OPTICAL CABLE CORPORATION REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 FINANCIAL RESULTS
Optical Cable (OCC) reported mixed results for Q4 and fiscal year 2024. Q4 showed strong performance with net sales increasing 12.4% to $19.5 million and gross profit rising 68.6% to $6.5 million, compared to the same period in 2023. Gross profit margin improved to 33.5% from 22.4%. The company recorded Q4 net income of $373,000 ($0.05 per share), compared to a net loss of $1.3 million in Q4 2023.
However, fiscal year 2024 results were challenging, with net sales declining 7.6% to $66.7 million and gross profit decreasing 18.3% to $18.2 million. The company reported a net loss of $4.2 million ($0.54 per share) for FY2024, compared to net income of $2.1 million in FY2023. Management noted signs of industry recovery and expects growth opportunities in fiscal 2025.
Cavo Ottico (OCC) ha riportato risultati misti per il quarto trimestre e l'anno fiscale 2024. Il quarto trimestre ha mostrato una forte performance con vendite nette in aumento del 12,4% a 19,5 milioni di dollari e un profitto lordo in crescita del 68,6% a 6,5 milioni di dollari, rispetto allo stesso periodo del 2023. Il margine di profitto lordo è migliorato al 33,5% rispetto al 22,4%. L'azienda ha registrato un utile netto nel quarto trimestre di 373.000 dollari (0,05 dollari per azione), rispetto a una perdita netta di 1,3 milioni di dollari nel quarto trimestre 2023.
Tuttavia, i risultati per l'anno fiscale 2024 sono stati difficili, con vendite nette in calo del 7,6% a 66,7 milioni di dollari e un profitto lordo in diminuzione del 18,3% a 18,2 milioni di dollari. L'azienda ha riportato una perdita netta di 4,2 milioni di dollari (0,54 dollari per azione) per l'anno fiscale 2024, rispetto a un utile netto di 2,1 milioni di dollari nell'anno fiscale 2023. La direzione ha notato segnali di ripresa industriale e si aspetta opportunità di crescita nell'anno fiscale 2025.
Cable Óptico (OCC) informó resultados mixtos para el cuarto trimestre y el año fiscal 2024. El cuarto trimestre mostró un rendimiento sólido, con ventas netas que aumentaron un 12,4% a 19,5 millones de dólares y un beneficio bruto que subió un 68,6% a 6,5 millones de dólares, en comparación con el mismo período de 2023. El margen de beneficio bruto mejoró al 33,5% desde el 22,4%. La empresa registró un ingreso neto en el cuarto trimestre de 373,000 dólares (0,05 dólares por acción), en comparación con una pérdida neta de 1,3 millones de dólares en el cuarto trimestre de 2023.
No obstante, los resultados del año fiscal 2024 fueron desafiantes, con ventas netas que cayeron un 7,6% a 66,7 millones de dólares y un beneficio bruto que disminuyó un 18,3% a 18,2 millones de dólares. La empresa reportó una pérdida neta de 4,2 millones de dólares (0,54 dólares por acción) para el año fiscal 2024, en comparación con un ingreso neto de 2,1 millones de dólares en el año fiscal 2023. La dirección señaló signos de recuperación en la industria y espera oportunidades de crecimiento en el año fiscal 2025.
광케이블 (OCC)는 2024 회계연도 4분기 및 전체에서 혼합된 결과를 보고했습니다. 4분기 동안 순매출이 12.4% 증가하여 1,950만 달러에 이르렀고, 총 이익은 68.6% 상승하여 650만 달러를 기록하며 2023년 같은 기간과 비교되었습니다. 총 이익률은 22.4%에서 33.5%로 개선되었습니다. 회사는 4분기 순이익이 373,000달러(주당 0.05달러)라고 보고했으며, 2023년 4분기에는 130만 달러의 순손실을 기록했습니다.
그러나 2024 회계연도 결과는 어려웠으며, 순매출은 7.6% 감소하여 6,670만 달러, 총 이익은 18.3% 감소하여 1,820만 달러에 도달했습니다. 회사는 2024 회계연도에 대해 420만 달러(주당 0.54달러)의 순손실을 보고했으며, 2023 회계연도에는 210만 달러의 순이익을 기록했습니다. 경영진은 산업 회복의 조짐을 언급하며 2025 회계연도에 성장 기회가 있을 것으로 예상하고 있습니다.
Câble Optique (OCC) a rapporté des résultats mitigés pour le quatrième trimestre et l'exercice fiscal 2024. Le quatrième trimestre a montré de solides performances, avec des ventes nettes en hausse de 12,4 % à 19,5 millions de dollars et un bénéfice brut en augmentation de 68,6 % à 6,5 millions de dollars, par rapport à la même période en 2023. La marge bénéficiaire brute s'est améliorée, passant de 22,4 % à 33,5 %. L'entreprise a enregistré un bénéfice net au quatrième trimestre de 373 000 dollars (0,05 dollar par action), contre une perte nette de 1,3 million de dollars au quatrième trimestre 2023.
