Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2022 | Jan. 23, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-16106 | |
Entity Registrant Name | Clearfield, Inc. | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-1347235 | |
Entity Address, Address Line One | 7050 Winnetka Avenue North | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Brooklyn Park | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55428 | |
City Area Code | 763 | |
Local Phone Number | 476-6866 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CLFD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 15,219,636 | |
Entity Central Index Key | 0000796505 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 30,313,000 | $ 16,650,000 |
Short-term investments | 117,538,000 | 5,802,000 |
Accounts receivables, net | 55,139,000 | 53,704,000 |
Inventories, net | 89,705,000 | 82,208,000 |
Other current assets | 1,450,000 | 1,758,000 |
Total current assets | 294,145,000 | 160,122,000 |
Property, plant and equipment, net | 19,730,000 | 18,229,000 |
Other Assets | ||
Long-term investments | 10,293,000 | 22,747,000 |
Goodwill | 6,545,000 | 6,402,000 |
Intangible assets, net | 6,488,000 | 6,376,000 |
Right of use lease assets | 12,638,000 | 13,256,000 |
Deferred tax asset | 1,090,000 | 1,414,000 |
Other | 868,000 | 582,000 |
Total other assets | 37,922,000 | 50,777,000 |
Total Assets | 351,797,000 | 229,128,000 |
Current Liabilities | ||
Current portion of lease liability | 3,475,000 | 3,385,000 |
Accounts payable | 18,366,000 | 24,118,000 |
Accrued compensation | 6,867,000 | 13,619,000 |
Accrued expenses | 12,436,000 | 6,181,000 |
Factoring liability | 4,178,000 | 4,391,000 |
Total current liabilities | 45,322,000 | 51,694,000 |
Other Liabilities | ||
Long-term debt | 2,132,000 | 18,666,000 |
Long-term portion of lease liability | 9,706,000 | 10,412,000 |
Deferred tax liability | 756,000 | 774,000 |
Total liabilities | 57,916,000 | 81,546,000 |
Shareholders’ Equity | ||
Preferred stock, $.01 par value; 500,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock, authorized 50,000,000, $.01 par value; 15,218,428 and 13,818,452 shares issued and outstanding as of December 31, 2022 and September 30, 2022 | 152,000 | 138,000 |
Additional paid-in capital | 185,404,000 | 54,539,000 |
Accumulated other comprehensive income | 733,000 | 1,898,000 |
Retained earnings | 109,058,000 | 94,803,000 |
Total shareholders’ equity | 293,881,000 | 147,582,000 |
Total Liabilities and Shareholders’ Equity | $ 351,797,000 | $ 229,128,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2022 | Sep. 30, 2022 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 500,000 | 500,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Common Stock, Shares Authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued (in shares) | 15,218,428 | 13,818,452 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 15,218,428 | 13,818,452 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net sales | $ 85,942,000 | $ 51,109,000 |
Cost of sales | 55,293,000 | 28,137,000 |
Gross profit | 30,649,000 | 22,972,000 |
Operating expenses | ||
Selling, general and administrative | 12,759,000 | 9,923,000 |
Income from operations | 17,890,000 | 13,049,000 |
Net investment income | 303,000 | 120,000 |
Interest expense | (243,000) | 0 |
Income before income taxes | 17,950,000 | 13,169,000 |
Income tax expense | 3,695,000 | 2,780,000 |
Net income | $ 14,255,000 | $ 10,389,000 |
Net income per share Basic (in dollars per share) | $ 1.01 | $ 0.76 |
Net income per share Diluted (in dollars per share) | $ 1 | $ 0.75 |
Weighted average shares outstanding: | ||
Basic (in shares) | 14,165,550 | 13,743,503 |
Diluted (in shares) | 14,284,847 | 13,897,787 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 14,255,000 | $ 10,389,000 |
Other comprehensive income before income taxes: | ||
Unrealized gain on available-for-sale investments | 184,000 | 0 |
Unrealized gain on foreign currency translation | 1,305,000 | 0 |
Total other comprehensive income before income taxes | 1,489,000 | 0 |
Income tax expense | (324,000) | 0 |
Total other comprehensive income | 1,165,000 | 0 |
Total comprehensive income | $ 15,420,000 | $ 10,389,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance as of September 30, 2022 (in shares) at Sep. 30, 2021 | 13,732 | ||||
Balance as of September 30, 2022 at Sep. 30, 2021 | $ 137,000 | $ 58,246,000 | $ 0 | $ 45,441,000 | $ 103,824,000 |
Stock-based compensation expense | $ 0 | 440,000 | 0 | 0 | 440,000 |
Issuance of common stock under employee stock purchase plan (in shares) | 7 | ||||
Issuance of common stock under employee stock purchase plan | $ 0 | 249,000 | 0 | 0 | 249,000 |
Repurchase of shares for payment of withholding taxes for stock grants (in shares) | (4) | ||||
Repurchase of shares for payment of withholding taxes for stock grants | $ 0 | (274,000) | 0 | 0 | (274,000) |
Exercise of stock options, net of shares exchanged for payment (in shares) | 3 | ||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (156,000) | 0 | 0 | (156,000) |
Net income | $ 0 | 0 | 0 | 10,389,000 | 10,389,000 |
Balance as of September 30, 2022 (in shares) at Sep. 30, 2022 | 13,819 | ||||
Balance as of September 30, 2022 at Sep. 30, 2022 | $ 138,000 | 54,539,000 | (1,898,000) | 94,803,000 | 147,582,000 |
Stock-based compensation expense | $ 0 | 660,000 | 0 | 0 | 660,000 |
Issuance of common stock under employee stock purchase plan (in shares) | 5 | ||||
Issuance of common stock under employee stock purchase plan | $ 0 | 299,000 | 0 | 0 | 299,000 |
Issuance of common stock under equity compensation plans (in shares) | 18 | ||||
Issuance of common stock under equity compensation plans | $ 0 | 954,000 | 0 | 0 | 954,000 |
Repurchase of shares for payment of withholding taxes for stock grants (in shares) | (10) | ||||
Repurchase of shares for payment of withholding taxes for stock grants | $ 0 | (954,000) | 0 | 0 | (954,000) |
Exercise of stock options, net of shares exchanged for payment (in shares) | 6 | ||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (342,000) | 0 | 0 | (342,000) |
Issuance of common stock, net (in shares) | 1,380 | ||||
Issuance of common stock, net | $ 14,000 | 130,248,000 | 0 | 0 | 130,262,000 |
Other comprehensive income | 0 | 0 | 1,165,000 | 0 | 1,165,000 |
Net income | $ 0 | $ 0 | $ 0 | $ 14,255,000 | $ 14,255,000 |
Condensed Statements of Shareho
Condensed Statements of Shareholders' Equity (Unaudited) 2 - USD ($) shares in Thousands | Common Stock [Member] Unrestricted Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] Unrestricted Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] Unrestricted Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] Unrestricted Stock [Member] | Retained Earnings [Member] | Unrestricted Stock [Member] | Total |
Balance as of September 30, 2022 (in shares) at Sep. 30, 2021 | 13,732 | |||||||||
Balance as of September 30, 2022 at Sep. 30, 2021 | $ 137,000 | $ 58,246,000 | $ 0 | $ 45,441,000 | $ 103,824,000 | |||||
Stock-based compensation expense | $ 0 | 440,000 | 0 | 0 | 440,000 | |||||
Restricted stock issuance, net of forfeitures (in shares) | 24 | |||||||||
Restricted stock issuance, net of forfeitures | $ 0 | 0 | 0 | 0 | 0 | |||||
