CLFD - Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Welcome to Clearfield's Fiscal Third Quarter 2022 Earnings Conference Call. My name is Vikram and I will be your operator this afternoon. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. reminder, is a recorded. As Instructions] this being conference [Operator over turn host, I to conference to Group. would like Gateway the your from Sophie Pearson ahead. go Please

Sophie Pearson

Thank you.

and CFO, for Cheri us today's presentation Clearfield's Joining earnings Beranek, Herzog. Dan President and are CEO,

also performance section and Clearfield's the recent risks. those from in The with Commission in Form of XX-Q, cause cause actual to note that those company Field Following in its which This via the Field to questions. press Factors would webcasted their XX-K important provide the Please and statements differ forward-looking on factors a also from obligation called call, undertakes investor law. the the company forward-looking release, being this Risk required will presentation link except like to the that of for the subject during made future Form call and to Relations to that Report, are Securities most I financial in could relations by be consider everyone It's in results commentary, no in you that as and of the recorded Report, by open management materially could of that remind section and The today's Exchange the available website. accompanied is forward-looking subsequent such company's statements. call company. regarding uncertainties website. also statements actual description available making statements, be and a will contained call statements forward-looking the These we to results cautions in differ is the the risks call. company's update to for and will materially this this filings section Investor replay PowerPoint events note filing conference risk future those

speaker Clearfield’s Cheri presents slides like to the the forward I that, the their you, you the would the over Thank listener. and presentation remarks. are to in through CEO, reminder, to presentation Beranek. a advance over Please as With As this turn controlled by you. call

Cheri Beranek

Thanks to fiscal us today. Sophie. afternoon also seeing market. results pleasure for Good It for share this to trends everyone update is quarter a the with Clearfield's to are you speak of you XXXX the we on the thank afternoon business such an third provide our in and and joining and

cable scale million, our a Now continues fiberoptic expand As capacity business evidenced strong of Nestor by to finished financial rapidly continues demand. the we for to net broadband the results, Age our the May broadband robust execute strategic XXXX, our to high-speed demand for product exceptionally the strategic $XX.X plan for sales acquisition be strong, to to does burgeoning including of only we Not meet supplier of announced QX our our record and and but market remains of agreement an demand accelerate. on strategic to Cables, FieldShield In manufacturer, line. continue

design like a I the team minutes, for But relationship future Nestor's means closed of XX and demand. few enables this what future vertically customer supply The and to Nestor a acquisition I first, go Clearfield. detail business to into greater and will would Clearfield. welcome on to the which synergistic spans the July FieldShield on Nestor meet us over integrate with Our to of cable decade. acquisition, In

working We so thrilled to alongside. have are you

million. also record XX% QX, sales our our we a record by prior increased end $XXX in net In backlog from quarter to addition the to and quarter

on well growth. positioned previously, to this we we As are Clearfield have opportunity investment once-in-a-generation experiencing said and truly we believe believe a in industry, capitalize I our is

we our and to million. of developed With broadband our are this tailwinds enthusiastically. continued fiscal strong and raising million carefully was product with quarter, our Our 'XX range this $XXX industry a net customers sales to execution, guidance visibility responded portfolio our $XXX opportunity, for have year into current

represents growth XX% year sales to net Our of over XX% guidance fiscal XXXX.

like For who those deployment to and to we a enable fiber-fed we of provide and provider you We our broadband cyber I'd Clearfield industry. management a cyber throughout do. protection, are in solutions the industry, service provide of brief space. expanding the may be overview who what leader new Clearfield and broadband in is rapid fiber that cyber cost-effective the delivery

Tier X growing municipalities, of primary of carriers community incumbent which exchange Our wireless predominantly is end Tier number local is and carriers. market broadband, utilities, X the comprised and and co-ops

national some market international Central America. TV system service as Tier providers service or in serve the carrier providers cable in MSOs and and South operators multiple also Canada, Caribbean, X as We well the

portfolio product patented on and Clearview Clearfield fiber effect, deployment, the platform. developed the faster their meet The customers modular the image slide to softly enabling on of Our of focuses efficiently. more scalable four right our modular management scalable deployments and is foundation

amount the installation the necessary including to skilled needed the required is to and skill designed line, of of reduce product level entire Our previous for both install. labor

these Given advantageous. today's available technicians qualities the market, shortage of particularly significant are in trained

