Optical Cable reports Q2 FY net sales of USD16.3m

Optical Cable Corporation (NASDAQ: OCC) has reported consolidated net sales for the second quarter of fiscal year 2016 were USD16.3 million, down 12.5 percent, compared to net sales of USD18.7 million for the second quarter of fiscal year 2015, the company said.

Net sales increased 16.3USD in the second quarter of fiscal 2016, compared to net sales of USD14.0 million for the first quarter of fiscal 2016.

Gross profit was USD4.6 million in the second quarter of fiscal year 2016, compared to USD5.7 million in the second quarter of fiscal year 2015. Sequentially, gross profit increased 29.9 percent in the second quarter, compared to the first quarter of fiscal year 2016.

Gross profit margin, or gross profit as a percentage of net sales, was 27.9 percent in the second quarter of fiscal year 2016, compared to 30.4 percent in the second quarter of fiscal year 2015, and compared to 24.9 percent in the first quarter of fiscal year 2016.

SG&A expenses decreased 17.3 percent to USD5.4 million for the second quarter of fiscal year 2016 from USD6.5 million for the second quarter of fiscal year 2015. The decrease in SG&A expenses during the second quarter of fiscal 2016 compared to the same period last year was the result of targeted cost reduction efforts across all expense categories.

OCC recorded a net loss attributable to the company of USD983,000, or USD0.15 per basic and diluted share, for the second quarter of fiscal year 2016, compared to a net loss attributable to the company of USD490,000, or USD0.08 per basic and diluted share, for the second quarter of fiscal year 2015. Bottom line results were negatively impacted by an increase of USD421,000 in income tax expense in the second quarter of fiscal year 2016, compared to the second quarter of fiscal year 2015.

Consolidated net sales for the first half of fiscal year 2016 were USD30.4 million, a decrease of 15.7 percent compared to net sales of USD36.0 million for the same period in fiscal year 2015. The company experienced a decrease in net sales in both its enterprise and specialty markets in the first half of fiscal year 2016, compared to the same period last year.

Gross profit was USD8.1 million in the first half of fiscal year 2016, compared to USD11.1 million in the first half of fiscal 2015. Gross profit margin was 26.5 percent in the first half of fiscal year 2016, compared to 30.7 percent in the first half of fiscal year 2015. Gross profit margin for the first half of fiscal 2016 was impacted primarily by lower sales volumes overall and by the sale of certain lower margin products.

OCC recorded a net loss attributable to the company of USD2.7 million, or USD0.43 per basic and diluted share, for the first half of fiscal year 2016, compared to a net loss of USD718,000, or USD0.12 per basic and diluted share, for the same period last year. Results for the first half of fiscal year 2016 were impacted by an increase of USD690,000 in income tax expense, compared to the first half of fiscal year 2015.

Optical Cable Corporation is a manufacturer of top-tier fiber optic and copper communication cabling and connectivity products and solutions for the enterprise market, various harsh environment and specialty markets and the wireless carrier market.