UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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): June 14, 2010
OPTICAL CABLE CORPORATION
(Exact name of registrant as specified in its charter)
| Virginia | 000-27022 | 54-1237042 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number) | (I.R.S. Employer Identification Number) |
| 5290 Concourse Drive Roanoke, VA | 24019 | |
| (Address of principal executive offices) | (Zip Code) |
(540) 265-0690
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Table of Contents
| Item 2.02 | Results of Operations and Financial Condition |
| Item 9.01 | Financial Statements and Exhibits |
| Signatures |
| Exhibits |
Item 2.02. Results of Operations and Financial Condition
On June 14, 2010, Optical Cable Corporation issued a press release announcing its fiscal 2010 second quarter financial results. On June 15, 2010, Optical Cable Corporation held a conference call to discuss the financial results for its fiscal 2010 second quarter. The press release is attached hereto as Exhibit 99.1 and the transcript for the conference call is attached as Exhibit 99.2.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
The following are filed as Exhibits to this Report.
| Exhibit No. |
Description of Exhibit | |
| 99.1 | Press release issued June 14, 2010 (FILED HEREWITH) | |
| 99.2 | Transcript of conference call on June 15, 2010 (FILED HEREWITH) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OPTICAL CABLE CORPORATION | ||
| By: | /s/ TRACY G. SMITH | |
| Name: Title: |
Tracy G. Smith Senior Vice President and Chief Financial Officer | |
Dated: June 16, 2010
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EXHIBIT INDEX
OPTICAL CABLE CORPORATION
Current report on Form 8-K
| Exhibit No. |
Description of Exhibit | |
| 99.1 | Press release issued June 14, 2010 (FILED HEREWITH) | |
| 99.2 | Transcript of conference call on June 15, 2010 (FILED HEREWITH) | |
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Exhibit 99.1
|
OPTICAL CABLE CORPORATION 5290 Concourse Drive Roanoke, VA 24019 (Nasdaq GM: OCCF) www.occfiber.com |
| AT THE COMPANY: Neil Wilkin President & CEO (540) 265-0690 investorrelations@occfiber.com |
Tracy Smith Senior Vice President & CFO (540) 265-0690 investorrelations@occfiber.com |
| AT JOELE FRANK, WILKINSON BRIMMER KATCHER: | ||
| Andrew Siegel (212) 355-4449 ext. 127 occf-jfwbk@joelefrank.com |
Aaron Palash (212) 355-4449 ext. 103 occf-jfwbk@joelefrank.com | |
FOR IMMEDIATE RELEASE
OPTICAL CABLE CORPORATION REPORTS
FISCAL SECOND QUARTER 2010 FINANCIAL RESULTS
ROANOKE, VA, June 14, 2010 — Optical Cable Corporation (Nasdaq GM: OCCF) (“OCC”) today announced financial results for its fiscal second quarter ended April 30, 2010.
Second Quarter 2010 Financial Results
OCC reported consolidated net sales of $15.3 million for second quarter of fiscal year 2010. Sequentially, consolidated net sales for the quarter increased 1.7% compared to the consolidated net sales of $15.0 million during the first quarter of fiscal year 2010. Net sales were flat when compared to consolidated net sales of $15.3 million for the second quarter of last year.
Net sales of OCC’s enterprise connectivity products and in OCC’s commercial markets increased during the second quarter of fiscal year 2010 compared to the same period last year. These increases were offset by decreases in net sales of the Company’s fiber optic cable products and in OCC’s specialty markets.
OCC recorded a net loss attributable to the Company of $7.5 million, or $1.27 per basic and diluted share, for the second quarter of fiscal year 2010, compared to net income of $16,000, or earnings of less than $0.01 per basic and diluted share, for the same period last year.
Significantly contributing to the net loss during the second quarter of fiscal year 2010 was a non-recurring, non-cash impairment charge of $6.2 million to write-off the carrying value of the goodwill associated with the acquisition of Applied Optical Systems, Inc. (“AOS”).
Fiscal Year-to-Date 2010 Financial Results
OCC’s consolidated net sales for each of the first halves of fiscal years 2010 and 2009 were $30.3 million. Net sales of OCC’s enterprise connectivity products and in the Company’s commercial markets increased during the first half of fiscal year 2010 compared to the same period last year. This increase was partially offset by decreases in net sales of OCC’s fiber optic cable products and in the Company’s specialty markets.
