《❁CLEARFIELD Important Cautions Regarding Forward-Looking Statements 2 4 Expect BEAD to expand TAM as fiber connections between homes will be longer in the underserved and unserved rural environments that BEAD targets. Source: RVA, Clearfield 57.1M Homes Passed Forecast over the next 5 years 6 21% Nestor Cables Contribution Clearfield Earnings Presentation: Fiscal Q4 & 2023 Earnings Call November 9, 2023 1 © Copyright 2023 Clearfield, Inc. All Rights Reserved. Fourth Quarter Fiscal 2023 Highlights Announced ...

Financial Data and Key Metrics - Consolidated net sales in Q4 2023 were $49.7 million, a 48% decrease from $95 million in the same period last year [22] - Gross profit margin in Q4 declined to 24.1% from 39.5% in the same year-ago quarter, impacted by unabsorbed overhead due to lower demand [11] - Net income in Q4 decreased to $2.7 million from $17 million in the same year-ago period, representing 5% of net sales, down from 17% [12] - Full-year fiscal 2023 net sales decreased slightly to $269 million from $271 million in fiscal 2022, with organic net sales down 14% year-over-year [25] - Full-year net income decreased 34% to $32.5 million, representing 6% of net sales, down from 18% in fiscal 2022 [39] Business Line Performance - Community broadband comprised 46% of net sales in Q4, with $22.8 million in revenue, down 48% year-over-year [36] - MSO business accounted for 11% of net sales in Q4, declining 75% year-over-year and 5% for the full fiscal year [10] - National Carrier market net sales decreased 18% in Q4 and 17% for the full fiscal year [37] - International market net sales increased 32% in Q4 and 226% for the full fiscal year, driven by the Nestor Cables acquisition [107] Market Performance - Large regional service providers market net sales declined 64% in Q4 and 26% for the full fiscal year [24] - Nestor Cables contributed $10.6 million in Q4, with revenue impacted by seasonality [22] - Order backlog declined 65% to $57.3 million as of September 30, 2023, reflecting reduced demand and alignment with customer deployment schedules [105] Strategy and Industry Competition - The company is focused on reducing deployment time and labor costs, with new products like the CraftSmart FiberFirst Pedestal generating over $1 million in revenue from a single regional provider [5] - Clearfield is investing in operational efficiency, including ERP system updates and cost reduction initiatives, to improve gross margins once demand recovers [30] - The BEAD program is expected to expand the total available market, particularly in underserved rural areas, with longer fiber connections driving higher revenue opportunities [19][21] - The company is leveraging its Nestor platform to cross-sell connectivity products in Europe and investing in manufacturing facilities in Estonia [42] Management Commentary on Market Conditions - Industry analysts expect a slowdown in fiber deployment due to reduced CapEx budgets and higher interest rates, though end-user demand for high-speed broadband remains strong [4] - The first half of fiscal 2024 is expected to remain challenging due to inventory overhang and seasonal slowdowns, with revenue expected to soften [19][38] - The company anticipates an uptick in demand during the second half of fiscal 2024 as the build season resumes, leading to improved gross margins [38] Other Key Information - The company increased its share buyback authorization from $22 million to $40 million, reflecting confidence in its long-term opportunity [40] - Clearfield is working to ensure all product offerings are BABA compliant by the end of calendar year 2024 [102] - The company has a strong balance sheet with $174 million in cash and investments and only $2 million in debt [109] Q&A Session Question: Seasonal patterns and December quarter performance - Historically, Q1 and Q2 are similar, with a slowdown during the holidays and budget season, followed by a recovery in spring [46] - The company expects Q2 to potentially be slightly better than Q1, with significant improvement in Q3 and Q4 as demand picks up [53] Question: Nestor product line transition to Mexico facility - Most Nestor product lines have been transitioned to the Mexico facility, with remaining transitions dependent on inventory conditions [47] Question: OpEx trends for fiscal 2024 - OpEx is expected to remain steady, with Q3 2023 serving as a benchmark for future run rates [48] Question: Gross margin recovery timeline - Gross margins are expected to improve in Q3 and Q4 2024 as capacity utilization increases and fixed overhead coverage strengthens [53] Question: Impact of BEAD program on pricing - The BEAD program is expected to increase material costs due to BABA compliance requirements, potentially leading to dual SKUs with different pricing for U.S.-made and lower-cost labor market products [81] Question: International revenue expectations for Q1 - International revenue is expected to be in the range of $6-8 million for Q1, reflecting seasonality in the European market [84] Question: Normalized run rate and BEAD impact - The company expects a normalized cadence to return as large carriers resume deployments, with BEAD-related revenue expected to contribute meaningfully in fiscal 2025 [56][63] Question: Pricing discipline and market share - Clearfield is committed to maintaining price discipline and will not engage in unsustainable pricing practices, even in a competitive market [95]

The Company's 2022 Stock Compensation Plan permits the Compensation Committee of the Board of Directors to grant stockbased awards, including stock options and restricted stock, to key employees and non-employee directors. The Company has made restricted stock grants that vest over one to ten years. During the nine months ended June 30, 2023, the Company granted employees restricted stock awards totaling 34,674 shares of common stock, with a vesting term of approximately three years and a fair value of $72. ...

