Note 5 - Revenue
|6 Months Ended
Mar. 31, 2020
|Notes to Financial Statements
|Revenue from Contract with Customer [Text Block]
Net sales include products and shipping and handling charges. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with substantially all revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of our contracts have a single performance obligation and are short term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales.
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 countries in the Caribbean, Canada, Central and South America.
Our revenues related to the following geographic areas were as follows for the
Clearfield manufactures and sells a proprietary product line designed for 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 markets were as follows for the
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
3customers, National Carriers, which includes
large national and global wireline and wireless providers also referred to as Tier, MSO’s, which include cable television companies, and International customers.
Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally
notrequired. Accounts that are outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible; payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of both
March 31, 2020and
September 30, 2019,the balance in the allowance for doubtful accounts was
7,“Major Customer Concentration” for further information regarding accounts receivable and net sales.