Gross profit decreased 6.9% to $9.8 million for the first half of fiscal year 2010, compared to $10.5 million for the same period in fiscal 2009. Gross profit margin for the first half of fiscal year 2010 decreased to 32.3% compared to 34.7% for the first half of fiscal year 2009.
For the first half of fiscal year 2010, OCC recorded a net loss attributable to the Company of $7.8 million, or $1.32 per basic and diluted share, compared to a net loss of $726,000, or $0.12 per basic and diluted share, for the first half of fiscal year 2009. The non-recurring, non-cash impairment charge of $6.2 million to write-off goodwill associated with the AOS acquisition significantly impacted the fiscal 2010 year-to-date results.
Management’s Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said “Over the past several years we have worked to continually improve operations while at the same time expanding our business to offer the full range of products necessary to meet the needs of our customers. Today OCC is well-positioned in our markets, and we believe our financial results in the first half of fiscal 2010–including stable net sales–demonstrate that our efforts to reduce costs and diversify our product offering have successfully mitigated the impact of the global economic recession. Our balance sheet continues to be strong and, as announced last month, we have secured a new revolving credit facility that provides OCC with additional financial flexibility. While the economic environment remains challenging, we are confident that we have taken the right steps to deliver profitable growth and shareholder value creation.”
Company Information
Optical Cable Corporation is a leading manufacturer of a broad range of fiber optic and copper data communications cabling and connectivity solutions primarily for the enterprise market, offering an integrated suite of high quality, warranted products which operate as a system solution or seamlessly integrate with other providers’ offerings. OCC’s product offerings include designs for uses ranging from commercial, enterprise network, datacenter, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining and broadcast applications. OCC products include fiber optic and copper cabling, fiber optic and copper connectors, specialty fiber optic and copper connectors, fiber optic and copper patch cords, pre-terminated fiber optic and copper cable assemblies, racks, cabinets, datacom enclosures, patch panels, face plates, multi-media boxes and other cable and connectivity management accessories, and are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics.
OCC is internationally recognized for pioneering the design and production of fiber optic cables for the most demanding military field applications, as well as of fiber optic cables suitable for both indoor and outdoor use, and creating a broad product offering built on the evolution of these fundamental technologies. OCC also is internationally recognized for its role in establishing copper connectivity data communications standards, through its innovative and patented technologies.
Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices, manufacturing and warehouse facilities located in each of Roanoke, Virginia, near Asheville, North Carolina and near Dallas, Texas. OCC primarily manufactures its high quality fiber optic cables at its Roanoke facility which is ISO 9001:2008 registered and MIL-STD-790F certified, its high quality enterprise connectivity products at its Asheville facility which is ISO 9001:2008 registered, and its high quality military and harsh environment connectivity products and systems at its Dallas facility which is MIL-STD-790F certified.
Optical Cable Corporation, OCC, Superior Modular Products, SMP Data Communications, Applied Optical Systems, and associated logos are trademarks of Optical Cable Corporation.