Issuance of common stock, net (in shares) | 0 | |||||||||
Issuance of common stock, net | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 7 | |||||||||
Issuance of common stock under employee stock purchase plan | $ 0 | 249,000 | 0 | 0 | 249,000 | |||||
Exercise of stock options, net of shares exchanged for payment (in shares) | 3 | |||||||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (156,000) | 0 | 0 | (156,000) | |||||
Repurchase of shares for payment of withholding taxes for stock grants (in shares) | (4) | |||||||||
Repurchase of shares for payment of withholding taxes for stock grants | $ 0 | (274,000) | 0 | 0 | (274,000) | |||||
Net income | $ 0 | 0 | 0 | 10,389,000 | 10,389,000 | |||||
Balance at December 31, 2022 (in shares) at Dec. 31, 2021 | 13,762 | |||||||||
Balance at December 31, 2022 at Dec. 31, 2021 | $ 137,000 | 58,505,000 | 0 | 55,830,000 | 114,472,000 | |||||
Balance as of September 30, 2022 (in shares) at Sep. 30, 2022 | 13,819 | |||||||||
Balance as of September 30, 2022 at Sep. 30, 2022 | $ 138,000 | 54,539,000 | (1,898,000) | 94,803,000 | 147,582,000 | |||||
Stock-based compensation expense | $ 0 | 660,000 | 0 | 0 | 660,000 | |||||
Issuance of common stock, net (in shares) | 1,380 | |||||||||
Issuance of common stock, net | $ 14,000 | 130,248,000 | 0 | 0 | 130,262,000 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 5 | |||||||||
Issuance of common stock under employee stock purchase plan | $ 0 | 299,000 | 0 | 0 | 299,000 | |||||
Exercise of stock options, net of shares exchanged for payment (in shares) | 6 | |||||||||
Exercise of stock options, net of shares exchanged for payment | $ 0 | (342,000) | 0 | 0 | (342,000) | |||||
Repurchase of shares for payment of withholding taxes for stock grants (in shares) | (10) | |||||||||
Repurchase of shares for payment of withholding taxes for stock grants | $ 0 | (954,000) | 0 | 0 | (954,000) | |||||
Net income | $ 0 | 0 | 0 | 14,255,000 | 14,255,000 | |||||
Balance at December 31, 2022 (in shares) at Dec. 31, 2022 | 15,218 | |||||||||
Balance at December 31, 2022 at Dec. 31, 2022 | $ 152,000 | $ 185,404,000 | $ (733,000) | $ 109,058,000 | $ 293,881,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 14,255,000 | $ 10,389,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,353,000 | 639,000 |
Amortization of discount on investments | (218,000) | (11,000) |
Deferred taxes | (80,000) | 0 |
Stock-based compensation | 660,000 | 440,000 |
Changes in operating assets and liabilities, net of acquired amounts: | ||
Accounts receivable | (549,000) | 3,108,000 |
Inventories, net | (6,505,000) | (16,049,000) |
Other assets | (176,000) | (300,000) |
Accounts payable and accrued expenses | (7,637,000) | 1,750,000 |
Net cash provided by (used in) operating activities | 1,103,000 | (34,000) |
Cash flows from investing activities | ||
Purchases of property, plant and equipment and intangible assets | (2,213,000) | (2,051,000) |
Purchases of investments | (98,881,000) | (248,000) |
Proceeds from maturities of investments | 0 | 1,980,000 |
Net cash used in investing activities | (101,094,000) | (319,000) |
Cash flows from financing activities | ||
Repayment of long-term debt | (16,700,000) | 0 |
Proceeds from issuance of common stock under employee stock purchase plan | 299,000 | 249,000 |
Repurchase of shares for payment of withholding taxes for stock grants | (954,000) | (274,000) |
Withholding related to exercise of stock options | (342,000) | (156,000) |
Issuance of stock under equity compensation plans | 954,000 | 0 |
Net proceeds from issuance of common stock | 130,262,000 | 0 |
Net cash provided by (used in) financing activities | 113,519,000 | (181,000) |
Effect of exchange rates on cash | 135,000 | 0 |
Increase (decrease) in cash and cash equivalents | 13,663,000 | (534,000) |
Cash and cash equivalents, beginning of year | 16,650,000 | 13,216,000 |
Cash and cash equivalents, end of year | 30,313,000 | 12,682,000 |
Supplemental disclosures for cash flow information | ||
Cash paid during the year for income taxes | 0 | 0 |
Cash paid for interest | 205,000 | 0 |
Non-cash financing activities | ||
Cashless exercise of stock options | $ 431,000 | $ 93,000 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying (a) consolidated balance sheet as of September 30, 2022, which has been derived from audited financial statements, and (b) unaudited interim consolidated financial statements as of and for the three months ended December 31, 2022 have been prepared by Clearfield, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position, results of operations, and cash flows of the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of results to be expected for the full year or for any other interim period, due to variability in customer purchasing patterns, seasonality and other factors. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2022. In preparation of the Company’s consolidated financial statements, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities and related revenues and expenses during the reporting periods. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Principles of Consolidation The consolidated financial statements include the accounts of Clearfield, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments. In November 2018, the FASB issued update ASU 2018-19 that clarifies the scope of the standard in the amendments in ASU 2016-13. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Financial instruments impacted include accounts receivable, trade receivables, other financial assets measured at amortized cost and other off-balance sheet credit exposures. The new guidance is effective for the Company beginning in the first quarter of fiscal 2024, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements. |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 2. Net Income Per Share Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options, when dilutive. The following is a reconciliation of the numerator and denominator of the net income per common share computations for the three months ended December 31, 2022 and 2021: Three Months Ended December 31, 2022 2021 Net income $ 14,255,000 $ 10,389,000 Weighted average common shares 14,165,550 13,743,503 Dilutive potential common shares 119,297 154,284 Weighted average dilutive common shares outstanding 14,284,847 13,897,787 Net income per common share: Basic $ 1.01 $ 0.76 Diluted $ 1.00 $ 0.75 |
Note 3 - Investments
