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<SEC-DOCUMENT>0001157523-10-002495.txt : 20100429
<SEC-HEADER>0001157523-10-002495.hdr.sgml : 20100429
<ACCEPTANCE-DATETIME>20100429110024
ACCESSION NUMBER:		0001157523-10-002495
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100429
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100429
DATE AS OF CHANGE:		20100429

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Clearfield, Inc.
		CENTRAL INDEX KEY:			0000796505
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE & TELEGRAPH APPARATUS [3661]
		IRS NUMBER:				411347235
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-16106
		FILM NUMBER:		10779441

	BUSINESS ADDRESS:	
		STREET 1:		5480 NATHAN LANE NORTH
		STREET 2:		SUITE 120
		CITY:			PLYMOUTH
		STATE:			MN
		ZIP:			55442
		BUSINESS PHONE:		763-476-6866

	MAIL ADDRESS:	
		STREET 1:		5480 NATHAN LANE NORTH
		STREET 2:		SUITE 120
		CITY:			PLYMOUTH
		STATE:			MN
		ZIP:			55442

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	APA Enterprises, Inc.
		DATE OF NAME CHANGE:	20041116

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	APA OPTICS INC /MN/
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a6268987.htm
<DESCRIPTION>CLEARFIELD, INC. 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2010 Business Wire, a Berkshire Hathaway company.-->
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  </head>
  <body style="font-size: 10pt; font-family: Times New Roman">
    <hr style="text-align: center; height: 3.0 pt; color: #000000; width: 100%">
    <hr style="text-align: center; height: 1.0 pt; color: #000000; width: 100%">


    <p style="text-align: center">
      <font style="font-size: 14pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><font style="font-size: 14pt"><br style="font-size: 14pt"></font><font style="font-size: 14pt; font-family: Times New Roman"><b>SECURITIES
      AND EXCHANGE COMMISSION</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-size: 16pt; font-family: Times New Roman"><b>Form
      8-K</b></font><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><font style="font-size: 12pt"><br style="font-size: 12pt"></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Pursuant
      to Section 13 or 15(d) of the</b></font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman"><b>Securities
      Exchange Act of 1934</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Date
      of Report: April 29, 2010</b></font><font style="font-size: 10pt; font-family: Times New Roman"><br style="font-size: 10pt; font-family: Times New Roman"></font>(Date
      of earliest event reported)<br><br><font style="font-size: 14pt"><b>CLEARFIELD,
      INC.</b></font><br><font style="font-size: 9pt; font-family: Times New Roman">(Exact
      Name of Registrant as Specified in Charter)</font><font style="font-size: 9pt"><br style="font-size: 9pt"></font><br><b>Minnesota</b><br>(State
      or Other Jurisdiction of Incorporation)<br><br>
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; margin-left:auto;margin-right:auto; font-family: Times New Roman">
      <tr>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>0-16106</b>
          </p>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>41-1347235</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission File No.)
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (IRS Employer Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      <b>5480 Nathan Lane North, Suite 120, Plymouth, MN 55442</b><br>(Address
      of Principal Executive Offices)(Zip Code)<br><br><br><b>(763) 476-6866</b><font style="font-size: 10pt; font-family: Times New Roman"><br style="font-size: 10pt; font-family: Times New Roman"></font>(Registrant&#8217;s
      Telephone Number, Including Area Code)<br><br><br><b>Not Applicable</b><br><font style="font-size: 10pt; font-family: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font><br>
    </p>
    <p style="text-align: center">

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p style="text-align: left">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p style="text-align: left">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p style="text-align: left">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p style="text-align: left">
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <p style="text-align: left">

    </p>
    <hr style="height: 3.0 pt; color: #000000; text-align: center; width: 100%">
    <hr style="height: 1.0 pt; color: #000000; text-align: center; width: 100%">


    <p style="text-align: left">

    </p>
    <div style="text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Items under Sections 1 and 3 through 8 are not applicable and are
      therefore omitted.</b>
    </p>
    <p>
      <b>Item 2.02&#160;&#160;Results of Operations and Financial Condition.</b>
    </p>
    <p style="text-indent: 60.0px">
      On April 29, 2010, Clearfield, Inc. issued a press release announcing
      the results of its second quarter ended March 31, 2010 for the fiscal
      year 2010.&#160;&#160;A copy of that press release is furnished as Exhibit 99.1
      and is hereby incorporated by reference.
    </p>
    <p>
      <b>Item 9.01 Financial Statements and Exhibits</b>
    </p>
    <p>
      (c)&#160;&#160;The following exhibit is being furnished herewith:
    </p>
    <p>
      99.1&#160;&#160;Press release dated April 29, 2010
    </p>
    <div style="text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="font-size: 10pt; text-align: center; font-family: Times New Roman">
          2
        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURES</b></font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the Registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p>

