ROANOKE, Va., June 13, 2017 /PRNewswire/ -- Optical Cable
Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company")
today announced financial results for its second quarter ended
April 30, 2017.
Second Quarter 2017 Financial Results
Consolidated net sales for the second quarter of fiscal year
2017 were $15.8 million, a 3.0%
decrease compared to net sales of $16.3
million for the second quarter of fiscal year 2016.
The Company experienced an increase in net sales in its specialty
markets in the second quarter of fiscal 2017 compared to the same
period last year, despite significant weakness in the military and
the wireless carrier portions of its specialty markets. The
net increase in net sales in specialty markets was offset by a
decrease in net sales in enterprise markets.
Sequentially, net sales increased 8.5% in the second quarter of
fiscal year 2017, compared to net sales of $14.6 million for the first quarter of fiscal
year 2017, with increases in both the Company's enterprise and
specialty markets.
Net sales to customers in the United
States decreased 3.0% in the second quarter of fiscal year
2017, compared to the same period last year, and net sales to
customers outside of the United
States decreased 3.3% compared to the same period last
year. Net sales outside the U.S. continue to be negatively
impacted by a strong U.S. dollar relative to other currencies,
particularly in certain geographic regions.
Gross profit increased 24.4% to $5.7
million in the second quarter of fiscal year 2017, compared
to $4.6 million in the second quarter
of fiscal year 2016. Sequentially, gross profit increased
17.7% in the second quarter compared to the first quarter of fiscal
2017. Gross profit margin, or gross profit as a percentage of net
sales, increased to 35.7% compared to 27.9% in the second quarter
of fiscal year 2016. Gross profit margin was positively
impacted by a shift in product mix toward certain higher margin
products.
SG&A expenses increased 10.2% to $5.9
million during the second quarter of fiscal year 2017,
compared to $5.4 million for the
second quarter of fiscal year 2016. The increase in SG&A
expenses during the second quarter of fiscal 2017 compared to the
same period last year was primarily due to increases in employee
related costs, legal fees, and marketing expenses.
OCC recorded a net loss attributable to the Company of
$239,000, or $0.04 per basic and diluted share, for the second
quarter of fiscal year 2017, compared to a net loss attributable to
the Company of $983,000, or
$0.15 per basic and diluted share,
for the second quarter of fiscal year 2016.
Fiscal Year-to-Date 2017 Financial Results
Consolidated net sales for the first half of fiscal 2017
increased slightly to $30.5 million,
compared to net sales of $30.4
million for the same period in fiscal 2016. The
Company experienced an increase in net sales in its enterprise
markets in the first half of fiscal year 2017, compared to the same
period last year, but this increase was partially offset by a
decrease in net sales in the Company's specialty markets as a
result of significant decreases in the military and the wireless
carrier potions of its specialty markets.
Net sales to customers in the United
States increased 3.2% in the first half of fiscal year 2017,
compared to the same period last year, while net sales to customers
outside of the United States
decreased 10.5% compared to the same period last year. During
the first half of fiscal 2017, net sales outside of the United States continued to be negatively
impacted by a strong U.S. dollar relative to other currencies,
particularly in certain geographic regions.
Gross profit increased 30.0% to $10.5
million in the first half of fiscal year 2017, compared to
$8.1 million in the first half of
fiscal 2016. Gross profit margin increased to 34.4% in the
first half of fiscal year 2017, compared to 26.5% in the first half
of fiscal year 2016. Gross profit margin for the first half
of fiscal 2017 was positively impacted by a shift in product mix
toward certain higher margin products.
SG&A expenses increased 6.2% to $11.1
million during the first half of fiscal year 2017, compared
to $10.4 million for the same period
last year. The increase in SG&A expenses during the first
half of fiscal 2017 compared to the same period last year was
primarily due to increases in employee related costs, legal fees,
and marketing expenses.
OCC recorded a net loss attributable to the Company of
$855,000, or $0.13 per basic and diluted share, for the first
half of fiscal year 2017, compared to a net loss of $2.7 million, or $0.43 per basic and diluted share, for the same
period last year.
Loan Modification Agreement
OCC entered into a Third Loan Modification Agreement with the
Bank of North Carolina on
April 27, 2017, revising the fixed
interest rates for its two term loans, lowering the applicable
repayment installments and extending the maturity date to
May 1, 2024. The two term loans
were previously scheduled to expire on April
30, 2018.
Management's Comments
Neil Wilkin, President and Chief
Executive Officer of OCC, said, "We are pleased to have increased
gross profit and improved the Company's bottom line during the
second quarter and fiscal year-to-date periods. OCC is
executing on product innovation and marketing initiatives in
markets we identified as having attractive growth potential.
We are beginning to see positive results from those efforts and are
working to build on this momentum through the second half of the
year. We are also focused on further improving our top and
bottom lines through the continued execution of our strategic
plan. We are confident that these efforts will create value
for shareholders."
