OPTICAL CABLE CORPORATION REPORTS FIRST QUARTER OF FISCAL YEAR 2026 FINANCIAL RESULTS
MWN-AI** Summary
Optical Cable Corporation (OCC) announced its financial results for the first quarter of fiscal year 2026, ending January 31, 2026. The company reported consolidated net sales of $16.4 million, a 4.4% increase from $15.7 million in the same quarter of the previous year. This growth was attributed to rising demand in both enterprise and specialty markets, with international sales surging by 18%, contrasting with a modest increase of less than 1% in U.S. sales.
OCC's gross profit rose 16.1% to $5.4 million, improving the gross profit margin to 32.7%, up from 29.4% a year earlier. The increase in profit margin was mainly due to enhanced sales volumes and operating leverage. However, selling, general, and administrative (SG&A) expenses also increased slightly to $5.6 million, reflecting higher personnel and shipping costs.
The company reported a net loss of $398,000, or $0.05 per share, marking an improvement compared to a net loss of $1.1 million, or $0.14 per share, in the same quarter of the prior fiscal year. The sales order backlog rose significantly to $10.4 million from $7.3 million, a rise of over 50%, indicating future momentum.
CEO Neil Wilkin expressed optimism about OCC’s market position and growth potential, particularly in the data center sector. He highlighted the company’s focus on driving value for customers and investors, while acknowledging the increasing demand in their targeted markets.
OCC plans to host a conference call to discuss these results further and provide insights into future strategies.
MWN-AI** Analysis
Optical Cable Corporation (OCC) has reported a solid start to fiscal year 2026, with first-quarter financial results reflecting growth in both top-line sales and gross profit. Net sales for the quarter reached $16.4 million, a 4.4% increase year-over-year. Notably, sales outside the U.S. surged 18%, indicating strong international demand, while U.S. sales remained relatively flat. Importantly, the gross profit margin improved to 32.7%, driven by increased volumes and operational efficiencies.
Despite the top-line growth, OCC still posted a net loss of $398,000, although this was a marked improvement from the previous year's loss of $1.1 million, suggesting progress towards profitability. With a significant increase in the sales order backlog—up over 50% to $10.4 million—OCC appears well-positioned for continued revenue growth in the coming quarters.
For investors, OCC's financial performance highlights key growth areas, particularly in the enterprise and specialty markets, as well as the data center segment. Given the current upward trajectory in sales and gross profitability, along with improving operational efficiencies, OCC may present a favorable investment opportunity. The ability to leverage their expertise in fiber optic and copper data communication technologies further supports this outlook.
However, potential investors should remain cautious, considering the overall net loss and the dynamic nature of the telecommunications market. It is advisable to monitor OCC's upcoming quarters closely for sustained growth trends and to watch for indications of how the company manages its costs and sales strategies moving forward. Thus, OCC stock could be worth considering for those looking to invest in a growing player in the fiber optic and connectivity solutions market, particularly if the positive momentum persists in subsequent quarters.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
Net Sales Increased 4.4% and Gross Profit Increased 16.1%
Compared to Same Period in Prior Year
ROANOKE, Va., March 10, 2026 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company") today announced financial results for its first quarter of fiscal year 2026 ended January 31, 2026.
First Quarter 2026 Financial Results
Consolidated net sales for the first quarter of fiscal year 2026 increased 4.4% to $16.4 million, compared to $15.7 million for the same period in the prior year. OCC experienced an increase in net sales in both its enterprise and specialty markets during the first quarter of fiscal year 2026, compared to the first quarter of fiscal year 2025.
Net sales to customers outside of the United States increased 18.0% and net sales to customers in the United States increased less than one percent in the first quarter of fiscal year 2026, compared to the same period last year. At the end of the first quarter of fiscal year 2026, the Company's sales order backlog/forward load increased to $10.4 million when compared to $7.3 million as of October 31, 2025.
Gross profit increased 16.1% to $5.4 million in the first quarter of fiscal year 2026, compared to $4.6 million for the same period in fiscal year 2025, as a result of increased volumes and the resulting positive impact of OCC's manufacturing operating leverage. Gross profit margin, or gross profit as a percentage of net sales, increased to 32.7% in the first quarter of fiscal year 2026, compared to 29.4% in the first quarter of fiscal year 2025.