    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; margin-left:auto;margin-right:auto; font-family: Times New Roman">
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 15%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 25%" valign="top">
          &#160;
        </td>
        <td style="width: 4%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            CLEARFIELD, INC.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 15%">

        </td>
        <td style="width: 25%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 50%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left; width: 6%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated:
          </p>
        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left; width: 15%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            April 29, 2010
          </p>
        </td>
        <td style="width: 25%">

        </td>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left; width: 4%" valign="top">
          By:
        </td>
        <td style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Cheryl P. Beranek
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td style="width: 15%">

        </td>
        <td style="width: 25%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Cheryl P. Beranek, Chief Executive&#160;Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      3
    </p>
  </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a6268987ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2010 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Clearfield,
      Inc. Reports Second Quarter FY2010 Performance</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Economic
      conditions continue to hamper growth; gross margin gains and broader
      client base position Company for future opportunities</b></font>
    </p>
    <p>
      MINNEAPOLIS--(BUSINESS WIRE)--April 29, 2010--Clearfield, Inc. (NASDAQ:
      CLFD):
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-right: 0; margin-bottom: 10.0px; margin-left: 0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="middle">
          <ul>
            <li>
              Net Sales:
            </li>
          </ul>
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $4.7 million, down 10% from previous year
          </p>
        </td>
      </tr>
      <tr>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="middle">
          <ul>
            <li>
              Gross Profit:
            </li>
          </ul>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="top">
          $1.7 million, down 4.7% from previous year
        </td>
      </tr>
      <tr>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="middle">
          <ul>
            <li>
              Gross Margin:
            </li>
          </ul>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="top">
          36.7%, up from 34.7% in previous year
        </td>
      </tr>
      <tr>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="middle">
          <ul>
            <li>
              Net Loss:
            </li>
          </ul>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="top">
          $108,000
        </td>
      </tr>
      <tr>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="middle">
          <ul>
            <li>
              Net loss per share:
            </li>
          </ul>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $.01
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      Clearfield, Inc. (NASDAQ: CLFD)<b>,</b> the specialist in fiber
      management solutions for Fiber to the Premises (FTTp) deployments, today
      announced results for the second fiscal quarter of 2010 which ended
      March 31, 2010. Revenue for the quarter was $4,725,000 in comparison to
      $5,233,000 for the quarter ended March 31, 2009, a decrease of 10%.
      Gross profit for the second quarter of fiscal 2010 was $1,733,000 in
      comparison to $1,818,000 for the second quarter of fiscal 2009, a
      decrease of 4.7%. The Company reported a net loss of $108,000 for the
      second quarter of fiscal 2010, or $.01 per share, compared to income of
      $131,000, or $.01 per share, for the second fiscal quarter of 2009.
    </p>
    <p>
      Revenue in the broadband and commercial data networks market was $3.9
      million for second quarter of fiscal 2010, down from $4.4 million in the
      previous year&#8217;s second quarter.<b> </b>The revenue decrease was
      primarily associated with decreased orders from a single distributor in
      the Eastern region of the U.S. Revenue from that distributor accounted
      for 25% of total revenue for the second quarter of fiscal year 2010 in
      comparison to 46% in the same period of fiscal year 2009. Revenues
      outside of that distributor increased from $2.4 million in the second
      quarter of fiscal year 2009 to $2.9 million in the second quarter of
      fiscal year 2010 or 21%, representing a broader base of business for the
      Company.
    </p>
    <p>
      Revenue associated with contract manufacturing for OEMs outside of the
      telecommunications markets, principally cable assembles produced to
      customer design, improved modestly, as revenue to that market was
      $849,000 for the second quarter of fiscal 2010 up from $830,000 in the
      second quarter for fiscal 2009. The company sees this stabilization of
      revenue as a positive early indication that the economic recovery is
      beginning in the general manufacturing sector.
    </p>
    <p>
      Gross margins for the quarter improved two percent to 36.7% from the
      same quarter of last fiscal year. The year-over-year improvement is the
      result of product mix, material cost improvements and manufacturing
      efficiency.
    </p>
    <p>
      Operating expenses were $1.9 million, an increase of 10% from $1.7
      million in the same quarter 2009. As was reported after the first
      quarter, the Company continues to invest for revenue growth. A key
      initiative has been expanding its base of senior technical engineers who
      provide application support to prospective clients as they design their
      networks. In addition, the Company is expanding its presence in industry
      periodicals and tradeshows.
    </p>
    <div style="text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      The Company&#8217;s net loss for the second quarter of 2010 was $108,000 or
      $0.01 per diluted share compared to net income of $131,000 or $0.01 per
      diluted share for the comparable period of 2009.
    </p>
    <p>
      <b>Year to Date</b>
    </p>
    <p>
      Total revenue year-to-date for fiscal 2010 was $9,667,000 in comparison
      to $11,166,000 for the same period of 2009, a decrease of 13%. Gross
      profit for the period was $3,435,000 in comparison to $3,832,000 for the
      comparable period for fiscal 2009, a decrease of 10%. Gross margins have
      continued to improve year-to-date to 36% for the six months ended March
      31, 2010 compared to 34% from the same period of last fiscal year.
      Operating expenses were $3.8 million for the six months ended March 31,
      2010 an increase of 7% from $3.5 million in the same period of fiscal
      2009. The Company&#8217;s net loss through two quarters of fiscal 2010 was
      $268,000 or $0.02 per diluted share compared to net income of $348,000,
      or $0.03 per diluted share for the comparable period of 2009.
    </p>
    <p>
      <b>Comments on Operations</b>
    </p>
    <p>
      &#8220;Traditional market seasonality on top of uncertain market conditions
      has softened the Company&#8217;s performance over the first two quarters of
      this fiscal year,&#8221; explains Cheri Beranek, President and Chief Executive
      Officer of Clearfield. &#8220;A recent study by Render Vanderslice reports
      that while the service provider community continues to invest in FTTH
      networks, the pace has slowed. 529,000 new homes were connected in the
      U.S. over the past six months, compared to 853,000 in the previous six
      month period &#8211; a reduction of nearly 38%.&#8221;
    </p>
    <p>
      &#8220;As the economy recovers and the Fiber to the Premises (FTTp)
      marketplace along with it, the FieldSmart product line is in a unique
      position to reduce deployment costs for broadband service providers. We
      are actively engaged in product development projects and market
      development initiatives with a range of service providers and
      infrastructure equipment suppliers.&#8221;
    </p>
    <p>
      &#8220;Further, we are expanding our investments into new markets outside of
      the North American FTTp marketplace,&#8221; continues Beranek. &#8220;In addition,
      our recent announcement of the Clearview xPAK opens the door to the
      cable television and wireless markets whose fiber management needs are
      centered upon applications that land fiber in smaller increments,&#8221;
      concluded Beranek.
    </p>
    <p>
      <i><b>About Clearfield, Inc.</b></i>
    </p>
    <p>
