Q1 2022 Clearfield Inc Earnings Call
Good afternoon, welcome to Clearfield fiscal first quarter 2022 earnings conference call.
My name is Paul and I will be your operator this afternoon.
Joining us for today's presentation are the comp.
President and CEO Cheri Beranek.
And CFO Dan Herzog following their commentary we will open the call for questions I would now like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of the company's website. This call is also being webcast is accompanied by a powerpoint presentation.
Called the field report, which is also available in the Investor Relations section of the company's website.
Please note that during this call management will be making forward looking statements regarding future events and the future financial performance of the company.
These forward looking statements are subject to risks and uncertainties that could cause actual results could differ materially from those in the forward looking statements.
It is important to note also that the company undertakes no obligation to update such statements, except as required by law. The company cautions you to consider risk factors that could cause actual results to differ materially from those in the forward looking statements contained in today's press release sales report and in this conference call.
The risk factors section in Clearfield. Its most recent Form 10-K filing with the Securities Exchange Commission and the subsequent filings on Form 10-Q provides descriptions of those risks.
As a reminder, the slides in this presentation are controlled by you. The listener. Please advance forward through the presentation as the speakers present their remarks.
With that I would like to turn the call over to Clearfield CEO Cheri Beranek. Please proceed.
Good afternoon, and thank you everyone for joining us today.
Hope you are all continuing to stay safe and healthy considering the recent surge in COVID-19 .
It is a pleasure to speak with you. This afternoon to share if we're supposed to yourselves for the fiscal first quarter of 2022 and to provide an update on the business and market trends.
So the leverage another record setting financial performance in fiscal first quarter of 2022 in a market that continues to evolve and grow with each passing quarter. As we have mentioned on prior calls we are in the middle of a truly remarkable investment cycles for broadband deployment.
Since our founding Clearfield has worked diligently to build an advantageous position in the community broadband market with a reputation for superior customer service and a craft friendly product.
As I referenced financial results demonstrate we are well positioned to continue benefiting from the growing demand for fiber to the home and fiber to the business due to our steadfast commitment to best in class customer service high quality products and our ability to swiftly adapt to the needs of our customers.
Our product offerings, which are designed to reduce the time and scale required for the delivery of optical cable are now being recognized by growing with our customers as a means by which to accelerate moving existing subscribers off copper and adding subscribers due to the bandwidth and low latency.
C fibers that broadband enabled.
The continued robust demand for fiber fed broadband helped us to achieve a quarterly record of $51 million in net sales for the fiscal first quarter of 2022 .
Community broadband our largest customer market grew 81% over the prior year quarter.
It's worth noting that community broadband now represents an increasing gamut of markets. This includes municipalities utilities and even suburbs in urban neighborhoods that have traditionally been overlooked and they do not have the density of our O or their Ottawa natural.
We've also reported a record order backlog at the end of the first quarter bookings glad shipments by $35 million for the three months period, creating a record backlog of $100 million as of December 31st 2021.
We continue to maintain a strong financial position with $58 million in cash and investments without debt on our balance sheet.
This healthy cash position enables us to fund the inventory growth necessary to respond to customer demand and to build up a question of safety stock that ensures that we can meet our customers' premises ship dates.
We are also investing in growing our capacity as we have two new facilities coming online in the coming months.
Yeah.
For those of you who may be new to our company and industry I'll provide a brief overview of who we are and what we do.
Please feel provides fiber protection fiber management and favorite delivery solution that enabled a rapid and cost effective fiber fed deployment to the broadband service provider space.
We primarily serve service providers in the community broadband market, mainly tier two and tier three communications providers. We also serve service providers in the tier one market and multiple system cable TV operators or msos as well as some international service providers, primarily in Canada.
Caribbean and Central and South America.
I have thoughtfully designed product portfolio is focused on scalable modular deployment that reduces the amount of necessary skilled labor needed for installation.
This enables our customers to complete their deployments faster and more efficiently our products not only reduce the amount of time needed for installation, but their design also reduces the level of skill required to install.
This is particularly critical in the current labor market, but we see a significant shortage of trained technicians.
The image.
The image on the right at the slide on slide four shows our patented clear view to set the foundation of our scalable and modular fiber management solution.
As you can see on slide five our mission ex ourselves is to enable the lifestyle with better broadband provider.
