OPTICAL CABLE CORPORATION REPORTS THIRD QUARTER OF FISCAL YEAR 2024 FINANCIAL RESULTS
Optical Cable (OCC) reported financial results for Q3 FY2024. Net sales decreased 4.2% to $16.2 million compared to Q3 FY2023. The company experienced increased sales in the enterprise market, offset by decreases in specialty markets. Gross profit declined 23.4% to $3.9 million, with gross profit margin at 24.2%. OCC recorded a net loss of $1.6 million, or $0.20 per share. For the first nine months of FY2024, net sales decreased 14% to $47.2 million, with a net loss of $4.6 million. Despite challenging market conditions, OCC has seen increasing sales order backlog since the beginning of FY2024, rising to $6.5 million at the end of Q3.
Optical Cable (OCC) ha riportato risultati finanziari per il terzo trimestre dell'anno fiscale 2024. Le vendite nette sono diminuite del 4,2% a $16,2 milioni rispetto al terzo trimestre dell'anno fiscale 2023. L'azienda ha registrato un aumento delle vendite nel mercato aziendale, compensato da un calo nei mercati specializzati. Il profitto lordo è diminuito del 23,4% a $3,9 milioni, con un margine di profitto lordo del 24,2%. OCC ha riportato una perdita netta di $1,6 milioni, ovvero $0,20 per azione. Nei primi nove mesi dell'anno fiscale 2024, le vendite nette sono diminuite del 14% a $47,2 milioni, con una perdita netta di $4,6 milioni. Nonostante le condizioni di mercato difficili, OCC ha visto un aumento dell'accumulo degli ordini di vendita dall'inizio dell'anno fiscale 2024, arrivando a $6,5 milioni alla fine del terzo trimestre.
Optical Cable (OCC) informó los resultados financieros del tercer trimestre del año fiscal 2024. Las ventas netas disminuyeron un 4,2% a $16,2 millones en comparación con el tercer trimestre del año fiscal 2023. La empresa experimentó un aumento en las ventas en el mercado empresarial, compensado por caídas en mercados especializados. El beneficio bruto disminuyó un 23,4% a $3,9 millones, con un margen de beneficio bruto del 24,2%. OCC registró una pérdida neta de $1,6 millones, o $0,20 por acción. En los primeros nueve meses del año fiscal 2024, las ventas netas disminuyeron un 14% a $47,2 millones, con una pérdida neta de $4,6 millones. A pesar de las difíciles condiciones del mercado, OCC ha visto un aumento en la acumulación de pedidos de venta desde el inicio del año fiscal 2024, ascendiendo a $6,5 millones al final del tercer trimestre.
Optical Cable (OCC)는 2024 회계연도 3분기 재무 실적을 발표했습니다. 순매출은 4.2% 감소한 $1620만으로 2023 회계연도 3분기와 비교되었습니다. 회사는 기업 시장에서 매출 증가를 경험했으나, 전문 시장에서의 감소로 상쇄되었습니다. 총 이익은 23.4% 감소한 $390만으로, 총 이익률은 24.2%입니다. OCC는 $160만, 즉 주당 $0.20의 순손실을 기록했습니다. 2024 회계연도 첫 9개월 동안 순매출은 14% 감소하여 $4720만에 이르렀고, 순손실은 $460만입니다. 어려운 시장 상황에도 불구하고 OCC는 2024 회계연도 초부터 판매 주문 잔고가 증가하는 추세를 보이고 있으며, 3분기 종료 시점에 $650만에 도달했습니다.
Optical Cable (OCC) a annoncé les résultats financiers pour le troisième trimestre de l'exercice 2024. Les ventes nettes ont diminué de 4,2 % pour atteindre 16,2 millions de dollars par rapport au troisième trimestre de l'exercice 2023. L'entreprise a connu une augmentation des ventes sur le marché des entreprises, compensée par des baisses sur les marchés spécialisés. Le bénéfice brut a baissé de 23,4 % à 3,9 millions de dollars, avec une marge de bénéfice brut de 24,2 %. OCC a enregistré une perte nette de 1,6 million de dollars, soit 0,20 $ par action. Pour les neuf premiers mois de l'exercice 2024, les ventes nettes ont diminué de 14 % pour atteindre 47,2 millions de dollars, avec une perte nette de 4,6 millions de dollars. Malgré des conditions de marché difficiles, OCC a constaté une augmentation du carnet de commandes depuis le début de l'exercice 2024, atteignant 6,5 millions de dollars à la fin du troisième trimestre.
