SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MARCH 29, 1999
OPTICAL CABLE CORPORATION
VIRGINIA 0-27022 54-1237042
(State of incorporation) (Commission file number) (I.R.S. Employer
Identification No.)
5290 CONCOURSE DRIVE (540) 265-0690
ROANOKE, VA, 24019 (Telephone Number)
(Address of principal
executive offices)
ITEM 5. OTHER EVENTS
On March 29, 1999, Optical Cable Corporation (the "Company") announced
that its Board of Directors expanded the Company's stock repurchase plan by
authorizing the repurchase of an aggregate of up to $15 million of the Company's
common stock. The Company originally announced the authorization to repurchase
with up to $5 million of the Company's common stock in October 1997, and
announced an increase of the authorization to $10 million in April 1998. The
repurchases will be made in open market or in privately negotiated transactions.
A copy of the press release announcing this stock repurchase authorization is
filed as an exhibit to this Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
99.1 Press release of Optical Cable Corporation, dated March 29, 1999.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the report to be signed on its behalf by the
undersigned, thereunto duly authorized, on the 2nd day of April, 1999.
OPTICAL CABLE CORPORATION
By: /s/ Kenneth W. Harber
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Kenneth W. Harber
Vice President of Finance,
Treasurer and Secretary
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INDEX TO EXHIBITS
DOCUMENT PAGE NO.
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99.1 Press release of Optical Cable Corporation, dated
March 29, 1999.......................................
EXHIBIT 99.1
NEWS RE:
BULLETIN OPTICAL CABLE CORPORATION
5290 Concourse Drive
Roanoke, VA 24019
(Nasdaq: OCCF)
FROM:
[FRB LOGO]
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The Financial Relations Board Inc.
FOR FURTHER INFORMATION:
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
Robert Kopstein Ken Harber Alison Ziegler - General Info.
Chairman & CEO VP of Finance Jordan Darrow - Analyst Info.
(540) 265-0690 (540) 265-0690 Deanne Eagle - Media Info.
kopstein@occfiber.com kharber@occfiber.com (212) 661-8030
FOR IMMEDIATE RELEASE
OPTICAL CABLE CORPORATION AUTHORIZES
EXPANSION OF STOCK REPURCHASE PROGRAM
ROANOKE, Virginia -- March 29, 1999 -- Optical Cable Corporation (Nasdaq: OCCF)
today announced that its Board of Directors has amended its stock repurchase
plan to allow the repurchase of up to $15 million of the Company's common stock
in the open market or in privately negotiated transactions over the next twelve
months. The Company's original plan, authorized in October 1997, allowed for the
repurchase of up to $5 million of common stock. The authorization was increased
to $10 million in April 1998.
"The decision to repurchase our shares reflects management's continued
confidence in our global position within the fiber optic cable industry," said
Robert Kopstein, President and Chief Executive Officer. "We are particularly
pleased with our customers' initial reaction to our website, where they can now
place orders for our standard product offerings. Our website began taking orders
in early March and we are already seeing growing sales as well as a growing
percentage of weekly orders being directed over the Internet. For the first two
weeks, the percentage of sales coming over the Internet rose from 6.5% to 20%,
with the second week's stock inventory sales overall being approximately 50%
greater than the first week's. After a relatively flat February, early
indications are that our small order business, which has historically
represented two-thirds of revenues, is continuing to strengthen in March. Our
gross margin has also continued to improve from 43.6% in the first fiscal
quarter to 46.5% in February. This is only the second time in the last five
years that the gross margin has reached these levels. The improvement in the
gross margin reflects favorable fiber pricing as well as improving prices for
our fiber optic cable products."
Optical Cable Corporation manufactures and markets a broad range of fiber optic
cables for "high bandwidth" transmission of data, video and audio communications
over moderate distances. Optical Cable Corporation's cables can be used both
indoors and outdoors and utilize a tight-buffered coating that protects the
optical fiber.
--MORE--
Financial Relations Board, Inc. serves as financial relations counsel to this
company, is acting on the company's behalf in issuing this bulletin and
receiving compensation therefor. The information contained herein is furnished
for information purposes only and is not to be construed as an offer to buy or
sell securities.
Optical Cable Corporation
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Note: This news release contains certain forward looking statements which
include statements regarding the Company's venture into e-commerce as well as
prospects for gross margins and sales. Forward looking statements are beyond the
Company's ability to control and in many cases the Company cannot predict what
factors would cause actual results to differ materially from those indicated by
the forward looking statements. The Company's documents filed with the
Securities and Exchange Commission identify important factors which would cause
actual results to differ materially from those indicated by the forward looking
statements. These factors include statements about the Company's future growth,
level of sales to key customers, actions by competitors, fluctuations in the
price of raw materials, the Company's dependence on a single manufacturing
facility, ability to protect its proprietary manufacturing technology, a
dependence on a limited number of suppliers, technical changes and introductions
of new competing products, productivity, international operations, weather as
well as other factors.
NOTE: Further information on Optical Cable Corporation is available through our
website on the World Wide Web at http://www.occfiber.com
To receive additional information on Optical Cable Corporation, via fax, at no
charge, dial 1-800-PRO-INFO and enter code OCCF.