Note 3 - Investments | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Investment [Text Block] | Note 3. Investments The Company invests in certificates of deposit (“CDs”) that are fully insured by the Federal Deposit Insurance Corporation (“FDIC”) and United States (U.S.) Treasury securities with terms of not more than five years, as well as money market accounts. Historically, the Company’s investment portfolio had been classified as held-to-maturity and recorded at amortized cost. During the second quarter of fiscal 2022, the Company sold investments and reclassified its investment portfolio to available-for-sale, which is reported at fair value. The unrealized gain or loss on investment securities is recorded in other comprehensive income, net of tax. Realized gains and losses on available-for-sale securities are recognized upon sale and are included in net investment income in the consolidated statement of earnings. At December 31, 2022, available-for-sale investments consisted of the following: December 31, 2022 (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value Short-Term U.S. Treasury securities $ 108,580 $ 10 $ 327 $ 108,263 Certificates of deposit 9,513 - 238 9,275 Investment securities – short-term $ 118,093 $ 10 $ 565 $ 117,538 Long-Term U.S Treasury securities $ 6,694 $ - $ 650 $ 6,044 Certificates of deposit 4,449 - 200 4,249 Investment securities – long-term $ 11,143 $ - $ 850 $ 10,293 As of December 31, 2022, investments in debt securities in an unrealized loss position were as follows: In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S Treasury securities $ - $ - $ 15,210 $ 976 Certificates of deposit 4,201 89 9,323 350 Investment securities $ 4,201 $ 89 $ 24,532 $ 1,326 As of December 31, 2022, there were 62 securities in an unrealized loss position which is due to the market paying a higher interest rate than the coupon rate on these securities. As of December 31, 2022, there are no securities which are other than temporarily impaired as the Company intends to hold these securities until their value recovers and there is negligible credit risk due to the nature of the securities which are backed by the FDIC and U.S. federal government. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 4. Fair Value Measurements The Company determines the fair value of its assets and liabilities based on the market price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair value of U.S. treasury securities, and certificates of deposit based on valuations provided by an external pricing service, who obtains them from a variety of industry standard data providers. The Company’s investments are categorized according to the three-level fair value hierarchy which distinguishes between observable and unobservable inputs, in one of the following levels: Level 1- Quoted prices in active markets for identical assets or liabilities. Level 2- Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3- Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those with fair value measurements that are determined using pricing models, discounted cash flow valuation or similar techniques, as well as significant management judgment or estimation. The following provides information regarding fair value measurements for the Company's investment securities as of December 31, 2022, according to the three-level fair value hierarchy: Fair Value Measurements at December 31, 2022 ( In thousands Total Level 1 Level 2 Level 3 Investment securities: U.S Treasury securities $ 114,307 $ - $ 114,307 $ - Certificates of deposit 13,524 - 13,524 - Total investment securities $ 127,831 $ - $ 127,831 $ - During the three months ended December 31, 2022 and the year ended September 30, 2022, the Company owned no Non-financial assets such as equipment and leasehold improvements, goodwill and intangible assets, and right-of-use assets for operating leases are subject to non-recurring fair value measurements if they are deemed impaired. The Company had no re-measurements of non-financial assets to fair value in the three months ended December 31, 2022 and the year ended September 30, 2022 |
Note 5 - Other Comprehensive In
Note 5 - Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 5. Other Comprehensive Income (Loss) Changes in components of other comprehensive loss and taxes related to items of other comprehensive income are as follows: (In thousands) Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss Balances at September 30, 2022 $ (1,224 ) $ (674 ) $ (1,898 ) Other comprehensive income (loss) for the three months ended December 31, 2022 141 1,024 1,165 Balances at December 31, 2022 $ (1,083 ) $ 350 $ (733 ) |
Note 6 - Stock-based Compensati
Note 6 - Stock-based Compensation | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note 6. Stock-Based Compensation The Company recorded $660,000 of compensation expense related to current and past restricted stock grants, non-qualified stock options, and the Company’s Employee Stock Purchase Plan (“ESPP”) for the three months ended December 31, 2022. For the three months ended December 31, 2022, $625,000 of this expense is included in selling, general and administrative expense, and $35,000 is included in cost of sales. The Company recorded $440,000 of compensation expense related to current and past restricted stock grants, non-qualified stock options and the Company’s ESPP for the three months ended December 31, 2021. For the three months ended December 31, 2021, $409,000 of this expense is included in selling, general and administrative expense, and $31,000 is included in cost of sales. As of December 31, 2022, $4,578,000 of total unrecognized compensation expense related to non-vested restricted stock awards and stock options is expected to be recognized over a period of approximately 2.9 years. Stock Options The Company uses the Black-Scholes option pricing model to determine the fair value of options granted. During the three months ended December 31, 2022, the Company granted employees non-qualified stock options to purchase an aggregate of 15,020 shares of common stock with a weighted average contractual term of five three The fair value of stock option awards during the three months ended December 31, 2022 was estimated as of the respective grant dates using the assumptions listed below: Three months ended December 31, 2022 Dividend yield 0 % Expected volatility 61.68 % Risk-free interest rate 3.87 % Expected life (years) 3.5 Vesting period (years) 3 The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after their grant date. The risk-free interest rate reflects the interest rate as of the grant date on zero-coupon U.S. governmental bonds with a remaining life similar to the expected option term. Options are granted with exercise prices at fair market values determined on the date of grant and vesting normally occurs over a three five The following is a summary of stock option activity during the three months ended December 31, 2022: Number of options Weighted average exercise price Outstanding as of September 30, 2022 236,509 $ 31.30 Granted 15,020 104.36 Exercised (12,409 ) 34.77 Forfeited or Expired - - Outstanding as of December 31, 2022 239,120 $ 35.72 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. As of December 31, 2022, the weighted average remaining contractual term for all outstanding and exercisable stock options was 2.90 years and their aggregate intrinsic value was $7,058,000. Restricted Stock The Company’s 2007 Stock Compensation Plan permits its Compensation Committee to grant stock-based awards, including stock options and restricted stock, to key employees and non-employee directors. The Company has made restricted stock grants that vest over one ten During the three months ended December 31, 2022, the Company granted employees restricted stock awards totaling 8,686 shares of common stock, with a vesting term of approximately three three Restricted stock transactions during the three months ended December 31, 2022 are summarized as follows: Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2022 