Good afternoon, and welcome to Clearfield's Fiscal Fourth Quarter and Full Year 2018 Earnings Conference Call. My name is Dana, and I will be your operator this afternoon. Joining us for today's presentation are the company's President and CEO; Cheri Beranek; and CFO, Dan Herzog. Following their commentary, we will open the call for questions. I would now like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of the company's website. This call is also being webcasted and accompanied by a PowerPoint presentation, called the FieldReport, which is also available in the Investor Relations section of the company's website. Please note that during the course of this call, management will be making forward-looking statements regarding future events and the future financial performance of the company. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. It is important to note also that the company undertakes no obligation to update such statements except as required by law. The company cautions you to consider risk factors that could cause actual results to differ materially from those in the forward-looking statements contained in today's press release, FieldReport and in this conference call. The Risk Factors section in Clearfield's most recent Form 10-K filing with the Securities and Exchange Commission provides descriptions of those risks. As a reminder, the slides in this presentation are not controlled by the speaker, but rather by you, the listener. Please advance forward through the presentation as the speaker presents their remarks. With that, I would like to turn the call over to Clearfield's CEO, Cheri Beranek. Please proceed.

Good afternoon, and thank you, everyone, for joining us today. Fourth quarter of fiscal 2018 was an exceptionally strong quarter for Clearfield, as we achieved the highest level of quarterly revenue in the company's history with $22.5 million. This is up 22% over the same period a year ago. Much of this revenue increase was driven by the continued performance in our Community Broadband business, as we helped these broadband service providers continue to serve their local serving areas as well as enter and capitalize on underserved communities. As we look back on the year, pairing our fiber management expertise with the acquisition and successful integration of our active cabinet line gave us a strong head start for ongoing new technologies associated with network convergence. We fully expect that converged networks and the associated fiber requirement to support them are a perfect fit for our active cabinet product line along with our ability to densify fiber at all areas of all networks. Throughout the year, we have grown our portfolio of certifications and the master purchase agreements and strengthened our team with key hires. I'm excited by the work we've done to steer our ship past some of the choppy waters we've experienced these past two years. Having successfully put the patent infringement litigation behind us, we've eliminated the cost and distractions associated with it. Having gained this momentum, we're now implementing, what we call, our Coming of Age phase. So with that said, let's jump into our recent operational and market progress. And then later on in the call, I'll talk more about Clearfield's Coming of Age phase and the steps we're taking to execute this growth strategy. You'll notice in this presentation that we slightly modified how we present each of our markets. This new presentation consolidates the…

Thank you, Cheri. Now looking at our financial results in more detail. Our revenue in the fourth quarter of fiscal 2018 increased 22% to $22.5 million from $18.4 million in the same year-ago period. For the full year, revenue increased 5% to $77.7 million from $73.9 million in fiscal 2017. The increase for the quarter and year was largely driven by the strong sales of our active cabinet line. The increase for the year was also due in part to stronger sales of our traditional product categories, particularly in our Community Broadband and national carrier business. With $77.7 million of revenue for the year, we exceeded our fiscal 2018 revenue guidance range of $74 million to $76 million. Looking at our international business for the quarter, revenue decreased 6% to $1.4 million from $1.5 million in the same year-ago period. For the full year, international revenue decreased 11% to $5.4 million from $6 million in fiscal 2017. The decrease for the quarter and year was due to funding structure changes in Canada as well as project business in Mexico that did not continue in fiscal '18. Gross profits in the fourth quarter of fiscal 2018 increased 12% as compared to the fourth quarter of fiscal 2017 to $8.6 million or 38.3% of total revenue. The lower gross margins during fiscal Q4 were due to higher sales of our active cabinet line, which carry lower gross margins than our other products. For the full year, gross profit increased 2% to $31 million or 39.9% of total revenue, which was in line with our guidance of 40% for the year. Our operating expenses for fiscal Q4 were $6.1 million, which were down slightly from the same year-ago quarter. For the full year, operating expenses were $25.9 million compared to $25 million in…

Thanks, Dan. As I talked about in my opening remarks, Clearfield is entering a Coming of Age phase. After a decade of successfully restoring the balance sheet, expanding the value proposition and developing a strong track record of profitable growth, it's now time for us to advance the company into its next stage of growth, one that's not only defined by continued success in our core markets, but also a much stronger and durable position in some of the disruptive growth markets that, we believe, can truly scale our business. As you can see from the graphic on the slide, our Coming of Age plan consists of 3 initiatives which are: one, expanding our core Community Broadband business; two, enhancing our competitive position and operational effectiveness; and three, capitalizing on disruptive growth opportunities, particularly within the converged network of the Tier 1 national carrier market. Together, these initiatives can be viewed as the 3 legs of a stool. During some quarters, some legs will be longer than others, but as we measure and track our success with the mid and long term, all 3 initiatives will play a critical role in growing the company. With regards to the first growth driver, as we mentioned earlier, in fiscal year '18, we continue to expand on our market-leading position in the Community Broadband market. We believe we could continue experiencing 8% to 12% growth next year in this market, especially with some of the new products we have launched in our push-to-win more business-class service projects. As we move from these short-term projects to longer-term programs, some quarters might have lower gross margin than others. We will concurrently work on the second leg of the stool, which is enhancing our competitive position and operational effectiveness. Not only will we continue to invest…

[Operator Instructions] Our first question comes from the line of Tim Savageaux from Northland Securities.

This is Matt Shea on for Tim Savageaux here today. Just one question for me. Wondering if you could walk through or put a little color on the CommScope, Arris merger and kind of the impacts that it's having.

Well, that's a curveball question I didn't expect. I mean, it's intriguing to listen to a man at the $6 billion cash acquisition and an opportunity for some very large providers in this marketplace to combine the operations. We wish them well. That's a part of the marketplace that their integration of support is kind of outside of our share. How we compete with CommScope is really at the connectivity space, and we'll continue to aggressively pursue our market, the broadband carriers within it, and we look forward to competing with them.

[Operator Instructions] This concludes our question-and-answer session. If your question was not taken, you may contact Clearfield's Investor Relations team at CLFD@liolios.com. The company will post the most relevant questions and answers in the For Investors section of Clearfield's website. I'd now like to turn the call back to CEO, Cheri Beranek, for her closing comments.

Thank you again for joining us today. I want to thank our shareholders, who have supported the company's evolution into this next phase of growth. And I'd also like to thank our suppliers, our sales partners and our employees, who continue to play a pivotal role in their Coming of Age opportunities. We look forward to updating you again on our progress soon.

Thank you for joining us today for Clearfield's Fiscal Fourth Quarter and Full Year 2018 Earnings Conference Call. You may now disconnect.