Clearfield, Inc. (NASDAQ:CLFD) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET

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Clearfield, Inc. (NASDAQ:CLFD) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. Welcome to Clearfield's Fiscal Fourth Quarter and Full Year 2019 Earnings Conference Call. My name is Steve, and I'll be your operator this afternoon. Joining us for today's presentation are the Company's President and CEO Cheri Beranek and CFO, Dan Herzog. Following their commentary, we will open the call for questions. I would now like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of the Company's website.

This call is also being webcasted and accompanied by a PowerPoint presentation called the FieldReport, which is also available in the Investor Relations section of the Company's website. Please note that during the course of this call, management will be making forward-looking statements regarding future earnings and the future financial performance of the company. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. It's important to note, also that the company undertakes no obligation to update such statements except as required by law. The Company cautions you to consider risk factors that could actual results to differ materially from those in the forward-looking statements contained in today press release, FieldReport and in this conference call. The Risk Factors section in the Clearfield's most recent Form 10-K filing with the Securities and Exchange Commission provides descriptions of those risks. As a reminder, the slides in this presentation are not controlled by the speaker but rather by you, the listener. Please advance forward through the presentation as the speakers present their remarks.

With that, I would like to turn the call over to Clearfieldis CEO, Cheri Beranek. Please proceed.

Executive
Cheri Beranek

Good afternoon and thank you everyone for joining us today. The fourth quarter was a strong period for Clearfield as we achieved the highest level of quarterly revenue in our company's history at $24 million, which was up 7% from Q4 of last year. Similar to our Q3 results, much of this growth came from our National Carrier market, where we saw particularly strong demand in faster-growing applications, such as wireless connectivity, business class services and multi-dwelling units, or MDU, deployments. In fact, we saw revenue from Tier 1 customers, which includes both telcos, as well as smaller wireless carriers, increase each quarter in fiscal 2019.

This momentum not only validates the strategic investments we've made over the last two years to capitalize on the Tier 1 market opportunity, but it also demonstrates the increasing traction we're achieving in this important and growing market. Our performance in the fourth quarter helped us achieve our financial guidance for the full fiscal year. Looking at some of the headline numbers for the year, we generated record revenue at $85 million, which was up 10% from 2018 driven by broad-based growth across our key markets, especially Tier 1. We also held our expenses in line with our plan as well as maintained solid gross profit and net income margins of