Conference Call Information
As previously announced, OCC will host a conference call today,
June 13, 2017, at 10:00 a.m. Eastern Time. Individuals
wishing to participate in the conference call should call (866)
610-1072 or (973) 935-2840 internationally, passcode
35424488. For interested individuals unable to join the call,
a replay will be available through June 20,
2017 by dialing (855) 859-2056 or (404) 537-3406, passcode
35424488. The call will also be broadcast live over the
Internet and can be accessed by visiting the investor relations
section of the Company's website at www.occfiber.com.
Company Information
Optical Cable Corporation ("OCC®") is a leading
manufacturer of a comprehensive range of top-tier fiber optic and
copper communication cabling and connectivity products and
solutions—primarily for the enterprise market, various harsh
environment and specialty markets, and the wireless carrier
market.
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 solutions offerings cover a broad range of applications—from
commercial, enterprise network, datacenter, residential and campus
installations to customized products for specialty applications and
harsh environments, including military, industrial, mining,
petrochemical and broadcast applications, as well as for the
wireless carrier market.
Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices, manufacturing
and warehouse facilities located in Roanoke, Virginia, near Asheville, North Carolina and near
Dallas, Texas. OCC's
facilities are ISO 9001:2008 registered and OCC's Roanoke and Dallas facilities are MIL-STD-790F
certified.
Optical Cable Corporation™, OCC®,
Procyon®, Procyon Blade™, 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
http://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,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net sales
|
$
15,847
|
|
$
16,340
|
|
$
30,454
|
|
$
30,388
|
Cost of goods
sold
|
10,184
|
|
11,789
|
|
19,981
|
|
22,334
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,663
|
|
4,551
|
|
10,473
|
|
8,054
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
5,898
|
|
5,352
|
|
11,091
|
|
10,439
|
Royalty expense,
net
|
39
|
|
51
|
|
70
|
|
67
|
Amortization of
intangible assets
|
6
|
|
4
|
|
12
|
|
7
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(280)
|
|
(856)
|
|
(700)
|
|
(2,459)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(118)
|
|
(136)
|
|
(266)
|
|
(293)
|
Other, net
|
167
|
|
(1)
|
|
98
|
|
16
|
Other income
(expense), net
|
49
|
|
(137)
|
|
(168)
|
|
(277)
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(231)
|
|
(993)
|
|
(868)
|
|
(2,736)
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
8
|
|
(10)
|
|
(13)
|
|
14
|
|
|
|
|
|
|
|
|
Net loss
|
$
(239)
|
|
$
(983)
|
|
$
(855)
|
|
$
(2,750)
|
|
|
|
|
|
|
|
|
Net loss attributable
to
|
|
|
|
|
|
|
|
noncontrolling
interest
|
―
|
|
―
|
|
―
|
|
(22)
|
|
|
|
|
|
|
|
|
Net loss attributable
to OCC
|
$
(239)
|
|
$
(983)
|
|
$
(855)
|
|
$
(2,728)
|
|
|
|
|
|
|
|
|
Net loss attributable
to OCC
|
|
|
|
|
|
|
|
per share: Basic and
diluted
|
$
(0.04)
|
|
$
(0.15)
|
|
$
(0.13)
|
|
$
(0.43)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic and diluted
|
6,488
|
|
6,357
|
|
6,521
|
|
6,347
|
OPTICAL CABLE
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(thousands)
(unaudited)
|
|
|
|
April 30,
|
|
October
31,
|
|
2017
|
|
2016
|
Cash
|
$
797
|
|
$
1,879
|
Trade accounts
receivable, net
|
9,504
|
|
8,916
|
Inventories
|
17,540
|
|
15,024
|
Other current
assets
|
590
|
|
503
|
Total current
assets
|
28,431
|
|
26,322
|
Non-current
assets
|
13,557
|
|
14,344
|
Total assets
|
$
41,988
|
|
$
40,666
|
|
|
|
|
Current
liabilities
|
$
6,157
|
|
$
4,126
|
Non-current
liabilities
|
11,601
|
|
11,775
|
Total liabilities
|
17,758
|
|
15,901
|
Total shareholders'
equity
|
24,230
|
|
24,765
|
Total liabilities and
shareholders' equity
|
$
41,988
|
|
$
40,666
|
AT THE
COMPANY:
|
|
Neil
Wilkin
|
Tracy
Smith
|
Chairman, President
& CEO
|
Senior Vice President
& CFO
|
(540)
265-0690
|
(540)
265-0690
|
investorrelations@occfiber.com
|
investorrelations@occfiber.com
|
|
|
AT JOELE FRANK,
WILKINSON BRIMMER KATCHER:
|
|
Andrew
Siegel
|
Aaron
Palash
|
(212) 355-4449 ext.
127
|
(212) 355-4449 ext.
103
|
occ-jfwbk@joelefrank.com
|
occ-jfwbk@joelefrank.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/optical-cable-corporation-reports-second-quarter-2017-financial-results-300472646.html
SOURCE Optical Cable Corporation