MINNEAPOLIS, Aug. 03, 2023 (GLOBE NEWSWIRE) -- In the release issued earlier today by Clearfield, Inc. (NASDAQ: CLFD) under the same headline, please note that the updated press release below now includes the Consolidated Balance Sheets and omits a duplicate Cashflows table.

Clearfield, Inc. (NASDAQ: CLFD), a leader in fiber connectivity, reported results for the third quarter of fiscal 2023.

“Our third quarter fiscal 2023 results came in relatively in-line with our expectations,” said Company President and CEO Cheri Beranek. “Based on conversations with our customers, we expect service providers to continue working through inventory for the next several quarters. Additionally, our community broadband customers are adopting a cautious approach with respect to deploying capital until they have better visibility into the timing of government funded deployments. While we expect these dynamics will impact our near-term performance, likely into fiscal 2024, we continue to focus on positioning the company for long-term growth, right-sizing capacity levels, and designing products that address our customers’ biggest pain points. With government funding initiatives underway and significant rural broadband builds expected in the coming years, we anticipate strong demand for our core products once order patterns return to normalized levels. By investing in our people, modernizing our systems, and targeting expansion into new markets like Europe, we are positioning Clearfield for continued success which we believe will drive significant shareholder value over the long term."

“Clearfield's strong balance sheet and strategic approach with service providers enable us to pursue growth opportunities and enhance our product portfolio," said CFO Dan Herzog. “We continue to invest in capital equipment with faster processing capability to reduce costs and improve margins. Finally, we are reiterating our full-year fiscal 2023 revenue guidance and increasing our full year net income per share guidance.”

Financial Results for the Three Months Ended June 30, 2023
Net sales for the third quarter of fiscal 2023 decreased 14% to $61.3 million from $71.3 million in the same year-ago quarter. Organic revenue decreased 33% year over year to $47.9 million, while Nestor Cables generated revenue of $13.4 million.

As of June 30, 2023, order backlog (defined as purchase orders received but not yet fulfilled) was $74.7 million, a decrease of $32.9 million, or 31% compared to $107.6 million as of March 31, 2023, and a decrease of $82.0 million, or 52%, from June 30, 2022. The sequential decrease was due to a lull in demand as customers digest previously purchased products.

Gross margin for the quarter was 31.1%, compared to 41.1% in the third quarter of fiscal 2022. Gross margin was negatively affected by excess production capacity as well as Nestor’s inclusion in the quarter. The Company continues to realign capacity to current market conditions.

Operating expenses for the quarter increased 6% to $13.4 million, or 22% of net sales, from $12.7 million, or 18% of net sales in the same year-ago quarter.

Net income for the quarter totaled $5.2 million, or $0.33 per diluted share, compared to $12.7 million, or $0.92 per diluted share, in the same year-ago quarter.

Outlook
The Company is reiterating its fiscal 2023 revenue guidance and is raising its net income per share guidance due to better-than-expected product margin as well as cost saving initiatives. Clearfield continues to expect its full year fiscal 2023 net sales to be within a range of $260 to $275 million, and now expects net income per share to be in the range of $2.05 to $2.15, up from $1.80 to $2.10 previously.

Conference Call
Management will hold a conference call today, August 3, 2023, at 5:00 p.m. Eastern Time (4:00 p.m. Central Time) to discuss these results and provide an update on business conditions.

Clearfield’s President and CEO Cheri Beranek and CFO Dan Herzog will host the presentation, followed by a question-and-answer period.

U.S. dial-in: 1-844-826-3033
International dial-in: 1-412-317-5185
Conference ID: 8040539

The live webcast of the call can be accessed at the Clearfield Investor Relations website along with the company's earnings press release and presentation.

Please see the Earnings Presentation for recharacterized customer segment revenue.

A replay of the call will be available after 8:00 p.m. Eastern Time on the same day through August 17, 2023, while an archived version of the webcast will be available on the Investor Relations website for 90 days.