As we have seen for the last several years high speed broadband has become necessary for people to be able to work it tends to fall and fully participate in today's modern society.
Broadband is changing the way we communicate with each other and fiber is the means to enable that change. Please.
Clearfield founding vision was to provide the necessary products to build a better broadband networks.
Is it is not something we implemented last year, but rather it is who we are as an organization we have.
<unk> built a product line sales organization and operational infrastructure to service the growth in fiber deployment for every community.
With that I'll now turn the presentation over to Dan who will walk us through our financial performance for the first quarter of 2022.
Thank you Sherry and good afternoon, everyone. It's a pleasure to be speaking with you today about our first quarter of fiscal year 'twenty two results.
Looking at our first quarter financial results in more detail.
Net sales in the first quarter of fiscal 'twenty, two increased 89% to a record $51 million from $27 million in the same year ago period.
13% from $45 million in our fourth quarter of 2021.
While revenue increased sales bookings again continued their momentum in the first quarter of fiscal 'twenty, two resulting in a 1036% year over year increase in our sales order backlog.
Order backlog grew to a record $101 million on December 31, 2021 up from $66 million on the previous quarter, ending September 32021, and up from $9 million on December 31 2020.
Looking in more detail at net sales by our markets on slide eight our core community broadband market comprised 70% of our net sales in the first quarter of fiscal 2022.
In Q1, we generated net sales of approximately $36 million in our community broadband.
81% from the same period last year.
In addition for the trailing 12 months ended on December 31, 2021 our community broadband market net sales totaled $114 million, which was up 69% from the comparable 12 month period last year.
Our MSR business comprised 18% of our net sales in the first quarter of fiscal 2022.
From a growth standpoint, the positive momentum we have established in this market over the last several quarters continues to endure and.
And this market, we realized a 202% year over year increase in net sales to $9 million in the first quarter of fiscal 2022 and delivered a 92% increase in trailing 12 month net sales to approximately $25 million.
Net sales in our national carrier market for the first quarter of fiscal 2022 we're up 31% year over year to $3 $5 million.
On a trailing 12 month basis net sales in our national carrier market totaled $13 million, which was down slightly from the comparable year ago period.
As we have previously discussed our positioning in the national carrier market is related to the continuing demand for fiber to the home and fiber to the business applications as well as for five G initiatives.
Net sales in our international markets were up 87% year over year in the first quarter compared to the same period last year and up 160% year over year for the trailing 12 months period, ending December 31, 2021 due to increased sales in our Canada and Mexico markets.
Overall as a company our net sales over the trailing 12 months is now 63%.
An increase from 51% recorded the previous quarter end.
Gross profit in the first quarter of fiscal 'twenty, two increased 102% to $23 million or 45% of net sales from approximately $11 million or 42% of net sales in the same year ago quarter.
Okay.
The increase in gross profit margin was due to favorable product mix associated with higher net sales in the company's community broadband market as well as improve manufacturing efficiencies realized with higher sales volumes offset by higher freight and transportation costs.
Operating expenses for the first quarter of fiscal 'twenty, two were approximately $10 million, which were up from approximately $8 million in the same year ago quarter.
The increase in operating expenses consisted primarily of higher compensation costs due to increased personnel and higher performance based compensation as well as increased travel expenses.
As a percentage of net sales operating expenses for the first quarter of fiscal 2022 was 19, 4% down significantly from 28, 3% in the same year ago period.
It is important to note that while our operating expenses, our <unk> are up with our sales growth our opex as a percent of sales has decreased each of the last three quarters, representing strong operating leverage results.
Net income in the first quarter of fiscal 2022 increased 228% to a record $10.4 million from $3 $2 million in the same year ago period.
And up from $7 $4 million in the fourth quarter fiscal 2021.
As a percentage of net sales net income for the first quarter of fiscal 2022 was 23% up.
Up from 11, 7% in the same year ago period, and 16, 4%.
Fourth quarter of 2021.
On the balance sheet side, we had $2 million in capital expenditures and increased our inventory $16 million to $44 million in the first quarter as we utilize our cash position to support the high demand for our products is represented in our sales backlog.
And also to invest in our production capacity and supply chain initiatives that Sherry will speak to in a bit.
Lastly, the company is reinstating its stock repurchase program that had been suspended due to COVID-19 uncertainty in April 2020.
In addition, the Companys board of directors increased the share repurchase program by an additional $10 million to $22 million.