98,508 $ 31.51 Granted 8,686 104.36 Vested (23,001 ) 44.20 Forfeited - - Unvested as of December 31, 2022 84,193 $ 35.36 Bonus Stock During the three months ended December 31, 2022, the Company granted employees an aggregate of 9,144 shares of stock as a discretionary bonus to pay the incentive compensation earned for fiscal 2022 performance. The bonus stock consisted of common stock with no vesting period or restrictions. The fair value on the date of issuance was $104.36 per share. Employee Stock Purchase Plan The Company’s ESPP allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide those participating employees the ability to purchase the Company’s common stock on a voluntary after-tax basis. Employees may purchase the Company’s common stock at a price that is no less than the lower of 85% of the fair market value of one share of common stock at the beginning or end of each stock purchase period or phase. The ESPP is carried out in six-month phases, with phases beginning on January 1 and July 1 of each calendar year. For the phase that ended on December 31, 2022, employees purchased 5,585 shares at a price of $53.52 per share. After the employee purchase on December 31, 2022, 176,005 shares of common stock were available for future purchase under the ESPP. |
Note 7 - Revenue
Note 7 - Revenue | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 7. Revenue Revenue Recognition Net sales include products and shipping and handling charges. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies its performance obligations under the contract. The Company recognizes revenue by transferring the promised products to the customer, with substantially all revenue recognized at the point in time the customer obtains control of the products. The Company recognizes revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of the Company’s contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Disaggregation of Revenue The Company allocates sales from external customers to geographic areas based on the location to which the product is transported. Sales outside the United States are principally to countries in Europe, the Caribbean, Canada, Central and South America. Revenues related to the following geographic areas were as follows for the three months ended: Three Months Ended December 31, (In thousands) 2022 2021 United States $ 75,737 $ 49,118 All other countries 10,205 1,991 Total Net Sales $ 85,942 $ 51,109 The Company manufactures and sells proprietary product lines designed for the Broadband Service Provider marketplace. In addition, the Company’s Legacy business provides build-to-print services for original equipment manufacturers requiring copper and fiber cable assemblies built to their specification. The percentages of our sales by markets were as follows for the three months ended: Three Months Ended December 31, 2022 2021 Broadband service providers 97 % 99 % Other customers 3 % 1 % Total Net Sales 100 % 100 % Broadband Service Providers are made up of Community Broadband, which includes local and regional telecom companies, utilities, municipalities and alternative carriers, multiple system operators (“MSO’s, or Cable TV”), which are also referred to as Tier 2 and Tier 3 customers; National Carriers, which includes large national and global wireline and wireless providers also referred to as Tier 1’s; and International customers. Other customers include sales of copper cable, build-to-print copper assemblies and other contract manufacturing. Accounts Receivable Credit is extended based on the evaluation of a customer’s financial condition, and collateral is generally not required. Accounts that are outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible; payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of both December 31, 2022 and September 30, 2022, the balance in the allowance for doubtful accounts was $79,000. See Note 8 “Major Customer Concentration” for further information regarding accounts receivable and net sales. |
Note 8 - Major Customer Concent
Note 8 - Major Customer Concentration | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 8. Major Customer Concentration For the three months ended December 31, 2022, Customer A comprised 15% of the Company’s net sales. Customer A is a distributor. For the three months ended December 31, 2021, Customers B, A, and C comprised 15%, 11% and 10% of the Company’s net sales, respectively. Customer B and C are regional broadband service providers. These major customers, like our other customers, purchase our products from time to time through purchase orders, and the Company does not have any agreements that obligate these major customers to purchase products from us in the future. As of December 31, 2022, Customer A comprised 13% of the Company’s accounts receivable. As of September 30, 2021, Customer D was 11% of accounts receivable. Customers D is a distributor. |
Note 9 - Inventories
Note 9 - Inventories | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 9. Inventories Inventories consist of the following as of: (In thousands) December 31, 2022 September 30, 2022 Raw materials $ 72,560 $ 69,142 Work-in-process 5,125 4,592 Finished goods 15,026 10,803 Inventories, gross 92,711 84,537 Inventory reserve (3,006 ) (2,329 ) Inventories, net $ 89,705 $ 82,208 |
Note 10 - Goodwill and Intangib
Note 10 - Goodwill and Intangibles | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 10. Goodwill and Intangibles The Company analyzes its goodwill for impairment annually or at an interim period when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed as of September 30, 2022 did not The Company capitalizes legal costs incurred to obtain patents. Once accepted by either the U.S. Patent Office or the equivalent office of a foreign country, these legal costs are amortized using the straight-line method over the remaining estimated lives, not exceeding 20 years. As of December 31, 2022, the Company has 38 patents granted and multiple pending applications both inside and outside the United States. In addition, the Company has various finite lived intangible assets, most of which were acquired as a result of the acquisition of the active cabinet product line from Calix, Inc. during fiscal year 2018 and acquisition of Nestor Cables in fiscal 2022. The Company analyzes its intangible assets for impairment annually or at interim periods when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed as of September 30, 2022 did not |
Note 11 - Segment Reporting
