Broadband markets Share buy-backs totaled $5.5 million with $25 million remaining available for repurchases MINNEAPOLIS, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the fiscal third quarter 2024. | --- | --- | --- | --- | -- ...

The conference call will be webcast live and available for replay here. Minneapolis, MN, Clearfield deploys more than a million fiber ports each year. For more information, visit www.SeeClearfield.com. MINNEAPOLIS, July 18, 2024 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), the leader in community broadband fiber connectivity, today announced that its third quarter ended June 30, 2024, results will be released on Thursday, August 1, 2024, after the close of the market. The company will host a confere ...

U.S. replay dial-in: 1-844-512-2921 International replay dial-in: 1-412-317-6671 Replay ID: 13747389 MINNEAPOLIS, July 18, 2024 (GLOBE NEWSWIRE) -- Clearfield, Inc. (NASDAQ: CLFD), the leader in community broadband fiber connectivity, today announced that its third quarter ended June 30, 2024, results will be released on Thursday, August 1, 2024, after the close of the market. The company will host a conference call at 5:00 p.m. Eastern time (4:00 p.m. Central time) to discuss its financial results with the ...

Inflation ITEM 4. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Changes in Internal Control over Financial Reporting ITEM 1. LEGAL PROCEEDINGS ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS ISSUER PURCHASES OF EQUITY SECURITIES PART II. OTHER INFORMATION 31 ITEM 5. OTHER INFORMATION 101 – The following materials from Clearfield, Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2024 are formatted in iXBRL (Inline eXtensible Business Reporting ...

Clearfield, Inc. (NASDAQ:CLFD) Q2 2024 Results Conference Call May 2, 2024 5:00 PM ET Company Participants Greg McNiff - IR Cheri Beranek - President, CEO Dan Herzog - CFO Conference Call Participants Ryan Koontz - Needham & Company Scott Searle - ROTH Capital Partners Jaeson Schmidt - Lake Street Capital Operator Ladies and gentlemen, greetings, and welcome to the Clearfield Fiscal Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions ...

U.S. dial-in: 1-877-407-0792 International dial-in: 1-201-689-8263 Conference ID: 13745310 2024 2023 Assets Current Assets Cash and cash equivalents $ 15,818 $ 37,827 Short-term investments 127,089 130,286 Accounts receivable, net 21,899 28,392 Inventories, net 83,985 98,055 Other current assets 8,641 1,695 Total current assets 257,432 296,255 Clearfield Reports Second Quarter 2024 Results | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------- ...

Clearfield, Inc. (CLFD) announced the launch of a 3D interactive tool built in collaboration with the BILT mobile app to streamline the fiber installation process. The advanced tool enriches fiber technicians with interactive instructions about Clearfield products through the BILT mobile application. The app is available at no extra charge. It features voice and text guidance and is accessible in several languages, including English, Spanish and German.Recognizing the tech-savvy nature of the new generation ...