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Mar 31, 2021
Clearfield Q2 2021 Earnings Report
Demand for fiber-fed broadband networks expanded across the community broadband market, driving a 45% increase in net sales and a significant improvement in net income.
Key Takeaways
Clearfield reported a strong fiscal second quarter with a 45% increase in net sales to $29.7 million, driven by growth in the Community Broadband and MSO markets. Gross margin improved to 43.6%, and net income reached $3.6 million, or $0.27 per diluted share. The company's backlog increased by 115% to $19.2 million, and they anticipate shipping the majority of it during fiscal Q3.
Net sales increased by 45% to $29.7 million, driven by Community Broadband and MSO markets.
Gross profit increased by 59% to $12.9 million, representing 43.6% of net sales.
Net income improved to $3.6 million, or $0.27 per diluted share.
Order backlog increased by 115% to $19.2 million.
Forward Guidance
Clearfield anticipates net sales of $120 million to $125 million in fiscal 2021, representing year-over-year growth of 32% at the midpoint. Net income is expected to be at or above 12% as a percentage of net sales.
Positive Outlook
- Rural broadband market remains ripe for growth.
- Strategic investments made over the last 10 years will be beneficial.
- Growing backlog.
- Expanding pipeline.
- Building market demand.
Challenges Ahead
- Volatility of the supply chain potentially poses challenges in the near term.
- Selling, general and administrative costs will grow moderately as travel re-emerges.
- Strategic investments in additional customer-facing positions
- Pressure on supply chain due to increased demand
Historical Earnings Impact
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Avg. Return Before/After Earnings
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