Note 11 - Segment Reporting | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 11. Segment Reporting The Company’s reportable segments are based on the Company’s method of internal reporting. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. The internal reporting of these operating segments is defined based, in part, on the reporting and review process used by the Company’s Chief Executive Officer. Upon closing of the acquisition of Nestor Cables on July 26, 2022, the Company reassessed its operating segments as defined under Accounting Standards Codification (“ASC”) 280, Segment Reporting For the first quarter of fiscal 2023, the Company has two Financial results for the reportable segments are prepared on a basis consistent with the internal disaggregation of financial information to assist the CODM in making internal operating decisions. For consolidated reporting, the Company eliminates transactions between reportable segments. The following table summarizes the amounts between the two Three months ended December 31, 2022 (In thousands Clearfield Nestor Cables Eliminations Consolidated Revenue from external customers $ 78,355 $ 7,587 $ - $ 85,942 Revenue from internal customers (Clearfield, Inc.) - 1,186 (1,186 ) - Net investment income 301 2 - 303 Interest expense 170 73 - 243 Depreciation and amortization 1,009 344 - 1,353 Stock based compensation 660 - - 660 Income taxes 3,773 (78 ) - 3,695 Net income (loss) 14,718 (310 ) (153 ) 14,255 Capital expenditures 1,787 197 - 1,984 Goodwill 4,709 1,836 - 6,545 Total assets 334,465 34,692 (17,360 ) 351,797 |
Note 12 - Financing Receivables
Note 12 - Financing Receivables | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 12. Financing Receivables Nestor Cables factors certain of its accounts receivable, with recourse provisions that are accounted for as a secured borrowing. Nestor Cables has a total factoring liability of $4,178,000 as of December 31, 2022. Nestor receives cash for 80% of the receivable balance from the bank initially and the remaining 20% when the invoice is paid up to a limit of € 12.5 zero one |
Note 13 - Income Taxes
Note 13 - Income Taxes | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 13. Income Taxes For the three months ended December 31, 2022, the Company recorded income tax expense of $3,695,000, reflecting an effective tax rate of 20.6%. The difference between the effective tax rate and the statutory tax rate for the three months ended December 31, 2022 was primarily related to excess tax benefits from non-qualified stock option exercises and vesting of restricted stock, foreign derived intangibles income (FDII) deduction, and research and development credits. For the three months ended December 31, 2021, the Company recorded income tax expense of $2,780,000, reflecting an effective tax rate of 21.1%. The difference between the effective tax rate and the statutory tax rate for the three months ended December 31, 2021 was primarily related to excess tax benefits from restricted stock vested during the quarter, nondeductible stock option expense, IRS Section 162(m) compensation deduction limitations, research and development credits, and FDII deduction. Deferred taxes recognize the impact of temporary differences between the amounts of the assets and liabilities recorded for financial statement purposes and these amounts measured in accordance with tax laws. The Company’s realization of deferred tax temporary differences is contingent upon future taxable earnings. The Company reviewed its deferred tax asset for expected utilization using a “more likely than not” criteria by assessing the available positive and negative factors surrounding its recoverability and determined that as of December 31, 2022 and September 30, 2022 a valuation allowance against the deferred tax assets is not required. The Company will continue to assess the need for a valuation allowance based on changes in assumptions of estimated future income and other factors in future periods. As of December 31, 2022, the Company does not |
Note 14 - Leases
Note 14 - Leases | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 14. Leases The Company leases an 85,000 square foot facility at 7050 Winnetka Avenue North, Brooklyn Park, Minnesota consisting of corporate offices, manufacturing and warehouse space. The lease term is ten In July 2021, the Company entered into an indirect lease arrangement for an approximately 318,000 square foot manufacturing facility in Tijuana, Mexico that operates as a Maquiladora. The lease term is for 7 years of which 5 years are mandatory, commencing March 2022. The lease contains written options to renew for two On November 19, 2021, the Company signed a lease for a 105,000 square foot warehouse in Brooklyn Park, Minnesota. The lease term is five five Nestor leases an approximately 25,000 square foot manufacturing facility in Oulu, Finland, which is utilized for the operations of Nestor Cables. The original lease term ended on October 31, 2022, but auto renews indefinitely until terminated with two years written notice. It is not reasonably certain that the Company will not exercise the termination option. The lease calls for monthly rental payments of approximately $40,000. Rent is increased each year on January 1st based upon the cost of living index published by the Finnish government. Right-of-use lease assets and lease liabilities are recognized as of the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods the Company is reasonably certain to exercise. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. Operating lease expense included within cost of goods sold and selling, general and administrative expense was as follows for the three months ended: Operating lease expense within: (in thousands) Three Months Ended December 31, 2022 2021 Cost of sales $ 1,368 $ 285 Selling, general and administrative 203 55 Total lease expense $ 1,571 $ 340 Future maturities of lease liabilities were as follows as of December 31, 2022 (in thousands): FY2023(Remaining) $ 2,883 FY2024 3,875 FY2025 3,061 FY2026 2,870 FY2027 1,196 Thereafter - Total lease payments 13,885 Less: Interest (704 ) Present value of lease liabilities $ 13,181 The weighted average term and weighted average discount rate for the Company’s leases as of December 31, 2022 were 3.79 years and 3.22%, respectively, compared to 2.82 years and 3.41%, respectively, as of December 31, 2021. For the three months ended December 31, 2022, the operating cash outflows from the Company’s leases was $946,000, compared to $312,000 for the three months ended December 31, 2021. |
Note 15 - Debt
Note 15 - Debt | 3 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 15. Debt On April 27, 2022, the Company entered into a loan agreement and a security agreement with a bank that provides the Company with a $40,000,000 revolving line of credit that is secured by certain of the Company’s U.S. assets. The line of credit matures on April 27, 2025 and borrowed amounts will bear interest at a variable rate of the CME Group one-month term Secured Overnight Financing Rate (“SOFR”) plus 1.85%, but not less than 1.80% per annum. During the quarter ended December 31, 2022, the Company paid the outstanding balance of the revolving line of credit. As of December 31, 2022, the outstanding balance on the revolving line of credit was zero and the interest rate was 5.97%. The loan agreement and the security agreement contains customary affirmative and negative covenants and requirements relating to the Company and its operations, including a requirement that the Company maintain a debt service coverage ratio of not less than 1.20 to 1 as of the end of each fiscal year for the fiscal year then ended and maintain a debt to cash flow ratio of not greater than 2 to 1 measured as of the end of each of the Company’s fiscal quarters for the trailing twelve (12) month period. Debt service coverage ratio is the ratio of Cash Available for Debt Service to Debt Service, each as defined in the loan agreement. Debt and Cash Flow are also as defined in the loan agreement for the purposes of the debt to cash flow ratio covenant. As of December 31, 2022, the Company was in compliance with all covenants. The line of credit is collateralized by Clearfield, Inc’s assets of $334,465,000 as of December 31, 2022. During March 2021, Nestor Cables entered into a loan agreement, providing a $2 million senior loan with a term of three The Company did not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended December 31, 2022 2021 Net income $ 14,255,000 $ 10,389,000 Weighted average common shares 14,165,550 13,743,503 Dilutive potential common shares 119,297 154,284 Weighted average dilutive common shares outstanding 14,284,847 13,897,787 Net income per common share: Basic $ 1.01 $ 0.76 Diluted $ 1.00 $ 0.75 |