Optical Cable (OCC) berichtete über die finanziellen Ergebnisse für das 3. Quartal des Geschäftsjahres 2024. Der Nettoumsatz ging um 4,2 % auf 16,2 Millionen Dollar zurück im Vergleich zum 3. Quartal des Geschäftsjahres 2023. Das Unternehmen verzeichnete einen Anstieg der Verkäufe im Unternehmensmarkt, was durch Rückgänge in Spezialmärkten ausgeglichen wurde. Der Bruttogewinn sank um 23,4 % auf 3,9 Millionen Dollar, mit einer Bruttogewinnmarge von 24,2 %. OCC verzeichnete einen Nettoverlust von 1,6 Millionen Dollar, oder 0,20 Dollar je Aktie. In den ersten neun Monaten des Geschäftsjahres 2024 sank der Nettoumsatz um 14 % auf 47,2 Millionen Dollar, mit einem Nettoverlust von 4,6 Millionen Dollar. Trotz der herausfordernden Marktbedingungen hat OCC ein steigendes Auftragsvolumen seit Beginn des Geschäftsjahres 2024 verzeichnet, das zum Ende des 3. Quartals auf 6,5 Millionen Dollar gestiegen ist.
- Increased sales in the enterprise market during Q3 FY2024
- Net sales have increased each quarter since Q1 FY2024
- Sales order backlog/forward load increased to $6.5 million by end of Q3 FY2024
- SG&A expenses decreased 2.6% to $15.7 million for the first nine months of FY2024
- Q3 FY2024 net sales decreased 4.2% to $16.2 million year-over-year
- Gross profit declined 23.4% to $3.9 million in Q3 FY2024
- Net loss of $1.6 million in Q3 FY2024 compared to net income of $101,000 in Q3 FY2023
- First nine months FY2024 net sales decreased 14% to $47.2 million
- Net loss of $4.6 million for the first nine months of FY2024 compared to net income of $3.3 million in the same period FY2023
Insights
OCC's Q3 FY2024 results reveal ongoing challenges in the fiber optic industry. Net sales decreased by
Despite these challenges, there are some positive indicators. Net sales have increased sequentially each quarter since Q1 FY2024 and the sales order backlog has grown from
However, investors should note the significant year-to-date decline in performance. For the first nine months of FY2024, net sales decreased by
The fiber optic industry is facing headwinds, as evidenced by OCC's performance. The company's enterprise market showed growth, but this was offset by declines in specialty markets, including the wireless carrier segment. This aligns with broader industry trends, suggesting a sector-wide slowdown rather than company-specific issues.
Interestingly, OCC has maintained its production workforce despite lower volumes, anticipating future opportunities. This strategy could position the company well for a potential market rebound but may pressure margins in the short term. The increasing sales order backlog, rising from
Looking ahead, the company's focus on mission-critical products for military and first responders could provide some stability. However, the overall recovery will likely depend on broader economic improvements and increased spending in key markets such as enterprise and wireless infrastructure.
Third Quarter 2024 Financial Results
Consolidated net sales for the third quarter of fiscal year 2024 were
The Company's net sales have increased each quarter since the first quarter of fiscal year 2024. OCC's sales order backlog/forward load has also increased since the beginning of fiscal year 2024. The Company believes this reflects improving opportunities in certain targeted markets as fiscal year 2024 has progressed.
Gross profit was
Gross profit margin, or gross profit as a percentage of net sales, was
Gross profit margin for the third quarter of fiscal year 2024, when compared to the same period last year, was impacted by lower production volumes, resulting in fixed charges being spread over lower net sales, as well as decreased plant efficiency as lower production volumes impacted the flow of products through the Company's manufacturing facilities—both effects of operating leverage. The variability of the Company's gross profit margin in any quarter also reflects changes in product mix.
