ROANOKE, Va., Dec. 20, 2017 /PRNewswire/ -- Optical Cable
Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company")
today announced financial results for its fourth quarter and fiscal
year ended October 31, 2017.
Fourth Quarter 2017 Financial Results
Consolidated net sales for the fourth quarter of fiscal year
2017 remained stable at $17.2
million, compared to net sales of $17.3 million for the fourth quarter of fiscal
year 2016. The Company increased net sales in its enterprise
markets in the fourth quarter of fiscal 2017, compared to the same
period last year, but the increase was offset by a decrease in net
sales in its specialty markets.
Sequentially, net sales continued to grow in the fourth quarter
of fiscal year 2017, increasing 4.7% compared to net sales of
$16.4 million in the third quarter of
fiscal year 2017. Net sales in the fourth quarter increased
8.6% and 17.8% as compared to net sales of $15.8 million and $14.6
million, respectively, for the second and first quarters of
fiscal year 2017.
Net sales to customers in the United
States remained stable, decreasing less than one percent
compared to the same period last year and net sales to customers
outside of the United States
decreased 1.2% compared to the same period last year.
Gross profit was $5.0 million in
the fourth quarter of fiscal year 2017, a decrease of 19.2%
compared to gross profit of $6.2
million in the fourth quarter of fiscal year 2016.
Gross profit margin, or gross profit as a percentage of net sales,
was 29.2% in the fourth quarter of fiscal year 2017 compared to
35.9% for the same period in fiscal year 2016, primarily due to
changes in fiber optic cable product mix.
SG&A expenses increased 3.9% to $5.5
million during the fourth quarter of fiscal year 2017,
compared to $5.2 million for the
fourth quarter of fiscal year 2016. The increase in SG&A
expenses during the fourth quarter of fiscal 2017 compared to the
same period last year was primarily due to increases in employee
related costs, including new hires selectively added to accomplish
strategic objectives and increases in healthcare costs.
OCC recorded a net loss of $589,000, or $0.09
per basic and diluted share, for the fourth quarter of fiscal year
2017, compared to net income of $761,000, or $0.11
per basic and diluted share, for the fourth quarter of fiscal year
2016.
Fiscal Year-to-Date 2017 Financial Results
Consolidated net sales were $64.1
million for fiscal 2017, a decrease of less than one percent
compared to net sales of $64.6
million for fiscal 2016. The Company's net sales in
the enterprise market (including OEM) remained relatively stable
while OCC achieved increases in a number of industrial and
specialty markets compared to fiscal year 2016. These
increases, however, were offset by decreases in net sales in the
wireless carrier and military markets.
Net sales to customers in the United
States increased slightly in fiscal year 2017, compared to
fiscal year 2016, while net sales to customers outside of
the United States decreased 5.3%
compared to last year.
Gross profit increased 5.4% to $20.8
million in fiscal year 2017, compared to $19.7 million in fiscal 2016. Gross profit
margin increased to 32.4% in fiscal year 2017, compared to 30.5% in
fiscal year 2016. Gross profit margin for fiscal 2017
improved with increases in our fiber optic cable, enterprise
connectivity, and harsh environment and specialty connectivity
product categories due to changes in product mix.
SG&A expenses increased 5.8% to $22.0
million during fiscal year 2017, compared to $20.8 million for fiscal year 2016. The
increase in SG&A expenses during fiscal 2017, compared to last
year, was primarily due to increases in employee related costs,
including new hires selectively added to accomplish strategic
objectives and increases in healthcare costs, as well as increases
in marketing expenses and legal fees.
OCC recorded a net loss attributable to the Company of
$1.7 million, or $0.27 per basic and diluted share, for fiscal
year 2017, compared to a net loss of $1.8
million, or $0.28 per basic
and diluted share, for fiscal year 2016.
Management's Comments
Neil Wilkin, President and Chief
Executive Officer of OCC, said, "We made meaningful progress on key
sales, marketing, and product initiatives during fiscal year 2017,
achieving sales growth in certain targeted industrial and specialty
markets that mostly offset the weakness in our military and
wireless carrier markets. Our enterprise market sales
remained relatively stable, particularly when compared to
challenges seen by some of our competitors. While meaningful
progress was made on our strategic initiatives in fiscal 2017, we
ended the year with financial results similar to the prior
year."