U.S. replay dial-in: 1-844-512-2921
International replay dial-in: 1-412-317-6671
Replay ID: 10177264

About Clearfield, Inc.
Clearfield, Inc. (NASDAQ: CLFD) designs, manufactures, and distributes fiber optic management, protection, and delivery products for communications networks. Our “fiber to anywhere” platform serves the unique requirements of leading incumbent local exchange carriers (traditional carriers), competitive local exchange carriers (alternative carriers), and MSO/cable TV companies, while also catering to the broadband needs of the utility/municipality, enterprise, data center, and military markets. Headquartered in Minneapolis, MN, Clearfield deploys more than a million fiber ports each year. For more information, visit www.SeeClearfield.com.

Cautionary Statement Regarding Forward-Looking Information
Forward-looking statements contained herein and in any related presentation or in the related Earnings Presentation are made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “outlook,” or “continue” or comparable terminology are intended to identify forward-looking statements. Such forward looking statements include, for example, statements about the Company’s future revenue and operating performance, expected customer ordering patterns, anticipated shipping on backlog and future lead times, future availability of components and materials from the Company’s supply chain, future availability of labor impacting our customers’ network builds, the impact of the Rural Digital Opportunity Fund (RDOF) or other government programs on the demand for the Company’s products or timing of customer orders, the Company’s ability to match capacity to meet demand, expansion into new markets and trends in and growth of the FTTx markets, market segments or customer purchases and other statements that are not historical facts. These statements are based upon the Company's current expectations and judgments about future developments in the Company's business. Certain important factors could have a material impact on the Company's performance, including, without limitation: the COVID-19 pandemic has significantly impacted worldwide economic conditions and could have a material adverse effect on our business, financial condition and operating results; inflationary price pressures and uncertain availability of components, raw materials, labor and logistics used by us and our suppliers could negatively impact our profitability; we rely on single-source suppliers, which could cause delays, increase costs or prevent us from completing customer orders; we depend on the availability of sufficient supply of certain materials and global disruptions in the supply chain for these materials could prevent us from meeting customer demand for our products; we rely on our manufacturing operations to produce product to ship to customers and manufacturing constraints and disruptions could result in decreased future revenue; a significant percentage of our sales in the last three fiscal years have been made to a small number of customers, and the loss of these major customers could adversely affect us; further consolidation among our customers may result in the loss of some customers and may reduce sales during the pendency of business combinations and related integration activities; we may be subject to risks associated with acquisitions, and the risks could adversely affect future operating results; we have exposure to movements in foreign currency exchange rates; if we are unable to integrate acquired businesses, our financial results could be materially and adversely affected; adverse global economic conditions and geopolitical issues could have a negative effect on our business, and results of operations and financial condition; our planned growth may strain our business infrastructure, which could adversely affect our operations and financial condition; product defects or the failure of our products to meet specifications could cause us to lose customers and sales or to incur unexpected expenses; we are dependent on key personnel; cyber-security incidents on our information technology systems, including ransomware, data breaches or computer viruses, could disrupt our business operations, damage our reputation, and potentially lead to litigation; our business is dependent on interdependent management information systems; to compete effectively, we must continually improve existing products and introduce new products that achieve market acceptance; if the telecommunications market does not continue to expand, our business may not grow as fast as we expect, which could adversely impact our business, financial condition and operating results; changes in U.S. government funding programs may cause our customers and prospective customers to delay, reduce, or accelerate purchases, leading to unpredictable and irregular purchase cycles; intense competition in our industry may result in price reductions, lower gross profits and loss of market share; our success depends upon adequate protection of our patent and intellectual property rights; we face risks associated with expanding our sales outside of the United States; and other factors set forth in Part I, Item IA. Risk Factors of Clearfield's Annual Report on Form 10-K for the year ended September 30, 2022 as well as other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements to reflect actual events unless required by law.

