OCC® Reports Double-Digit Increases in Net Sales
and Gross Profit in the First Quarter of Fiscal Year
2022
ROANOKE,
Va., March 17, 2022 /PRNewswire/ -- Optical
Cable Corporation (Nasdaq GM: OCC) ("OCC®" or the
"Company") today announced financial results for its first quarter
ended January 31, 2022.
First Quarter 2022 Financial Results
Consolidated net sales for the first quarter of fiscal year 2022
increased 21.6% to $14.4 million,
compared to net sales of $11.9
million for the same period last year, with increased net
sales in the enterprise and specialty markets, including the
wireless carrier market.
The Company's sales order backlog/forward load continues to
increase due to strong product demand. While that demand continued
to increase during the first quarter of fiscal year 2022, the
Company's net sales were impacted by the continuing direct and
indirect effects of COVID-19—including supply chain and labor
constraints in particular—that are affecting production
volumes.
Gross profit increased 75.2% to $4.0
million in the first quarter of fiscal year 2022, compared
to gross profit of $2.3 million for
the same period last year. Gross profit margin, or gross profit as
a percentage of net sales, increased to 28.0% in the first quarter
of fiscal year 2022 compared to 19.4% in the first quarter of
fiscal year 2021.
SG&A expenses increased to $4.8
million during the first quarter of fiscal year 2022,
compared to $4.3 million for the
first quarter of fiscal year 2021. The increase in SG&A
expenses was primarily the result of net increases in employee and
contracted sales personnel related costs. Included in employee and
contracted sales personnel related costs are compensation costs,
payroll taxes, commissions and share-based compensation
expense.
For the first quarter of fiscal year 2022, OCC recorded a net
loss of $936,000, or $0.12 per basic and diluted share, compared to a
net loss of $2.1 million, or
$0.29 per basic and diluted share,
for the first quarter of fiscal year 2021.
As of January 31, 2022, OCC had a
$2.2 million receivable for Employee
Retention Tax Credit still to be refunded.
Management's Comments
Neil Wilkin, President and Chief
Executive Officer of OCC, said, "Our first quarter results reflect
the OCC team's solid execution in a market environment that is
still directly and indirectly affected by COVID-19, including
significant supply chain constraints. We are continuing to see
strong demand for our full suite of mission-critical cabling and
connectivity products and solutions, reinforcing our confidence in
the strength of our offerings, growth strategies and competitive
position in the market. Moving forward, we will continue to control
what we can, including driving growth in our targeted markets and
focusing on operating efficiently. As the various direct and
indirect effects of the pandemic recede, OCC is poised to capture
the opportunities ahead and deliver value to shareholders."
Conference Call Information
As previously announced, OCC will host a conference call today,
March 17, 2022, at 10:00 a.m. Eastern Time. Individuals wishing to
participate in the conference call should call (888) 632-3384 in
the U.S. or (785) 830-7975 internationally, Conference ID: OCCQ122.
For interested individuals unable to join the call, a replay will
be available through Thursday, March 24,
2022 by dialing (888) 269-5294 or (402) 220-7321. The call
will also be broadcast live over the internet and can be accessed
by visiting the investor relations section of the Company's website
at www.occfiber.com.
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 providers' offerings.
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 Roanoke, Virginia with offices, manufacturing
and warehouse facilities located in Roanoke, Virginia, near Asheville, North Carolina and near
Dallas, Texas. OCC's facilities
are ISO 9001:2015 registered and its Roanoke and Dallas facilities are MIL-STD-790G
certified.
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 http://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
January 31,
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
Net sales
|
$
14,440
|
|
$
11,876
|
|
Cost of goods
sold
|
10,394
|
|
9,567
|
|
|
|
|
|
|
Gross
profit
|
4,046
|
|
2,309
|
|
|
|
|
|
|
SG&A
expenses
|
4,780
|
|
4,308
|
|
Royalty (income)
expense, net
|
7
|
|
(7)
|
|
Amortization of
intangible assets
|
12
|
|
10
|
|
|
|
|
|
|
Loss from
operations
|
(753)
|
|
(2,002)
|
|
|
|
|
|
|
Interest expense,
net
|
(158)
|
|
(174)
|
|
Other, net
|
(12)
|
|
3
|
|
Other expense,
net
|
(170)
|
|
(171)
|
|
|
|
|
|
|
Loss before income
taxes
|
(923)
|
|
(2,173)
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
13
|
|
(32)
|
|
|
|
|
|
|
Net loss
|
$
(936)
|
|
$
(2,141)
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
Basic and diluted
|
$ (0.12)
|
|
$ (0.29)
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
Basic and diluted
|
7,511
|
|
7,353
|
|
OPTICAL CABLE
CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(thousands)
(unaudited)
|
|
|
|
January 31,
2022
|
|
October 31,
2021
|
Cash
|
$
138
|
|
$
132
|
Trade accounts
receivable, net
|
8,392
|
|
8,376
|
Inventories
|
17,907
|
|
16,304
|
Other current
assets
|
2,656
|
|
2,754
|
Total current
assets
|
29,093
|
|
27,566
|
Non-current
assets
|
10,010
|
|
10,351
|
Total assets
|
$
39,103
|
|
$
37,917
|
|
|
|
|
Current
liabilities
|
$
6,833
|
|
$
6,168
|
Non-current
liabilities
|
10,980
|
|
9,543
|
Total liabilities
|
17,813
|
|
15,711
|
Total shareholders'
equity
|
21,290
|
|
22,206
|
Total liabilities and
shareholders' equity
|
$
39,103
|
|
$
37,917
|
AT THE
COMPANY:
|
|
|
Neil Wilkin
|
Tracy Smith
|
Chairman, President
& CEO
|
Senior Vice President
& CFO
|
(540) 265-0690
|
(540)
265-0690
|
investorrelations@occfiber.com
|
investorrelations@occfiber.com
|
|
|
AT JOELE FRANK,
WILKINSON BRIMMER KATCHER:
|
|
|
Andrew Siegel
|
Aaron Palash
|
(212) 355-4449 ext.
8627
|
(212) 355-4449 ext.
8603
|
occ-jfwbk@joelefrank.com
|
occ-jfwbk@joelefrank.com
|
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SOURCE Optical Cable Corporation