Mr. Wilkin continued, "As we begin fiscal 2018, the OCC team is
building on the improvements of fiscal 2017—accelerating key sales,
marketing, and product initiatives in targeted markets. We
are beginning to see increases in our forward order load that we
believe will likely result in considerable sales growth in the
first quarter of fiscal 2018 compared to the same period last
year."
Mr. Wilkin concluded, "Looking ahead, we have set aggressive
growth goals in fiscal 2018 to take advantage of our operating
leverage. We look forward to capitalizing on the
opportunities before us, and continuing to execute our strategies
to meet the evolving needs of our customers and deliver value for
shareholders."
Conference Call Information
As previously announced, OCC will host a conference call today,
December 20, 2017, at 9:00 a.m. Eastern Time. Individuals wishing
to participate in the conference call should call (866) 610-1072 or
(973) 935-2840 internationally, passcode 7573708. For
interested individuals unable to join the call, a replay will be
available through December 27, 2017
by dialing (800) 585-8367 or (404) 537-3406, passcode
7573708. 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-790G
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
|
|
Fiscal Year
Ended
|
|
October
31,
|
|
October
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net sales
|
$
17,207
|
|
$
17,313
|
|
$
64,093
|
|
$
64,616
|
Cost of goods
sold
|
12,188
|
|
11,103
|
|
43,295
|
|
44,891
|
|
|
|
|
|
|
|
|
Gross
profit
|
5,019
|
|
6,210
|
|
20,798
|
|
19,725
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
5,452
|
|
5,247
|
|
21,969
|
|
20,761
|
Royalty expense,
net
|
11
|
|
59
|
|
120
|
|
164
|
Amortization of
intangible assets
|
7
|
|
6
|
|
26
|
|
17
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
(451)
|
|
898
|
|
(1,317)
|
|
(1,217)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(131)
|
|
(161)
|
|
(523)
|
|
(621)
|
Other, net
|
(14)
|
|
23
|
|
96
|
|
43
|
Other expense,
net
|
(145)
|
|
(138)
|
|
(427)
|
|
(578)
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(596)
|
|
760
|
|
(1,744)
|
|
(1,795)
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(7)
|
|
(1)
|
|
(5)
|
|
6
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(589)
|
|
$
761
|
|
$
(1,739)
|
|
$
(1,801)
|
|
|
|
|
|
|
|
|
Net loss attributable
to
|
|
|
|
|
|
|
|
noncontrolling
interest
|
―
|
|
―
|
|
―
|
|
(22)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to OCC
|
$
(589)
|
|
$
761
|
|
$
(1,739)
|
|
$
(1,779)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
OCC
|
|
|
|
|
|
|
|
per share: Basic and
diluted
|
$
(0.09)
|
|
$
0.11
|
|
$
(0.27)
|
|
$
(0.28)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic and diluted
|
6,494
|
|
7,105
|
|
6,547
|
|
6,443
|
OPTICAL CABLE
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
(thousands)
|
(unaudited)
|
|
|
|
|
|
October
31,
|
|
October
31,
|
|
2017
|
|
2016
|
|
|
|
|
Cash
|
$
891
|
|
$
1,879
|
Trade accounts
receivable, net
|
8,941
|
|
8,916
|
Inventories
|
16,781
|
|
15,024
|
Other current
assets
|
490
|
|
503
|
Total current
assets
|
27,103
|
|
26,322
|
Non-current
assets
|
13,036
|
|
14,344
|
Total assets
|
$
40,139
|
|
$
40,666
|
|
|
|
|
Current
liabilities
|
$
4,197
|
|
$
4,126
|
Non-current
liabilities
|
12,253
|
|
11,775
|
Total liabilities
|
16,450
|
|
15,901
|
Total shareholders'
equity
|
23,689
|
|
24,765
|
Total liabilities and
shareholders' equity
|
$
40,139
|
|
$
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.
8627
|
(212) 355-4449 ext.
8603
|
occ-jfwbk@joelefrank.com
|
occ-jfwbk@joelefrank.com
|
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SOURCE Optical Cable Corporation