#United States #Roanoke #Lightera #Optical Cable #Military Market

Optical Cable Corporation's Strong Growth in Third Quarter 2025

Optical Cable Corporation (OCC), renowned for its fiber optic and copper communication solutions, has released its financial results for the third quarter of fiscal year 2025, showcasing strong performance across its markets. For the quarter ending July 31, 2025, OCC reported an impressive 22.8% increase in net sales, reaching $19.9 million, up from $16.2 million in Q3 2024. This growth highlights the company’s successful expansion into both the enterprise and specialty markets, as demand for their products continues to surge, particularly in the military sector and other challenging environments.

Key Financial Highlights

• - Net Sales Growth: The significant rise to $19.9 million reflects increases of 22.0% in U.S. sales and 26.2% internationally. This growth demonstrates the effectiveness of OCC's strategies in penetrating diverse markets and addressing specific customer needs.
• - Gross Profit Surge: Gross profit for Q3 2025 saw an outstanding 61.2% increase, rising to $6.3 million from $3.9 million in the previous year. The company's gross profit margin improved substantially from 24.2% to 31.7%, showcasing operational efficiencies and increased sales volume.

• - Sequential Growth: Compared to the second quarter of FY 2025, net sales saw a 13.5% increase, while gross profit rose by 18.5%, indicating ongoing momentum as OCC capitalizes on market conditions.

During the first nine months of fiscal year 2025, OCC reported a 12.8% increase in net sales, totaling $53.2 million compared to $47.2 million in the same period last year. This solid performance was supported by market improvements, continuous growth in enterprise and specialty areas, and a significant 24.9% increase in international sales.

Strategic Collaborations and Market Positioning

In light of these encouraging results, OCC has also engaged in a strategic collaboration with Lightera, LLC, announced on July 7, 2025. This partnership aims to enhance product offerings within the enterprise and data center sectors by integrating complementary products from both companies. As part of this agreement, Lightera acquired 7.24% of OCC's stock, affirming its commitment to mutual growth.

Neil Wilkin, the President and CEO of OCC, expressed confidence about the future. He stated, "This was a strong quarter for OCC. We are witnessing significant net sales growth and gross profit expansion across various markets. Our operational efficiency, fueled by increasing demand for our solutions, has allowed us to capitalize on growth opportunities. The collaboration with Lightera is expected to unlock further potential for us, ensuring we remain well-positioned for continued success."

Looking Ahead

As Optical Cable Corporation gears up for the remainder of the fiscal year, the company is optimistic about leveraging its strategic initiatives to enhance shareholder value. The factors driving demand for OCC’s products, particularly in challenging environments, suggest a robust outlook as they navigate evolving market conditions.

The OCC team will host a conference call to discuss the third-quarter results further, providing stakeholders with insights into their future strategies. Details of the call can be accessed via their website.

With a rich history dating back to 1983 and a steadfast commitment to innovation, Optical Cable Corporation continues to set the pace in the communication cabling industry. The company's dedication to quality and customer satisfaction remains at the core of its business practices, guiding its future endeavors.