ROANOKE, Va., June 11, 2018 /PRNewswire/ -- Optical Cable
Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company")
today announced financial results for its second quarter ended
April 30, 2018.
Second Quarter 2018 Financial Results
Consolidated net sales for the second quarter of fiscal year
2018 increased 69.7% to $26.9
million, the highest quarterly net sales in the Company's
history, compared to net sales of $15.8
million for the second quarter of fiscal year 2017.
Compared to the same period last year, net sales to customers
in the United States increased
88.0% in the second quarter of fiscal year 2018, and net sales to
customers outside of the United
States decreased 4.3%.
The Company increased net sales in its specialty markets in the
second quarter of fiscal 2018, compared to the same period last
year, particularly in its wireless carrier and military
markets. This increase was partially offset by a decrease in
net sales in the Company's enterprise markets.
OCC reported gross profit of $9.0
million in the second quarter of fiscal year 2018, an
increase of 58.2% compared to gross profit of $5.7 million in the same period last year.
Gross profit margin, or gross profit as a percentage of net sales,
was 33.3% in the second quarter of fiscal year 2018 compared to
35.7% for the same period in fiscal year 2017, primarily due to
changes in fiber optic cable product mix.
SG&A expenses increased 25.5% to $7.4
million during the second quarter of fiscal year 2018,
compared to $5.9 million for the
second quarter of fiscal year 2017. The increase in SG&A
expenses was primarily the result of increases in employee related
costs including employee incentives and commissions which increased
due to increased net sales and the improved financial results
during the second quarter of fiscal year 2018.
For the second quarter of fiscal year 2018, OCC recorded net
income of $1.4 million, or
$0.18 per basic and diluted share,
compared to a net loss of $239,000,
or $0.04 per basic and diluted share,
for the second quarter of fiscal year 2017.
Fiscal Year-to-Date 2018 Financial Results
Consolidated net sales for the first half of fiscal year 2018
increased 45.9% to $44.4 million,
compared to net sales of $30.5
million for the first half of fiscal year 2017. Net
sales to customers in the United
States increased 53.9% and net sales to customers outside of
the United States increased 12.9%,
in both cases compared to the first half of fiscal year
2017.
The Company increased net sales in its specialty markets in the
first half of fiscal 2018, compared to the same period last year,
particularly in its wireless carrier and military markets.
This increase was partially offset by a decrease in net sales in
the Company's enterprise markets.
OCC reported gross profit of $14.2
million in the first half of fiscal year 2018, an increase
of 35.4% compared to gross profit of $10.5
million in the first half of fiscal year 2017. Gross
profit margin was 31.9% in the first half of fiscal year 2018
compared to 34.4% for the same period in fiscal year 2017,
primarily due to changes in fiber optic cable product mix including
hybrid cables.
SG&A expenses increased 16.8% to $13.0 million during the first half of fiscal
year 2018, compared to $11.1 million
for the first half of fiscal year 2017. The increase in
SG&A expenses was primarily the result of increases in employee
related costs including employee incentives and commissions which
increased due to increased net sales and the improved financial
results during the second quarter of fiscal year 2018.
OCC recorded net income $981,000,
or $0.13 per basic and diluted share,
for the first half of fiscal year 2018, compared to a net loss of
$855,000, or $0.13 per basic and diluted share, for the first
half of fiscal year 2017.
OCC's increase in net sales during the second quarter and the
first half of fiscal year 2018 were driven by significant orders
from a large customer. The Company continues to fulfill these
orders, which will likely have a positive impact on net sales in
the third quarter of fiscal 2018 compared to the same period last
year. However, based on current backlog/forward load, the
Company anticipates that net sales during the third quarter will be
less than net sales during the second quarter of 2018.
Management's Comments
Neil Wilkin, President and Chief
Executive Officer of OCC, said, "The benefits of OCC's operating
leverage at higher sales levels were demonstrated by our strong
performance and bottom line results in the second quarter.
During the second quarter, we also demonstrated our ability to
handle large production volumes."
Mr. Wilkin concluded, "Our strategic focus is on sales and
marketing initiatives in targeted markets to drive sales, as well
as increasing operational efficiency. We are optimistic that
our success in both of these areas will positively impact our
bottom line and enable us to deliver enhanced shareholder
value."
Conference Call Information
As previously announced, OCC will host a conference call today,
June 11, 2018, 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 3995928.
For interested individuals unable to join the call, a replay will
be available through June 18, 2018 by
dialing (800) 585-8367 or (404) 537-3406, passcode 3995928.
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
Roanoke and Asheville facilities are ISO 9001:2015
registered and its Dallas facility
is ISO 9001:2008 registered. The 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
|
|
Six Months
Ended
|
|
April
30,
|
|
April
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Net sales
|
$
26,887
|
|
$
15,847
|
|
$
44,439
|
|
$
30,454
|
Cost of goods
sold
|
17,931
|
|
10,184
|
|
30,254
|
|
19,981
|
|
|
|
|
|
|
|
|
Gross
profit
|
8,956
|
|
5,663
|
|
14,185
|
|
10,473
|
|
|
|
|
|
|
|
|
SG&A
expenses
|
7,401
|
|
5,898
|
|
12,959
|
|
11,091
|
Royalty (income)
expense, net
|
(12)
|
|
39
|
|
(17)
|
|
70
|
Amortization of
intangible assets
|
9
|
|
6
|
|
16
|
|
12
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
1,558
|
|
(280)
|
|
1,227
|
|
(700)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(152)
|
|
(118)
|
|
(281)
|
|
(266)
|
Other, net
|
1
|
|
167
|
|
11
|
|
98
|
Other income
(expense), net
|
(151)
|
|
49
|
|
(270)
|
|
(168)
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
1,407
|
|
(231)
|
|
957
|
|
(868)
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
16
|
|
8
|
|
(24)
|
|
(13)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
1,391
|
|
$
(239)
|
|
$
981
|
|
$
(855)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic and diluted
|
$
0.18
|
|
$
(0.04)
|
|
$
0.13
|
|
$
(0.13)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic and diluted
|
7,675
|
|
6,488
|
|
7,490
|
|
6,521
|
OPTICAL CABLE
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(thousands)
(unaudited)
|
|
|
April 30,
|
|
October
31,
|
|
2018
|
|
2017
|
Cash
|
$
278
|
|
$
891
|
Trade accounts
receivable, net
|
20,683
|
|
8,941
|
Inventories
|
18,764
|
|
16,781
|
Other current
assets
|
597
|
|
490
|
Total current
assets
|
40,322
|
|
27,103
|
Non-current
assets
|
12,686
|
|
13,036
|
Total assets
|
$
53,008
|
|
$
40,139
|
|
|
|
|
Current
liabilities
|
$
14,381
|
|
$
4,197
|
Non-current
liabilities
|
13,419
|
|
12,253
|
Total liabilities
|
27,800
|
|
16,450
|
Total shareholders'
equity
|
25,208
|
|
23,689
|
Total liabilities and
shareholders' equity
|
$
53,008
|
|
$
40,139
|
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