Expected :-)
I would estimate bottom line between $ 1 - 2M - expect that to be announced on or before 3/12. Should be interesting times ahead
reh/long
Optical Cable Corporation Reports Dismissal Of Brokerage Firm Lawsuits And First Fiscal Quarter Sales Results
ROANOKE, Va., March 6 /PRNewswire-FirstCall/ -- Optical Cable Corporation (Nasdaq: OCCF) today announced the dismissal of the two lawsuits filed by UBS PaineWebber Inc. ("PaineWebber") and Bear, Stearns & Co. Inc. and Bear, Stearns Securities Corporation (collectively, "Bear Stearns") in which the Company was named as a defendant. PaineWebber voluntarily dismissed its suit with prejudice, while the Bear Stearns lawsuit was voluntarily dismissed without prejudice.
"We are pleased with the dismissals," stated Neil Wilkin, Acting-President and Chief Financial Officer. "Although we always believed both suits would be resolved without any material liability, the dismissal of these two lawsuits reduces an element of uncertainty that was facing the Company," he added.
The lawsuits, originally filed in late October 2001, sought to compel the Company to authorize its transfer agent to transfer unregistered, restricted shares on the Company's stock ledger. In each case, PaineWebber and Bear Stearns sought injunctive relief with respect to common stock of the Company sold by them in the course of liquidating either repossessed shares or brokerage accounts of Robert Kopstein, the Company's former Chairman, President and Chief Executive Officer, to cover personal margin loans made by the brokerage firms to Mr. Kopstein. Both suits also contained a claim of monetary damages caused by the alleged wrongful refusal by the Company to authorize the transfers in connection with the liquidations. On October 31, 2001, the court in the Bear Stearns case entered an order directing the Company to authorize the stock transfers sought by Bear Stearns and imposing certain conditions on Bear Stearns in connection with such transfers. In early November 2001, the Company reached an agreement with PaineWebber pursuant to which the Company would authorize the stock transfers sought by PaineWebber. The Company believed at that time and continues to believe that any claim that it improperly interfered with the sale or transfer of the unregistered, restricted shares is without merit.
The Company believes that both UBS PaineWebber and Bear Stearns have liquidated a sufficient number of shares of Optical Cable Corporation common stock originally owned by Mr. Kopstein to repay the personal loans these brokerage firms made to him. The Company also believes that A.G. Edwards & Sons, Inc. and Scott & Stringfellow, Inc. are the only remaining brokerages firms that continue to hold shares of Mr. Kopstein's Optical Cable Corporation common stock as security for personal loans of Mr. Kopstein. The Company believes these brokerage firms continue to hold, in total, approximately 16.2 million shares of Mr. Kopstein's Optical Cable Corporation common stock.
First Quarter Sales Results
Optical Cable Corporation also reported that net sales were $11.4 million during its first fiscal quarter, which ended January 31, 2002. By comparison, net sales were $11.9 million for the fourth fiscal quarter of 2001. Sales for the first fiscal quarters of 2001 and 2000 were $17.0 million and $11.3 million, respectively. The Company expects to release earnings for the first fiscal quarter of 2002 prior to its annual meeting of shareholders on March 12, 2002.
"We are encouraged by the results," stated Luke Huybrechts, Senior Vice President of Sales. "Net sales during the first two fiscal quarters of each fiscal year generally are our weakest due to seasonality. An exception was fiscal year 2001, which was atypical. Net sales during the first half of fiscal year 2001 were much higher than net sales in the second half of fiscal year 2001 due to industry-related trends," Mr. Huybrechts explained.
"We are hopeful that the relatively strong first quarter, in light of the weak state of the economy and our industry in particular, portends more favorable quarterly net sales results as the year progresses due to our normal seasonal patterns. We are also looking forward to participating in any economic recovery," added Mr. Wilkin.
Further information on Optical Cable Corporation is available through our website on the World Wide Web at www.occfiber.com .
FORWARD-LOOKING INFORMATION
This news release 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 Optical Cable Corporation's (the "Company") outlook for the future, (ii) statements of belief, (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 risks and uncertainties that may cause actual events to differ materially from the expectations of the Company. Factors that could cause or contribute to such differences include, but are not limited to, the level of sales to key customers or distributors; the economic conditions affecting network service providers; the slowdown in corporate spending on information technology; actions by competitors; fluctuations in the price of raw materials (including optical fiber); the Company's dependence on a single manufacturing facility; the ability of the Company to protect its proprietary manufacturing technology; market conditions influencing prices or pricing; the Company's dependence on a limited number of suppliers; an adverse outcome in litigation, claims and other actions, and potential litigation, claims and other actions against the Company, including, but not limited to, the shareholder litigation that has been filed; the effect of sales of the Company's common stock by the various brokerage firms alleging that the Company's former President and Chief Executive Officer pledged substantially all of his personally-held unregistered shares of the Company to cover personal margin loans; technological changes and introductions of new competing products; the current recession; terrorist attacks or acts of war, particularly given the acts of terrorism against the United States on September 11, 2001 and subsequent military responses by the United States; ability to retain key personnel; changes in market demand; exchange rates; productivity; weather; and market and economic conditions in the areas of the world in which the Company operates and markets its products.
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SOURCE Optical Cable Corporation
/CONTACT: Neil Wilkin, Acting-President, Senior VP & CFO of Optical
Cable, +1-540-265-0690, nwilkin@occfiber.com , or General Info., Alison
Ziegler or Marilynn Meek, Analyst, Peter Seltzberg, or Media, Judith Sylk-
Siegel, +1-212-445-8400, all of FRB Weber Shandwick/
/Web site: occfiber.com / |
