Optical Cable Corporation (NASDAQ:OCC) – Earnings Spotlight

Optical Cable Corporation (NASDAQ:OCC) moved with change of 5.96% to $2.76 with the total traded volume of 28181 shares versus to an average volume of 4.20K. The stock was up in the 5 days activity 1.96%. The one month performance of stock was high 8.13%. OCC [NASD] shares are above 1.96% for the quarter and driving a -25.71% over the course of the past year and is now up 8.01% since this point in 2018.  Right now OCC beta is 0.04. The average volatility for the week and month was at 5.48% and 3.45% respectively.

Optical Cable Corporation (NASDAQ:OCC) today announced financial results for its first quarter ended January 31, 2018.

First Quarter 2018 Financial Results

OCC increased consolidated net sales 20.2% to $17.6 million in the first quarter of fiscal year 2018, compared to net sales of $14.6 million for the first quarter of fiscal year 2017.  Net sales to customers in the United States increased 17.3% in the first quarter of fiscal year 2018, and net sales to customers outside of the United States increased 32.1%, in both cases compared to the same period last year.

The Company increased net sales in its specialty markets in the first quarter of fiscal 2018, compared to the same period last year, particularly in its military and wireless carrier markets.  This increase was partially offset by a decrease in net sales in its enterprise markets.

OCC reported gross profit of $5.2 million in the first quarter of fiscal year 2018, an increase of 8.7% compared to gross profit of $4.8 million in the first quarter of fiscal year 2017.  Gross profit margin, or gross profit as a percentage of net sales, was 29.8% in the first quarter of fiscal year 2018 compared to 32.9% for the same period in fiscal year 2017, primarily due to changes in fiber optic cable product mix.

SG&A expenses increased 7.0% to $5.6 million during the first quarter of fiscal year 2018, compared to $5.2 million for the first quarter of fiscal year 2017.  The year-over-year increase in SG&A expenses was primarily due to increases in employee related costs, including new hires selectively added to accomplish strategic objectives, and increases in commissions due primarily to the increase in net sales.

OCC recorded a net loss of $410,000, or $0.06 per basic and diluted share, for the first quarter of fiscal year 2018, compared to a net loss of $616,000, or $0.09 per basic and diluted share, for the first quarter of fiscal year 2017.

As of the end of February 2018, OCC’s sales order backlog/forward load was approximately $19 million, as compared to a sales order backlog/forward load that varies throughout the year, but is generally approximately $4 million to $5 million. As a result, at this time, OCC expects a significant increase in net sales during the second quarter of fiscal year 2018, as compared to net sales in the same period last year.

Management’s Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, “We continue to execute on our strategies—accelerating sales and marketing initiatives in targeted markets, taking steps to increase operational efficiencies, and strengthening our team with strategic new hires.  While gross margins and earnings per share for the first quarter reflect product mix, increased commissions to our sales force, as well as costs related to our initiatives, we remain focused on operating efficiently to drive long-term value creation.  We believe that we are meeting the evolving needs of our customers and taking the right steps to deliver value for shareholders by executing on our strategy and building on OCC’s portfolio of integrated product offerings and solutions.”

Mr. Wilkin concluded, “We are pleased with our strong start to fiscal 2018; we set aggressive growth targets for this year and continue to take meaningful steps to drive sales and achieve gross profit growth.  We are seeing increased demand in many of our specialty markets that had been under pressure in recent years, and we have a strong sales order backlog/forward load as we enter our second quarter.”

Shares of Optical Cable Corporation have been recently spotted trading -22.39% off of the 52-week high price. On the other end, company shares have been noted 29.31% away from the low price over the last 52-weeks. 52 week range of the stock remained $ 2.13 – 3.55. Switching over to some distances from popular moving averages, we see that the stock has been recorded 12.97% away from the 50 day moving average and 11.40% away from the 200 day moving average. Moving closer, we can see that shares have been trading 11.47% off of the 20-day moving average.

Peter Hamm

Peter Hamm is an author, journalist and CEO of the website. He has more than 5 years of experience in institutional investment markets, including fixed income, equities, derivatives and real estate. He has a Bachelor in Business Administration with a major in Finance. He bought his first stocks in a private business at age 15 and made his first public stock trade at 23. He has always been interested in the stock market and how it behaves. As the dad of two children, he’s made saving money and investing for them a high priority. Over many years of investing, he has made some wise choices and he’s made many mistakes. But he’s learned from both. Mr. Peter observations and experience give him the insight to stock market patterns and the investor behaviors that create them. He reports about Earnings news category. Address: 3876 Levy Court, EASTON, Pennsylvania Email: Peter@newscontrol.info

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