OPTICAL CABLE CORPORATION REPORTS SECOND QUARTER OF FISCAL YEAR 2026 FINANCIAL RESULTS
Rhea-AI Summary
Optical Cable (Nasdaq: OCC) reported strong Q2 FY2026 results, with net sales up 26.6% to $22.2 million and gross profit up 42.4% to $7.6 million.
Q2 net income was $1.1 million versus a prior-year loss, and backlog rose to $13.3 million. Year-to-date net sales grew 16.1% and gross margin improved to 33.5%.
Positive
- Q2 2026 net sales increased 26.6% to $22.2 million year over year
- Sequential Q2 2026 net sales rose 35.2% versus Q1 2026
- Q2 2026 gross profit grew 42.4% to $7.6 million; margin 34.2%
- Backlog increased to $13.3 million from $10.4 million and $7.3 million
- Q2 2026 net income of $1.1 million versus $0.7 million loss in Q2 2025
- First-half 2026 net income of $657,000 versus $1.8 million loss in 2025
- First-half 2026 net sales up 16.1% to $38.6 million
- First-half 2026 gross margin improved to 33.5% from 29.9%
- SG&A as percentage of Q2 sales fell to 28.2% from 32.7%
- International net sales rose 45.3% in Q2 2026 year over year
Negative
- Q2 2026 SG&A expenses increased to $6.3 million from $5.7 million
- First-half 2026 SG&A expenses rose 5.6% to $11.8 million
- Cash declined to $146,000 at April 30, 2026 from $238,000
- Non-current liabilities increased to $4.3 million from $1.6 million
- Total shareholders’ equity decreased to $15.2 million from $16.5 million
- Redeemable restricted common stock balance rose to $7.0 million from $5.1 million
- Net interest expense remained sizable at $235,000 in Q2 2026
News Market Reaction – OCC
In the Jun 8 session, OCC gained 54.47%, reflecting a significant positive market reaction. Argus tracked a peak move of +76.4% during that session. Our momentum scanner triggered 52 alerts that day, indicating high trading interest and price volatility. Trading volume was very high at 3.6x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 10 | Q1 2026 earnings | Positive | +30.6% | Modest sales growth, margin expansion and smaller net loss vs prior year. |
| Dec 18 | FY2025 results | Neutral | -34.4% | Higher gross profit and margin but full‑year net loss and mixed reaction. |
| Sep 11 | Q3 2025 earnings | Positive | +36.3% | Strong sales growth, big gross profit jump and swing to net income. |
| Jun 05 | Q2 2025 earnings | Positive | -13.9% | Sales and margin improvement but continued net loss and higher backlog. |
| Mar 10 | Q1 2025 earnings | Positive | -14.6% | Top‑line and margin growth with reduced but still significant net loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have produced mixed reactions, with several strong reports followed by sharp declines, and a few instances of large upside moves on positive results.
Over the past year, OCC’s earnings reports have highlighted consistent revenue growth, margin expansion and a transition from sizable losses toward profitability. Q1 FY2026 saw net sales rise to $16.4M with improved margins but a small net loss, while FY2025 results showed higher gross profit and a narrowed full‑year loss. Earlier quarters, such as Q3 FY2025, delivered strong sales growth and positive net income. Today’s Q2 FY2026 release, with higher net sales, stronger gross margin and a move to net income, continues that trajectory of operational improvement.
Key Terms
sg&a expenses financial
gross profit margin financial
iso 9001:2015 technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net Sales Increased
in the Second Quarter of Fiscal 2026 Compared to Same Period in Prior Year
Second Quarter 2026 Financial Results
Consolidated net sales for the second quarter of fiscal year 2026 increased
OCC continues to see revenue growth and future growth opportunities in its targeted market sectors, both domestically and internationally – with robust demand from customers and end-users in the Company's enterprise, data center and severe duty market sectors.
Net sales to customers in
At the end of the second quarter of fiscal year 2026, the Company's sales order backlog/forward load increased to
Gross profit increased
SG&A expenses increased to
For the second quarter of fiscal year 2026, OCC recorded net income of
Fiscal Year-to-Date 2026 Financial Results
Consolidated net sales for the first half of fiscal year 2026 were
Net sales to customers in
OCC reported gross profit of
SG&A expenses increased
OCC recorded net income of
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said, "Following a solid start to the year, OCC continued to advance its strong growth and momentum – delivering year-over-year increases of
Conference Call Information
As previously announced, OCC will host a conference call today, June 8, 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 | Six Months Ended | ||||||
April 30, | April 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net sales | $ 22,214 | $ 17,550 | $ 38,645 | $ 33,292 | |||
Cost of goods sold | 14,619 | 12,215 | 25,681 | 23,331 | |||
Gross profit | 7,595 | 5,335 | 12,964 | 9,961 | |||
SG&A expenses | 6,270 | 5,743 | 11,828 | 11,203 | |||
Royalty expense, net | 7 | 7 | 13 | 13 | |||
Amortization of intangible assets | 14 | 14 | 28 | 27 | |||
Income (loss) from operations | 1,304 | (429) | 1,095 | (1,282) | |||
Interest expense, net | (235) | (249) | (445) | (513) | |||
Other, net | (10) | (5) | (10) | 16 | |||
Other expense, net | (245) | (254) | (455) | (497) | |||
Income (loss) before income taxes | 1,059 | (683) | 640 | (1,779) | |||
Income tax expense (benefit) | 4 | 15 | (17) | 26 | |||
Net income (loss) | $ 1,055 | $ (698) | $ 657 | $ (1,805) | |||
Net income (loss) per share: | |||||||
Basic and diluted | $ 0.12 | $ (0.09) | $ 0.07 | $ (0.23) | |||
Weighted average shares outstanding: | |||||||
Basic and diluted | 8,832 | 7,798 | 8,850 | 7,810 | |||
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) | |||
April 30, | October 31, | ||
2026 | 2025 | ||
Cash | $ 146 | $ 238 | |
Trade accounts receivable, net | 11,078 | 10,281 | |
Inventories | 21,271 | 19,802 | |
Other current assets | 454 | 435 | |
Total current assets | 32,949 | 30,756 | |
Non-current assets | 9,462 | 9,304 | |
Total assets | $ 42,411 | $ 40,060 | |
Current liabilities | $ 15,848 | $ 16,853 | |
Non-current liabilities | 4,326 | 1,633 | |
Total liabilities | 20,174 | 18,486 | |
Redeemable restricted common stock | 7,013 | 5,067 | |
Total shareholders' equity | 15,224 | 16,507 | |
Total liabilities, redeemable restricted common stock | |||
and shareholders' equity | $ 42,411 | $ 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