Clearfield, Inc. (NASDAQ:CLFD) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 05:00 pm ET
38.4% and 5.4%, respectively.
As usual, before I dive deeper into our results and progress against our coming-of-age plan, I'd like to spend a moment going over some of our recent operational and market progress. Looking at the breakout of revenue, we are exceptionally pleased that revenue is up in all of our five key markets. Starting first with our core Community Broadband market, Q4 revenue was consistent year-over-year at $14.8 million and up 4% for the year at $53.5 million.
As expected, the softness we experienced with this customer market in Q3 carried over into Q4 due to the transition in the federal funding programs from the Connect American Fund, or CAF, which is ending in 2019 to the $20.4 billion Rural Digital Opportunity Fund, which begins a 10-year program starting in calendar 2020. It is expected that the annual spend under the Rural Digital Opportunity Fund will be approximately $2 billion. Given our track record of success in the Community Broadband market, Clearfield is well positioned with an enhanced and integrated product suite to gain market share in the years ahead.
Our National Carrier business is our second-largest market, comprising 17% of our total revenue in Q4 and 14% of our total revenue for fiscal 2019. In Q4, our National Carrier business achieved yet another record quarter, with revenue of $4 million. For the year, we generated a record $11.9 million, up 31% or $2.8 million from the prior fiscal year. These record results were primarily driven by the continued adoption of our FieldShield products at two carriers. Overall, our performance demonstrates our solutions' continued competency in the field along with the growing trust these larger carriers are developing with Clearfield to support and to scale their networks.
Looking briefly at our other markets, our MSO business was up 13% in Q4 to $2.4 million and up 6% for the year to $8.4 million. While we're encouraged with the growth we achieved, we believe some of the temporary spend increases in the Cable TV market will be alleviated after the first of the year. Longer term, As Cable TV operators look to upgrade their networks and push fiber deeper and closer to the edge, Clearfield stands to benefit from this increasing desire to quickly and cost effectively carry out these initiatives. Our International market, which, as most of you know, is predominantly sales into Mexico, the Caribbean markets and Canada was consistent to last year in the fourth quarter and up 21% to $6.5 million for the full fiscal year.
Revenue in our legacy Build-to-Print business was up 28% in the fourth quarter and 25% for the fiscal year to $4.7 million. We continue to expect this business to operate at approximately a $4 million annual run rate for the foreseeable future. With that, I'll now turn the presentation over to our CFO, Dan Herzog, who will walk us through our financial performance for the fourth quarter and full year of fiscal 2019.
Thank you, Cheri.