Our that fiber access way to to broadband each enable enable broadband People changing is participate at be other provides. means communicate change. Clearfield is high-speed and and modern proof is need to future Broadband we mission fully the to the the better society. in able and lifestyle to with

who Our that all deliver as an company's to a vision to the fundamental network organization. This products communities. build better broadband we mission was are is for founding

minutes take cable the optical infrastructure founded in a professionals in our have for fiber organization are and a would of operational excited in product technology XXXX Finland Nestor for I acquisition decades to business recently we service why Clearfield. deployment the about Cables of by sales developed We discuss opportunities Nestor like development the experience every with manufacturing. community. so was in and growth and completed and few portfolio to now fiber to

Moreover, completed by reputation to closer has manufacturing fiscal be FieldShield projections, generated €XX.X codeveloped the product supplier our manufactured and providing FieldShield stellar Clearfield supply Finnish and future has for line. a the established and that Clearfield accretive us will it of to flexible FieldShield, XXXX. IP of by North us and in expand The and fiscal total and integrated customers our a with value, integration fiscal reaction for Approximately in with reliable over seamlessly design the of to patents developer market. opportunity $XX for its and Nestor. income that In year-end, while times Clearfield be from to Our Nestor Final to Nestor efficiency, will and we including spans and operate relationship supply accounting its American and business under annual results expect culture of decade revenues million profitable net to Nestor and a cable, reported as clarify exports a this owns subsidiary help and were our with Virtually quick but been deliveries, accordingly. it operational standards. product provides work Nestor million component company will will was was was Clearfield approximately valuation the revenue facility. European XX% primarily its be year as with transaction financial generated and characteristics funded through credit XXXX, the align the company. fees our associated values.

acquisition. X, level of shows the and slide now expected Turning to high of rationale which the numerous benefits

future of fiber our the demand. expected benefit optic to is meet supply integrate vertically the first customer to ability cables The

only Mexico persistent extend our of is supply cost to this fiber will in customers' intend transportation. supply the supply challenges complexity Not schedules. meet in With of increase allows team North in deep the facility important reduce to FieldShield we Further, market. critically chain, order America, that the us total the to available today's North our American at leverage FieldShield Nestor it fiber order affecting and this expertise has also deployment to of the capability technical in the

our production We the fiber XXXX. facility early expect of year calendar at commence to in Mexican at the cable

its and of longer Another for potential which in for our leadership will community. our is is enable provides. progress the that significant opportunity our vision deployment our to the could accelerate towards the be possibility into and aligns service solutions every our the growth benefit lifestyle a company's will fiber of market in growth to our Clearfield broadband with introducing position cassette-based Nestor market, mission, Nestor Overall, which extend fiber will term. the the management European strengthen acquisition

Dan, conference on For quarter acquisition XXXX. additional you Nestor May for to call who the details, walk that, the financial and performance over through will of accompanying IR third turn us now our XX, to available presentation from webcast With both I'll the refer may the that presentation are the site. XXXX,

Dan Herzog

results. speaking you, to and with It's afternoon, everyone. Thank good quarter fiscal you pleasure third a XXXX be today about our Cheri,

in quarter up third from XX, Order these bookings million million, from of million in for XX% persisted our increase in XX% backlog. third XXXX million same second XXXX, two sales, of of our on million in increase in and who in on order backlog XXXX. at up Strong sales more a of customers quarter a the net XXXX. into Both XXXX, results $XXX from looking sales XX, sales period $XX March third up XX% record year-on-year of So in an June million on respectively. distributors. Net $XXX our record the to detail. ago were had and financial in customers the accounted quarter year XX% were We quarter XX% period, and XX, a from grew XXX% the fiscal momentum $XX resulting June XXXX, $XX fiscal $XX

to significant facilities, the by revenue discussed, in previously I'll now which based capacity ahead. and have US markets. opportunities expanded have key we us sales on net to review our capitalize we in we our expect As quarters allow Mexico

of broadband XX% XXXX. fiscal of community the a broadband, the core $XX net period sales QX, in year. fiscal market year we In million ago sales generated in XX% with in our up consistent Our net third comprised community last XXXX, of prior quarters same approximately from quarter