Cependant, les résultats de l'exercice fiscal 2024 ont été difficiles, avec des ventes nettes en baisse de 7,6 % à 66,7 millions de dollars et un bénéfice brut en diminution de 18,3 % à 18,2 millions de dollars. L'entreprise a rapporté une perte nette de 4,2 millions de dollars (0,54 dollar par action) pour l'exercice fiscal 2024, par rapport à un bénéfice net de 2,1 millions de dollars pour l'exercice fiscal 2023. La direction a noté des signes de reprise dans l'industrie et s'attend à des opportunités de croissance pour l'exercice fiscal 2025.
Glasfaserkabel (OCC) berichtete für das vierte Quartal und das Geschäftsjahr 2024 gemischte Ergebnisse. Das vierte Quartal zeigte eine starke Leistung mit einem Anstieg des Nettoumsatzes um 12,4% auf 19,5 Millionen Dollar und einem Anstieg des Bruttogewinns um 68,6% auf 6,5 Millionen Dollar im Vergleich zum selben Zeitraum im Jahr 2023. Die Bruttogewinnmarge verbesserte sich von 22,4% auf 33,5%. Das Unternehmen verzeichnete im vierten Quartal einen Nettogewinn von 373.000 Dollar (0,05 Dollar pro Aktie) im Vergleich zu einem Nettverlust von 1,3 Millionen Dollar im vierten Quartal 2023.
Die Ergebnisse des Geschäftsjahres 2024 waren jedoch herausfordernd, mit einem Rückgang des Nettoumsatzes um 7,6% auf 66,7 Millionen Dollar und einem Rückgang des Bruttogewinns um 18,3% auf 18,2 Millionen Dollar. Das Unternehmen berichtete für das Geschäftsjahr 2024 einen Nettverlust von 4,2 Millionen Dollar (0,54 Dollar pro Aktie) im Vergleich zu einem Nettogewinn von 2,1 Millionen Dollar im Geschäftsjahr 2023. Das Management bemerkte Anzeichen einer Branchenrehabilitation und erwartet Wachstumschancen im Geschäftsjahr 2025.
- Q4 net sales increased 12.4% year-over-year to $19.5 million
- Q4 gross profit surged 68.6% to $6.5 million
- Q4 gross profit margin improved to 33.5% from 22.4%
- Q4 showed positive net income of $373,000 vs previous year loss
- Sequential quarterly sales growth throughout FY2024
- FY2024 net sales decreased 7.6% to $66.7 million
- FY2024 gross profit declined 18.3% to $18.2 million
- FY2024 net loss of $4.2 million compared to prior year profit
- SG&A expenses increased 1.3% to $21.5 million in FY2024
- Gross profit margin declined to 27.3% from 30.9% in FY2024
Insights
The Q4 2024 results demonstrate a significant operational turnaround for OCC, with net sales increasing 12.4% to
However, the full fiscal year 2024 performance tells a different story, with a
Rising SG&A costs remain a concern, increasing to
The fiber optic sector's recovery trajectory is evident in OCC's Q4 performance, with sequential sales growth in each quarter of 2024 suggesting a broader industry inflection point. The growth across both enterprise and specialty markets indicates diversified demand recovery rather than isolated segment improvement.
The company's improved production efficiencies and positive operating leverage in Q4 position it well to capitalize on the anticipated market recovery in 2025. However, the full-year results highlight the severity of the previous market weakness, particularly in the wireless carrier segment. The investment in sales personnel, despite challenging conditions, suggests management's confidence in future growth opportunities.
Net Sales Increases
ROANOKE, Va., Dec. 23, 2024 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company") today announced financial results for its fourth quarter and fiscal year 2024 ended October 31, 2024.
Fourth Quarter 2024 Financial Results
Consolidated net sales for the fourth quarter of fiscal year 2024 increased
Gross profit increased
Gross profit margin, or gross profit as a percentage of net sales, was
SG&A expenses were
For the fourth quarter of fiscal year 2024, OCC recorded net income of
Fiscal 2024 Financial Results
Consolidated net sales for fiscal year 2024 were
The Company's net sales were negatively impacted by macroeconomic pressures in fiscal year 2024—consistent with the market weakness generally experienced by others in the industry. This industry market weakness began to impact the Company's net sales during fiscal year 2023, and continued through the third quarter of fiscal 2024.
OCC reported gross profit of
SG&A expenses increased
OCC recorded a net loss of
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said, "OCC delivered a strong fourth quarter to finish the fiscal year. Through solid execution of our growth strategies in a challenging market environment, we reported sequential and year-over-year increases in net sales in the fourth quarter of fiscal year 2024. We also achieved growth by all other measures during the fourth quarter—including gross profit and gross profit margin, as well as achieving positive income from operations and earnings per share—demonstrating the impact of OCC's significant operating leverage on profitability as net sales and production volumes increase."
