Clearfield, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note E - Concentrations

Note E - Concentrations

12 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE E – CONCENTRATIONS

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:

The following table summarizes customers comprising 10% or more of net sales for the years ended September 30, 2016, 2015, and 2014:

	Year Ended September 30,
	2016			2015			2014
Customer A		21	%		25	%		19	%
Customer B		16	%		*			*
Customer C		*			*			21	%

* Less than 10%

As of September 30, 2016, Customers A and B accounted for 18% and 12% of accounts receivable, respectively. As of September 30, 2015, Customers A and B accounted for 14% and 17% of accounts receivable, respectively. Customers A and B are both distributors. Customer C is an Alternative Carrier.