Investor Relations Contact:
Greg McNiff
The Blueshirt Group
773-485-7191
clearfield@blueshirtgroup.com

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Cover	Aug. 03, 2023
Cover [Abstract]
Document Type	8-K/A
Amendment Flag	true
Amendment Description	This Current Report on Form 8-K/A amends the Current Report on Form 8-K filed August 3, 2023 (the “Original Report”) pursuant to which Clearfield, Inc. (the “Company”) reported the issuance of a press release announcing the results of its third quarter of fiscal year 2023. A copy of the press release issued and furnished with the Original Report inadvertently included a duplicate Consolidated Statement of Cashflows and no Consolidated Balance Sheets. On August 3, 2023, the Company issued a corrected press release. No other changes have been made to the Original Form 8-K.
Document Period End Date	Aug. 03, 2023
Entity File Number	000-16106
Entity Registrant Name	CLEARFIELD, INC.
Entity Central Index Key	0000796505
Entity Tax Identification Number	41-1347235
Entity Incorporation, State or Country Code	MN
Entity Address, Address Line One	7050 Winnetka Avenue North
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Brooklyn Park
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55428
City Area Code	(763)
Local Phone Number	476-6866
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CLFD
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

Minnesota	000-16106	41-1347235
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	CLFD	The Nasdaq Stock Market

	CLEARFIELD, INC.


Date: August 3, 2023	By:	/s/ Cheryl Beranek
		Cheryl Beranek
		Chief Executive Officer

Fiscal Q3 2023 Financial Summary
(in millions except per share data and percentages)	Q3 2023			vs. Q3 2022			Change			Change (%)
Net Sales	$	61.3		$	71.3		$	(10.0	)	-14	%

Gross Profit ($)	$	19.1		$	29.3		$	(10.2	)	-35	%
Gross Profit (%)		31.1	%		41.1	%		-10.0	%	-24	%

Income from Operations	$	5.6		$	16.6		$	(11.0	)	-66	%
Income Tax Expense	$	1.8		$	3.9		$	(2.0	)	-53	%

Net Income	$	5.2		$	12.7		$	(7.5	)	-59	%
Net Income per Diluted Share	$	0.33		$	0.92		$	(0.59	)	-64	%

Fiscal Q3 YTD 2023 Financial Summary
(in millions except per share data and percentages)	2023 YTD			vs. 2022 YTD			Change			Change (%)
Net Sales	$	219.0		$	175.9		$	43.2		25	%

Gross Profit ($)	$	73.3		$	75.4		$	(2.2	)	-3	%
Gross Profit (%)		33.5	%		42.9	%		-9.4	%	-22	%

Income from Operations	$	35.6		$	41.6		$	(6.0	)	-14	%
Income Tax Expense	$	8.5		$	9.5		$	(1.0	)	-10	%

Net Income	$	29.8		$	32.4		$	(2.5	)	-8	%
Net Income per Diluted Share	$	2.00		$	2.33		$	(0.33	)	-14	%


CLEARFIELD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
	(Unaudited)					(Unaudited)
	Three Months Ended					Nine Months Ended
	June 30,					June 30,
		2023			2022		2023			2022

Net sales	$	61,284		$	71,250	$	219,035		$	175,854

Cost of sales		42,210			41,943		145,750			100,411

Gross profit		19,074			29,307		73,285			75,443

Operating expenses
Selling, general and
administrative		13,449			12,721		37,714			33,877
Income from operations		5,625			16,586		35,571			41,566

Net investment income		1,630			43		3,328			284
Interest expense		(195	)		-		(551	)		-
Income before income taxes		7,060			16,629		38,348			41,850

Income tax expense		1,842			3,884		8,511			9,480

Net income	$	5,218		$	12,745	$	29,837		$	32,370

Net income per share:
Basic	$	0.33		$	0.93	$	2.01		$	2.35
Diluted	$	0.33		$	0.92	$	2.00		$	2.33

