Earnings Performance - Clearfield reported a quarterly loss of $0 06 per share, beating the Zacks Consensus Estimate of a loss of $0 19, representing an earnings surprise of 68 42% [1] - The company's revenue for the quarter ended September 2024 was $46 77 million, surpassing the Zacks Consensus Estimate by 11 63% [2] - Over the last four quarters, Clearfield has surpassed consensus EPS estimates four times and revenue estimates four times [2] Stock Performance and Market Comparison - Clearfield shares have gained approximately 24 7% since the beginning of the year, slightly outperforming the S&P 500's gain of 24 3% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate for the coming quarter is -$0 26 on $37 25 million in revenues, and -$0 03 on $189 1 million in revenues for the current fiscal year [7] - The estimate revisions trend for Clearfield is mixed, translating into a Zacks Rank 3 (Hold), indicating the shares are expected to perform in line with the market [6] Industry Context - Clearfield belongs to the Zacks Wireless Equipment industry, which is currently in the bottom 37% 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 - Okta, another company in the Zacks Computer and Technology sector, is expected to report quarterly earnings of $0 57 per share, representing a year-over-year change of +29 6% [9] - Okta's revenues are expected to be $649 4 million, up 11 2% from the year-ago quarter [10]

Financial Data and Key Metrics - Consolidated net sales in Q4 2024 were $46.8 million, a 6% decrease from $49.7 million in the same period last year, but above the guidance range of $40 million to $43 million [16] - North American net sales accounted for $35.7 million, while international net sales were $11.1 million in Q4 2024 [16] - Full-year consolidated net sales for fiscal 2024 were $166.7 million, a 38% decrease from $268.7 million in fiscal 2023 [18] - The company generated positive cash flow from operations of approximately $12.9 million in Q4 2024 and $22.2 million for the full fiscal year [17][18] - Revenue from homes connected continues to grow and represents a larger portion of overall revenue compared to previous periods [18] Business Line Data and Key Metrics - The company has transitioned into an end-to-end portfolio supplier of products for both passing and connecting homes, positioning it for growth consistent with the general industry outlook [19] - New products introduced in the past year include SeeChange, CraftSmart FiberFirst Pedestal, CraftSmart Deploy Reel TAP Box, and the FiberFlex series of active cabinets, aimed at reducing deployment costs and time [11] - The company is finalizing the design of a new distributed TAP portfolio to be introduced in the coming months [12] Market Data and Key Metrics - The MSO and large regional service provider markets drove stronger-than-expected results in Q4 2024, with inventory levels decreasing in certain product categories [17] - The Community Broadband segment and large regional providers have mostly recovered and returned to a normal ordering cadence, while MSO accounts still face inventory overhang [14] - The company anticipates significant BEAD-driven demand in 2026, particularly in rural markets where it is strongest [15][21] Company Strategy and Industry Competition - The company is focused on supporting rural broadband expansion through scalable solutions that reduce deployment costs and skilled labor requirements [10] - Public and private funding for rural broadband expansion presents significant opportunities for growth [9] - The company expects U.S. revenue growth to align with or exceed industry-focused forecasts, with minimal revenue growth from international markets as it focuses on gross profit improvements [20] Management Commentary on Operating Environment and Future Outlook - The company expects a slow start to fiscal 2025, with Q1 net sales projected in the range of $33 million to $38 million and a net loss per share of $0.28 to $0.35 [22] - The shift to the second phase of the E-ACAM program, focusing on deployment, is expected to serve as a growth catalyst for the latter part of 2025 [15] - Service providers remain bullish on fiber utilization in their build plans, but there is some conservatism in capital spending [21] Other Important Information - The company has introduced a 3D interactive fiber installation tool via the BILT mobile app to simplify the deployment process [11] - Anis Khemakhem has joined the company as Chief Marketing Officer, bringing over 25 years of industry experience [13] - Kevin Morgan will continue to work with the company in an advisory capacity and represent it at industry events [13] Q&A Session Summary - No specific questions or answers were provided in the transcript [22][23]

