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Sep 30, 2022
Clearfield Q4 2022 Earnings Report
Delivered record financial results, driven by strong execution and tenacity through macroeconomic challenges and industry labor shortage.
Key Takeaways
Clearfield reported a phenomenal Q4 with record-setting financial performance. Total net sales for the fourth quarter were $95 million, including a $7 million contribution from Nestor Cables. The company also set a new record for annual results in fiscal year 2022, with total net sales of $271 million.
Total net sales for the fourth quarter were $95 million, a 110% increase year-over-year.
Organic Clearfield's quarterly results were driven by a 91% year-over-year increase in community broadband revenue.
Backlog for organic Clearfield increased 142% at fiscal year-end to $160 million.
Guiding to estimated revenue of $380 million to $393 million for fiscal year 2023, representing 40% to 45% growth over fiscal year 2022.
Clearfield
Clearfield
Forward Guidance
The company is guiding to estimated revenue of $380 million to $393 million representing 40% to 45% growth over fiscal year 2022.
Positive Outlook
- Demand for fiber-fed broadband remains very strong.
- Operators will begin to see additional disbursements of federal funds to support the development of broadband infrastructure.
- The company will leverage its deep expertise in Community Broadband.
- The company will continue to enhance its capacity.
- The company will prioritize innovative product design to meet robust customer demand and capitalize on strong industry tailwinds.
Challenges Ahead
- There continues to be uncertainty regarding the availability of labor necessary for customers to build their networks.
- The company expects the labor issues will be most prevalent in the second half of fiscal year 2023.
- Overhead costs associated with new facilities in Minnesota and Mexico negatively impacted gross margins.
- Increased shipping costs negatively affected margins.
- Inflationary increases in some components negatively affected margins.