From the previous $12 million.
The company has approximately $15 million remaining authorized in the program as of January 27 2022.
With that I'll turn it over to Sherri.
Thanks for the financial update then.
There's still value proposition is driven by a thoughtfully designed fiber management and fiber connectivity products since our founding Clearfield was built to scale as we mentioned earlier Clearfield has been positioned from the beginning.
<unk> fiber products to communities that have historically been underserved or unserved, we have made at our call I'll try and move the obstacles that would prevent our customers from adopting fiber fed broadband.
As previously stated we are in the middle of and it's to work investment cycle for high speed broadband and fiber led broadband in particular.
We are often asked about the sustainability of the demand for high speed broadband and how long this elevated demand might last.
The chart on Slide 14 put together by Jefferies Research shows the anticipated increase in government funding through 2025. This chart has been updated since last quarter with the enactment and then nearly $65 billion and funding is available through the infrastructure investment and jobs Act passed by Congress.
And enacted in November .
The scale of this funding opportunity is simply enormous since Christmas was built to address the needs of the underserved and underserved community broadband market. The main target of this incremental government funding. We believe we are well positioned to capitalize on any new government funds that are dispersed to our markets.
The next decade.
It further demonstrates that the exponential increase in demand for fiber fed broadband is sustainable the chart.
And slide 15 shows the long term forecast for new fiber to the home through 2025.
It's estimated that broadband providers won't reach more homes with fiber and the 2021 'twenty to 'twenty five period, an estimated $68 8 million homes than the combined total number of homes for all years through 2020.
This is truly noteworthy it shows that the elevated demand in this market is not a short term event. We believe this is a once in a generation investment opportunity that will change the way people communicate in the future.
As we have discussed on prior calls Clearfield now with age plan as shown on slide 16 is there a multiyear strategic plan to establish clear filled at the platform of choice for fiber management and connectivity.
Three pillars that nowadays plan are intended to enhance clearfield market position with the aim of capturing the fiber to the home and business market share at the company was built to obtain funding.
Simultaneously, however, any innovation for new and existing markets in the years ahead.
As we navigate this extra ordinary market opportunity. We have recently expanded our board of directors, we elected two new directors to our board in December who will help guide Clearfield as we progress through our now of age plan.
Carol with Penske has over 30 years of experience within the telecommunications industry with deep expertise in the community broadband market and Walter Jones Junior spent three decades, working with tier one operators developing significant expertise in network operations and fiber focused enterprise trans.
Formations.
We are thrilled to have Carol and Walter as well as the rest of our board guiding and advising us to the historic investment cycle.
Accelerating our operating cadence this is clear commitment to address the market's exponential demand for fiber fed broadband and to ensure our operations can nimbly respond to our customer demand.
To that end as previously mentioned in the last quarter, we substantially increased our inventory to over $40 million to be able to effectively meet our customer's needs.
We have made significant investments in inventory to ensure that we can deliver our products on time to our promise of shifting.
This in turn allows our customers to effectively manage their service technicians and new install technicians, who are in high demand given the present labor market shortage.
Previously our customers count on us for quick term delivery.
Now things have changed and such that we are working with customers on their business plans receiving purchase orders one to six months in advance.
It allows us to gain visibility into the particular products that our customers intend to deploy and pass it plainly we are well prepared to ship the requested products and alignment with their deployment schedules.
Our ability to deliver our products on time to our customers is crucial so that their deployment schedules are maintained and their time to revenue can accelerate.
Moreover, this timeliness enables us to pick up incremental market share when our competitors are unable to fulfill their customers orders and we can address their product needs. However.
However, it is important to state that the supply chain challenges that are rampant across all industries are continuing to challenge us and could serve as an obstacle throughout the coming quarters.
The second pillar of our nowadays plan is amplifying bold and disruptive growth is just clearfield commitment to continue delivering market changing products for current and future market requirements today's build programs for fiber to the home and business will represent tomorrow's integration of wireline in.
Wireless networks and further backhaul opportunities.
Best proof point that we are delivering on this pillar is the significant 101 million dollar backlog, we mentioned at the beginning of this call.
To put this number into perspective, our current backlog is up over 1000% in one year and up 53% sequentially from our last quarter.
Our ability to be responsive assisted us in getting ahead of our competition.
