OPTICAL CABLE CORPORATION REPORTS THIRD QUARTER OF FISCAL YEAR 2024 FINANCIAL RESULTS
Third Quarter 2024 Financial Results
Consolidated net sales for the third quarter of fiscal year 2024 were
The Company's net sales have increased each quarter since the first quarter of fiscal year 2024. OCC's sales order backlog/forward load has also increased since the beginning of fiscal year 2024. The Company believes this reflects improving opportunities in certain targeted markets as fiscal year 2024 has progressed.
Gross profit was
Gross profit margin, or gross profit as a percentage of net sales, was 24.2% in the third quarter of fiscal year 2024, compared to 30.2% in the third quarter of fiscal year 2023 and 25.1% for the second quarter of fiscal year 2024.
Gross profit margin for the third quarter of fiscal year 2024, when compared to the same period last year, was impacted by lower production volumes, resulting in fixed charges being spread over lower net sales, as well as decreased plant efficiency as lower production volumes impacted the flow of products through the Company's manufacturing facilities—both effects of operating leverage. The variability of the Company's gross profit margin in any quarter also reflects changes in product mix.
While production volume decreased during the third quarter and first nine months of fiscal year 2024, compared to the same periods last year, the Company has not implemented reductions in production personnel. The Company's restraint in this regard is consistent with its view of expected opportunities in fiscal year 2025, as well as the time required to train new production personnel.
SG&A expenses were
For the third quarter of fiscal year 2024, OCC recorded a net loss of
Fiscal Year-to-Date 2024 Financial Results
Consolidated net sales for the first nine months of fiscal year 2024 were
The Company's net sales during the first nine months of fiscal year 2023 benefited from a higher-than-typical sales order backlog/forward load of more than
OCC reported gross profit of
SG&A expenses decreased 2.6% to
OCC recorded a net loss of
Management's Comments
Conference Call Information
As previously announced, OCC will host a conference call today,
Company Information
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
Optical Cable Corporation™, OCC®, Procyon®, Superior Modular Products™, SMP Data Communications™, Applied Optical Systems™, and associated logos are trademarks of
Further information about OCC® is available at www.occfiber.com.
FORWARD-LOOKING INFORMATION
This news release by
(Financial Tables Follow)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (thousands, except per share data) (unaudited) |
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Three Months Ended |
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Nine Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Net sales |
$ 16,222 |
|
$ 16,941 |
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$ 47,188 |
|
$ 54,845 |
Cost of goods sold |
12,302 |
|
11,825 |
|
35,516 |
|
36,425 |
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|
|
|
|
|
|
Gross profit |
3,920 |
|
5,116 |
|
11,672 |
|
18,420 |
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|
|
|
|
|
|
SG&A expenses |
5,237 |
|
4,957 |
|
15,650 |
|
16,075 |
Royalty expense, net |
7 |
|
7 |
|
20 |
|
20 |
Amortization of intangible assets |
13 |
|
14 |
|
40 |
|
41 |
|
|
|
|
|
|
|
|
Income (loss) from operations |
(1,337) |
|
138 |
|
(4,038) |
|
2,284 |
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|
|
|
|
|
|
|
Interest expense, net |
(301) |
|
(298) |
|
(881) |
|
(855) |
Gain on insurance proceeds, net |
90 |
|
256 |
|
309 |
|
1,952 |
Other, net |
(2) |
|
4 |
|
47 |
|
59 |
Other income (expense), net |
(213) |
|
(38) |
|
(525) |
|
1,156 |
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
(1,550) |
|
100 |
|
(4,563) |
|
3,440 |
|
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|
|
|
|
|
|
Income tax expense |
7 |
|
(1) |
|
21 |
|
106 |
|
|
|
|
|
|
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Net income (loss) |
$ (1,557) |
|
$ 101 |
|
$ (4,584) |
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$ 3,334 |
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Net income (loss) per share: |
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Basic and diluted |
$ (0.20) |
|
$ 0.01 |
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$ (0.59) |
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$ 0.42 |
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Weighted average shares outstanding: |
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|
|
|
|
|
|
Basic and diluted |
7,739 |
|
7,867 |
|
7,753 |
|
7,876 |
CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) |
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Cash |
$ 797 |
|
$ 1,469 |
Trade accounts receivable, net |
8,589 |
|
8,728 |
Inventories |
19,259 |
|
23,766 |
Other current assets |
546 |
|
1,075 |
Total current assets |
29,191 |
|
35,038 |
Non-current assets |
8,408 |
|
8,841 |
Total assets |
$ 37,599 |
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$ 43,879 |
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Current liabilities |
$ 6,976 |
|
$ 7,768 |
Non-current liabilities |
10,269 |
|
11,389 |
Total liabilities |
17,245 |
|
19,157 |
Total shareholders' equity |
20,354 |
|
24,722 |
Total liabilities and shareholders' equity |
$ 37,599 |
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$ 43,879 |
AT THE COMPANY: |
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Neil Wilkin |
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Chairman, President & CEO |
Senior Vice President & CFO |
(540) 265-0690 |
(540) 265-0690 |
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AT |
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Aaron Palash |
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(212) 355-4449 ext. 8603 |
(212) 355-4449 ext. 8928 |
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