Revenue Performance - Q4 2024 revenue was $46.8 million, a decrease of 5.9% compared to $49.7 million in Q4 2023[7] - Full-year 2024 revenue was $166.7 million, a decrease of 38% compared to $268.7 million in 2023[3] - Net sales for the year ended September 30, 2024 were $166.7 million, down 38.0% from $268.7 million in 2023[21] - Revenue guidance for fiscal year 2025 is $170 million to $185 million[6] - Q1 2025 revenue is expected to be in the range of $33 million to $38 million, with a net loss per share of $0.28 to $0.35[10] Profitability and Loss - Q4 2024 net loss per share was $(0.06), compared to net income of $0.17 per share in Q4 2023[2] - Net loss for the year was $12.5 million in 2024, compared to a net income of $32.5 million in 2023[21] - Gross margin for Q4 2024 was 22.8%, down from 24.1% in Q4 2023 but improved from 21.9% in the previous quarter[8] - Gross profit for the year decreased by 66.1% to $28.9 million in 2024 from $85.3 million in 2023[21] Cash Flow and Financial Position - Positive cash flow from operations for the full year was approximately $22.2 million[6] - Operating cash flow increased by 20.6% to $22.2 million in 2024 from $18.4 million in 2023[22] - Cash and cash equivalents dropped significantly from $37.8 million in 2023 to $16.2 million in 2024, a 57.2% decrease[19] - The company repurchased $33.4 million worth of common stock in 2024[22] Operating Expenses and Costs - Operating expenses for Q4 2024 increased 33.1% to $13.7 million, primarily due to higher variable compensation and professional fees[9] Assets and Investments - Total assets decreased from $355.5 million in 2023 to $315.3 million in 2024, a decline of 11.3%[19] - Long-term investments increased significantly from $6.3 million in 2023 to $24.5 million in 2024, a 286.3% rise[19] - Inventory levels decreased by 31.9% from $98.1 million in 2023 to $66.8 million in 2024[19] - Accounts receivable decreased by 24.9% from $28.4 million in 2023 to $21.3 million in 2024[19] Backlog and Market Opportunities - Order backlog as of September 30, 2024, was $25.1 million, a decrease of 56.1% compared to $57.3 million in September 2023[7] - The company achieved BABA self-certification recognition from the NTIA, positioning it for opportunities in the BEAD Program[1]

Board of Directors Update - Clearfield Inc announced the election of Kate Kelly and Ademir Sarcevic to its Board of Directors, effective December 11, 2024 [1] - Kate Kelly will serve on the Company's Audit Committee and Nominating and Corporate Governance Committee [3] - Ademir Sarcevic will serve on the Company's Audit Committee and Compensation Committee [5] Kate Kelly's Background - Kate Kelly brings over three decades of experience in the banking industry, with leadership roles at U S Bank and PNC [2] - As Regional President and Executive Vice President at PNC, she achieved 24% average annual revenue growth [2] - She was the founding President and CEO of Minnesota Bank & Trust, driving 30% annual revenue growth [2] - She led Bremer Financial's Wealth Management division, achieving consistent 15% annual growth [2] - Holds an MBA in finance from the University of Minnesota Carlson School of Management and a Bachelor of Arts in Economics and Humanities from St Catherine University [2] Ademir Sarcevic's Background - Ademir Sarcevic has over two decades of experience in financial transformation and business growth across various industries [4] - Currently serves as Vice President, Chief Financial Officer, and Treasurer at Standex International, where he more than doubled market capitalization and stock price while achieving record operating margins and cash flow [4] - Previously held leadership roles at Pentair, playing a key role in spin-out and M&A activities, and at Eisai Inc, managing financial restructuring efforts [4] - Holds a Master of International Management from Thunderbird School of Global Management and a Bachelor of Science in Finance and International Business from the University of Bridgeport [4] Company Overview - Clearfield Inc designs, manufactures, and distributes fiber optic management, protection, and delivery products for communications networks [5] - The company's "fiber to anywhere" platform serves traditional carriers, alternative carriers, MSO/cable TV companies, and markets including utility/municipality, enterprise, data center, and military [5] - Headquartered in Minneapolis, MN, Clearfield deploys more than a million fiber ports each year [5]

Earnings Announcement - Clearfield Inc will release its Q4 2024 financial results on November 7 2024 after market close [1] - The company will host a conference call at 5:00 PM Eastern Time on November 7 to discuss results [1] - Financial results and earnings presentation will be available on the Investor Relations section of the company website [1] - The conference call will be webcast live and available for replay until November 21 2024 [1] Company Overview - Clearfield Inc designs manufactures and distributes fiber optic management protection and delivery products for communications networks [2] - The company serves traditional carriers alternative carriers MSO/cable TV companies as well as utility/municipality enterprise data center and military markets [2] - Clearfield deploys over 1 million fiber ports annually [2] - The company is headquartered in Minneapolis MN [2]

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 ...