Optical Cable Corporation Reports First Quarter Results; Sales Improve
21%, Net Income Rises 22
ROANOKE, Va., March 10 /PRNewswire/ -- Optical Cable Corporation (Nasdaq: OCCF) today
announced results for its fiscal first quarter ended January 31, 1997. Net sales for the
first quarter of fiscal 1997 rose 20.8% to $12.5 million from $10.3 million in the same
period last year. Net income for the first quarter of 1997 increased 21.7% to $2.1
million, or $0.05 per share, versus pro forma net income of $1.7 million, or $0.04 per
share, in the year ago period. Weighted average shares outstanding for the quarter
increased by 2.3% to 38,675,416 versus pro forma weighted average shares of 37,800,000
last year.
Results for first quarter of fiscal 1997 reflect better than expected sales in all market
segments and across all product types. Net sales were favorably impacted by increases in
both large and small order categories. International sales continue to expand at a rapid
pace and accounted for approximately 32.6% of sales in the first quarter versus 30.6% of
sales in the year ago period. The growing percentage of international sales and the April
1996 creation of a foreign sales corporation accounted for the decline in the tax rate to
35% in the current quarter from 38% in the year ago period. As international sales
continue to grow as a percentage of revenues, there is the potential for further
improvement in the tax structure. The Company's gross profit margin in the quarter
decreased to 42.8% of sales from 45.5% of sales for the first quarter last year due to
additional discounts and incentives granted to distributors. As a result of rising sales
and strong control of overhead, selling, general and administrative expenses continued to
decline as a percentage of net sales, improving to 17.1% in the quarter compared to 18.7%
last year.
"We are extremely pleased with the results for the first quarter," stated Robert Kopstein,
President/CEO. "Our efforts over the last several years developing strong customer
relationships appear to be paying off. We plan to continue to broaden our customer base,
both domestically and internationally, through increased advertising, trade show
attendance, and a growing direct sales force. Optical Cable's international customers are
now located in over 68 countries, and represent a growing percentage of sales. The
international sales managers for Europe and South America, hired late in 1996, should
positively impact our presence in these markets and add to the strong growth of our
international business."
Mr. Kopstein concluded, "Due to our continued strong sales growth, additional capacity was
brought on line during the first quarter. Despite these additions, Optical Cable
Corporation continues to have a very strong return on assets of 27.1% with an equally
impressive return on equity of 34.0%."
Optical Cable Corporation's annual meeting of stockholders will be held on Tuesday, March
11 at 10:00 a.m. at the Hotel Roanoke and Conference Center, 110 Shenandoah Avenue,
Roanoke, Virginia. For additional information, please contact the Company.
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: Further information on Optical Cable Corporation is available through our website on
the World Wide Web at occfiber.com.
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 1O-K for fiscal year 1996.
OPTICAL CABLE CORPORATION
Condensed Statements of Income
(In thousands, except per share data)
Three Months Ended
January 31,
1997 1996
Net sales $ 12,491 $ 10,342
Cost of goods sold 7,139 5,635
Gross profit 5,352 4,707
Selling, general and admin. expenses 2,139 1,939
Other income (expense), net (9) 7
Net income before tax $3,204 $2,775
Income tax expense 1,124 1,066(A)
Net income $2,080 $1,709(A)
Net income per share $0.05 $0.04(A)
Weighted average shares outstanding 38,675 37,800(A)
(A) Pro forma
Copyright 1997, PR Newswire
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