OPTICAL CABLE CORPORATION REPORTS FIRST QUARTER OF FISCAL YEAR 2026 FINANCIAL RESULTS
Rhea-AI Summary
Optical Cable Corporation (Nasdaq: OCC) reported Q1 fiscal 2026 results for the quarter ended January 31, 2026. Net sales rose 4.4% to $16.4M, gross profit grew 16.1% to $5.4M and gross margin expanded to 32.7%. Order backlog increased to $10.4M.
OCC recorded a net loss of $398K ($0.05 per share), an improvement versus prior year, while SG&A edged up to $5.6M and cash on hand declined to $126K.
Positive
- Net sales +4.4% to $16.4 million in Q1 FY2026
- Gross profit +16.1% to $5.4 million; gross margin rose to 32.7%
- Order backlog increased to $10.4 million (up from $7.3 million)
Negative
- Net loss of $398,000 (loss of $0.05 per share) despite improvement versus prior year
- SG&A increased to $5.6 million, pressuring operating leverage
- Cash declined to $126,000 as of January 31, 2026
News Market Reaction – OCC
In the Mar 10 session, OCC gained 30.61%, reflecting a significant positive market reaction. Argus tracked a peak move of +30.9% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 7.6x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 18 | FY25 results | Positive | -34.4% | Fiscal 2025 gross margin and loss improvement plus Q4 profitability. |
| Sep 11 | Q3 2025 earnings | Positive | +36.3% | Strong sales growth, margin expansion, and a move back to net income. |
| Jun 05 | Q2 2025 earnings | Positive | -13.9% | Higher sales, better margins, and smaller net loss versus prior year. |
| Mar 10 | Q1 2025 earnings | Positive | -14.6% | Sales and gross margin gains with improved, but still negative, net income. |
| Dec 23 | FY2024 results | Neutral | +58.1% | Strong Q4 performance offset by weaker full-year sales and earnings. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often showed improved operations but mixed stock reactions, with several strong selloffs following otherwise positive reports.
Over the last five earnings events, OCC reported consistent operational improvement: rising gross margins, better gross profit, and narrowed net losses. Notable milestones include Q3 FY2025’s return to net income and a strategic collaboration with Lightera, plus FY2025 margin expansion to 30.9%. However, market reactions were uneven; some upbeat reports saw sharp declines (e.g., 12/18/2025), while others, like Q3 FY2025 and FY2024 results on 09/11/2025 and 12/23/2024, were rewarded with strong gains.
Key Terms
gross profit margin financial
sg&a expenses financial
basic and diluted financial
iso 9001:2015 technical
forward-looking information regulatory
net sales financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net Sales Increased
Compared to Same Period in Prior Year
First Quarter 2026 Financial Results
Consolidated net sales for the first quarter of fiscal year 2026 increased
Net sales to customers outside of
Gross profit increased
SG&A expenses increased to
For the first quarter of fiscal year 2026, OCC recorded a net loss of
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said, "OCC is off to a solid start in fiscal year 2026. During the first quarter, we delivered net sales and gross profit growth, largely driven by increased demand across our enterprise and specialty markets, and the positive impact of our operating leverage."
"As we begin our second quarter, we are seeing growing momentum in our targeted markets, including our data center market. Our sales order backlog and forward load increased more than
Conference Call Information
As previously announced, OCC will host a conference call today, March 10, 2026, at 11:00 a.m. Eastern Time. Individuals wishing to participate in the conference call should call (833) 316-1983 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 data center markets 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 product solutions offerings cover a broad range of applications—from commercial, enterprise network, data center, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical, renewable energy and broadcast applications.
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 | ||||
January 31, | ||||
2026 | 2025 | |||
Net sales | $ 16,431 | $ 15,743 | ||
Cost of goods sold | 11,061 | 11,116 | ||
Gross profit | 5,370 | 4,627 | ||
SG&A expenses | 5,558 | 5,459 | ||
Royalty expense, net | 6 | 6 | ||
Amortization of intangible assets | 14 | 14 | ||
Loss from operations | (208) | (852) | ||
Interest expense, net | (211) | (264) | ||
Other, net | ⸺ | 21 | ||
Other expense, net | (211) | (243) | ||
Loss before income taxes | (419) | (1,095) | ||
Income tax expense (benefit) | (21) | 12 | ||
Net loss | $ (398) | $ (1,107) | ||
Net loss per share: | ||||
Basic and diluted | $ (0.05) | $ (0.14) | ||
Weighted average shares outstanding: | ||||
Basic and diluted | 8,593 | 7,815 | ||
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) | |||
January 31, | October 31, | ||
2026 | 2025 | ||
Cash | $ 126 | $ 238 | |
Trade accounts receivable, net | 8,079 | 10,281 | |
Inventories | 20,894 | 19,802 | |
Other current assets | 544 | 435 | |
Total current assets | 29,643 | 30,756 | |
Non-current assets | 9,132 | 9,304 | |
Total assets | $ 38,775 | $ 40,060 | |
Current liabilities | $ 16,189 | $ 16,853 | |
Non-current liabilities | 1,477 | 1,633 | |
Total liabilities | 17,666 | 18,486 | |
Redeemable restricted common stock | 2,980 | 5,067 | |
Total shareholders' equity | 18,129 | 16,507 | |
Total liabilities, redeemable restricted common stock | |||
and shareholders' equity | $ 38,775 | $ 40,060 | |
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 | Caroline Felix |
(212) 355-4449 ext. 8603 | (212) 355-4449 ext. 8980 |
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SOURCE Optical Cable Corporation