XX, comparable the up addition, period last our sales for June totaled XXXX, was broadband XX the year. which million, from trailing net $XXX ended market community on XX% approximately In months

national XX% in the third Net trailing comprised to fiscal sales profit XX% months XX carrier year year-over-year or the from carrier XX-month Net XXXX were period. third last be compared Gross quarter. XX-month were net company, same our year end. a strong the XXXX. in sales fiscal up XX% sales in quarter sales XXX% our down market our from and increase with market sales Our to XXXX as quarter trailing XX% XXX% over MSO comparable XX% were in XX%, approximately period. net from net Overall, markets year-over-year of up for for XX-month third quarter to our MSO continues in in period business the of growing Momentum of a XX% of XX-month ago XX% year-over-year. international the or on our $XX XXX% a year-over-year basis. year On third fiscal net the up sales net in of of trailing in the the increased sales and were the XX.X% net trailing ago basis, sales million same quarter the $XX the million market trailing up recorded in previous quarter increased net sales an national approximately

the costs components overhead expected, increased in and with estate associated facilities some gross shipping margins. margins. our negatively first full new As Mexico and affected increases quarter Alongside in of real impacted Minnesota inflationary negatively costs costs,

of at coming for investment negatively primarily expenses due ago quarter increased $XX costs $X of XXXX the the these consisted and professional higher margins affect growing expenses year not associated will from same third up business and approximately margin The expenses compensation million, the to compensation quarter. We Cables. our fees, in Cables. of strategic the higher well national anticipate with acquisition as for in levels the performance-based which to including mainly carrier increase fiscal increased were Nestor million as approximately personnel were travel Operating operating for Nestor quarters, near future. Our

establish and product to Our organizational growing higher personnel personnel business. the a to infrastructure costs management are in sales, investment company's engineering consistent support firm strategic with the

expenses operating year same period. the fiscal for XX.X%, XX.X% As third in XXXX quarter a of down from percentage the sales, of net was ago

our result Although increased strong growth, our our up of our at in in in leverage. fiscal operating current year increased quarter from less third of million $X.X XXX% expenses than Net to ago Net a and the quarter OpEx million million XXXX up of are period revenues. income same XX% sales reflects with XXXX. from operating the sales the fiscal income second $X.X higher of as $XX.X

period from fiscal XX.X%, a quarter up XX.X% and in up year the As third sales, second of net for was the percentage same net XXXX. income ago the quarter in from of of XXXX XX.X%

mainly and third necessary of we had products our to new backlog. terms capital the build-outs support million increased position to our capacity $X.X and to $XX.X cash in expenditures, order our inventory In the facility quarter, acquire meet for million sheet, our as increased million sales as the $X.X inventory high we to balance in in our demand represented utilize

ended we in $XX with quarter of to to third Nestor did that, July the credit the million date Cheri. While our utilize of debt, Cheri? line approximately no back to I'll turn it company over its acquisition. With fund

Cheri Beranek

Thanks the for update, financial Dan.

for Since management that is connectivity our proposition. or and built generational will Clearfield our opportunity front has prevent community value our truly underserved founding, fiber goal unserved delivering that our scale fiber-lead Clearfield and from drive lies Our of the to us. thoughtfully historically its to and priority. obstacles It were products communities built designed broadband, remove is been was this adopting we fiber customers in broadband. fiber products to

pillars As and the solidify Age of plan of intended fiber within The is and choice Clearfield's Clearfield's multiyear for market our strengthen the broadband fiber three Now connectivity. of management position discussed, as plan Age establish industry. of we've previously the platform to Clearfield plan are Now to strategic

broadband customers' Our demand in Accelerating the to this market to ensure market's and the existing to for concurrently fiber-fed obtain, is to the and built for pillar years markets commitment the addressing while that operating accelerating share fiber-to-the-home continue our demands. our Clearfield and goal business was Clearfield's powering our reflects satisfy new operations innovation capture cadence, and to ahead.