Put systems and capacity plans in place to be able to respond and capture incremental business opportunities and customers have responded enthusiastically we'd anticipate the growth in our backlog will begin to stabilize as the bill season begins this spring and customers more aggressively take delivery against their existing orders.
Yes.
Our current backlog is comprised of a broad set of customers as we mentioned on our last call. There are over 200 customers in the backlog, including several distributors, which represent additional customers to whom our products ourselves.
A large component of our backlog our regional broadband service providers within the community broadband market.
Adding 210% customers for this quarter.
While the traditional broadband provider focus is on a single state area regional broadband service providers address a multistate market because these companies have not deployed fiber at this scope in the past. We believe this represents a significant growth opportunity for lifestyle.
Finally on the product front, our engineering organization has been working to broaden our product categories to expand our total available market in fiscal 'twenty 'twenty. Two we look forward to providing updates on our product pipeline in the near future, which will include solutions for future five G and edge computing opportunities.
Yeah.
Our third pillar augmenting capacity for ongoing growth is crystals commitment to scaling its operations to meet the incredible demand for high speed broadband.
Our agility and the ability to adapt to our customers and their changing needs are the key facets of this pillar.
In order to meet the significant demand for our products, we will open a new distribution center in Minnesota within our fiscal Q2, which would effectively double the company's U S footprint.
Furthermore, as we have previously announced our new manufacturing center in Mexico will also come online in Q2, providing 300000 square feet of capacity.
If we are tripling our footprint in Mexico, we're aggressively recruiting to expand our workforce in these facilities as we have previously mentioned, we are investing in our capacity, including investing in developing and outfitting these new facilities as well as other supply chain enhancements.
Managing the supply chain during this period of uncertainty and it's also been a key priority for Clearfield.
To ensure we can continue to ship their product to our customers without delays, we have built up a network of partners that can increase our capacity in response to growing demand.
As an example of this capacity we have doubled the number of facilities that manufacture architect and are now producing these in multiple countries. This enhancement, which didn't require an investment in tooling within our supply chain helps safeguard against any supply chain interruptions.
Lastly, we are keeping our options open for ways to further augment our capacity and grow demand. This includes continued organic growth as well as the right inorganic opportunities that would enable us to keep growing with our customers.
As we look at our financial outlook, we remain very optimistic about clearfield growth potential as the demand for high speed broadband, especially fiber fed broadband continues to be very robust and as we continue to make progress on our nowadays plan objective.
With the current visibility into our substantial order backlog as well as the pipeline behind it we expect to deliver projected annual net sales of $176 million to $183 million in fiscal year 2022, representing growth of 25% to 30% over the fiscal.
Your 2021 revenues.
Global shortage on some materials still remains an obstacle and we will be monitoring these issues on a continual basis.
In summary, Clearfield had a phenomenal first quarter, one that has positioned us well for the remainder of fiscal 2022.
Our Q1 financial results set another quarterly record and our order backlog of $101 million gives us the confidence to increase our guidance for fiscal for the fiscal year.
We continue making progress on the three pillars of the nowadays plan that is calibrated to enhanced career fields market position.
Again, we believe we're in the middle of a remarkable investment cycle for broadband deployment.
Man for fiber fed graduated remains very strong and we are actively expanding our capacity to capture this growing demand and to expand our market share.
We remain focused on executing our proven strategy to establish their field as the platform of choice for fiber management and connectivity securing the market leadership that we were built to achieve.
And with that we're ready to open the call for your questions.
Operator.
Thank you we will now be taking questions from the company's publishing sell side analysts.
If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question Kipp you made.
Press Star two if he would like to turn it over to your questions in the queue.
Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
One moment please poll for questions.
Thank you. Our first question comes from Jason Jason Smith with Lake Street Capital Markets. Please proceed with your question.
Hey, guys. Thanks for taking my questions and congrats on the results and updated guidance.
Really want us dart with that backlog number obviously, a massive jump both sequentially and year over year. You did note that it was very broad based across over 200 customers, but just curious if there were any other dynamics going on it was this due to kind of year end budgets.
Just trying to figure out what really drove that big jump.
Sure.
Well, there's a couple of things I think as we noted in the materials. This quarter, we did have.
210% customers, who are regional service providers.
And because they run multi state networks and her much more long range planning cycles.
We expect to be able to have those regional service providers continue at a pretty significant clip.
As we move forward and they are.
A meaningful percentage of that backlog.
