August 15, 1997
Optical Cable CEO Comfortable With 3Q
FY97 Net Views
(Dow Jones - August 15, 1997) Chief Executive Robert Kopstein said he was "very comfortable" with analysts' earnings estimates of 23 cents a share for
the fiscal year because the company is coming off record-high sales in the third quarter and is heading into a fourth quarter that is typically the company's
strongest period.
Such results for the year ending in October would represent 21% earnings growth over fiscal 1996 for the fiber-optic cable maker.
Kopstein also told Dow Jones he is "more than comfortable" with estimates the company will earn between 5 cents and 6 cents a share in the third quarter
ended in July.
In fact, he said, those estimates may be conservative.
The company, which posted net income of 5 cents a share in third quarter of 1996, expects to report results for the latest third quarter by the end of the
month.
Kopstein said third-quarter sales jumped 32% to $14.2 million from $10.8 million a year ago and were up 34% over the second quarter. That performance
surpassed the Roanoke, Va., fiber optical cable manufacturer's internal projections by 5%.
Furthermore, orders remain strong in the fourth quarter, when sales typically show 20% growth from the third quarter, he said.
The growing demand for fiber-optic cable, particularly for the extra-rugged cable the company makes, has Kopstein expecting improved profitability. At the
same time, he sees increased visibility for the company since two research firms recently began covering it.
Also boosting his enthusiasm: Optical Cable's recently expanded manufacturing plant; the company's absence of long-term debt; and expectation that
selling, general and administrative expenses as a percentage of sales will continue to drop.
The company has been profitable since its inception as an S Corporation in 1987. It went public in April 1996 and posted a 26% operating margin during
that fiscal year.
The worldwide market for fiber-optic cable, estimated at $5.9 billion in 1996, is rising about 20% a year, and Optical Cable is focusing on one of the fastest
growing segments: supplying cable used over moderate distances (less than 10 miles) to connect local area networks, telephone company local loops and
cable TV systems, according to the company and analysts.
Kopstein believes Optical Cable's rugged, easy-to-install and easy-to-remove cable will allow the company to unseat Seicor, a joint venture between
Siemens AG and Corning Inc. (GLW), as the leader in that market.
The cable, which has a coating that protects the optical fiber indoors or outdoors, is for "high bandwidth" transmissions of data, video and audio
communications.
To receive additional information on Optical Cable Corporation, via fax, at no charge, dial 1-800-PRO-INFO and enter code OCCF. Or use this link
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