OPTICAL CABLE CORPORATION REPORTS FIRST QUARTER OF FISCAL YEAR 2025 FINANCIAL RESULTS
Rhea-AI Summary
Optical Cable (OCC) reported its Q1 FY2025 financial results, showing positive growth trends. Net sales increased 6.0% to $15.7 million compared to $14.9 million in Q1 FY2024. The company experienced notable growth in both enterprise and specialty markets, with particular strength in military markets.
Gross profit saw a significant increase of 24.6% to $4.6 million, with gross profit margin improving to 29.4% from 25.0% year-over-year. International sales grew 21.3%, while domestic sales increased 2.3%. The company's order backlog rose to $6.6 million from $5.7 million in October 2024.
Despite these improvements, OCC reported a net loss of $1.1 million ($0.14 per share), compared to a $1.4 million loss ($0.18 per share) in Q1 FY2024. SG&A expenses increased to $5.5 million, representing 34.7% of net sales.
Positive
- Net sales increased 6.0% to $15.7 million
- Gross profit grew 24.6% to $4.6 million
- Gross profit margin improved to 29.4% from 25.0%
- International sales increased 21.3%
- Order backlog grew to $6.6 million from $5.7 million
- Net loss per share improved to $0.14 from $0.18
Negative
- Reported net loss of $1.1 million
- SG&A expenses increased to $5.5 million
- SG&A as percentage of sales increased to 34.7% from 34.3%
News Market Reaction
On the day this news was published, OCC declined 14.59%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Net Sales Increased
First Quarter 2025 Financial Results
Consolidated net sales for the first quarter of fiscal year 2025 increased
Net sales to customers outside of
Gross profit increased
Gross profit margin, or gross profit as a percentage of net sales, was
SG&A expenses increased to
For the first quarter of fiscal year 2025, OCC recorded a net loss of
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said, "I'm proud of the OCC team, which delivered a strong start to fiscal year 2025 in a dynamic market environment. During our first fiscal quarter, we achieved growth across key metrics including net sales and gross profit. We have strong momentum in our enterprise and specialty markets, including the military sector. Our focus on executing our growth strategies and operating efficiently will drive results this year, including gross profit margin expansion with increased volume. Looking ahead, OCC's backlog is growing, and we are poised to capitalize on growth opportunities and drive long-term value for our customers and shareholders."
Conference Call Information
As previously announced, OCC will host a conference call today, March 10, 2025, at 11:00 a.m. Eastern Time. Individuals wishing to participate in the conference call should call (800) 445-7795 in the
Company Information
Optical Cable Corporation ("OCC®") is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise market and various harsh environment and specialty markets (collectively, the non-carrier markets) and also the wireless carrier market, offering integrated suites of high-quality products which operate as a system solution or seamlessly integrate with other components.
OCC® is internationally recognized for pioneering innovative fiber optic and copper communications technologies, including fiber optic cable designs for the most demanding environments and applications, copper connectivity designs to meet the highest data communication industry standards, as well as a broad product offering built on the evolution of these fundamental technologies.
OCC uses its expertise to deliver cabling and connectivity products and integrated solutions that are best suited to the performance requirements of each end-user's application. And OCC's solutions offerings cover a broad range of applications—from commercial, enterprise network, datacenter, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical and broadcast applications, as well as for the wireless carrier market.
Founded in 1983, OCC is headquartered in
Optical Cable Corporation™, OCC®, Procyon®, Superior Modular Products™, SMP Data Communications™, Applied Optical Systems™, and associated logos are trademarks of Optical Cable Corporation.
Further information about OCC® is available at www.occfiber.com.
FORWARD-LOOKING INFORMATION
This news release by Optical Cable Corporation and its subsidiaries (collectively, the "Company" or "OCC") may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations, and such known and unknown variables, uncertainties, contingencies and risks may also adversely affect Optical Cable Corporation and its subsidiaries, the Company's future results of operations and future financial condition, and/or the future equity value of the Company. A partial list of such variables, uncertainties, contingencies and risks that could cause or contribute to such differences from our expectations or that could otherwise adversely affect Optical Cable Corporation and its subsidiaries is set forth in Optical Cable Corporation's quarterly and annual reports filed with the Securities and Exchange Commission ("SEC") under the heading "Forward-Looking Information." OCC's quarterly and annual reports are available to the public on the SEC's website at www.sec.gov. In providing forward-looking information, the Company expressly disclaims any obligation to update this information, whether as a result of new information, future events or otherwise except as required by applicable laws and regulations.
(Financial Tables Follow)
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (thousands, except per share data) (unaudited) | ||||
Three Months Ended | ||||
2025 | 2024 | |||
Net sales | $ 15,743 | $ 14,855 | ||
Cost of goods sold | 11,116 | 11,141 | ||
Gross profit | 4,627 | 3,714 | ||
SG&A expenses | 5,459 | 5,093 | ||
Royalty expense, net | 6 | 7 | ||
Amortization of intangible assets | 14 | 14 | ||
Loss from operations | (852) | (1,400) | ||
Interest expense, net | (264) | (298) | ||
Other, net | 21 | 280 | ||
Other expense, net | (243) | (18) | ||
Loss before income taxes | (1,095) | (1,418) | ||
Income tax expense | 12 | 7 | ||
Net loss | $ (1,107) | $ (1,425) | ||
Net loss per share: | ||||
Basic and diluted | $ (0.14) | $ (0.18) | ||
Weighted average shares outstanding: | ||||
Basic and diluted | 7,815 | 7,751 | ||
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited)
| |||
January 31, | October 31, | ||
Cash | $ 128 | $ 244 | |
Trade accounts receivable, net | 8,206 | 10,946 | |
Inventories | 19,098 | 18,725 | |
Other current assets | 590 | 685 | |
Total current assets | 28,022 | 30,600 | |
Non-current assets | 9,795 | 9,758 | |
Total assets | $ 37,817 | $ 40,358 | |
Current liabilities | $ 13,629 | $ 15,144 | |
Non-current liabilities | 4,447 | 4,372 | |
Total liabilities | 18,076 | 19,516 | |
Total shareholders' equity | 19,741 | 20,842 | |
Total liabilities and shareholders' equity | $ 37,817 | $ 40,358 | |
AT THE COMPANY: | |
Neil Wilkin | Tracy Smith |
Chairman, President & CEO | Senior Vice President & CFO |
(540) 265-0690 | (540) 265-0690 |
AT JOELE FRANK, WILKINSON BRIMMER KATCHER: | |
Aaron Palash | Spencer |
(212) 355-4449 ext. 8603 | (212) 355-4449 ext. 8928 |
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SOURCE Optical Cable Corporation
FAQ
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