ROANOKE, Va., March 8, 2017 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company") today announced financial results for its first quarter ended January 31, 2017.
First Quarter 2017 Financial Results
Consolidated net sales for the first quarter of fiscal year 2017 were $14.6 million, a 4.0% increase compared to net sales of $14.0 million for the first quarter of fiscal year 2016. These results were driven by an increase in net sales in the Company's enterprise markets, including a double-digit increase in fiber optic cable sales.
Net sales to customers in the United States increased 10.8% compared to the same period last year, while net sales to customers outside of the United States showed continued weakness. Net sales outside the U.S. continue to be negatively impacted by a strong U.S. dollar relative to other currencies, particularly in certain geographic regions.
Gross profit increased 37.3% to $4.8 million in the first quarter of fiscal year 2017, compared to $3.5 million in the first quarter of fiscal year 2016. Gross profit margin, or gross profit as a percentage of net sales, increased to 32.9% compared to 24.9% in the first quarter of fiscal year 2016. Gross profit margin was positively impacted by a shift in product mix toward certain higher margin products.
OCC recorded a net loss attributable to the Company of $616,000, or $0.09 per basic and diluted share, for the first quarter of fiscal year 2017, compared to a net loss attributable to the Company of $1.7 million, or $0.28 per basic and diluted share, for the first quarter of fiscal year 2016.
Revolving Credit Facility Renewed
OCC renewed its revolving credit facility with the Bank of North Carolina on February 28, 2017 (after the end of the first quarter), extending the maturity date to March 31, 2019 and maintaining the credit availability under the facility at $7.0 million until maturity. The revolving credit facility previously was scheduled to expire on February 28, 2018, with the maximum credit availability scheduled to reduce to $6.5 million and $6.0 million, on February 28, 2017 and February 28, 2018, respectively.
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said, "Our results in the first quarter reflect our continued efforts to operate efficiently and drive growth through sales and marketing initiatives as well as product innovation. Despite expected seasonality and currency exchange rates that impacted our international sales, in the first quarter, we delivered year-over-year improvements in net sales, gross profit and gross profit margin, as well as improvements to the bottom line. As we move forward, we will continue providing customers and end users with OCC's integrated product offerings and solutions. Through the continued successful execution of our plan, we are confident we will create value for shareholders."
Company Information
Optical Cable Corporation ("OCC®") is a leading manufacturer of a comprehensive range of top-tier fiber optic and copper communication cabling and connectivity products and solutions—primarily for the enterprise market, various harsh environment and specialty markets, and the wireless carrier market.
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.
Company's website at www.occfiber.com
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