Fiber optic networks provided a record Clearfield quarter
Fiber optic network solutions Clearfield, Inc. (CLFD) has released a strong report for the fourth quarter of the fiscal year 2021. Since the beginning of the year, the shares of SDAV have risen by 156% to $63.43 at auction on November 5. The market capitalization was $839.81 billion.
Clearfield’s net sales increased by 66% year-on-year to $140.8 million in the past quarter, net income increased by 144% to $7.4 million, or $0.53 per share. According to the full fiscal year results, revenue increased by 51% to $140.8 million; profit amounted to $20.3 million, or $1.47 per share.
The order portfolio grew by 522% to $66.4 million; in 2020, this figure was $10.7 million. Clearfield manufactures and sells equipment for laying fiber-optic networks (fiber optic networks): from splitters and junction boxes for fiber to software designed to control fiber-optic networks.
Demand for Clearfield solutions has increased, and the company’s management believes that the market is now in the middle of the investment cycle; that is, sales growth will continue in the coming quarters.
Demand for fiber is increasing against the background of the ongoing transition in the United States to connecting households and businesses to high-speed fiber-optic lines.
Clearfield supplies hardware and software for the main segments of this market: home applications, offices, telecom operators, campuses, etc. A positive signal is that Clearfield’s order portfolio includes contracts from 200 customers, including large distributors who represent other customers.
A quarter of Clearfield’s customers have intentions to purchase the company’s goods and services in the amount of $100 thousand and above. In addition, high Demand in the past financial year forced Clearfield to increase production capacity. Thus, additional investments in a plant in Mexico during the quarter will meet the growing demand in the coming year.