Note 3 - Investments (Tables)
Note 3 - Investments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block] | December 31, 2022 (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value Short-Term U.S. Treasury securities $ 108,580 $ 10 $ 327 $ 108,263 Certificates of deposit 9,513 - 238 9,275 Investment securities – short-term $ 118,093 $ 10 $ 565 $ 117,538 Long-Term U.S Treasury securities $ 6,694 $ - $ 650 $ 6,044 Certificates of deposit 4,449 - 200 4,249 Investment securities – long-term $ 11,143 $ - $ 850 $ 10,293 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value [Table Text Block] | In Unrealized Loss Position For Less Than 12 Months In Unrealized Loss Position For Greater Than 12 Months (In thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S Treasury securities $ - $ - $ 15,210 $ 976 Certificates of deposit 4,201 89 9,323 350 Investment securities $ 4,201 $ 89 $ 24,532 $ 1,326 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value Measurements at December 31, 2022 ( In thousands Total Level 1 Level 2 Level 3 Investment securities: U.S Treasury securities $ 114,307 $ - $ 114,307 $ - Certificates of deposit 13,524 - 13,524 - Total investment securities $ 127,831 $ - $ 127,831 $ - |
Note 5 - Other Comprehensive _2
Note 5 - Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | (In thousands) Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss Balances at September 30, 2022 $ (1,224 ) $ (674 ) $ (1,898 ) Other comprehensive income (loss) for the three months ended December 31, 2022 141 1,024 1,165 Balances at December 31, 2022 $ (1,083 ) $ 350 $ (733 ) |
Note 6 - Stock-based Compensa_2
Note 6 - Stock-based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three months ended December 31, 2022 Dividend yield 0 % Expected volatility 61.68 % Risk-free interest rate 3.87 % Expected life (years) 3.5 Vesting period (years) 3 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of options Weighted average exercise price Outstanding as of September 30, 2022 236,509 $ 31.30 Granted 15,020 104.36 Exercised (12,409 ) 34.77 Forfeited or Expired - - Outstanding as of December 31, 2022 239,120 $ 35.72 |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Number of shares Weighted average grant date fair value Unvested shares as of September 30, 2022 98,508 $ 31.51 Granted 8,686 104.36 Vested (23,001 ) 44.20 Forfeited - - Unvested as of December 31, 2022 84,193 $ 35.36 |
Note 7 - Revenue (Tables)
Note 7 - Revenue (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended December 31, (In thousands) 2022 2021 United States $ 75,737 $ 49,118 All other countries 10,205 1,991 Total Net Sales $ 85,942 $ 51,109 Three Months Ended December 31, 2022 2021 Broadband service providers 97 % 99 % Other customers 3 % 1 % Total Net Sales 100 % 100 % |
Note 9 - Inventories (Tables)
Note 9 - Inventories (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | (In thousands) December 31, 2022 September 30, 2022 Raw materials $ 72,560 $ 69,142 Work-in-process 5,125 4,592 Finished goods 15,026 10,803 Inventories, gross 92,711 84,537 Inventory reserve (3,006 ) (2,329 ) Inventories, net $ 89,705 $ 82,208 |
Note 11 - Segment Reporting (Ta
Note 11 - Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three months ended December 31, 2022 (In thousands Clearfield Nestor Cables Eliminations Consolidated Revenue from external customers $ 78,355 $ 7,587 $ - $ 85,942 Revenue from internal customers (Clearfield, Inc.) - 1,186 (1,186 ) - Net investment income 301 2 - 303 Interest expense 170 73 - 243 Depreciation and amortization 1,009 344 - 1,353 Stock based compensation 660 - - 660 Income taxes 3,773 (78 ) - 3,695 Net income (loss) 14,718 (310 ) (153 ) 14,255 Capital expenditures 1,787 197 - 1,984 Goodwill 4,709 1,836 - 6,545 Total assets 334,465 34,692 (17,360 ) 351,797 |
Note 14 - Leases (Tables)
Note 14 - Leases (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Lessee, Operating Lease Expense [Table Text Block] | Operating lease expense within: (in thousands) Three Months Ended December 31, 2022 2021 Cost of sales $ 1,368 $ 285 Selling, general and administrative 203 55 Total lease expense $ 1,571 $ 340 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | FY2023(Remaining) $ 2,883 FY2024 3,875 FY2025 3,061 FY2026 2,870 FY2027 1,196 Thereafter - Total lease payments 13,885 Less: Interest (704 ) Present value of lease liabilities $ 13,181 |
Note 2 - Net Income Per Share -
Note 2 - Net Income Per Share - Weighted Average Common Shares Outstanding (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 14,255,000 | $ 10,389,000 |
Weighted average common shares (in shares) | 14,165,550 | 13,743,503 |
Dilutive potential common shares (in shares) | 119,297 | 154,284 |
Weighted average dilutive common shares outstanding (in shares) | 14,284,847 | 13,897,787 |
Basic (in dollars per share) | $ 1.01 | $ 0.76 |
Diluted (in dollars per share) | $ 1 | $ 0.75 |
Note 3 - Investments (Details T
Note 3 - Investments (Details Textual) | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions | 62 |
Note 3 - Investments - Availabl
Note 3 - Investments - Available-for-sale Investments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Fair value | $ 127,831 |
Short-term US Treasury Securities [Member] | |
Amortized cost | 108,580 |
Gross unrealized gains | 10 |
Gross unrealized losses | 327 |
Fair value | 108,263 |
Short-term Certificates of Deposit [Member] | |
Amortized cost | 9,513 |
Gross unrealized gains | 0 |
Gross unrealized losses | 238 |
Fair value | 9,275 |
Short-term Investment [Member] | |
Amortized cost | 118,093 |
Gross unrealized gains | 10 |
Gross unrealized losses | 565 |
Fair value | 117,538 |
Long-term US Treasury Securities [Member] | |
Amortized cost | 6,694 |
Gross unrealized gains | 0 |
Gross unrealized losses | 650 |
Fair value | 6,044 |
Long-term Certificates of Deposit [Member] | |
Amortized cost | 4,449 |
Gross unrealized gains | 0 |
Gross unrealized losses | 200 |
Fair value | 4,249 |
Long-term Investment [Member] | |
Amortized cost | 11,143 |
Gross unrealized gains | 0 |
Gross unrealized losses | 850 |
Fair value | $ 10,293 |
Note 3 - Investments - Securiti
Note 3 - Investments - Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Less than 12 months, fair value | $ 4,201 |
Less than 12 months, gross unrealized losses | 89 |
12 months or greater, fair value | 24,532 |