Further information about OCC is available on the Internet 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 the Company’s 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 variables, uncertainties, contingencies and risks that may cause actual events to differ materially from the Company’s expectations. Additionally, such variables, uncertainties, contingencies and risks may adversely affect the Company and the Company’s future results of operation and future financial condition. Factors that could cause or contribute to such differences from the Company’s expectations or could adversely affect the Company, include, but are not limited to: the level of sales to key customers, including distributors; timing of certain projects and purchases by key customers; the economic conditions affecting network service providers; corporate and/or government spending on information technology; actions by competitors; fluctuations in the price of raw materials (including optical fiber, copper, gold and other precious metals, and plastics and other materials affected by petroleum product pricing); fluctuations in transportation costs; the Company’s dependence on customized equipment for the manufacture of its products and a limited number of production facilities; the Company’s ability to protect its proprietary manufacturing technology; the Company’s ability to replace royalty income as existing patented and licensed products expire by developing and licensing new products; market conditions influencing prices or pricing; the Company’s dependence on a limited number of suppliers; the loss of or conflict with one or more key suppliers or customers; an adverse outcome in litigation, claims and other actions, and potential litigation, claims and other actions against the Company; an adverse outcome in
regulatory reviews and audits and potential regulatory reviews and audits; adverse changes in state tax laws and/or positions taken by state taxing authorities affecting the Company; technological changes and introductions of new competing products; changes in end-user preferences for competing technologies, relative to the Company’s product offering; economic conditions that affect the telecommunications sector, certain technology sectors or the economy as a whole; changes in demand of our products from certain competitors for which we provide private label connectivity products; terrorist attacks or acts of war, and any current or potential future military conflicts; changes in the level of military spending by the United States government; ability to retain key personnel; inability to recruit needed personnel; poor labor relations; the inability to successfully integrate the operations of the Company’s new subsidiaries; the impact of changes in accounting policies, including those by the Securities and Exchange Commission and the Public Company Accounting Oversight Board; the Company’s ability to continue to successfully comply with, and the cost of compliance with, the provisions of Section 404 of the Sarbanes-Oxley Act of 2002 or any revisions to that act which apply to the Company; the impact of changes and potential changes in federal laws and regulations adversely affecting our business and/or which result in increases in our direct and indirect costs as we comply with such laws and regulations; impact of future consolidation among competitors and/or among customers adversely affecting the Company’s position with its customers and/or its market position; actions by customers adversely affecting the Company in reaction to the expansion of its product offering in any manner, including, but not limited to, by offering products that compete with its customers, and/or by entering into alliances with, making investments in or with, and/or acquiring parties that compete with and/or have conflicts with customers of the Company; adverse reactions by customers, vendors or other service providers to unsolicited proposals regarding the management of the Company, and the additional costs of considering and possibly defending the Company’s position on such unsolicited proposals; impact of weather or natural disasters in the areas of the world in which the Company operates and markets its products; economic downturns and/or changes in market demand, exchange rates, productivity, or market and economic conditions in the areas of the world in which the Company operates and markets its products, and the Company’s success in managing the risks involved in the foregoing. The Company cautions readers that the foregoing list of important factors is not exclusive and the Company incorporates by reference those factors included in current reports on Form 8-K, in the annual report on Form 10-K for the fiscal year ended October 31, 2009, and/or in the Company’s other filings.
(Financial Tables Follow)
OPTICAL CABLE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(thousands, except per share data)
(unaudited)
| Three Months Ended April 30, |
Six Months Ended April 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net sales |
$ | 15,256 | $ | 15,343 | $ | 30,263 | $ | 30,301 | ||||||||
| Cost of goods sold |
10,970 | 9,620 | 20,476 | 19,790 | ||||||||||||
| Gross profit |
4,286 | 5,723 | 9,787 | 10,511 | ||||||||||||
| Selling, general and administrative expenses |
6,192 | 5,811 | 12,240 | 11,622 | ||||||||||||
