Wednesday September 3 12:42 PM EDT
Company Press Release
Source: Optical Cable Corporation
Optical Cable Corporation Reports Third Quarter Results
ROANOKE, Va., Sept. 3 /PRNewswire/ -- Optical Cable Corporation (Nasdaq:OCCF) today announced results for its fiscal third quarter ended July 31, 1997. Net sales for the third quarter of
fiscal 1997 rose 31.5% to $14.3 million from $10.9 million in the same period last year. Net income for the third quarter of 1997 rose 8.5% to $2.02 million, or $0.052 per share, versus pro forma net income of $1.86 million, or $0.046 per share, in the year ago period. Weighted average shares outstanding for the quarter declined 4.5% to 38,675,416 versus pro forma weighted average
shares of 40,475,416 last year.
Net sales for the nine months ending July 31, 1997 rose 19.2% to $37.4 million from $31.4 million in the nine months ended July 31, 1996. Net income for the period increased 9.2% to $5.41 million, or $0.140 per share, compared to pro forma net income of $4.96 million, or $0.127 per share, in the same period of 1996.
Results for the third quarter of fiscal 1997 reflect a rebound in international sales, which grew by 36.1% in the quarter. Sales from orders larger than $50,000 grew to 21% of sales in the quarter compared to 17% of sales in the third quarter of 1996. The increase in large orders contributed to the decline in the Company's gross margin. The gross margin in the third quarter of fiscal 1997 decreased to 39.3% of sales compared to 45.6% of sales in the year ago quarter, reflecting additional discounts and incentives granted to distributors on the large orders. Selling general and administrative expenses as a percentage of sales decreased in the quarter to 17.6% from 18.5% in the year ago quarter due to the strong rise in sales. Total stockholders' equity increased to $29.0 million from $27.0 million in the second quarter of 1997.
``Although the third quarter got off to a slow start, we were more than pleased with how it finished,'' stated Robert Kopstein, President and Chief Executive Officer. ``Our strong effort to improve our global market position was reflected in the 36.1% increase in international sales in the quarter. These strong results were achieved despite continuing softness in the European economy. We expect our recent entry into the Japanese market to contribute to our international growth in the quarters to come.''
Mr. Kopstein concluded, ``As is typical in the cable business, we expect sales to ramp as we move into the seasonally strong fourth quarter. In the past, fourth quarter sales have exceeded third quarter sales by approximately 20%. This anticipated heavy product demand typically contributes to improved gross margins. In addition, we look for selling, general and administrative expenses to continue to decline as a percentage of sales. We are continuing our efforts to broaden our customer base, both domestically and internationally, with increased advertising, trade show attendance,
and a growing direct sales force. With no long-term debt and a newly expanded manufacturing facility, Optical Cable is positioned to grow well into the future.''
Optical Cable Corporation manufactures and markets a broad range of fiber optic cables for ``high bandwidth'' transmission of data, video and audio communications over moderate distances.
Optical Cable Corporation's cables can be used both indoors and outdoors and utilize a tight-buffered coating that protects the optical fiber.
Note: This news release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected or forecasted.
Such risks and uncertainties include, but are not limited to, those disclosed in the Company's Annual Report and Form 10-K for fiscal year 1996.
NOTE: Further information on Optical Cable Corporation is available through our website on the World Wide Web at occfiber.com
To receive additional information on Optical Cable Corporation, via fax, at no charge, dial 1-800-PRO-INFO and enter code OCCF.
OPTICAL CABLE CORPORATION
Condensed Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
July 31, July 31,
1997 1996 1997 1996
Net sales $14,286 $10,862 $37,423 $31,388
Cost of goods sold 8,669 5,909 22,162 17,631
Gross profit 5,617 4,953 15,261 13,757
Selling, general and
admin. expenses 2,517 2,005 6,914 5,917
Other income (expense), net 3 35 (4) 170
Net income before income tax $3,103 $2,983 $8,343 $8,010
Income tax expense 1,086 1,124 2,933 3,054(A)
Net income $2,017 $1,859 $5,410 $4,956(A)
Net income per share $0.052 $0.046(A) $0.140 $0.127(A)
Weighted average shares
outstanding 38,675 40,475(A) 38,675 38,989(A)
(A) Pro Forma for 1996
Balance Sheet Data
(In thousands)
July 31, October 31,
1997 1996
Current assets 23,515 21,883
Total assets 35,035 31,127
Current liabilities 6,010 7,506
Long-term debt 0 0
Stockholders' equity 28,981 23,572
Total liabilities and stockholders' equity $35,035 $31,127 |