12 months or greater, gross unrealized losses | 1,326 |
US Treasury Securities [Member] | |
Less than 12 months, fair value | 0 |
Less than 12 months, gross unrealized losses | 0 |
12 months or greater, fair value | 15,210 |
12 months or greater, gross unrealized losses | 976 |
Certificates of Deposit [Member] | |
Less than 12 months, fair value | 4,201 |
Less than 12 months, gross unrealized losses | 89 |
12 months or greater, fair value | 9,323 |
12 months or greater, gross unrealized losses | $ 350 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Debt Securities, Available-for-Sale, Total | $ 127,831 | |
Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Available-for-Sale, Total | $ 0 | $ 0 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Fair value | $ 127,831 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair value | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair value | 127,831 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair value | 0 | $ 0 |
US Treasury Securities [Member] | ||
Fair value | 114,307 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | 0 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | 114,307 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | 0 | |
Certificates of Deposit [Member] | ||
Fair value | 13,524 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | 0 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | 13,524 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | $ 0 |
Note 5 - Other Comprehensive _3
Note 5 - Other Comprehensive Income (Loss) - Changes in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance as of September 30, 2022 | $ 147,582 | $ 103,824 |
Other comprehensive income (loss) for the three months ended December 31, 2022 | 1,165 | 0 |
Balance at December 31, 2022 | 293,881 | 114,472 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | ||
Balance as of September 30, 2022 | (1,224) | |
Other comprehensive income (loss) for the three months ended December 31, 2022 | 141 | |
Balance at December 31, 2022 | (1,083) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Balance as of September 30, 2022 | (674) | |
Other comprehensive income (loss) for the three months ended December 31, 2022 | 1,024 | |
Balance at December 31, 2022 | 350 | |
AOCI Attributable to Parent [Member] | ||
Balance as of September 30, 2022 | (1,898) | 0 |
Other comprehensive income (loss) for the three months ended December 31, 2022 | 1,165 | |
Balance at December 31, 2022 | $ (733) | $ 0 |
Note 6 - Stock-based Compensa_3
Note 6 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 18 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Expense | $ 660,000 | $ 440,000 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 4,578,000 | $ 4,578,000 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 10 months 24 days | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 15,020 | 62,730 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 5 years | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | ||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 104.36 | $ 66.48 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 2 years 10 months 24 days | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value | $ 7,058,000 | $ 7,058,000 | |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Market Price Percentage, Offering Date | 85% | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 5,585 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price | $ 53.52 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 176,005 | 176,005 | |
Share-Based Payment Arrangement, Option [Member] | Minimum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | ||
Share-Based Payment Arrangement, Option [Member] | Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 5 years | ||
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 8,686 | ||
Restricted Stock [Member] | Stock Compensation Plan 2007 [Member] | Share-Based Payment Arrangement, Employee [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | 3 years | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 8,686 | 23,318 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share (in dollars per share) | $ 104.36 | $ 66.48 | |
Restricted Stock [Member] | Minimum [Member] | Stock Compensation Plan 2007 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | ||
Restricted Stock [Member] | Maximum [Member] | Stock Compensation Plan 2007 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 10 years | ||
Bonus Stock Award [Member] | Share-Based Payment Arrangement, Employee [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 9,144 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share (in dollars per share) | $ 104.36 | ||
Selling, General and Administrative Expenses [Member] | |||
Share-Based Payment Arrangement, Expense | $ 625,000 | $ 409,000 | |
Cost of Sales [Member] | |||
Share-Based Payment Arrangement, Expense | $ 35,000 | $ 31,000 |
Note 6 - Stock-based Compensa_4
Note 6 - Stock-based Compensation - Valuation Assumptions (Details) | 3 Months Ended |
Dec. 31, 2022 | |
Dividend yield | 0% |
Expected volatility | 61.68% |
Risk-free interest rate | 3.87% |
Expected life (years) (Year) | 3 years 6 months |
Vesting period (years) (Year) | 3 years |
Note 6 - Stock-based Compensa_5
Note 6 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options, outstanding (in shares) | 236,509 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 31.30 | |
Granted (in shares) | 15,020 | 62,730 |
Weighted-average exercise price, Granted (in dollars per share) | $ 104.36 | $ 66.48 |
Exercised (in shares) | (12,409) | |
Weighted-average exercise price, Exercised (in dollars per share) | $ 34.77 | |
Forfeited or Expired (in shares) | 0 | |
Weighted-average exercise price, Forfeited or Expired (in dollars per share) | $ 0 | |
Options, outstanding (in shares) | 239,120 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 35.72 |
Note 6 - Stock-based Compensa_6
Note 6 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member] | 3 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Balance, unvested shares (in shares) | shares | 98,508 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 31.51 |
Granted, unvested shares (in shares) | shares | 8,686 |
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 104.36 |
Vested, unvested shares (in shares) | shares | (23,001) |
Vested, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 44.20 |
Forfeited, unvested shares (in shares) | shares | 0 |
Forfeited, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Unvested, unvested shares (in shares) | shares | 84,193 |
Unvested, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 35.36 |
Note 7 - Revenue (Details Textu
Note 7 - Revenue (Details Textual) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 79,000 | $ 79,000 |
Note 7 - Revenue - Disaggregati
Note 7 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total Net Sales | $ 85,942 | $ 51,109 |
Total Net Sales, percent | 100% | 100% |
Broadband Service Providers [Member] | ||
Total Net Sales, percent | 97% | 99% |
Legacy Customers [Member] | ||
Total Net Sales, percent | 3% | 1% |
UNITED STATES | ||
Total Net Sales | $ 75,737 | $ 49,118 |
Non-US [Member] | ||
Total Net Sales | $ 10,205 | $ 1,991 |
