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Optical Cable Corporation Financial Results for Q2 2025

On June 5, 2025, Optical Cable Corporation (Nasdaq GM: OCC) released its financial results for the second quarter of its fiscal year ending April 30, 2025. This report highlighted notable improvements in net sales and gross profit, demonstrating the company's resilience and operational efficiency.

Summary of Financial Performance

During Q2 2025, Optical Cable Corporation achieved consolidated net sales of $17.5 million, marking an excellent 8.9% increase compared to $16.1 million in the same quarter last year. The company attributes this growth to a strong performance in its specialty markets and a consistent demand in enterprise markets.

Sales to international customers rose by 27.1%, while domestic sales saw a 4.6% increase. Furthermore, the sales order backlog improved to $7.2 million, up from $6.6 million in January 2025 and significantly higher than $5.7 million the previous October.

Sequentially, net sales increased by 11.5% from $15.7 million in Q1 2025, with growth in both enterprise and specialty markets.

Gross Profit and Operating Efficiency

Gross profit for this quarter surged by 32.1% to $5.3 million, compared to $4.0 million in Q2 2024. This growth was driven by improved production efficiencies and higher volumes, which also positively impacted the company's gross profit margin, now at 30.4%, up from 25.1% in the same quarter last year.

Sequentially, gross profit rose by 15.3% compared to Q1 2025’s $4.6 million, indicating effective cost management and operational strategies.

Increasing Expenses

However, the company's selling, general, and administrative (SG&A) expenses also increased, totaling $5.7 million in Q2 2025, compared to $5.3 million in Q2 2024. This rise mainly stemmed from higher costs related to personnel and shipping.

Net Loss Insights

For the second quarter, Optical Cable Corporation reported a net loss of $698,000, or $0.09 per share, which is a marked improvement from the loss of $1.6 million, or $0.21 per share, noted in Q2 2024. This trend reflects the company's efforts to enhance profitability despite ongoing market challenges.

Year-to-Date Performance

In the first half of fiscal year 2025, the company recorded $33.3 million in consolidated net sales, reflecting a 7.5% rise from $31.0 million the previous year. Sales to international customers surged by 24.3%, while domestic sales slightly increased by 3.5%. The overall demand, particularly in military markets, continued to boost performance across both enterprise and specialty segments.

The gross profit for the first half stood at $10.0 million, up 28.5% from $7.8 million in the same period last year. Meanwhile, SG&A expenses grew to $11.2 million from $10.4 million in the previous year, which indicates the ongoing investments in personnel and resources to support future growth.

Leadership Comments

Neil Wilkin, the President and CEO of OCC, expressed optimism regarding the company’s performance: "During the second quarter, the OCC team delivered net sales growth and gross profit growth—on both a year-over-year and a sequential basis. Strong execution by the OCC team coupled with our significant operating leverage enabled us to deliver improved gross profit margins as we realized successful manufacturing efficiencies over higher production volumes."

Wilkin underscored the positive industry trends that could benefit OCC as the year progresses, emphasizing the company’s commitment to disciplined execution.

Future Plans and Conference Call

OCC is scheduled to host a conference call on June 5, 2025, at 11:00 a.m. Eastern Time to discuss these results in detail. Interested parties can participate via phone or join a live broadcast on OCC’s investor relations website.

Optical Cable Corporation remains focused on leveraging its capabilities to maximize shareholder value as it continues to navigate the complexities of the data communication market.

For more information about Optical Cable Corporation and their financial outlook, log on to OCC's website.