Clearfield, Inc. · NASDAQ:CLFD
Clearfield — Q4 2017 Earnings Presentation
20 slides from Clearfield's earnings presentation, Nov 9, 2017
Slide 1: Fiscal Q4 2017 Earnings Call FieldReport
CLEARFIELD Leader in Fiber Optic Management & Connectivity Solutions Fiscal Q4 2017 Earnings Call FieldReport November 9, 2017
Slide 2: Important Cautions Regarding Forward-Looking Statements
Important Cautions Regarding Forward-Looking Statements Forward-looking statements contained herein and in the FieldReport are made pursuant to the safe harbor provisions ofthe Private Litigation Reform Act of 1995. Words such as “may,” “wil” “expect,” “believe,” “anticipate,” “estimate,” “outlook,”
Slide 3: Welcome
Welcome @ 7 CLEARFIELD'
Slide 4: FY 2017 Review: Overall Market Pause Doesn't Overshadow Success in Key Growth Areas
FY 2017 Review: Overall Market Pause Doesn’t Overshadow @ Success in Key wth Areas * Wireless and cable TV customers continue to Tier 1 Revenue put a pause in capex spending due to technology disruption and less competitive pressures * Revenue for fiscal 2017 outside of the alternative carrier marke
Slide 5: Financial Update
Financial Update (CLEARFELD
Slide 6: Quarterly Financial Performance
Quarterly Financial Performance Revenue $21.1 $18.3M] pan $17.7M) Q4-16 Q1-17 Q2-17 03-17 4-17
Slide 7: Quarterly Financial Performance
rterly Financial Performance Revenue Gross Profit $21.1 $19.6M) aul $7.7M $18.3M] pan Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 45.5% | 39.5% ff 42.2% ff 40.5% ff 41.7% Year-over-Year Growth Rate Gross Profit (%)
Slide 8: Strategic Investment in Growth
Strategic Investment in Grow $6.6M $6.2M $6.2M psi 4 ay C as ~ oi oa 04-16 Q1-17 Q2-17 Q3-17 Q4-17 mim Operating Expenses % of Revenue
Slide 9: Quarterly Financial Performance
Quarterly Financial Performance Revenue Gross Profit Net Income $21.1M| $2.7 $7.2M ee s18.3M s18.4m $1am [| Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 433% % -9% | -13% 45.5% | 39.5% ff 42.2% ff 40.5% ff 41.7% Year-over-Year Growth Rate Gross Profit (%)
Slide 10: Balance Sheet Supports Growth
Balance Sheet Supports Growth Cash & Investment Balances $in Millions $44.3 Cash & Investments $44.3 $44.2 $44.2 1 fp $343 Total Assets $69.5 $70.6 Be Stockholders’ Equity $64.5 $62.6 $22.6 Total Debt $0 $0 sete 2013 2014 2015 2016 2017
Slide 11: Operational Update and Outlook
Operational Update and Outlook @ NY CLEARFIELD'
Slide 12: FY 2017 Revenue Composition & Market Opportunity
FY 2017 Revenue Composition & Market Opportunity WIRELINE WIRELESS & CABLE TV 58% 14% * Core: Tier 3 and muni. * Wireless service providers: + Emerging: Ter2 + sos WIRELINE - TIER 1 INTERNATIONAL 9% 8% + Caribbean/Latin Ter283 ze Raventie more than, ‘America and Canada wireline — doubling tess then
Slide 13: FY 2017 Revenue Composition & Market Opportunity
FY 2017 Revenue Composition & Market Opportunity WIRELINE WIRELESS & CABLE TV 58% 14% + Core: Tier 3 and muni + Wireless service providers Cable Doubles TAM * Emerging: Tier 2 * Mss WIRELINE - TIER 1 INTERNATIONAL 9% 8% * Caribbean/Latin ze Raventie more than, ‘America and Canada doubling OTHER ALTE
Slide 14: Wireless TAM
Wireless TAM Wireline TAM Cable TAM stration not drawn to scale WIRELINE 58% © core: Tier 3 and mun * Emerging Ter? WIRELINE - TIER 1 9% + Revenue more than doubling OTHER 8% + Contract manufacturing Mis sles WIRELESS & CABLE TV 14% + Wireless service providers MSOs INTERNATIONAL 8% + Caribbean/Lati
Slide 15: The Road to Profitably Growing Revenue Faster Than 15%
The Road to Profitably Growing Revenue Faster Than 15% & NATIONAL MARKET PER MANAGEMENT canntenproouch) pgataunes \) steatesic \pnooucrune APPROVALS ENHANCEMENTS + Rebuild the company + Expand into Tier 1 market through + Secure additional partnerships that, product approvals and certifications: wil
Slide 16: Fiscal 2018 Outlook and Guidance
Fiscal 2018 Outlook and Guidance + 5% revenue growth: Revenue Growth Outlook (s in mitions) — 1H 2018 to be flat, while 2H 2018 to grow 10% year-over-year Wireline to continue growing at high single digits $75.3 $73.9 $77.6] Wireless and cable TV markets to continue to be at a pause — Continued acce
Slide 17: Clearfield
NY CLEARFIELDS
Slide 18: Q&A
Slide 19: Thank You
Thank You @ 7 CLEARFIELD'
Slide 20: We Turn Your Brownfield Green
WE TURN YOUR BROWNFIELD ¢ § GREEN $ Company Contact: Investor Relations: Cheri Beranek Matt Glover or Najim Mostamand, CFA CEO & President Liolios Group, Inc. Clearfield, Inc. (949) 574-3860 IR@elfd.net CLFD@liolios.com