- Needham analysts Ryan Koontz and Chad Tevebaugh attended the Fiber Connect 2022 conference in Nashville. They heard from U.S. operators and met with many public and private companies in the broadband access space.
- The main topics of discussion were the several sources of U.S. government funding worth ~$100 billion+ for distribution over the next 6+ years and the labor challenges and requirements to meet current and future robust demand for Fiber.
- The conference saw record attendance, up 50% y/y, though few investors.
- Industry supply chain concerns appear to be easing modestly from the low points in Q1.
- The analysts increasingly view the build-out of Fiber to the home (FTTH), supported by substantial federal subsidies, as relatively recession-resistant while providing longevity with funding set to extend through at least 2028.
- They continue to view it as the top investment theme in their coverage universe, with Clearfield, Inc (NASDAQ:CLFD) and Calix, Inc (NYSE:CALX) as their top picks.
- Price Action: CALX shares traded lower by 8.27% at $31.88 on the last check Thursday.