Clearfield Inc. (NASDAQ:CLFD) Q3 2023 Earnings Call Transcript August 3, 2023 5:00 PM ET Company Participants Greg McNiff - Investor Relations Cheryl Beranek - CEO, President and Director Kevin Morgan - Chief Marketing Officer Daniel Herzog - Chief Financial Officer Conference Call Participants Ryan Koontz - Needham Scott Searle - ROTH MKM Greg Mesniaeff - WestPark Capital Operator Good day, and welcome to the Clearfield Fiscal Third Quarter 2023 Conference Call. All participants will be in a listen-only mo ...

| --- | --- | --- | --- | --- | --- | |-----------------------------------------------------|----------------|------------|-------------------|----------|----------------| | | | | | | | | For the six months ended March 31, 2023 | | | Accumulated other | | | | | Common Stock | Additional | comprehensive | Retained | Total share- | 8 Note 1. Summary of Significant Accounting Policies The consolidated financial statements include the accounts of Clearfield, Inc. and its wholly-owned subsidiaries. All significa ...

Clearfield, Inc. (NASDAQ:CLFD) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Greg McNiff - IR Cheri Beranek - President and CEO Kevin Morgan - CFO Dan Herzog - CMO Conference Call Participants Ryan Koontz - Needham & Company Tim Savageaux - Northland Capital Markets Scott Searle - ROTH Capital Partners Operator Okay, and welcome to the Clearfield Fiscal Second Quarter 2023 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's pres ...

