Annual report pursuant to Section 13 and 15(d)

Note 4 - Concentrations

Note 4 - Concentrations
12 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]



Suppliers: The Company purchases critical components for our products, including injection molded parts and connectors from third parties, some of whom are single- or limited-source suppliers.  If any of our suppliers are unable to ship critical components, we may be unable to manufacture and ship products to our distributors or customers.  If the price of these components increases for any reason, or if these suppliers are unable or unwilling to deliver, we may have to find another source, which could result in interruptions, increased costs, delays, loss of sales and quality control problems.


Customers: For the fiscal years ended September 30, 2021 and 2020, the Company had two customers that comprised 28% and 30% of net sales, respectively. Both of these customers are distributors.  These major customers, like our other customers, purchase our products from time to time through purchase orders, and we do not have any agreements that obligate these major customers to purchase products in the future from us.


As of September 30, 2021, one customer accounted for 17% of accounts receivable. This customer is a telecommunications service provider in the Company’s Community Broadband market. As of September 30, 2020, two customers accounted for 25% of accounts receivable. Both of these customers were distributors.


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 customers in the Caribbean, in Canada, and Central and South America.


The following table presents our domestic and international sales for each of the last two fiscal years:



Year Ended September 30,






United States

  $ 131,285,349     $ 89,021,124  

All Other Countries

    9,470,050       4,053,390  

Total Net Sales

  $ 140,755,399     $ 93,074,514  


Clearfield sells its products to the Broadband Service Provider marketplace. In addition, the Company provides Legacy services for original equipment manufacturers requiring copper and fiber cable assemblies built to their specification. 


The percentages of our sales by these markets were as follows for each of the last two fiscal years:



Year Ended September 30,






Broadband service providers

  $ 98 %   $ 96 %

Legacy customers

    2 %     4 %

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, also referred to as Tier 2 and 3 customers, National Carriers, which includes large national and global wireline and wireless providers also referred to as Tier 1’s, MSO’s, which include cable television companies, and international customers.


Long-lived assets: As of September 30, 2021 and 2020, the Company had property, plant, and equipment with a net book value of $1,768,837 and $1,686,209, respectively, located in Mexico. All other property, plant, and equipment is located within the United States.