OPTICAL CABLE CORPORATION REPORTS SECOND QUARTER OF FISCAL 2023 FINANCIAL RESULTS
OCC® Achieves Increases in
in Both Second Quarter and First Half of Fiscal 2023
Compared to Prior Year Periods
Second Quarter 2023 Financial Results
Consolidated net sales for the second quarter of fiscal year 2023 increased 14.1% to
Gross profit increased 34.8% to
OCC's increased gross profit margin reflects the Company's strong operating leverage, as higher net sales levels are achieved and fixed manufacturing costs are spread over higher sales. This operating leverage positively impacted the Company's gross profit margin during both the second quarter and first half of fiscal year 2023, when compared to the same periods last year.
SG&A expenses increased to
For the second quarter of fiscal year 2023, OCC recorded net income of
Fiscal Year-to-Date 2023 Financial Results
Consolidated net sales for the first half of fiscal year 2023 increased 19.8% to
The Company's sales order backlog/forward load continues to remain at higher than typical levels, while decreasing to approximately
OCC reported gross profit of
SG&A expenses increased 13.3% to
OCC recorded net income of
Gain on Insurance Proceeds
During the second quarter of fiscal year 2023, the Company received insurance proceeds in connection with the office building and its contents at the Company's
Insurance proceeds received in excess of expenses incurred through
Management's Comments
Neil, Wilkin, President and Chief Executive Officer of OCC, said, "The OCC team continued to build on our positive momentum and successfully executed our strategy during the second quarter and first half of fiscal year 2023, delivering strong financial and operational performance. We are pleased to have achieved significant growth by all measures—net sales, gross profit and gross profit margin, as well as income from operations and earnings per share, compared to the same periods in the prior year. Looking ahead, we plan to continue executing our strategic initiatives to drive growth, work efficiently and safely, and drive enhanced shareholder value."
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) |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net sales |
|
$ 17,200 |
$ 37,903 |
$ 31,641 |
|||
Cost of goods sold |
12,837 |
12,167 |
24,599 |
22,562 |
|||
Gross profit |
6,783 |
5,033 |
13,304 |
9,079 |
|||
SG&A expenses |
5,662 |
5,036 |
11,118 |
9,816 |
|||
Royalty expense, net |
7 |
7 |
13 |
13 |
|||
Amortization of intangible assets |
14 |
11 |
27 |
24 |
|||
Income (loss) from operations |
1,100 |
(21) |
2,146 |
(774) |
|||
Interest expense, net |
(286) |
(182) |
(557) |
(341) |
|||
Gain on insurance proceeds received for |
|||||||
damage to property and equipment |
1,696 |
— |
1,696 |
||||
Other, net |
(12) |
(30) |
55 |
(41) |
|||
Other income (expense), net |
1,398 |
(212) |
1,194 |
(382) |
|||
Income (loss) before income taxes |
2,498 |
(233) |
3,340 |
(1,156) |
|||
Income tax expense (benefit) |
75 |
(5) |
107 |
8 |
|||
Net income (loss) |
$ 2,423 |
$ (228) |
$ 3,233 |
$ (1,164) |
|||
Net income (loss) per share: |
|||||||
Basic and diluted |
$ 0.31 |
$ (0.03) |
$ 0.41 |
$ (0.16) |
|||
Weighted average shares outstanding: |
|||||||
Basic and diluted |
7,868 |
7,487 |
7,881 |
7,465 |
CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) |
|||
|
|
||
Cash |
$ 325 |
$ 216 |
|
Restricted cash |
1,518 |
||
Trade accounts receivable, net |
11,307 |
10,964 |
|
Inventories |
23,100 |
19,439 |
|
Other current assets |
533 |
577 |
|
Total current assets |
36,783 |
31,196 |
|
Non-current assets |
9,193 |
9,362 |
|
Total assets |
$ 45,976 |
$ 40,558 |
|
Current liabilities |
$ 7,664 |
$ 7,483 |
|
Non-current liabilities |
12,745 |
10,915 |
|
Total liabilities |
20,409 |
18,398 |
|
Total shareholders' equity |
25,567 |
22,160 |
|
Total liabilities and shareholders' equity |
$ 45,976 |
$ 40,558 |
AT THE COMPANY: |
|
Neil Wilkin |
|
Chairman, President & CEO |
Senior Vice President & CFO |
(540) 265-0690 |
(540) 265-0690 |
AT |
|
Aaron Palash |
|
(212) 355-4449 ext. 8603 |
(212) 355-4449 ext. 8928 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/optical-cable-corporation-reports-second-quarter-of-fiscal-2023-financial-results-301848152.html
SOURCE