Weighted average shares outstanding:
Basic		15,254,341			13,772,269		14,880,666			13,760,950
Diluted		15,254,341			13,899,698		14,929,405			13,900,019

CLEARFIELD, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
		(Unaudited)
		June 30,			September 30,
		2023			2022
Assets
Current Assets
Cash and cash equivalents	$	31,385		$	16,650
Short-term investments		130,726			5,802
Accounts receivable, net		31,944			53,704
Inventories, net		105,003			82,208
Other current assets		4,084			1,758
Total current assets		303,142			160,122

Property, plant and equipment, net		21,318			18,229

Other Assets
Long-term investments		6,556			22,747
Goodwill		6,581			6,402
Intangible assets, net		6,344			6,376
Right-of-use lease assets		14,773			13,256
Deferred tax asset		998			1,414
Other		1,489			582
Total other assets		36,741			50,777
Total Assets	$	361,201		$	229,128

Liabilities and Shareholders' Equity
Current Liabilities
Current portion of lease liability	$	3,722		$	3,385
Debt		2,174			-
Accounts payable		11,641			24,118
Accrued compensation		7,319			13,619
Accrued expenses		3,335			6,181
Factoring liability		8,722			4,391
Total current liabilities		36,913			51,694

Other Liabilities
Long-term debt		-			18,666
Long-term portion of lease liability		11,572			10,412
Deferred tax liability		782			774
Total Liabilities		49,267			81,546

Shareholders' Equity
Common stock		153			138
Additional paid-in capital		187,409			54,539
Accumulated other comprehensive loss		(268	)		(1,898	)
Retained earnings		124,640			94,803
Total Shareholders' Equity		311,934			147,582
Total Liabilities and Shareholders' Equity	$	361,201		$	229,128

Clearfield, Inc.
Consolidated Statement of Cashflows
(Unaudited)
		Nine Months Ended			Nine Months Ended
		June 30,			June 30,
		2023			2022
	Cash flows from operating activities
	Net income	$	29,837		$	32,370
	Adjustments to reconcile net income to cash provided
	by (used in) operating activities:
	Depreciation and amortization		4,411			2,205
	Amortization of discount on investments		(2,429	)		(31	)
	Stock-based compensation		2,504			1,647
	Changes in operating assets and liabilities
	Accounts receivable		24,519			(12,156	)
	Inventories, net		(21,510	)		(41,816	)
	Other assets		(3,525	)		(185	)
	Accounts payable and accrued expenses		(20,326	)		8,677
	Net cash provided by (used in) operating activities		13,481			(9,289	)

	Cash flows from investing activities:
	Purchases of property, plant and equipment and
	intangible assets		(6,529	)		(6,764	)
	Purchase of investments		(210,923	)		(248	)
	Proceeds from sales and maturities of investments		105,077			17,386
	Net cash (used in) provided by investing activities		(112,375	)		10,374

	Cash flows from financing activities:
	Repayment of long-term debt		(16,700	)		-
	Proceeds from issuance of common stock under		612			544
	employee stock purchase plan
	Repurchase of shares for payment of withholding taxes		(954	)		(274	)
	for vested restricted stock grants
	Tax withholding and proceeds related to exercise of stock options		(493	)		(379	)
	Issuance of stock under equity compensation plans		954			-
	Net proceeds from issuance of common stock		130,262			-
	Net cash provided by (used in) financing activities		113,681			(109	)

	Effect of exchange rates on cash		(52	)		-
	Increase in cash and cash equivalents		14,735			976
	Cash and cash equivalents, beginning of period		16,650			13,216
	Cash and cash equivalents, end of period	$	31,385		$	14,192

	Supplemental disclosures for cash flow information
	Cash paid for income taxes	$	12,589		$	9,913
	Cash paid for interest	$	360		$	-

	Non-cash financing activities
	Cashless exercise of stock options	$	566		$	276