      <i>Clearfield, Inc. designs and manufactures the FieldSmart Fiber
      Management Platform, which includes its latest generation FieldSmart
      Fiber Crossover Distribution System (FxDS), FieldSmart Fiber Scalability
      Center (FSC) and FieldSmart Fiber Delivery Point (FDP) series. The FxDS,
      FSC and FDP product lines are based upon the patent pending technologies
      of the Clearview and xPAK cassettes and support a wide range of panel
      configurations, densities, connectors and adapter options, and are
      offered alongside an assortment of passive optical components.
      Clearfield provides a complete line of fiber and copper assemblies for
      inside plant, outside plant and access networks. Clearfield is a public
      company, traded on Nasdaq:CLFD. <u>www.ClearfieldConnection.com</u></i>
    </p>
    <p>
      <i><b>Forward-Looking Statements</b></i>
    </p>
    <p>
      <i>Forward-looking statements contained herein are made pursuant to the
      safe harbor provisions of the Private Litigation Reform Act of 1995.
      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 effect of the significant
      downturn in the U.S. economy on Clearfield&#8217;s customers; the impact of
      the American Recovery and Reinvestment Act or any other legislation on
      customer demand and purchasing patterns; cyclical selling cycles; need
      to introduce new products and effectively compete against competitive
      products; dependence on third-party manufacturers; limited experience in
      manufacturing, reliance on key customers; rapid changes in technology;
      the negative effect of product defects; the need to protect its
      intellectual property; the impact on its financial results or stock
      price of its ability to use its deferred tax asset, consisting primarily
      of net operating loss carryforwards, to offset future taxable income;
      the valuation of its goodwill and the effect of its stock price, among
      other factors, on the evaluation of goodwill; and other factors set
      forth in Clearfield&#8217;s Annual Report on Form 10-K for the year ended
      September 30, 2009 as well as other filings with the Securities and
      Exchange Commission. The Company undertakes no obligation to update such
      statements to reflect actual events.</i>
    </p>
    <div style="text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="17">
          <b>CLEARFIELD, INC.</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="17">
          <b>CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="17">
          <p style="margin-bottom: 0px; margin-top: 0px">
            UNAUDITED
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="top" colspan="7">
          Three Months Ended March 31,
        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="top" colspan="7">
          Six Months Ended March 31,
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom" colspan="3">
          2010
        </td>
        <td>
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom" colspan="3">
          2009
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom" colspan="3">
          2010
        </td>
        <td>
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="bottom" colspan="3">
          2009
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Revenues
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          4,724,766
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          5,232,604
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          9,667,433
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,165,891
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Cost of sales
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          2,991,390
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          3,414,452
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          6,232,349
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          7,333,531
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,733,376
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,818,152
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          3,435,084
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          3,832,360
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Selling, general and administrative
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          1,864,722
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          1,689,950
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          3,754,928
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          3,494,928
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Income (loss) from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (131,346
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          128,202
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (319,253
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          337,432
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Other income (expense)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Interest income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          37,578
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          17,244
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          75,634
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          48,994
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (236
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (1,585
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (820
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (3,491
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left" valign="top">
          Other income
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          9,837
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          13,931
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          24,352
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          27,575
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          47,179
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          29,590
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          99,166
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          73,078
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Income (loss) before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (84,167
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          157,792
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          (220,087
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          410,510
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Income tax expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          24,203
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          26,743
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          47,964
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          61,974
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="2">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="3">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="2">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          Net income (loss)
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (108,370
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          131,049
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          <p style="margin-bottom: 0px; margin-top: 0px">
            $
          </p>
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          (268,051
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          348,536
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Net income (loss)per share:
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="2">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="3">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="2">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt" colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          ($.01
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom" colspan="2">
          $.01
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          ($.02
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom" colspan="2">
          $.03
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          ($.01
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom" colspan="2">
          $.01
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          ($.02
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom" colspan="2">
          $.03
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Weighted average shares outstanding:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,991,544
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,938,131
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,984,238
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,938,131
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,991,544
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,938,131
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,984,238
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          11,938,131
        </td>
        <td>