| Royalty income, net |
(363 | ) | (220 | ) | (609 | ) | (382 | ) | ||||||||
| Amortization of intangible assets |
147 | 209 | 294 | 418 | ||||||||||||
| Impairment of goodwill |
6,246 | — | 6,246 | — | ||||||||||||
| Loss from operations |
(7,936 | ) | (77 | ) | (8,384 | ) | (1,147 | ) | ||||||||
| Interest expense, net |
(81 | ) | (167 | ) | (226 | ) | (333 | ) | ||||||||
| Other, net |
76 | — | 69 | 25 | ||||||||||||
| Other expense, net |
(5 | ) | (167 | ) | (157 | ) | (308 | ) | ||||||||
| Loss before income taxes |
(7,941 | ) | (244 | ) | (8,541 | ) | (1,455 | ) | ||||||||
| Income tax benefit |
(424 | ) | (260 | ) | (645 | ) | (729 | ) | ||||||||
| Net income (loss) |
$ | (7,517 | ) | $ | 16 | $ | (7,896 | ) | $ | (726 | ) | |||||
| Net loss attributable to noncontrolling interest |
(51 | ) | — | (114 | ) | — | ||||||||||
| Net income (loss) attributable to OCC |
$ | (7,466 | ) | $ | 16 | $ | (7,782 | ) | $ | (726 | ) | |||||
| Net income (loss) attributable to OCC per share: |
||||||||||||||||
| Basic and diluted |
$ | (1.27 | ) | $ | 0.00 | $ | (1.32 | ) | $ | (0.12 | ) | |||||
| Weighted average shares outstanding: |
||||||||||||||||
| Basic and diluted |
5,891 | 6,140 | 5,896 | 6,136 | ||||||||||||
—MORE—
OPTICAL CABLE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(thousands)
(unaudited)
| April 30, 2010 |
October 31, 2009 | ||||||
| Cash and cash equivalents |
$ | 1,105 | $ | 1,948 | |||
| Trade accounts receivable, net |
9,564 | 9,533 | |||||
| Inventories |
13,318 | 12,306 | |||||
| Other current assets |
3,905 | 3,915 | |||||
| Total current assets |
27,892 | 27,702 | |||||
| Non-current assets |
15,879 | 22,625 | |||||
| Total assets |
$ | 43,771 | $ | 50,327 | |||
| Current liabilities |
$ | 7,650 | $ | 7,632 | |||
| Non-current liabilities |
10,304 | 9,438 | |||||
| Total liabilities |
17,954 | 17,070 | |||||
| Total shareholders' equity attributable to OCC |
25,931 | 33,257 | |||||
| Noncontrolling interest |
(114 | ) | — | ||||
| Total shareholders' equity |
25,817 | 33,257 | |||||
| Total liabilities and shareholders' equity |
$ | 43,771 | $ | 50,327 | |||
###
Exhibit 99.2
FINAL TRANSCRIPT
Conference Call Transcript
OCCF—Q2 2010 Optical Cable Earnings Conference Call
Event Date/Time: Jun 15, 2010 / 11:00AM ET
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FINAL TRANSCRIPT
CORPORATE PARTICIPANTS
Neil Wilkin
Optical Cable Corporation—President, CEO
Tracy Smith
Optical Cable Corporation—CFO, SVP
Andrew Siegel
Joele Frank, Wilkinson Brimmer Katcher—IR
PRESENTATION
Operator
Good morning. My name is Melissa, and I will be your conference operator today. At this time I would like to welcome everyone to the Optical Cable Corporation Second Quarter 2010 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.
(Operator Instructions)
Mr. Siegel, you may begin your conference.
Andrew Siegel—Joele Frank, Wilkinson Brimmer Katcher—IR
Okay, thank you. Good morning, and thank you all for participating in Optical Cable Corporation’s second quarter of fiscal year 2010 conference call. By this time, everyone should have obtained a copy of the earnings press release. If you haven’t, please visit occfiber.com for a copy. On the call with us today is Neil Wilkin, Chairman, President and Chief Executive Officer of OCC.
Before we begin, I’d like to remind everyone that this call may contain forward-looking statements that involve risks and uncertainties. The actual future results of Optical Cable Corporation may differ materially due to a number of factors including, but not limited to, those factors set forth in detail in the “forward-looking statements” section of yesterday’s press release. These cautionary statements apply to the contents of the internet webcast on occfiber.com as well as today’s call.
Now, I’d like to turn the call over to Neil Wilkin. Neil, you can begin.
Neil Wilkin—Optical Cable Corporation—President, CEO
Thank you, Andrew, and good morning, everyone. Joining me today at OCC’s offices in Roanoke is Tracy Smith, our Senior Vice President and Chief Financial Officer. I’d like to begin the call today with a few opening remarks. I will then have Tracy review the second quarter results for the three-month period and six-month period ended April 30th, 2010 in more detail.
After Tracy’s remarks, we’ll answer as many of your questions as we can. I’d like to note that during the Q&A session we will—as we normally do—take questions from analysts and institutional investors only. Additionally, we will also answer questions, if any, from individual investors that were submitted prior to today’s call.
As a reminder, when we do offer an opportunity for shareholders to submit questions in advance of our earnings call, we will include instructions regarding such submissions in our press release announcing the date and time of our earnings call—as we did for today’s call.
In light of the challenging economic environment caused by the global economic recession, we have delivered some positive results during the second quarter of fiscal year 2010. Specifically, we achieved consolidated net sales of $15.3 million in our second quarter, an increase of 1.7% as compared to our first quarter of 2010. And we maintained the same net sales level in the second quarter of 2010 as the $15.3 million in net sales achieved during the second quarter of fiscal year 2009.
