Optical Cable Corporation Reports Third Quarter 2013 Financial Results

Optical Cable Corporation  has announced financial results for its fiscal third quarter ended July 31, 2013.  Net sales for the third quarter of fiscal year 2013 were $19.6 million, down 10.9% when compared to net sales of $22.0 million for the third quarter of fiscal year 2012, primarily as a result of decreased sales to two major customers that placed a number of large orders last year.  Excluding the impact of these two customers, OCC's net sales would have increased 4.8% during the third quarter of fiscal year 2013 compared to the same period last year.

Sequentially, net sales increased 2.5% in the third quarter of fiscal year 2013, compared to net sales of $19.1 million for the second fiscal quarter of the year.   

Gross profit margin, or gross profit as a percentage of net sales, decreased to 31.3% in the third quarter of fiscal year 2013 from 39.9% in the third quarter of fiscal year 2012.  Gross profit margin in the third quarter was negatively impacted by lower net sales, as certain fixed manufacturing costs were spread over lower sales volumes.  Additionally, we experienced an increase in certain production costs at our Roanoke facility in order to further expand the breadth of our production capabilities to support future growth, as well as to accommodate potential higher levels of production from anticipated future sales opportunities. Gross profit decreased 30.2% to $6.1 million in the third quarter of fiscal year 2013, compared to $8.8 million in the third quarter of fiscal 2012.

OCC recorded a net loss attributable to the Company of $125,000, or $0.02 per basic and diluted share, for the third quarter of fiscal year 2013, compared to net income of $1.2 million, or $0.18 per basic and diluted share, for the third quarter of fiscal
year 2012.

Neil Wilkin, President and Chief Executive Officer of OCC, said, "While our year-over-year results were impacted by decreased sales to two customers, we are encouraged by sales growth achieved with other customers and in other markets, growth we believe reflects the strength of our underlying business.  Furthermore, OCC is investing to support a broader product offering across many of our product lines and to expand our production capabilities as we believe appropriate given our expected sales opportunities.  We believe these investments will support further growth and enhanced shareholder value."

Mr. Wilkin added, "Importantly, OCC's balance sheet remains strong and we continue to return capital to shareholders through our regular quarterly dividend.  In addition, subsequent to the end of the third quarter, we refinanced and replaced our revolving credit facility ahead of its May 2014 maturity date.  We are pleased that as part of the refinancing, we increased the amount of the revolving credit facility available to OCC from $6.0 million to $9.0 million and extended the maturity date to August 31, 2015."

source from wireworld