        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-right: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          <b>CLEARFIELD, INC.</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          <b>BALANCE SHEETS</b>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="9">
          <p style="margin-bottom: 0px; margin-top: 0px">
            UNAUDITED
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="top" colspan="3">
          March 31, 2010
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: center" valign="top" colspan="3">
          September 30, 2009
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current Assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          3,995,564
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          4,731,735
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Short-term investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,105,566
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,108,566
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,046,388
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,723,414
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,323,270
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,153,862
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Other current assets
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          313,213
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          180,635
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          8,874,001
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          10,898,212
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Property, plant and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,317,075
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,319,492
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Other Assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Long-term investments
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          3,924,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,840,000
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Goodwill
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,570,511
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,570,511
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Intangibles
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          10,811
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Deferred taxes &#8211;long term
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,187,500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,231,990
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Other
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          547,031
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          568,554
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Total other assets
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          9,239,853
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          8,211,055
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left" valign="top">
          Total Assets
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          19,340,929
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          20,428,759
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Liabilities and Shareholders&#8217; Equity
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,573,256
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,493,006
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Deferred rent
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          84,193
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          87,942
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          Total Liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          1,657,449
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          2,580,948
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Shareholders&#8217; Equity
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Common stock
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          119,953
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          119,746
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Additional paid-in capital
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          52,475,652
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right" valign="bottom">
          52,372,139
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left" valign="top">
          Accumulated deficit
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (34,912,125
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          (34,644,074
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left" valign="top">
          Total shareholders&#8217; equity
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          17,683,480
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: right" valign="bottom">
          17,847,811
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left" valign="top">
          Total Liabilities and Shareholders&#8217; Equity
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          19,340,929
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: left" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; border-bottom: double black 2.25pt; text-align: right" valign="bottom">
          20,428,759
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br><u>Clearfield, Inc. Contact Information:</u><br>Cheryl P.
      Beranek, 763-476-6866<br>Chief Executive Officer and President<br><u>Investor-relations@clfd.net</u>
    </p>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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