The other thing that we saw is that customers are wherever they locked we're finding that our product is becoming difficult to get in a quick turn basis.
We wanted to ensure that they wouldn't work with us to provide the actual products that they individually needed and so.
Really broad base of companies are looking at their environments didn't really want to be able to establish the network.
Our supply chain that they need and they're looking at how do you do it in.
In a more effective way and so we have a nice take up of.
Plug and play technology labor late labor in light technology.
The kinds of products that we can produce for them in quick and a quick turn environment and they're in cassette splicing within our cabinets is really being widely respected because it has been demonstrated to be easy to train and to reduce the amount of time for deployment. So do they.
Can place twice as many cabinets as they were doing previously.
Okay. That's really helpful and just following up on some of those comments I mean, I'd just be curious to get your take on what do you think inventory levels are at distributors and you didn't know what everyone's sort of worried about being able to source components are you at all concerned or seeing any sort of double ordering from customer.
Okay.
We have very limited amount of inventory at distributors and that most of our product is even if it is shipped through distributors is predominantly shipped on a drop ship basis.
So that we know exactly where it's going.
So we have not at this point really established a stocking program for distributors, we really ask our distributors to be the eyes and ears, oftentimes, though and logistical partner for finance for ordering and single point of.
Of ordering access for all their needs.
That's really what the distributor has done for us.
We've not seen in general double ordering what we have seen is customers who need to kind of look at their world and as the order early and then need to kind of look at their world and say, okay, I might tweak that a little bit I might have to change these orders and so.
We've been cognizant of that but.
But at the same time due to the modularity of our product line.
That has been caused AR and inventory risk for us.
Rather they just allows those customers to continue to tweak their plan and to work the plan based upon the design that they finalize the build season.
Okay got it and then just the last one for me and I'll jump back into queue as it relates to the capacity expansion in Mexico. Just curious how we should think about that potentially impacting gross margin or is this a situation where you're not kind of transferring any product.
Clients and I mean, there really wouldn't be any sort of headwinds there.
We're significantly.
We intend to be able to manufacture everything that we're doing and and the facility in Mexico and so it is absolutely a cost reduction opportunities for us, but we also are in a world in which.
Our supply costs are going up and so we're trying to use the Mexican facility as a means by which to lower our labor class and by lowering our labor cost trying to keep our pricing to our end customers as flat as possible. So our.
Our philosophy is that we are a manufacturing partner of a supply chain partner for our customers and that is we cost reduced solutions, we tried to keep that as transparent to our customers and not have to increase pricing to them. So modeling gross profit forward.
There'll be a little bit of a hit.
And Oh.
Probably not yet this quarter much because that will come online in.
In March.
But the quarter of April through June it might have a 1% hit just because of that overhead that hasn't gonna be quite absorbed maybe one one and a half per shot but modeling forward you know we're in a we're in a good place where.
If we could have some hits, but it isn't a great place right now.
Yeah.
Okay I appreciate the color and congrats again, thanks guys.
Youre welcome.
Yeah.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue.
Our next.
Question comes from Ryan Koontz with Needham. Please proceed with your question.
Hi, Thanks for the question and congrats on the incredible results.
As far as your great bookings go.
Could you quantify or qualify the impact from ARPA and art off subsidy programs and the strength Youre seeing here in the near term.
Do you have as it relates to basketball our performance to date and the backlog there really isn't a lot in there some of the early stuff.
The state associated stuff is a little bit, but mostly we're at a point, where we're just starting to talk to customers who are planning their networks with government funding dollars. So we think we'll see.
Some impact due to the government initiatives and funding programs, probably late third quarter into fourth quarter.
But really that's about 23 and beyond.
Got it Super helpful.
And how about the pickup in cable it sounds like some really nice momentum there.
Maybe walk us through the applications on the types of customers that are starting to boost your cable business.
Mostly in the cable TV business, what we've seen is the strong leadership and what we would call tier two operators.
So operators, who are investing in their networks and not the national carriers, yet, but companies like mid continent companies like cable one who are really committed to their particular communities and who are investing in and fiber broadband along.
Side, there's axis implementations.
We're also starting to see an emerging amount of.
Work also coming from the larger carriers, who.
Whereas just deepening their fiber networks for future opportunities.
So how collapses active cabinets with fiber and styles.
