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Jun 30, 2020
Clearfield Q3 2020 Earnings Report
Clearfield reported record revenue and gross profit, driven by strong growth in MSO and Community Broadband markets.
Key Takeaways
Clearfield reported a strong fiscal third quarter with record revenue of $26.0 million, up 19% year-over-year, and record gross profit of $10.8 million. Net income was $3.0 million, or $0.22 per diluted share. The company ended the quarter with a robust order backlog of $8.5 million.
Clearfield achieved record revenue of $26.0 million, a 19% increase year-over-year.
MSO revenue increased by 48% year-over-year.
Community Broadband revenue increased by 22% year-over-year.
Gross profit reached a quarterly record of $10.8 million, with a solid gross profit margin of 41.5%.
Clearfield
Clearfield
Forward Guidance
The company has significant momentum going into Q4 and a positive outlook for fiscal 2021, driven by the increasing need for high-speed broadband connectivity.
Positive Outlook
- Demand should be consistent assuming COVID doesn’t hit our manufacturing plants
- Consumers are demanding bandwidth
- Service providers are increasing bandwidth
- Service providers are promising bandwidth tomorrow by the investments that they’re making in infrastructure
- Very bullish about 2021
Challenges Ahead
- COVID-19 has impacted the deployment plans for 5G in the near and mid-term
- Certain carriers identified that in locations where 4G was available they deemed 5G as not an essential service
- COVID restrictions reduced the number of installation crews deployed in the hard-hit Northeast early in the quarter
- COVID temporarily delayed two planned field trials with another Tier 1 customer
- There’s still an awful lot of change out there that we don’t quite know how to anticipate.