While production volume decreased during the third quarter and first nine months of fiscal year 2024, compared to the same periods last year, the Company has not implemented reductions in production personnel. The Company's restraint in this regard is consistent with its view of expected opportunities in fiscal year 2025, as well as the time required to train new production personnel.
SG&A expenses were
For the third quarter of fiscal year 2024, OCC recorded a net loss of
Fiscal Year-to-Date 2024 Financial Results
Consolidated net sales for the first nine months of fiscal year 2024 were
The Company's net sales during the first nine months of fiscal year 2023 benefited from a higher-than-typical sales order backlog/forward load of more than
OCC reported gross profit of
SG&A expenses decreased
OCC recorded a net loss of
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said "Our results through the third quarter of fiscal year 2024 have been impacted by the challenging market environment affecting our industry. As a result of the OCC team's solid execution, we have achieved higher net sales each quarter since the first quarter of fiscal 2024. While our results were not as strong as initially anticipated, we are seeing indications of improving opportunities as we near the end of our fiscal year and look ahead to fiscal year 2025. We will continue to focus on executing our plans to capture the opportunities ahead to grow OCC's net sales, while also taking prudent steps to operate efficiently."
Mr. Wilkin added, "I am immensely appreciative of the work of the OCC team, and their commitment to providing our customers and end-users–including our country's military and first responders–with our suite of mission-critical products. With our strong position in our targeted markets and differentiated core strengths and capabilities, we remain confident that OCC is poised to deliver value to shareholders as macroeconomic conditions improve."
Conference Call Information
As previously announced, OCC will host a conference call today, September 11, 2024, at 10:30 a.m. Eastern Time. Individuals wishing to participate in the conference call should call (800) 245-3047 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 | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 16,222 | $ 16,941 | $ 47,188 | $ 54,845 | |||
Cost of goods sold | 12,302 | 11,825 | 35,516 | 36,425 | |||
Gross profit | 3,920 | 5,116 | 11,672 | 18,420 | |||
SG&A expenses | 5,237 | 4,957 | 15,650 | 16,075 | |||
Royalty expense, net | 7 | 7 | 20 | 20 | |||
Amortization of intangible assets | 13 | 14 | 40 | 41 | |||
Income (loss) from operations | (1,337) | 138 | (4,038) | 2,284 | |||
Interest expense, net | (301) | (298) | (881) | (855) | |||
Gain on insurance proceeds, net | 90 | 256 | 309 | 1,952 | |||
Other, net | (2) | 4 | 47 | 59 | |||
Other income (expense), net | (213) | (38) | (525) | 1,156 | |||
Income (loss) before income taxes | (1,550) | 100 | (4,563) | 3,440 | |||
Income tax expense | 7 | (1) | 21 | 106 | |||
Net income (loss) | $ (1,557) | $ 101 | $ (4,584) | $ 3,334 | |||
Net income (loss) per share: | |||||||
Basic and diluted | $ (0.20) | $ 0.01 | $ (0.59) | $ 0.42 | |||
Weighted average shares outstanding: | |||||||
Basic and diluted | 7,739 | 7,867 | 7,753 | 7,876 | |||
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) | |||
July 31, | October 31, | ||
Cash | $ 797 | $ 1,469 | |
Trade accounts receivable, net | 8,589 | 8,728 | |
Inventories | 19,259 | 23,766 | |
Other current assets | 546 | 1,075 | |
Total current assets | 29,191 | 35,038 | |
Non-current assets | 8,408 | 8,841 | |
Total assets | $ 37,599 | $ 43,879 | |
Current liabilities | $ 6,976 | $ 7,768 | |
Non-current liabilities | 10,269 | 11,389 | |
Total liabilities | 17,245 | 19,157 | |
Total shareholders' equity | 20,354 | 24,722 | |
Total liabilities and shareholders' equity | $ 37,599 | $ 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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