ROANOKE, Va., Jan. 29 /PRNewswire-FirstCall/ -- Optical Cable
Corporation (NASDAQ:OCCF) ("OCC") today announced financial results
for its fiscal year and fourth quarter ended October 31, 2009.
Fiscal Year 2009 Financial Results OCC's consolidated net sales for
fiscal year 2009 decreased 4.0% to $58.6 million from $61.0 million
for fiscal year 2008. The Company believes that the decline in net
sales is primarily attributable to the global economic recession.
The sale of enterprise connectivity products, which were
consolidated for the full year, added $13.0 million to OCC's
consolidated net sales during fiscal year 2009. These products,
which were consolidated for only five months during fiscal year
2008 after the May 30, 2008 acquisition of SMP Data Communications,
added $8.0 million to OCC's consolidated net sales during fiscal
year 2008. Gross profit decreased 17.9% to $19.8 million for fiscal
year 2009, compared to $24.2 million for fiscal year 2008. Gross
profit as a percentage of net sales (or gross profit margin) for
fiscal year 2009 decreased to 33.9% compared to 39.6% for fiscal
year 2008, largely due to lower gross profit margins for enterprise
connectivity products. OCC recorded a net loss of $1.9 million, or
$0.34 per basic and diluted share, for fiscal year 2009, compared
to net income of $2.2 million, or $0.36 per basic and diluted
share, for fiscal year 2008. Contributing to the net loss during
fiscal year 2009 were non-cash, non-recurring special charges. The
Company recorded a charge of $344,000 to write-off certain
intangible assets associated with the acquisition of SMP Data
Communications and pre-tax losses of $1.6 million associated with
the SG&A expenses of a start-up business in which OCC acquired
a controlling interest on August 1, 2008. Fourth Quarter 2009
Financial Results Consolidated net sales for the fourth quarter of
fiscal year 2009 decreased 23.6% to $14.1 million compared to net
sales of $18.4 million for the comparable period last year. The
sale of enterprise connectivity products added $3.3 million and
$4.7 million to OCC's consolidated net sales during the fourth
quarters of fiscal years 2009 and 2008, respectively. Gross profit
decreased 29.6% to $4.8 million in the fourth quarter of fiscal
year 2009 compared to $6.9 million in the fourth quarter of 2008.
Gross profit as a percentage of net sales (or gross profit margin)
for the fourth quarter of fiscal year 2009 decreased to 34.4%
compared to 37.4% for the fourth quarter of fiscal 2008, as
manufacturing costs were spread over lower volumes and as the lower
gross profit margins associated with the enterprise connectivity
products historically sold by SMP Data Communications contributed a
dilutive gross profit margin effect for a full twelve months versus
only five months in fiscal year 2008. OCC recorded a net loss of
$90,000, or $0.01 per basic and diluted share, for the fourth
quarter of fiscal 2009, compared to a net loss of $10,000, or no
earnings per basic and diluted share, for the same period last
year. Contributing to the net loss during the quarter were
non-cash, non-recurring special charges. The Company recorded a
charge of $153,000 to write-off certain intangible assets
associated with the acquisition of SMP Data Communication and
pre-tax losses of $446,000 related to the start-up business in
which OCC acquired a controlling interest on August 1, 2008. The
Company's results in the fourth quarter of 2009 were positively
impacted by cost reduction initiatives. During fiscal year 2009,
among other actions to curtail expenses, OCC reduced headcount by
approximately 10% and negotiated new shipping contracts.
Management's Comments Neil Wilkin, President and Chief Executive
Officer of OCC, said "OCC finished fiscal year 2009 with positive
cash flow from operations, positive EBITDA (earnings before
interest, taxes, depreciation and amortization), and a strong
balance sheet, all despite the severe economic recession impacting
our industry. In light of the significant revenue declines that our
industry experienced in 2009, OCC performed well relative to many
competitors. Importantly, we also achieved improved operating
results in our fourth quarter as compared to our third quarter of
2009, as OCC began to realize the benefit of cost reduction
initiatives implemented earlier in the year." "Fiscal 2009 was
challenging for our company, our industry, and the global economy,
but we have taken the right steps to strategically position OCC for
long-term success in our markets. We are confident that by
continuing to execute on our strategic plan and by completing the
integration of our recent acquisitions, we can deliver improved
shareholder value," stated Mr. Wilkin. 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 http://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
forwardlooking 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; impact of weather or natural disasters in the areas of
the world in which the Company operates and markets its products;
the Company's ability to secure financing to fund working capital
needs; 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 8K, in the annual report on Form 10K 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 Fiscal Year Ended October 31,
October 31, ------------- ------------- 2009 2008 2009 2008 ----
---- ---- ---- Net sales $14,080 $18,426 $58,589 $60,998 Cost of
goods sold 9,233 11,537 38,748 36,838 ----- ------ ------ ------
Gross profit 4,847 6,889 19,841 24,160 SG&A expenses 5,336
6,775 22,345 20,642 Royalty income, net (198) (352) (878) (636)
Amortization of intangible assets 199 308 825 469 Loss on
impairment of intangible assets 153 - 344 - --- --- --- --- Income
(loss) from operations (643) 158 (2,795) 3,685 Interest income
(expense), net 653 (137) 149 (147) Other, net (9) - 16 (24) --- ---
--- --- Other income (expense), net 644 (137) 165 (171) --- ----
--- ---- Income (loss) before income taxes 1 21 (2,630) 3,514
Income tax expense (benefit) 91 31 (706) 1,302 --- --- ---- -----
Net income (loss) $(90) $(10) $(1,924) $2,212 ==== ==== =======
====== Net income (loss) per share: Basic and diluted $(0.01) $-
$(0.34) $0.36 ====== === ====== ===== Weighted average shares
outstanding: Basic 6,543 6,061 5,656 6,062 ===== ===== ===== =====
Diluted 6,543 6,061 5,656 6,062 ===== ===== ===== ===== OPTICAL
CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA
(thousands) (unaudited) October 31, October 31, 2009 2008 ---- ----
Cash and cash equivalents $1,948 $3,910 Trade accounts receivable,
net 9,533 12,035 Inventories 12,306 13,022 Other current assets
3,915 2,956 ----- ----- Total current assets $27,702 $31,923
Non-current assets 22,625 22,914 ------ ------ Total assets $50,327
$54,837 ======= ======= Current liabilities $7,632 $8,158
Non-current liabilities 9,438 11,847 ----- ------ Total liabilities
$17,070 $20,005 Total shareholders' equity 33,257 34,832 ------
------ Total liabilities and shareholders' equity $50,327 $54,837
======= ======= AT THE COMPANY: --------------- Neil Wilkin Tracy
Smith President & CEO Senior Vice President & CFO (540)
265-0690 (540) 265-0690 AT JOELE FRANK, WILKINSON BRIMMER KATCHER:
------------------------------------------ Andrew Siegel Aaron
Palash (212) 355-4449 ext. 127 (212) 355-4449 ext. 103 DATASOURCE:
Optical Cable Corporation CONTACT: Neil Wilkin, President &
CEO, +1-540-265-0690, , or Tracy Smith, Senior Vice President &
CFO, +1-540-265-0690, , both of Optical Cable Corporation; Andrew
Siegel, +1-212-355-4449 ext. 127, , or Aaron Palash,
+1-212-355-4449 ext. 103, , both of Joele Frank, Wilkinson Brimmer
Katcher Web Site: http://www.occfiber.com/
Copyright