Financial Performance & Growth - Clearfield's FY2022 revenue reached $270.9 million[34], showcasing significant growth compared to previous years - The company achieved a gross margin of 41.7% in FY2022[34] - Net income for FY2022 was $49.4 million[34, 63], with a net margin of 18.2%[34] - Q1 2023 revenue was $86 million[55, 75], representing a 68% growth rate[75] - Gross profit increased by 85% year-over-year[60] - Q1 2023 net income reached $14.3 million[103] Market & Strategy - The company is focused on serving the fiber market[13] - Clearfield is targeting a $200 billion 5G market by 2030, with a CAGR of approximately 48% from 2022 to 2030[17] - US subsidies of $100 billion are allocated for broadband deployment[17] - The US FTTH market is estimated to be over $12.5 billion[40] - Approximately 60 million fiber homes are expected to be passed by 2030[40]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's Q1 FY2023 financial statements show significant year-over-year growth in assets, sales, and net income, reflecting the recent Nestor Cables acquisition [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) In Q1 FY2023, the company reported a 68% increase in net sales, a 37% rise in net income, and significant asset growth driven by a common stock issuance Consolidated Statement of Earnings Highlights (Q1 FY2023 vs Q1 FY2022) | Metric | Three Months Ended Dec 31, 2022 (in thousands) | Three Months Ended Dec 31, 2021 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $85,942 | $51,109 | +68.2% | | **Gross Profit** | $30,649 | $22,972 | +33.4% | | **Income from Operations** | $17,890 | $13,049 | +37.1% | | **Net Income** | $14,255 | $10,389 | +37.2% | | **Diluted EPS** | $1.00 | $0.75 | +33.3% | Consolidated Balance Sheet Highlights (As of Dec 31, 2022 vs Sep 30, 2022) | Metric | Dec 31, 2022 (in thousands) | Sep 30, 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $294,145 | $160,122 | +83.7% | | **Total Assets** | $351,797 | $229,128 | +53.5% | | **Total Liabilities** | $57,916 | $81,546 | -29.0% | | **Total Shareholders' Equity** | $293,881 | $147,582 | +99.1% | Consolidated Cash Flow Summary (Q1 FY2023 vs Q1 FY2022) | Cash Flow Activity | Three Months Ended Dec 31, 2022 (in thousands) | Three Months Ended Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $1,103 | $(34) | | **Net Cash used in Investing Activities** | $(101,094) | $(319) | | **Net Cash from Financing Activities** | $113,519 | $(181) | | **Increase (Decrease) in Cash** | $13,663 | $(534) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the establishment of two new reporting segments post-acquisition, revenue concentration, and the status of debt facilities - Following the acquisition of Nestor Cables on July 26, 2022, the company established **two reportable segments**: Clearfield and Nestor Cables[49](index=49&type=chunk)[65](index=65&type=chunk) Segment Performance (Q1 FY2023) | Segment | Revenue from External Customers (in thousands) | Net Income (Loss) (in thousands) | | :--- | :--- | :--- | | **Clearfield** | $78,355 | $14,718 | | **Nestor Cables** | $7,587 | $(310) | - **Broadband service providers constituted 97% of net sales**, with one major distributor, Customer A, comprising **15% of net sales** during this period[29](index=29&type=chunk)[63](index=63&type=chunk) - The company's **$40 million revolving line of credit had a zero balance** as of December 31, 2022, after being paid down, and the company was in compliance with all debt covenants[67](index=67&type=chunk)[184](index=184&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the drivers of 68% revenue growth, a decline in gross margin due to expansion, and a strengthened liquidity position from a stock offering [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q1 FY2023 net sales rose 68% driven by broadband demand and the Nestor acquisition, though gross margin declined due to investment and business mix Net Sales Breakdown (Q1 FY2023 vs Q1 FY2022) | Customer/Region | Q1 FY2023 Net Sales (in thousands) | Q1 FY2022 Net Sales (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Broadband Service Providers** | $83,626 | $50,406 | +65.9% | | **International Sales** | $10,204 | $1,991 | +412.5% | | **Total Net Sales** | $85,942 | $51,109 | +68.2% | - **Gross profit margin decreased from 44.9% to 35.7% YoY**, attributed to investments in new Minnesota and Mexico facilities and the inclusion of lower gross profit from the Nestor Cables business[222](index=222&type=chunk) - The **order backlog was $136 million** as of Q1 2023, a 34% increase over the prior year but a 17% sequential decrease attributed to faster order fulfillment[46](index=46&type=chunk) [Reportable Segments](index=22&type=section&id=Reportable%20Segments) The Clearfield segment saw strong growth in sales and income, while the new Nestor Cables segment recorded a small net loss on $7.6 million in sales Clearfield Segment Performance | Metric | Q1 FY2023 (in thousands) | Q1 FY2022 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Segment Net Sales** | $78,355 | $51,109 | +53.3% | | **Segment Net Income** | $14,718 | $10,389 | +41.7% | Nestor Cables Segment Performance (Q1 FY2023) | Metric | Amount (in thousands) | | :--- | :--- | | **Segment Net External Sales** | $7,587 | | **Segment Net Loss** | $(310) | [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly improved with $158.1 million in cash and investments, bolstered by a $130.3 million stock offering used to repay acquisition-related debt - **Net proceeds of $130.3 million** were received from the issuance of common stock, and a portion of these funds, **$16.7 million**, was used to pay down the line of credit for the Nestor Cables acquisition[102](index=102&type=chunk) - **Net cash provided by operating activities was $1.1 million**, with cash used to increase inventory by $6.5 million to support the sales order backlog and mitigate supply chain disruptions[100](index=100&type=chunk) - The company's principal source of liquidity was **$147.9 million in cash, cash equivalents, and short-term investments**, plus a $40 million undrawn line of credit[227](index=227&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces increased foreign exchange risk from its Euro-based subsidiary and market risk from inflation impacting costs - The company is exposed to **foreign exchange risk** as the functional currency of its new subsidiary, Nestor Cables, is the Euro; a hypothetical **10% change in the Euro/USD rate would have changed operating expenses by approximately $130,000**[88](index=88&type=chunk) - The company is subject to **market risk from inflation**, with rising costs in wages, logistics, and raw materials negatively impacting profitability[106](index=106&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on an evaluation as of December 31, 2022, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[107](index=107&type=chunk) - No material changes were made to internal controls over financial reporting, but the company is still in the process of **integrating the internal control environment of the Nestor Cables segment**[91](index=91&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings & Item 1A. Risk Factors](index=26&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS%20%26%20ITEM%201A.%20RISK%20FACTORS) The company reports no material pending legal proceedings and no material changes to its previously disclosed risk factors - There are **no pending legal proceedings** against the Company expected to have a material adverse effect[92](index=92&type=chunk) - There have been **no material changes** from the risk factors previously disclosed in the Annual Report on Form 10-K[109](index=109&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 9,803 shares for $0.95 million to satisfy employee tax obligations, with $15.0 million remaining under its repurchase program Issuer Purchases of Equity Securities (Q1 FY2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **November 1-30, 2022** | 5,778 | $92.48 | | **December 1-31, 2022** | 4,025 | $104.36 | | **Total** | 9,803 | $97.36 (approx.) | - As of December 31, 2022, the approximate dollar value of shares that may yet be purchased under the company's stock repurchase program is **$14,980,671**[110](index=110&type=chunk)[119](index=119&type=chunk) [Other Items and Exhibits](index=26&type=section&id=Other%20Items%20and%20Exhibits) The report notes no other material information to disclose and lists key exhibits filed, including CEO/CFO certifications and iXBRL data - Items 3 (Defaults Upon Senior Securities), 4 (Mine Safety Disclosures), and 5 (Other Information) were reported as **not applicable or had no information to disclose**[94](index=94&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[120](index=120&type=chunk) - Exhibits filed with the Form 10-Q include **CEO and CFO certifications** and financial data in **iXBRL format**[113](index=113&type=chunk)[121](index=121&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended September 30, 2022. ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to _______________. Commission File Number 0-16106 CLEARFIELD, INC. (Exact Name of Registrant as Specified in its Charter) Minnesota 41-1347235 (State of incorp ...

| --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Clearfield FieldReport: | | | | | | | | | Fiscal Q4 & 2022 Earnings Call | | | | | | | | | November 17, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | �CLEARFIELD 1 Important Cau ...