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Notwithstanding these positives, however, OCC reported a net loss of $1.27 per share for the second quarter of 2010. This loss is largely due to a one-time, non-recurring, non-cash charge of $6.2 million to write-off goodwill recorded on OCC’s balance sheet associated with the acquisition of Applied Optical Systems.
But for the $6.2 million charge associated with the impairment of goodwill, our net loss would have been $1.3 million, or $0.22 per share, for the second quarter, and $1.6 million, or $0.28 per share, for the year-to-date period. Tracy will describe the reconciliation of this proforma net loss and loss per share information to the amounts reported in her comments momentarily.
Despite the challenges OCC has faced this year, OCC is a strong company, well-positioned for the future. OCC continues to have a strong balance sheet, and we have substantial financial flexibility having just closed a new $6 million revolving credit facility in May 2010. And, the acquisitions of SMP Data Communications in May of 2008 and Applied Optical Systems in October 2009 have enabled OCC to offer a comprehensive suite of integrated products to meet our customers’ needs.
During the second quarter of 2010, our sales of enterprise connectivity products improved and we saw growth in our commercial markets, in both cases when compared to the second quarter of 2009.
We believe that net sales of our product lines tend to be a lagging indicator of economic recovery and downturn when compared to the general economy. Generally, we believe our improvement in the sales of enterprise connectivity products during the second quarter of 2010 may indicate the beginning of improved sales in our markets.
While we continue to expect challenging financial conditions during the second half of fiscal year 2010, we are well-positioned in our markets, and we’re taking the steps we believe necessary to enable us to report improved results by the end of 2010.
I will now turn the call over to Tracy Smith, who will review some specifics regarding our second quarter and year-to-date fiscal year 2010 financial results.
Tracy Smith—Optical Cable Corporation—CFO, SVP
Thank you, Neil. Consolidated net sales for each of the second quarters of fiscal years 2010 and 2009 were $15.3 million. Sequentially, consolidated net sales for the second quarter of fiscal year 2010 increased 1.7% compared to consolidated net sales of $15 million during the first quarter of fiscal year 2010.
We experienced an increase in our net sales during the second quarter of fiscal year 2010 in our commercial markets compared to the same period last year, but this increase was partially offset by decreases in net sales in our specialty markets. We experienced increases in our net sales during the second quarter of fiscal year 2010 of our enterprise connectivity products, compared to the same period last year. These increases were offset by decreases in net sales of our fiber optic cable products. Net sales to customers located outside of the United States decreased 23.4% in the second quarter of fiscal year 2010 compared to the same period last year, while net sales to customers located in the United States increased 9.7%.
Consolidated net sales for each of the first halves of fiscal years 2010 and 2009 were $30.3 million. We experienced an increase in net sales during the first half of fiscal year 2010 in our commercial markets compared to the same period last year. The increase in net sales in our commercial markets was partially offset by a decrease in net sales in our specialty markets for the first half of fiscal year 2010. We experienced increases in our net sales during the first half of fiscal year 2010 of our enterprise connectivity products, compared to the same period last year. These increases were offset by decreases in net sales of our fiber optic cable product.
Net sales to customers located outside of the United States decreased 7% in the first half of fiscal year 2010 compared to the same period last year, while net sales to customers located in the United States increased 2.7%.
Gross profit decreased 25.1% to $4.3 million in the second quarter of fiscal year 2010, compared to $5.7 million for the same period last year. Gross profit margin decreased to 28.1% for the second quarter of fiscal year 2010, compared to 37.3% for the second quarter of fiscal year 2009.
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Gross profit decreased 6.9% to $9.8 million for the first half of fiscal 2010, from $10.5 million for the same period in fiscal year 2009. Gross profit margin, or gross profit as a percentage of net sales, decreased to 32.3% for the first half of fiscal year 2010 from 34.7% for the same period last year.