known is late allocated being funding As previously broadband. of Investment the in market in not a to early as available fiber-led program of That investment stated, is in is Equity historic short-term third Act, are event. notes the by on-time to It's that anticipated billion Infrastructure Furthermore, XXXX middle an is and our next In we are More broadband, combined. investment that XX we is $XX industry, in Broadband to through our Jobs for research for amount and period Industry in XXXX may XXXX. moment by million passed fiber homes will the and $XX high-speed the expected through than the elevated the ability fiber the new five-year peak this be be particularly products broadband a fiber deliver Deployment XXXX. year cycle cycle XXXX. years our billion pivotal Nearly customers prior this of expected that crucial. BEAD. Access in distributed demand with all to that

time, for optical and the success. is meet was as our acquisition This to deployment customers' in wireline Nestor. the we So opportunities is next revenue second current Demand for Age significantly the across future accelerate. Maintaining our at the home reason, critical reflects time of of a see for The strong market-changing for growth while their continue requirements. delivering Clearfield's plan. and into issues to pillar fundamental today with to our backhaul several then integration we and Disruptive of key their the same build our Bold over customer suppliers The future continue to Amplifying availability Growth American commitment customers for demand to business can networks supply market objective ability are transporting future its is the products wireless industries. fiber cost cables programs Now and years. our pursue reducing North to show and and of outpaces field transform and the fiber relationships upheld and persist our chain all schedules time to

we the objectives. this reflects million $XXX in and pillar's have sequentially record XX% progress up backlog, achieving made toward XXX% Our year-over-year,

provide Our deployment customer their schedules, pace customers to to quickly as ability a ability their our and to to scale products to at with needs. respond deployment thanks effectively

We incremental have from customers. add been market and to existing able new share

material still supply our business result, demonstrated constant. Our world closely restricted. we customers growing With the a further our our growing are with overhead rate, is of that an without as are ensure market. Various working healthy, aim share availability not. is required, their labor Contractor but to we scalability will chain And our amazing with expand overextending challenges market needs capacity we costs. our at have to meet to annual is

Ongoing their to Augmenting pillar, changing for our Clearfield's of its the to third scaling our demand meet customers operations is exponential Capacity for The Growth are high-speed Our key and to features commitment pillar to agility and broadband. adapt needs. this ability

following at executing our facility Earlier here demand products. growing in in capacity meet Minnesota, distribution center our for on our growth and expanded our Mexico strategy. through on and this on manufacturing in capacity order we and laser-focused year, substantial to our are significantly our the We

see alone, production. You images In slide. of of we enable both this to can effectively added facilities on employees, expanded Mexico hundreds

labor train employees achieved these coming we've to over quarters, continue to We the utilization new improve until facility optimization.

expertise intend the mentioned we have leverage I of for earlier, North cable market. deep As the of American can to production to FieldShield expand investor technical

begin we this for of in future optic expect ensure demand continue production fiber customer the first FieldShield's XXXX cable. meet half to and We calendar to can

interruptions, delays. augment of safeguard network our a look our This helps will the a production help importance key grow of We and out product deliveries continue we chain to for priority management further leveraging ship can business. also any and demand. to Supply historical that supplier for maintaining smooth capacity to against that strong have as Nestor's we opportunities optimize remains ensure without are key to partners facilities relationships our Clearfield supply seasonality their chain could at of

To to us very keep believe addition are broadband our opportunities broadband also middle for especially fiber-led we growing high-speed the in would growth the we with of evaluate investing investment our demand in for cycle organic a would initiatives, remains enable long-term customers. and we our In deployment. summarize, strong, broadband, that inorganic to right

