September 12, 1997
OCC Forecasts Lower Raw Material Prices;
Demand for its Products Remains Strong
Optical Cable Corporation (NASDAQ:OCCF), responding to recent industry reports of lower demand for optical fiber, the primary raw material used in the
production of its fiber optic cable products, stated that the lower demand pertains specifically to optical fiber going into the telecommunications and cable
television markets, not the communications and specifically the local area network markets, where Optical Cable sells the majority of its products. The
Company also expects to benefit from the associated decline in raw material prices, which should begin to impact Optical Cable's margins in its seasonally
strong fourth quarter, which ends October 31, 1997.
Optical Cable purchases its optical fiber from a variety of sources on both the spot market and in annual contracts. The associated benefit of lower fiber
prices will therefore begin to impact the Company's fourth quarter, with the full benefit of lower raw material prices being felt in calendar 1998.
Commenting on the recent weakening in optical fiber pricing, Robert Kopstein, President and Chief Executive Officer said, "We are looking forward to
seeing the pricing of our principal raw material, optical fiber, further retreat from its highs earlier in the year. Our business has not seen any weakening in
demand and has actually seen business building over the past several months. With improving raw material pricing, we expect to see improvements in our
gross margin, beginning in our seasonally strong fourth quarter."
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. |
