Annual report pursuant to Section 13 and 15(d)

Note 4 - Concentrations

v3.20.2
Note 4 - Concentrations
12 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
NOTE
4
– 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:
For the fiscal years ended
September 30, 2020
and
2019,
the Company had
two
customers that comprised
30%
and
29%
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, 2020
and
2019,
the
two
customers noted above also accounted for
25%
and
28%
of accounts receivable, respectively.
 
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 countries in the Caribbean, Canada, 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,
    2020   2019
United States   $
89,021,000
    $
78,553,000
 
All Other Countries    
4,054,000
     
6,481,000
 
Total Net Sales   $
93,075,000
    $
85,034,000
 
 
Clearfield sells its products to the Broadband Service Provider marketplace. In addition, the Company 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 these markets were as follows for each of the last
two
fiscal years:
 
    Year Ended September 30,
    2020   2019
Broadband service providers   $
96
%   $
95
%
Build-to-print customers    
4
%    
5
%
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,
multiple system operators (“MSO's”), which include cable television companies, and international customers.
 
Long-lived assets:
As of
September 30, 2020
and
2019,
the Company had property, plant and equipment with a net book value of
$1,686,209
and
$1,406,546,
respectively, located in Mexico.