SG&A expenses increased to $5.6 million in the first quarter of fiscal year 2026, compared to $5.5 million for the first quarter of fiscal year 2025, primarily due to increases in employee and contracted sales personnel-related costs and shipping costs.
For the first quarter of fiscal year 2026, OCC recorded a net loss of $0.05 per basic and diluted share, or $398,000, an improvement compared to a net loss of $0.14 per basic and diluted share, or $1.1 million, for the first quarter of fiscal year 2025.
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said, "OCC is off to a solid start in fiscal year 2026. During the first quarter, we delivered net sales and gross profit growth, largely driven by increased demand across our enterprise and specialty markets, and the positive impact of our operating leverage."
"As we begin our second quarter, we are seeing growing momentum in our targeted markets, including our data center market. Our sales order backlog and forward load increased more than 50% to $10.4 million compared to the same prior fiscal year period, and we expect to continue to build on this momentum. We are confident that OCC is well positioned for growth during fiscal year 2026 and, as always, we remain focused on disciplined execution to drive value for our customers and shareholders," Mr. Wilkin added.
Conference Call Information
As previously announced, OCC will host a conference call today, March 10, 2026, at 11:00 a.m. Eastern Time. Individuals wishing to participate in the conference call should call (833) 316-1983 in the U.S. or (785) 838-9310 internationally, Conference ID: OCCQ126. For interested individuals unable to join the call, a replay will be available through Tuesday, March 17, 2026, by dialing (800) 839-8708 or (402) 220-6077. 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 data center markets 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 product solutions offerings cover a broad range of applications—from commercial, enterprise network, data center, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical, renewable energy and broadcast applications.
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 Dallas facility is also 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 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, | ||||
2026 | 2025 | |||
Net sales | 16,431 | 15,743 | ||
Cost of goods sold | 11,061 | 11,116 | ||
Gross profit | 5,370 | 4,627 | ||
SG&A expenses | 5,558 | 5,459 | ||
Royalty expense, net | 6 | 6 | ||
Amortization of intangible assets | 14 | 14 | ||
Loss from operations | (208) | (852) | ||
Interest expense, net | (211) | (264) | ||
Other, net | ? | 21 | ||
Other expense, net | (211) | (243) | ||
Loss before income taxes | (419) | (1,095) | ||
Income tax expense (benefit) | (21) | 12 | ||
Net loss | (398) | (1,107) | ||
Net loss per share: | ||||
Basic and diluted | (0.05) | (0.14) | ||
Weighted average shares outstanding: | ||||
Basic and diluted | 8,593 | 7,815 |
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) | |||
January 31, | October 31, | ||
2026 | 2025 | ||
Cash | 126 | 238 | |
Trade accounts receivable, net | 8,079 | 10,281 | |
Inventories | 20,894 | 19,802 | |
Other current assets | 544 | 435 | |
Total current assets | 29,643 | 30,756 | |
Non-current assets | 9,132 | 9,304 | |
Total assets | 38,775 | 40,060 | |
Current liabilities | 16,189 | 16,853 | |
Non-current liabilities | 1,477 | 1,633 | |
Total liabilities | 17,666 | 18,486 | |
Redeemable restricted common stock | 2,980 | 5,067 | |
Total shareholders' equity | 18,129 | 16,507 | |
Total liabilities, redeemable restricted common stock | |||
and shareholders' equity | 38,775 | 40,060 |
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 | Caroline Felix |
(212) 355-4449 ext. 8603 | (212) 355-4449 ext. 8980 |
SOURCE Optical Cable Corporation
FAQ**
What specific factors contributed to the 4.4% increase in net sales for Optical Cable Corporation OCC in the first quarter of fiscal year 2026 compared to the same period in the prior year?
How does Optical Cable Corporation OCC plan to leverage its increased sales order backlog of $10.4 million to drive future growth in both enterprise and specialty markets?
Can you provide more details on the reasons behind the slight increase in SG&A expenses for Optical Cable Corporation OCC and how the company plans to manage these costs going forward?
What strategic initiatives is Optical Cable Corporation OCC implementing to improve its competitiveness in the international markets, following the 18% growth in sales outside the United States?
**MWN-AI FAQ is based on asking OpenAI questions about Optical Cable Corporation (NASDAQ: OCC).
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