CLFD Reported blowout F’Q4 results; guided to 40-45% revenue growth for FY’23.
Revenue for F’Q4 (Sept.) grew 110% Year/Year to a record $95M, including an incremental $7M generated by the acquisition of Nestor Cables.
F’Q4 EPS was $1.22 vs. $0.53 a year ago.
We were expecting a beat-and-raise Q, but the magnitude clearly surprised us. We were looking for $71.5M/$0.88 EPS for F’Q4; the Street was at $71.4M/$0.86.
Revenue for FY’22 grew 92% Y/Y to $270.9M vs $140.8M a year ago.
FY’22 net income was $49 M and EPS was $3.55, +143% from $20M, or $1.47 per share, in FY’21.
Backlog increased 148% to $16 M at YE’22, compared to $66M a year ago.
Co. introduced FY’23 revenue guidance of $380 M-$393M, representing 40-45% growth Y/Y.
Gross margin in F’Q4 excluding the Nestor revenue was ~42%; DSOs were about 50 days, and have lengthened slightly as the co, has added some larger carriers that have longer payment terms.
Customer sales breakdown: “Community Broadband (i.e. Tier 3/rural carriers) -- 61% of sales; cable operators/MSOs – 22% of sales; National Carriers (Tier 2/T1) – 17% of sales, indicating a growing pct. Of MSOs and larger carriers.
Management appeared to be more bullish on 1H of FY’23 than on the second half, and acknowledged interest of larger competitors in focusing more on the rural market.
No margin guidance for FY’23 given on the call, but we believe mgt. expects operating margins to remain just above 20%. This could prove challenging, we believe, as the co. addresses new, larger customers and also new competitors.
Raising FY'23 estimates from $299.4M/$3.55 to $382.6M/$4.30. Introducing FY'24 estimate of $470.1M/$4.77.

CLFD

Clearfield, Inc.

Communications Equipment

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