Clearfield(US:CLFD)2021-11-07 10:29Financial Data and Key Metrics Changes - Clearfield reported a record-setting financial performance for Q4 and the full fiscal year 2021, with net sales increasing 66% year-over-year to $45.2 million in Q4 and 51% to $140.8 million for the full year [5][16][26] - Gross profit for Q4 increased 75% to $19.7 million, representing 43.6% of net sales, while for the full year, gross profit rose 61% to $61.2 million, also at 43.5% of net sales [28][29] - Net income in Q4 surged 144% to $7.4 million, or 16.4% of net sales, and for the full year, net income increased 179% to $20.3 million, or 14.4% of net sales [33][34] Business Line Data and Key Metrics Changes - The Community Broadband market, which is the largest customer segment, saw a 66% increase in net sales for the full year, totaling $97.9 million, and a 64% increase in Q4 [7][19] - The MSO market grew 90% year-over-year in Q4, reaching $6.9 million, and 51% for the full year to $18.6 million [20][26] - The international market experienced a significant growth of 221% year-over-year in Q4 and 132% for the full year [24][26] - The National Carrier market saw a decline of 15% year-over-year for the full year, totaling $11.9 million [21] Market Data and Key Metrics Changes - The demand for fiber-fed broadband is increasing, with a noted shortage of trained technicians and engineers in the U.S. market, which could limit growth [13][14] - The market for fiber-fed broadband is driven by both demand and supply factors, with suppliers benefiting from easier maintenance and higher revenue per subscriber [14] Company Strategy and Development Direction - Clearfield is focused on capturing market share in the fiber-to-the-home and business sectors through its "Now of Age" strategic plan, which emphasizes operational efficiency and customer service [37][45] - The company plans to expand its production capacity significantly, with investments in its Mexico plant to triple its footprint [39][45] - Clearfield aims to leverage government funding opportunities to accelerate deployment in underserved markets [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth potential, citing strong demand for fiber-fed broadband and a robust backlog of $66.4 million [44][47] - The company anticipates delivering projected annual net sales of $162 million to $169 million in fiscal 2022, representing a growth of 15% to 20% over fiscal year 2021 [45] Other Important Information - Clearfield's operating expenses for Q4 were $10.4 million, up from $7.6 million in the same period last year, but as a percentage of net sales, they decreased [30][32] - The company has a strong focus on customer service and training to address the skills gap in the industry [34] Q&A Session Summary Question: How should we think about seasonality in fiscal 22? - Management indicated that seasonality will be less dominant than in previous years, with an expectation of an unseasonably strong first quarter due to longer-term orders and inventory preparations [49] Question: Will fiscal '22 guidance include significant contributions from Tier 1 players? - Management clarified that the guidance does not include significant contributions from Tier 1 players at this point, as there are ongoing discussions and challenges related to supply chain issues [50]