Note 9 - Inventories - Componen
Note 9 - Inventories - Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Raw materials | $ 72,560 | $ 69,142 |
Work-in-process | 5,125 | 4,592 |
Finished goods | 15,026 | 10,803 |
Inventories, gross | 92,711 | 84,537 |
Inventory reserve | (3,006) | (2,329) |
Inventories, net | $ 89,705 | $ 82,208 |
Note 10 - Goodwill and Intang_2
Note 10 - Goodwill and Intangibles (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Sep. 30, 2022 USD ($) | |
Goodwill, Impairment Loss | $ 0 | |
Number of Patents Granted | 38 | |
Impairment of Intangible Assets (Excluding Goodwill), Total | $ 0 | |
Patents [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Note 11 - Segment Reporting (De
Note 11 - Segment Reporting (Details Textual) | 3 Months Ended |
Dec. 31, 2022 | |
Number of Reportable Segments | 2 |
Note 11 - Segment Reporting - R
Note 11 - Segment Reporting - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Revenue from external customers | $ 85,942,000 | $ 51,109,000 | |
Revenue from internal customers (Clearfield, Inc.) | 0 | ||
Net investment income | 303,000 | ||
Interest expense | 243,000 | ||
Depreciation and amortization | 1,353,000 | 639,000 | |
Stock based compensation | 660,000 | 440,000 | |
Income taxes | 3,695,000 | 2,780,000 | |
Net income (loss) | 14,255,000 | $ 10,389,000 | |
Capital expenditures | 1,984,000 | ||
Goodwill | 6,545,000 | $ 6,402,000 | |
Total assets | 351,797,000 | $ 229,128,000 | |
Intersegment Eliminations [Member] | |||
Revenue from external customers | 0 | ||
Revenue from internal customers (Clearfield, Inc.) | (1,186,000) | ||
Net investment income | 0 | ||
Interest expense | 0 | ||
Depreciation and amortization | 0 | ||
Stock based compensation | 0 | ||
Income taxes | 0 | ||
Net income (loss) | (153,000) | ||
Capital expenditures | 0 | ||
Goodwill | 0 | ||
Total assets | (17,360,000) | ||
Clearfield [Member] | Operating Segments [Member] | |||
Revenue from external customers | 78,355,000 | ||
Revenue from internal customers (Clearfield, Inc.) | 0 | ||
Net investment income | 301,000 | ||
Interest expense | 170,000 | ||
Depreciation and amortization | 1,009,000 | ||
Stock based compensation | 660,000 | ||
Income taxes | 3,773,000 | ||
Net income (loss) | 14,718,000 | ||
Capital expenditures | 1,787,000 | ||
Goodwill | 4,709,000 | ||
Total assets | 334,465,000 | ||
Nestor Cables [Member] | Operating Segments [Member] | |||
Revenue from external customers | 7,587,000 | ||
Revenue from internal customers (Clearfield, Inc.) | 1,186,000 | ||
Net investment income | 2,000 | ||
Interest expense | 73,000 | ||
Depreciation and amortization | 344,000 | ||
Stock based compensation | 0 | ||
Income taxes | (78,000) | ||
Net income (loss) | (310,000) | ||
Capital expenditures | 197,000 | ||
Goodwill | 1,836,000 | ||
Total assets | $ 34,692,000 |
Note 12 - Financing Receivabl_2
Note 12 - Financing Receivables (Details Textual) € in Millions | 3 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Sep. 30, 2022 USD ($) | |
Factoring Liabilities | $ 4,178,000 | $ 4,391,000 | |
Financing Receivables, Percentage of Cash Initially Received | 80% | 80% | |
Financing Receivable, Percentage of Balance Received When Invoice is Paid | 20% | 20% | |
Financing Receivable, Limit | $ 13,300,000 | € 12.5 | |
Financing Receivable, Average Interest Rate During Period | 2.37% | ||
Minimum [Member] | |||
Agreement Termination Period (Month) | 0 months | ||
Maximum [Member] | |||
Agreement Termination Period (Month) | 1 month | ||
Euribor [Member] | Minimum [Member] | |||
Financing Receivable, Interest Rate, Basis Spread on Variable Rate | 0.75% | ||
Euribor [Member] | Maximum [Member] | |||
Financing Receivable, Interest Rate, Basis Spread on Variable Rate | 1.30% |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Total | $ 3,695,000 | $ 2,780,000 |
Effective Income Tax Rate Reconciliation, Percent, Total | 20.60% | 21.10% |
Unrecognized Tax Benefits, Ending Balance | $ 0 |
Note 14 - Leases (Details Textu
Note 14 - Leases (Details Textual) | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2021 USD ($) ft² | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) ft² | Nov. 19, 2021 ft² | Jan. 01, 2015 | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 9 months 14 days | 2 years 9 months 25 days | 3 years 9 months 14 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.22% | 3.41% | 3.22% | |||
Operating Lease, Payments | $ | $ 946,000 | $ 312,000 | ||||
7050 Winnetka Avenue North, Brooklyn Park, Minnesota [Member] | ||||||
Area of Real Estate Property | 85,000 | 85,000 | ||||
Lessee, Operating Lease, Term of Contract (Year) | 10 years 2 months 1 day | |||||
Tijuana, Mexico 3 [Member] | ||||||
Area of Real Estate Property | 318,000 | |||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 7 years | |||||
Lessee, Operating Lease, Number of Options to Renew | 2 | |||||
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term | 5 years | |||||
Operating Lease, Monthly Payment | $ | $ 162,000 | |||||
Operating Lease, Payments, Annual Increase, Percentage | 2% | |||||
Tijuana, Mexico 3 [Member] | Lease Mandatory Contractual Term [Member] | ||||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | |||||
Brooklyn Part, MN [Member] | ||||||
Area of Real Estate Property | 105,000 | |||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | |||||
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term | 5 years | |||||
Oulu, Finland [Member] | ||||||
Area of Real Estate Property | 25,000 | 25,000 | ||||
Operating Lease, Monthly Payment | $ | $ 40,000 |
Note 14 - Leases - Operating Le
Note 14 - Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total lease expense | $ 1,571 | $ 340 |
Cost of Sales [Member] | ||
Total lease expense | 1,368 | 285 |
Selling, General and Administrative Expenses [Member] | ||
Total lease expense | $ 203 | $ 55 |
Note 14 - Leases - Maturities o
Note 14 - Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
FY2023(Remaining) | $ 2,883 |
FY2024 | 3,875 |
FY2025 | 3,061 |
FY2026 | 2,870 |
FY2027 | 1,196 |
Thereafter | 0 |
Total lease payments | 13,885 |
Less: Interest | (704) |
Present value of lease liabilities | $ 13,181 |
Note 15 - Debt (Details Textual
Note 15 - Debt (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Apr. 27, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-Term Debt, Total | $ 0 | |||
Senior Loans [Member] | ||||
Debt Instrument, Face Amount | $ 2,000,000 | |||
Debt Instrument, Term (Year) | 3 years | |||
Debt Instrument, Covenant, Interest Payment Cap | 5% | |||
Debt Instrument, Covenant, Interest Penalty | 2% | |||
Revolving Credit Facility [Member] | Loan and Security Agreement With Bremer Bank, National Association [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | |||
Debt Instrument, Minimum Interest Rate Required | 1.80% | |||
Debt Instrument, Interest Rate During Period | 5.97% | |||
Debt Instrument, Covenant, Minimum Debt Service Coverage Ratio | 1.20 | |||
Debt Instrument, Covenant, Maximum Debt to Cash Flow Ratio | 2 | |||
Debt Instrument, Collateral Amount | $ 334,465,000 | |||
Revolving Credit Facility [Member] | Loan and Security Agreement With Bremer Bank, National Association [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.85% |