We chain have our effectively meet our demand. expanded proactively managed to customer capacity supply and that

has further the serving well capitalize in market positioned on expertise broadband to Our us tailwinds. community industry

and We most ship remain have growth We third very proven growth record our months. strategy. Clearfield's potential, scheduled optimistic quarter with the execution six strategy financial of that demonstrate a backlog in next of to outstanding results about our

our backlog, we to of degree $XXX fiscal performance our integrating quarter, our sales for team visibility of success, behind $XXX fiscal and the our customer our year fourth XX% to of well range raising range as as in into look million net third repeat to to to over Nestor year from the With look substantial into we XX% pipeline we million as are order high Nestor maintain our to million, fiscal As current the our operations. $XXX cables as well growth guidance our of it, XXXX, representing million XXXX. a quarter excluding $XXX

Our from Nestor. any contribution outlook excludes growth revenue

We on needs, that Clearfield are continue leadership we expertise was commitment grow your built for the effectiveness, based and product innovative that, to our confident the can call we open questions. market to to to ready And portfolio. are achieve, that market customers' operational with

Operator

Thank you.

taking first Instructions] our Please, [Operator We the ahead. from question We with sell-side Capital Markets. Schmidt Lake go have be publishing of will analysts. Street from now questions company's the Jaeson line

Jaeson Schmidt

Hey, on my questions for the really guys. and taking impressive results. congrats Thanks

with Just that backlog want to start number.

that the if backlog this breakdown curious, the similar revenue to of quarter past or is year-to-date? I saw just composition guess, you pretty Just

Cheri Beranek

actually are quarter looking to the scheduled solutions, in and that to orders long-term The into we're more some longer-term customers place year. consistent regard in and backlog seeing market with third pretty next increase is more

been So where only we've than caveat. that in with the quarter. consistent pretty Other will be that, it's last at the

Jaeson Schmidt

unable thinking the And was how and overall And we I some you I helpful. just backdrop? to that ship year? through alluded Do in if That's expect as constraints. this of are improvement there quarter? Cheri, guys know demand June relatedly, you overall you to about Okay. calendar you guess, that progress any some remainder were labor supply the Curious,

Cheri Beranek

in we've ability much more in that to Minnesota. Mexico Well, actually had a of has and bringing our ship. Yes. -- an affected and both I people had accelerated mean, haven’t manufacturing amazing we to time rate labor onboard

expect out have problem our larger get get people of to point who a our from gets perspective, where able we're really will now season are achieve things to we've it the I build kind challenge have And spring. get are spoken winter it experiencing market. been turn for because actually in affected some with of is this ready be before into into and people place able the to And very figure training. customers, labor. new little how worse accelerated better a to that several next seeing I some need So a But customers we'll we're and at to to

the we labor training kind I program programs investing kind alleviate at and of available other support amongst demand got base. are So of to Clearfield think our we've to our of the installation to uncertainty providers the and in in looking concern in labor investment our some to from customer and -- accelerate availability XX end, months of around products of service our an contractors -- increase aggressive but that training help resources significantly application help engineers from

Jaeson Schmidt

Got just last for and into then I'll jump And Okay. it. back one queue. me, the

guided contribution Just any I the from know include not a range Cables. clarification. Nestor does new

on you given an However, guided from the revenue apples-to-apples be or so them, it range would any are just basis? was expecting

Cheri Beranek

that to of clearly. be standards. were Nestor growth the of our we accounting that accelerated to wanted important very it in financial apples-to-apples. are We done amount be make Finland their The audits a for was finish that the able -- felt sure is it growth to Cables. And to -- recording, rate see shareholders we with organic would and the

they more to a and Northern that business will It level they that some €XX in the basis, tick we're what their in their Europe. have able referencing were million. down start in was is which to XXXX, They now September audited seasonality of in actually was So October international to which fiscal most achieve revenue on year do business. of

million more We from anticipate ending in valuation is integration profitability be revenue period So September. they're Nestor $X walk the $X capacity in going us. value much for these will or some depreciation The there difficult fair review, probably because the all in bringing to there's review. through to the million of available have issues

So Nestor able November. with we when -- as part a more vision program give we'll a what year-end much announced the that integrated of in accurate means financials clean of be to an of Clearfield

Jaeson Schmidt

Okay. a Appreciate color. Thanks guys. lot, that

Cheri Beranek

Mr. Thanks. Peter/

Operator

Thank you.

