OPTICAL CABLE CORPORATION REPORTS THIRD QUARTER OF FISCAL 2023 FINANCIAL RESULTS
OCC® Achieves Increases in
Third Quarter 2023 Financial Results
Consolidated net sales for the third quarter of fiscal year 2023 decreased 2.5% to
Gross profit increased 6.4% to
Gross profit margin, or gross profit as a percentage of net sales, increased to 30.2% in the third quarter of fiscal year 2023 compared to 27.7% in the third quarter of fiscal year 2022. OCC realized improved gross profit margins compared to the third quarter of fiscal year 2022 despite a comparable decrease in net sales levels. The Company attributes this margin improvement to gains in production efficiency as well as the impact of a more fully trained workforce.
SG&A expenses were
For the third quarter of fiscal year 2023, OCC recorded net income of
Fiscal Year-to-Date 2023 Financial Results
Consolidated net sales for the first nine months of fiscal year 2023 increased 11.9% to
The Company's sales order backlog/forward load remains at higher than typical levels, but decreased to approximately
OCC reported gross profit of
OCC's gross profit margins tend to be higher when it achieves higher net sales due to its operating leverage, as has been the case in the first nine months of fiscal year 2023, relative to the same period last year. In addition to the positive impact of this operating leverage, OCC's gross profit margins reflect increased production efficiency, as well as the impact of a more fully trained workforce. The Company's gross profit margins are also heavily dependent upon changes in product mix.
SG&A expenses increased 8.8% to
OCC recorded net income of
Gain on Insurance Proceeds
During the second and third quarters of fiscal year 2023, the Company received insurance proceeds in connection with water damage at the Company's
Insurance proceeds received in excess of expenses incurred through
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) |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2023 |
2022 |
2023 |
2022 |
||||
Net sales |
|
$ 17,383 |
$ 54,845 |
$ 49,024 |
|||
Cost of goods sold |
11,825 |
12,575 |
36,425 |
35,136 |
|||
Gross profit |
5,116 |
4,808 |
18,420 |
13,888 |
|||
SG&A expenses |
4,957 |
4,954 |
16,075 |
14,771 |
|||
Royalty expense, net |
7 |
6 |
20 |
20 |
|||
Amortization of intangible assets |
14 |
14 |
41 |
38 |
|||
Income (loss) from operations |
138 |
(166) |
2,284 |
(941) |
|||
Interest expense, net |
(298) |
(198) |
(855) |
(539) |
|||
Gain on insurance proceeds received for |
|||||||
damage to property and equipment |
256 |
— |
1,952 |
||||
Other, net |
4 |
2 |
59 |
(39) |
|||
Other income (expense), net |
(38) |
(196) |
1,156 |
(578) |
|||
Income (loss) before income taxes |
100 |
(362) |
3,440 |
(1,519) |
|||
Income tax expense (benefit) |
(1) |
10 |
106 |
17 |
|||
Net income (loss) |
$ 101 |
$ (372) |
$ 3,334 |
$ (1,536) |
|||
Net income (loss) per share: |
|||||||
Basic and diluted |
$ 0.01 |
$ (0.05) |
$ 0.42 |
$ (0.20) |
|||
Weighted average shares outstanding: |
|||||||
Basic and diluted |
7,867 |
7,517 |
7,876 |
7,525 |
CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) |
|||
2023 |
2022 |
||
Cash |
$ 193 |
$ 216 |
|
Restricted cash |
1,518 |
— |
|
Trade accounts receivable, net |
9,300 |
10,964 |
|
Inventories |
24,946 |
19,439 |
|
Other current assets |
547 |
577 |
|
Total current assets |
36,504 |
31,196 |
|
Non-current assets |
9,050 |
9,362 |
|
Total assets |
$ 45,554 |
$ 40,558 |
|
Current liabilities |
$ 11,816 |
$ 7,483 |
|
Non-current liabilities |
7,897 |
10,915 |
|
Total liabilities |
19,713 |
18,398 |
|
Total shareholders' equity |
25,841 |
22,160 |
|
Total liabilities and shareholders' equity |
$ 45,554 |
$ 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 |
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