Mr. Wilkin continued, "I am immensely proud and appreciative of the OCC team's hard work and efforts to identify growth opportunities over the past year. The commitment of OCC employees to serving our customers and end-users with OCC's suite of mission-critical solutions will continue to drive our success."
Mr. Wilkin added, "We are encouraged about our Company's prospects in fiscal year 2025, as we are seeing indications that our industry has begun to emerge from a prolonged period of market weakness. Looking ahead, we are confident OCC is well-positioned in our targeted markets to identify and capture further growth opportunities and create value for shareholders."
Conference Call Information
As previously announced, OCC will host a conference call today, December 23, 2024, at 10:30 a.m. Eastern Time. Individuals wishing to participate in the conference call should call (800) 445-7795 in the
Company Information
Optical Cable Corporation ("OCC®") is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise market and various harsh environment and specialty markets (collectively, the non-carrier markets) and also the wireless carrier market, offering integrated suites of high-quality products which operate as a system solution or seamlessly integrate with other components.
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 Optical Cable Corporation.
Further information about OCC® is available 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 our 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 known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations, and such known and unknown variables, uncertainties, contingencies and risks may also adversely affect Optical Cable Corporation and its subsidiaries, the Company's future results of operations and future financial condition, and/or the future equity value of the Company. A partial list of such variables, uncertainties, contingencies and risks that could cause or contribute to such differences from our expectations or that could otherwise adversely affect Optical Cable Corporation and its subsidiaries is set forth in Optical Cable Corporation's quarterly and annual reports filed with the Securities and Exchange Commission ("SEC") under the heading "Forward-Looking Information." OCC's quarterly and annual reports are available to the public on the SEC's website at www.sec.gov. In providing forward-looking information, the Company expressly disclaims any obligation to update this information, whether as a result of new information, future events or otherwise except as required by applicable laws and regulations.
(Financial Tables Follow)
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (thousands, except per share data) (unaudited) | |||||||
Three Months Ended | Year Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 19,485 | $ 17,329 | $ 66,674 | $ 72,174 | |||
Cost of goods sold | 12,953 | 13,455 | 48,469 | 49,880 | |||
Gross profit | 6,532 | 3,874 | 18,205 | 22,294 | |||
SG&A expenses | 5,850 | 5,145 | 21,501 | 21,221 | |||
Royalty expense, net | 6 | 6 | 26 | 26 | |||
Amortization of intangible assets | 14 | 14 | 54 | 54 | |||
Income (loss) from operations | 662 | (1,291) | (3,376) | 993 | |||
Interest expense, net | (286) | (298) | (1,166) | (1,153) | |||
Gain (loss) on insurance proceeds, net | (5) | 247 | 304 | 2,199 | |||
Other, net | 2 | 114 | 49 | 173 | |||
Other income (expense), net | (289) | 63 | (813) | 1,219 | |||
Income (loss) before income taxes | 373 | (1,228) | (4,189) | 2,212 | |||
Income tax expense | ⸺ | 39 | 21 | 146 | |||
Net income (loss) | $ 373 | $ (1,267) | $ (4,210) | $ 2,066 | |||
Net income (loss) per share: | |||||||
Basic and diluted | $ 0.05 | $ (0.17) | $ (0.54) | $ 0.26 | |||
Weighted average shares outstanding: | |||||||
Basic and diluted | 7,762 | 7,603 | 7,749 | 7,880 | |||
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) | |||
October 31, | October 31, | ||
Cash | $ 244 | $ 1,469 | |
Trade accounts receivable, net | 10,946 | 8,728 | |
Inventories | 18,725 | 23,766 | |
Other current assets | 685 | 1,075 | |
Total current assets | 30,600 | 35,038 | |
Non-current assets | 9,758 | 8,841 | |
Total assets | $ 40,358 | $ 43,879 | |
Current liabilities | $ 15,144 | $ 16,093 | |
Non-current liabilities | 4,372 | 3,064 | |
Total liabilities | 19,516 | 19,157 | |
Total shareholders' equity | 20,842 | 24,722 | |
Total liabilities and shareholders' equity | $ 40,358 | $ 43,879 | |
AT THE COMPANY: | |
Neil Wilkin | Tracy Smith |
Chairman, President & CEO | Senior Vice President & CFO |
(540) 265-0690 | (540) 265-0690 |
AT JOELE FRANK, WILKINSON BRIMMER KATCHER: | |
Aaron Palash | Spencer |
(212) 355-4449 ext. 8603 | (212) 355-4449 ext. 8928 |
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SOURCE Optical Cable Corporation
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