Good afternoon. Welcome to Clearfield's fiscal fourth quarter and full year 2021 earnings conference call. I will be your operator this afternoon. Joining us for today's presentation are the company's president and CEO, Cheri Beranek, and CFO, Dan Herzog. Following their commentary, we will open the call for questions. I would 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 webcasted and accompanied by a PowerPoint presentation called the FieldReport, 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 to differ materially from those in the forward-looking statements. It's 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, FieldReport, and in this conference call. The Risk Factors section in Clearfield's most recent Form 10-K filing with the Securities and Exchange Commission and its subsequent filings on Form 10-Q, provide description of those risks. As a reminder, the slides in this presentation are controlled by you, the listener. Please advance forward to the presentation as the speakers present their remarks. With that, I would like to turn the call over to Clearfield's CEO, Cheri Beranek.

Good afternoon, and thank you, everyone, for joining us today. I hope you are all continuing to stay safe and healthy. It's a pleasure to speak with you this afternoon to share Clearfield's results for the fiscal fourth quarter and full year of 2021. Clearfield delivered record-setting financial performance in the fourth quarter and for the full fiscal year 2021 in a market that is changing dramatically. We are in the middle of a historic investment cycle due to our consistent focus on customer service, quality products, and our ability to nimbly respond to customers' changing needs. We believe Clearfield has built an advantageous position in the broadband market and continues to benefit from the rising demand for fiber. The continued demand for fiber-fed broadband drove a 66% year-over-year increase in net sales in Community Broadband, our largest customer market, which helped us achieve $140.8 million in net sales for fiscal year 2021. Our growth in the period was led by double-digit increases from our Community Broadband market, which was up 64% in the fiscal fourth quarter. The Community Broadband market has historically been unserved or at least underserved. This market demand is being addressed with organic growth with existing customers that are putting their own money or financing into their networks and government-funded programs that are substantial and getting bigger. Bookings led shipments by $55.6 million for the 12-month period, creating a backlog of $66.4 million as of September 30, 2021. For those of you who are new to the story, the image on the right shows our patented Clearview Cassette that is the foundation of our scalable and modular fiber management platform. Clearfield provides fiber protection, fiber management, and fiber delivery solutions that enable the rapid and cost effective fiber fed deployments through the broadband service provider space.…

Thank you, Cheri, and good afternoon, everyone. It's great to be speaking with you today. Now looking at our fourth quarter financial results in more detail. Net sales in the fourth quarter of fiscal 2021 increased 66% to a record $45.2 million from $27.3 million in the same year-ago period and up from $38.7 million in our third quarter of 2021. As Cheri mentioned, the increase in net sales was due primarily to higher sales in our Community Broadband market, which totaled 67% of our revenue for the fiscal fourth quarter and increased 64% year-over-year. Our MSO market grew 90%, and our international market grew 221% year-over-year as well. Looking more in detail at net sales by our markets on Slide 8. In the fourth quarter of fiscal 2021, we generated net sales of $30.3 million to our core Community Broadband market, which was up 64% from the same period last year. For the full fiscal year ended September 30, 2021, Community Broadband market net sales totaled $97.9 million, which was up 66% from the comparable period last year. Our MSO business comprised 15% of our net sales in fiscal Q4. From a growth standpoint, the positive momentum we have established over the last several quarters has endured. In the MSO market, we realized a 90% year-over-year increase in net sales to $6.9 million in the fourth quarter of fiscal 2021 and delivered a 51% year-over-year increase to $18.6 million for fiscal year 2021. Net sales in our National Carrier market for the full fiscal year ended September 30, 2021, were down 15% year-over-year to $11.9 million. As we've discussed previously, our position in the National Carrier market is related to the continuing demand for fiber-to-the-home and fiber to the business applications. Net sales to our Tier 1 customers in…

Thanks, Dan. Since its founding, Clearfield has focused its product line on fiber management and fiber connectivity solutions while providing labor savings and being craft-friendly. As Slide 17 points out, we aim to remove the obstacles that would inhibit our customers from adopting fiber-led broadband. As I mentioned, there is a significant shortage of qualified technicians and engineers in the US market. Our products are thoughtfully designed to reduce the skill level required for installation as well as the overall time needed to deploy these networks. Moreover, in addition to our product categories, we provide on-site labor training to support these deployments. Our Clearfield College training courses are available virtually as well as in person. So it's the combination of our high-quality craft-friendly products and our steadfast focus on customer service, including trainingstoric investment cycle for high-speed broadband and fiber-led broadband, in particular. On our previous quarterly call, we mentioned over 50% of Americans now work from home, while just 15% of the population did so prior to the COVID-19 epidemic. To provide everyone a sense of the enormous scale of the potential funding opportunity, Slide 18 shows a chart put together by Jefferies Research that shows the anticipated increase in government funding over the next four years. This chart has been updated since last quarter because the expected funding amount has expanded. It's also worth noting this chart does not include the infrastructure bills currently in discussion in Congress that are reported to add additional investments into our market, effectively doubling the value of subsidies shown here. Clearfield is in a strong position to benefit from these incremental funding programs as they represent government dollars that will target the underserved and unserved Community Broadband markets that have been economically unviable for fiber investment. In addition to encouraging the broadband…

Thank you. We will now be taking questions from the companies publishing sell-side analysts. [Operator instructions] Our first question today will come from Jaeson Schmidt with Lake Street.

Hey, guys. Thanks for taking my questions. Congrats on being able to lift that guidance. Just curious, just given the momentum you're seeing in the current backdrop, how we should be thinking about seasonality in fiscal 22? Or if that is even on the table this year?

I think as we addressed, seasonality is going to be covered. It's a little bit different than normal. I think we're going to see a very – an unseasonably strong first quarter. And I think we'll see diminished seasonality from what we've seen historically because of the fact that we're seeing longer-term perspectives and orders and some of our customers are looking to put product in inventory so that they can be ready for the summer builds. So in general, I think we'll see a little bit less dominance on the summer and a little bit more consistent quarter to quarter. At least that's the visibility at this point.

Okay. That's helpful. And then just as a follow-up. I know you mentioned traction with the Tier 2 accounts, but does fiscal '22 guidance or the lift to guidance, assuming a significant contribution from Tier 1 players?

Yeah. It does not include anything significant from Tier 1 at this point. We are continuing our sales efforts, and we have been in discussion with several Tier 1 suppliers to help them deal with their capacity limitations and that there has been some challenges at the Tier 1 level for some of our – for their incumbent suppliers to meet demand. We're aggressively continuing to work in that area, but we also are constrained in some of the Tier 1 opportunities due to supply chain issues associated with PVDF and other plastics.

Okay. Thanks a lot guys.

Thank you. Good to talk to you Jaeson.

[Operator instructions] There being no questions at this time, this will conclude our question-and-answer session. If your question was not taken, you may contact Clearfield's investor relations team at clfd@gatewayir.com. I'd now like to turn the call back over to Ms. Beranek for any closing remarks.

It was a wonderful opportunity to present these numbers for you today. I just want to absolutely call out the amazing work of Clearfields' employee community, the execution on our strategy and the execution to deliver product in a scalable fashion. I think it's extraordinary, and I couldn't be more proud of what they're doing. I also wish all of you a – I'm very grateful for your support as we approach the Thanksgiving season, and wish you and your families a very blessed opportunity to spend time together. Until next quarter.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.