Slide 1: Fiscal Q2 2019 Earnings Call FieldReport
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD The Industry Leader in Craft Friendly Fiber Optic Management and Connectivity Solutions Fiscal Q2 2019 Earnings Call FieldReport
Slide 2: Important Cautions Regarding Forward-Looking Statements
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 Important Cautions Regarding Forward‐Looking NASDAQ:CLFD Statements • Forward‐looking statements contained herein and in any related presentation or in the related FieldReport are made pursuant to the safe harbor provisions of the Private L
Slide 3: Welcome
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Welcome Cheri Beranek PRESIDENT & CEO NASDAQ:CLFD 3
Slide 4: FQ2 2019 Review
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD FQ2 2019 Review Quarterly Revenue • Revenue of $19.1 million, up 13% year‐ over‐year • Experienced growth in all five markets, $21.5M $22.5M particularly in high‐growth applications, $20.1M $19.1M such as wireless, business clas
Slide 5: Q2 Year-over-Year Revenue by Market
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 Q2 Year‐over‐Year Revenue 1 Trailing Twelve Month Revenue CompositionNASDAQ:CLFD by Market 8% 5% $12.1 10% $11.8 12% 65% Community Broadband (Tier 2 & 3, utilities, municipalities, and alternative carriers) Wireline/Wireless National Telco
Slide 6: Financial Update
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Financial Update Dan Herzog CHIEF FINANCIAL OFFICER NASDAQ:CLFD 6
Slide 7: Quarterly Financial Performance
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Quarterly Financial Performance Revenue $22.5 $21.5 $20.1 $19.1 $16.8 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 ‐5% +10% +22% +19% +13% Year‐over‐Year Growth Rate Note: Dollar figures in millions NASDAQ:CLFD 7
Slide 8: Quarterly Financial Performance
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Quarterly Financial Performance Revenue Gross Profit $22.5 $8.5 $8.6 $21.5 $7.9 $20.1 $19.1 $6.8 $7.0 $16.8 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 ‐5% +10% +22% +19% +13% 40.3% 39.5% 38.3% 39.6% 36.8%* Year‐
Slide 9: Quarterly Financial Performance
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Quarterly Financial Performance Revenue Gross Profit Operating Expenses $22.5 $8.5 $8.6 $7.3** $21.5 $7.9 $20.1 $19.1 $6.8 $7.0 $16.8 $6.7** $6.8 $6.1 $6.1 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q2‐18 Q3‐18
Slide 10: Quarterly Financial Performance
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Quarterly Financial Performance Revenue Gross Profit Operating Expenses Net Income $7.3** $8.5 $8.6 $1.9 $22.5 $1.8 $21.5 $7.9 $20.1 $19.1 $6.8 $7.0 $16.8 $6.8 ** $6.7 $1.0 $0.4 $6.1 $6.1 ** ‐$0.3 Q2‐18 Q3‐18 Q4‐18 Q1‐19 Q2‐19 Q
Slide 11: Strong Balance Sheet Supports Profitable Growth
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 Strong Balance Sheet Supports Profitable Growth NASDAQ:CLFD Cash and Investment Balances • Zero Debt $44.2M $44.3M $43.5M • $12 million stock repurchase $34.3M $35.5M $33.1M program in place $22.6M ($5.4 million remains) 2013 2014 2015 2016
Slide 12: Clearfield's 'Coming of Age' Plan
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Clearfield’s ‘Coming of Age’ Plan Expanding Core Community Broadband Business Attracting utilities, co‐ops and CLECs as they enter underserved communities, and maintaining steady growth rate of 8‐12% Enhancing Competitive Positi
Slide 13: Recent 5G Industry Developments
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Recent 5G Industry Developments FCC’s 5G Fast Plan Push More Spectrum into the 1 Marketplace 2 Update Infrastructure Policy 3 Modernize Outdated Regulations Verizon announces official launch of 5G service, initially Government r
Slide 14: Fiscal 2019 Outlook & Guidance
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Fiscal 2019 Outlook & Guidance Revenue Growth Outlook ($ in Millions) $83 ‐ $83.1 $87 $75.3 $73.9 $77.7 $83M ‐ $87M 37% ‐ 38% REVENUE GROSS MARGINS $60.3 31% ‐ 33% 3% ‐ 5% OPERATING EXPENSES NET INCOME as % of revenue as a % of
Slide 15: Q&A
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Q&A Cheri Beranek Dan Herzog PRESIDENT & CEO CHIEF FINANCIAL OFFICER NASDAQ:CLFD 15
Slide 16: NASDAQ:CLFD
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD NASDAQ:CLFD 16
Slide 17: Thank You
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD Thank You Cheri Beranek PRESIDENT & CEO NASDAQ:CLFD 17
Slide 18: Contact Us
FieldReport / Fiscal Q2 2019 Earnings Call / April 25, 2019 NASDAQ:CLFD COMPANY CONTACT: INVESTOR RELATIONS: Cheri Beranek Matt Glover or Najim Mostamand, CFA Contact Us President & CEO Clearfield, Inc. Liolios Group, Inc. (949) 574‐3860 IR@clfd.net CLFD@liolios.com NASDAQ:CLFD 18