We have question Ryan ahead. next & line from the Needham go of Please Company. Koontz with

Ryan Koontz

Thanks for of merely I'm the Clearfield question. to out a Big for spectacular here congrats team. superlatives the quarter. just

keep it up. So

Cheri Beranek

Thanks.

Ryan Koontz

[indiscernible] understand other both you can your what's budget? you happening displacing would segments, these gaining be wins us help with across carriers two in vendors? these the color it new great. kind are existing national inflection Maybe we're MSOs. the that there any those the Are task the for Are companies? more programs, Are seeing of and to

Cheri Beranek

the pass smallest -- starting to get us, more move able as from product really carrier that to carriers. than we to the the said infrastructure as the in their we the we exciting to carrier line relates national business in it be largest do homes work from fact together of very as is app and we markets more execute especially and broadband and the with the in because the it community We've that ability for are that that same lines put national that Our the national represents really forward. cabinet scale to can use beginning product networks

dense be cable to some and a success product TV cabinet concentration Tier extension already MSO In defensive in the passing national the providers been cable the success we've reach really than work and market with in work rather the continuing X and doing we're the the homes seeing as of space in exciting able markets. existing a And fiber TV it's the our carrier with their the Tier market, to in a their So market. of really highly it fiber variety service business extend The proactive cable higher X in portfolio. active with to an market support also is a move. using of markets

So some currently that's cabinets -- to of of able have further bring the of and this for as where a win be active really into TV they they're new in going. level and what electronics capture to us cable their out network protect invest in they

So current support as of we and we expand. long-term into levels programs that those their at needs opportunities as see both can grow

Ryan Koontz

to makes a Makes moving sense. so of distributed all a the those need architecture to sense. guys power are lot of nodes, lot and remote access The cable

Cheri Beranek

Yes. Yes.

Ryan Koontz

-- And ahead, about the on go then how Cheri.

Cheri Beranek

then lot a they that. And cables to file of going are with

So we're connectivity that is actually active we as that build connectivity demand provide cabinets for excited then can well. the and

Ryan Koontz

for And RDOF? kind what know yet? the probably revenue Great. give you -- you from programs? or of cycle those the I are on then us you subsidies, on earlier either Right. a for ARPA give -- the Are can't they two can but subsidies us the are number, contribution material Where we in

Cheri Beranek

revenues very, early. our very, They're X% less of very than

Ryan Koontz

the Helpful. historical product quarter, as as it. in mix any far difference any kind passing of versus -- on And versus then mix there? the Got connections

Cheri Beranek

to with we some of margin. No in We cabinets the towards homes so something And sheet going that but accelerated in – and metal weighted rate. And associated were the difference, fact where what kind deal reflected gross like. we over impact our months, unfortunate see of to that's really structure and with that's is heavily passing profitability at, very still the last in enclosures, cost outpaced of architectures record manufacturability design We knew don't But new more is reduce can and and to an actually of gross metal with a this did We'll profit sheet the competencies. cost not our the it rate significant sheet those. ability we addressing part that statement of of of our metal. be in see a inflationary increases metal six but able core we've quarter one per be and kind associated we're sheet buildings. is with phenomenal cost to of then this of probably next the in that It's business the that had cabinet has structure.

Ryan Koontz

Right.

you're to areas unfortunately, price you're said, pain there? probably some you feeling So looking pass when increases along where

Cheri Beranek

the Yes. most in to able We're to hold partnership actually way a provider be prices of hoping service customers. through, our with

in because increases of from price increase any So there. us revenue won't

need we'll places where platform, to. to a as statement we Some can. of But it we're of going hold kind across

Ryan Koontz

have. That's all so much, Thanks I great. Cheri. That's questions

Cheri Beranek

Thank you.