Just to me it says like instead of protecting what they have in trying to make sure that their customer's experience remains positive to try to minimize churn in their subscriber base.
So it sounds like a combination of kind of.
DOCSIS upgrades.
As well as new fiber to the home builds.
Absolutely that's exactly right.
Great.
On the on your product mix or are you seeing much of a mix shift there between your.
Passing this product versus connected products in any kind of mix shifts going on there for you.
I would say right now where you are a little bit heavier in and the products associated with passing the home.
So that's gonna be outside plant products like cabinets.
And and terminals.
I think what I think that's a little bit seasonal and very well, especially on the backlog, we're seeing more orientation for December bill, it's about the connectivity they dropped cables interconnect connectivity products.
Also because the take rates.
<unk> a step one step two they're gonna pass the homes first and then come in and identify market to the individual owners homeowners for who's that.
Take their fiber.
Due to some of the shortage of fiber and what we're seeing is not a lot of of make ready for drive table and that they're actually marketing to the individual home owner before they provide the fiber service.
Got it.
Super helpful. Thanks for the questions.
Youre welcome.
Thank you. Our next question comes from Tim <unk> with Northland Capital markets. Please proceed with your question.
Hi, good afternoon and ill.
Add my congratulations.
Thank you.
And you'd mentioned seasonality, a moment ago and and while your guidance has increased nicely.
I imagine you expect some.
If you're in the periods, where you normally see weather or other <unk>.
<unk> drivers.
So I wonder if you could talk about that we've seen.
Different type of seasonal results than we have in the past from various suppliers I wonder what clearfield is expecting there.
And then.
Yeah.
It looks like at this point, you're expecting your first quarter to.
To be kind of a high watermark for the year.
I wonder how I can reconcile that with your <unk>.
Tripling capacity in Mexico, coming online and what are the puts and takes there.
Okay.
I mean, we're very optimistic about the long term.
And as I said this is I think truly just the beginning and with.
The funding initiatives that are coming forward for 'twenty, three and beyond we have every indication as well.
We're gonna be ready and have the capacity to buy which can be ready at that point.
That said I think the you know the end.
The materials that we currently are the backlog that we currently have is majority of it is scheduled to ship them.
In the next six months and so we do have capacity in theory available to expand beyond some of the forecasted numbers that we put in place.
However, it is becoming increasingly difficult to obtain.
Additional product and inventory positions and so we're taking and then using our cash to take the inventory that we need but simple things like granite tape, which right now has a global shortage of gravity right. We use that on almost every product that we use when we ship and so those kinds of.
Things could could slow us down or potentially create a problem for the delivery of some of the backlogs that we have so we're still conservative and we wanted to make sure that we.
Until we can.
Stabilize some of the supply chain challenges that just kind of come out out of a curve ball.
We've got to be cautious about kind of the long term numbers that we put out there.
Got it and and understood.
Maybe staying on that front, a little bit and you historically.
Targeted.
Annual growth rates, what you know double digits mid teens, obviously, you're well above that.
Last fiscal year, but given all the changes that you're kind of noting.
In terms of the amount of fiber to be deployed the broadband subsidies.
Should we and understanding.
These numbers will move around but should we be thinking about kind of a new elevated baseline for the growth of the company over the next few years.
Yeah.
Then that would be a while we don't have long term financial guidance.
That certainly would be our call.
In that we're investing in and the capacity in the system that the materials the buildings to be able to respond to both the private equity financing of these networks as well as the government funded ones.
So we believe there'll be demand.
That will allow us to grow beyond our historical compounded annual growth rate and its now our job as a management team, but I wish to execute towards that.
Got it thanks, very much and congrats again.
Thank you.
Yeah.
Thank you at this time. This concludes the company's question and answer session. If your question was not taken you may contact Clearfield Investor Relations team.
E L F D Gateway IR Dot com.
I would now like to turn the call back over to Mr. <unk> for closing remarks.
Hi, Thanks, so much it's been a.
Wonderful pleasure to be able to speak with you today.
Quarters been Fabulous the team has been Fabulous I can't thank our procurement groups are manufacturing groups.
As well as our sales organization is just continues to be able to stay in front of the customer and provide the resources that are necessary and I want to thank you. The investors who are we don't take your support for granted and we will continue to work to earn it every day moving forward.
Thank you for joining us today for Clearfield fiscal first quarter 2022 earnings Conference call you may now disconnect.
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