#United States #financial results #Optical Cable Corporation #OCC #Roanoke

Financial Performance Highlights of Optical Cable Corporation

Optical Cable Corporation (OCC) has reported its financial results for the first quarter of fiscal year 2025, showing impressive growth amid a favorable market landscape. For the three months ending January 31, 2025, OCC noted consolidated net sales reaching $15.7 million, marking a 6.0% increase over the $14.9 million recorded during the same period last year.

This surge in sales was fueled by robust demand in both the enterprise and specialty markets, with a notable uptick in military sales. International demand was particularly strong, with sales to customers outside the United States climbing 21.3%, compared to a 2.3% increase in the domestic market.

The company’s order backlog also grew, rising to $6.6 million from $5.7 million at the end of the previous fiscal quarter, underlining positive expectations for the next quarters of the fiscal year.

In terms of profitability, Optical Cable Corporation reported a 24.6% increase in gross profit, amounting to $4.6 million—up from $3.7 million in the prior year. This increase is attributed to enhanced production efficiency alongside improved operational leverage as volumes increased. Consequently, the gross profit margin improved to 29.4% from 25.0%.

However, Selling, General and Administrative (SGA) expenses saw a rise as well, totaling $5.5 million, compared to $5.1 million in the same quarter last year, largely due to expenses related to employee costs and contracted sales personnel.

Despite these increases in expenses, OCC recorded a net loss of $1.1 million, or $0.14 per basic and diluted share, which is an improvement from a net loss of $1.4 million, or $0.18 per share, reported in the first quarter of the previous fiscal year.

Neil Wilkin, President and CEO of OCC, expressed pride in the team's performance in a demanding market, emphasizing the commitment to growth strategies that focus on efficiency and profitability. He noted the strength in the enterprise and specialty markets, particularly the military sector, and anticipated potential to drive long-term value for stakeholders as backlogs increase.

Aside from financial results, OCC has scheduled a conference call for today at 11 a.m. Eastern Time to discuss these results further, where participants can join via phone or listen online.

About Optical Cable Corporation

Founded in 1983 and headquartered in Roanoke, Virginia, Optical Cable Corporation specializes in manufacturing fiber optic and copper data communication cabling. Their extensive product lineup caters to enterprise markets and specialized fields, which include military and industrial applications. OCC is well known for developing innovative solutions tailored to meet rigorous product standards and performance requirements.

As OCC looks toward the future, their strong growth metrics and increasing sales backlog position them favorably to leverage new opportunities in various markets. Comprehensive information about their products and services can be accessed through their official website at www.occfiber.com.