Operator

you. Thank

question of Please We go Tim Savageaux next Markets. from with line Northland ahead. the have Capital

Tim Savageaux

add good question or and is afternoon, I'll – first utilization. results. strong My – around me Hi, capacity on the congratulations pardon capacity my

and in coming had capability You've new Mexico. a manufacturing online the US in of lot

be we third you I mean, shortly running think or But And capacity? terms look whether up relate capability quarter fully here revenue you going you Where have that strong might in tripled revenue the what And at overall follow-up. your have results, and of can I you down now? scaled now capacity? total as are forward there. where might I a you're you capacity

Cheri Beranek

see We were could the capacity. bring real build contractors those last our extremely very XX and working pleased – labor really to are adding we effectively, What we've were the to that bring investment estate with to we environment strategy board were X the with. the both that able you'll significant able months on us managers that a month, we really on we forward where were to to deal making in were we that were in we're schedule to able out where from sort to that were been people on get in we each revenue so and team an for facilities execute A to we're calling how able difficult rapidly them that to is place. of on we execute months those board, in

to our quality that manufacturing. ensure the ongoing design is to been One and quality critical has commitment at quality to that a things pace you grow can of

each little month of So ship. each quarter bigger components the so sheet pending than a attending one is be able bit before, to and other to metal

be things we because metal, more than to to so some And in some able the expedite able expected we were were able ship place. in to quarter, third sheet we get

we need different to commitment the the We are time, at But be to a that to we've bringing in issue. got on additional lessen manage. every there's able that same different day, suppliers suppliers

our are and place. capacity, amazing the we so to time in commitment it's to And get floor, once the we having all can commitment but bomb – getting lead manufacturing the materials on

required this increase so XX%, for market to announced XX% building, There's year. you between We and well. as build that's Corning a companies it We for were utilize Calix facility about a We see in XX%. this market. why fully XX% built infrastructure And generational week of CapEx inventory significant that somewhere numbers saw one more that's development. the is this this such like growing and didn't

at least an basis. I grow product over finite it's can So we're amount because with believe annual give Denso. you grow in And really that to but this a market can't number we going we specific,

Tim Savageaux

chasing time you've step on that all for while you've a guys that X customer carriers Tier of could of over obviously after there. you guess, you Thanks Great. pretty major sort seen of these higher, the And I some something or can that little can I you're one penetration increases And multiple one that where if side look lumpy of say something color. follow had build a national you at and might been of this a that that on maybe larger for just as whether or sort should you've be back more up got increase significant with? we function kind impressive driving

Cheri Beranek

not business. This project is

ongoing is So being it that charged basis. a out is for on delivery revenue monthly

seen started significant that to kind forward. same to continue so early backlog a part The in you've be wireless well, shipping we'll and increase at And product related quarter, percentage here of able the moving about what we national it a is carriers in is but as the the the that as of and rate carriers we predominantly all sell to -- ship do rate to single at the increase of it that carrier.

Tim Savageaux

very and Thanks much, again. congrats Great.

Cheri Beranek

Thank you.

Operator

question-and-answer Thank time, concludes this this you. At company's session. the

to may Ms. If turn closing for like was remarks. your contact to Investor Beranek ma'am. team CLFD@gatewayir.com. Relations not Over at you, back over taken, question you the to I'd Clearfield's call now

Cheri Beranek

equipment work and built, acquisition fiscal does are our broadband to you. with strategically speaking of of earlier portfolio we are Moreover, and the Clearfield to Master more to customers for customers' to of the next year. It you necessary We be Clearfield product customers. success. that now the the and said and extremely opportunity provide to this and even be our planning at level again we're that been end forward excited our able before, times has what to about and for our as for of many work were with able stage amazing with with thrilled really involved an I've Thank absolutely We process. look community time the to demonstrate our community our

in the integration We November, mid together. put will much, good are so day. late Thanks materials to sometime and December report as

Operator

Call. Thank us Fiscal thank for XXXX much. you Earnings Ladies joining today very Clearfield's Third you for Conference Quarter and gentlemen,

You may lines. your disconnect now

Clearfield (CLFD) 29 Jul 222022 Q3 Earnings call transcript