Ocal Inc. Reports First-Quarter Results
VAN NUYS, Calif.--(BUSINESS WIRE)--May 11, 1998--Ocal Inc. (Nasdaq:OCAL) Monday reported net sales of $6,104,000 for the first quarter of 1998, a 10 percent increase compared with first-quarter 1997 net sales of $5,527,000.
Net income for the first quarter of 1998 was $298,000, or 5 cents per share, an increase of 4 percent compared with first-quarter 1997 net income of $286,000, or 5 cents per share.
"We are pleased with our results for the first quarter," commented Ilan Bender, Ocal's president and CEO. "We were the preferred supplier on several good-sized jobs in the first quarter, which enabled us to boost our revenues by 10 percent over the same period of the prior year. Achieving revenue growth in this competitive marketplace is not easy, as prices have remained flat compared to the year-ago period."
Bender continued: "Our gross margin percentage of 27.0 percent for the 1998 first quarter came in right where we expected. We implemented a round of wage increases in the factory in the second quarter of 1997, so we are still comparing ourselves to a period of less expensive labor. In addition, we absorbed material cost increases of about 2.5 percent without passing them on to our customers."
The company's gross margin percentage was 28.5 percent during the year-ago period.
Bender added: "While our sales force continues to aggressively pursue major accounts, we continue to focus on strengthening our leadership position as the low-cost, high-quality producer in the industry. We have several projects in the works to reduce material and labor costs, and believe we will see a favorable impact from these efforts reflected in our gross margins in the latter part of the year." |