The primary reason for the decrease in our gross profit margin is that the gross profit margin percentage associated with the sale of fiber optic cable products decreased 31.7% for the second quarter of fiscal year 2010, compared to 41.4% for the same period last year, and decreased to 37.8% for the first half of fiscal year 2010 compared to 39% for the same period last year, due primarily to higher variable production costs associated with the mix of products sold during the second quarter and first half of fiscal year 2010, as well as certain fixed manufacturing costs being spread over lower sales volumes. Further, sales of fiber optic cable products (which historically enjoy relatively higher gross profit margins when compared to our enterprise connectivity products) fell as a percentage of total net sales during the second quarter and year-to-date period, negatively impacting total gross profit margin.
The decrease in gross profit margin was partially mitigated by improvement in the gross profit margin associated with the sale of our enterprise connectivity products, which was 22.2% during the second quarter of fiscal year 2010, compared to 16% during the second quarter of fiscal year 2009. Historically, our enterprise connectivity and applied interconnect system products have lower gross profit margins than our fiber optic cable product.
SG&A expenses increased to $6.2 million in the second quarter of fiscal year 2010 from $5.8 million for the same period last year. SG&A expenses as a percentage of net sales were 40.6% in the second quarter of fiscal year 2010, compared to 37.9% in the second quarter of fiscal year 2009. Excluding the acquisition of AOS, we believe our SG&A expenses would have decreased in the second quarter of fiscal year 2010 when compared to the same period last year, as a result of cost reduction initiatives.
We reported a net loss attributable to OCC of $7.5 million, or $1.27 per basic and diluted share, in the second quarter of fiscal year 2010, compared to net income of $16,000, or earnings of less than $0.01 per basic and diluted share, for the second quarter of fiscal year 2009. We’ve reported a net loss attributable to OCC of $7.8 million, or $1.32 per share per basic and diluted share, in the first half of fiscal year 2010, compared to a net loss of $726,000, or $0.12 per basic and diluted share, for the first half of fiscal year 2009.
Significantly contributing to the net loss during the second quarter and first half of fiscal year 2010 was the non-recurring, non-cash impairment charge of $6.2 million to write off the carrying value of the goodwill associated with the acquisition of AOS that Neil mentioned in his opening remarks. The Company believes that because of the worldwide economic recession and the continuing challenges facing its industry, it was appropriate to write-off the carrying value of goodwill at this time.
As Neil mentioned, but for the $6.2 million charge associated with the impairment of goodwill, our net loss would have been $1.3 million, or $0.22 per share for the quarter, and $1.6 million, or $0.28 per share, for the year-to-date period. This proforma loss per share is calculated by adding the impairment charge of $6.2 million to our pre-tax loss as reported for both the quarter and the year-to-date period. There is no tax benefit associated with the impairment charge, as it is considered a non-deductible permanent item for tax purposes, so there is no change to the tax benefit as reported for either period in determining the proforma loss per share. However, our effective tax rate for the quarter and year-to-date periods would have been 25% and 28.1% respectively. Additionally, weighted average shares outstanding for each period remains the same for purposes of the pro forma calculation.
On April 30, 2010 we entered into a revolving credit facility with SunTrust Bank under which SunTrust Bank will provide us with a revolving line of credit for approximately two years for our working capital needs. The Commercial Loan provides a $6 million working capital line of credit and replaces our Amended Revolving Loan with Valley Bank.
And with that, I’ll turn the call back over to Neil.
Neil Wilkin —Optical Cable Corporation—President, CEO
Thank you, Tracy. And now we’re happy to answer as many of your questions as we can. Operator, if you would please indicate the instructions for participants to call in their questions, I would appreciate it.
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FINAL TRANSCRIPT
QUESTION AND ANSWER
Operator
Thank you.
(Operator Instructions)
At this time, there are no questions. I’ll turn it back to management for any remarks.
Neil Wilkin —Optical Cable Corporation—President, CEO
Andrew, were there any questions that individual shareholders may have submitted before the call?
Andrew Siegel —Joele Frank, Wilkinson Brimmer Katcher—IR
Neil, unfortunately, no — no individual shareholders submitted any questions.
Neil Wilkin —Optical Cable Corporation—President, CEO
Okay. Well, I would like to thank everyone for joining us on the call today. As always, we appreciate your time and your interest in Optical Cable Corporation. And we’ll continue to work to show improvements during the second half of 2010. Appreciate your time. Thank you.
Operator
Thank you for participating in today’s conference call. You may now disconnect.
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