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Jun 30, 2022
Clearfield Q3 2022 Earnings Report
Clearfield's Q3 2022 performance was marked by record net sales and strategic acquisitions, positioning the company for continued growth in the expanding fiber broadband market.
Key Takeaways
Clearfield reported record net sales of $71.3 million in Q3 2022, an 84% increase year-over-year, driven by strong demand for high-speed broadband. The company also increased its quarter-end backlog by 16% to a record $157 million and raised its fiscal year 2022 net sales guidance to a range of $243 million to $247 million, representing growth of 72% to 75% over fiscal year 2021.
Achieved record net sales of $71.3 million, an 84% increase year-over-year.
Increased quarter-end backlog by 16% to a record $157 million.
Raised fiscal year 2022 net sales guidance to a range of $243 million to $247 million, projecting 72% to 75% growth over fiscal year 2021.
Completed the acquisition of Nestor Cables Oy, a strategic supplier of FieldShield product line, to vertically integrate the design and supply of fiber optic cables.
Clearfield
Clearfield
Forward Guidance
Clearfield raised its fiscal year 2022 net sales guidance to a range of $243 million to $247 million, representing growth of 72% to 75% over fiscal year 2021. This outlook excludes any revenue contribution from Nestor.
Positive Outlook
- Demand for high-speed broadband, especially fiber-led broadband, remains very strong.
- Proactively expanded capacity and effectively managed supply chain to meet customer demand.
- Expertise in serving the Community Broadband market positions the company to further capitalize on industry tailwinds.
- Proven growth strategy and outstanding execution of that strategy.
- Most of the record backlog is scheduled to ship in the next six months.
Challenges Ahead
- Contractor labor availability is still restricted.
- Various material supply chain challenges are constant.
- The rate of inflationary cost for sheet metal has outpaced our ability to reduce the cost structure and the manufacturability of those.
- Overhead costs associated with the new facilities in Minnesota and Mexico negatively impacted gross margins.
- Increased shipping costs and inflationary increases in some components negatively affected margins.