Optical Cable Corporation Reports 7.5% Sales Increase and Improved Gross Profit for First Half of 2025

Optical Cable Corporation (OCC) reported its financial results for the six months ending April 30, 2025, revealing a consolidated net sales increase of 7.5% to $33.3 million, compared to $31.0 million for the same period in the previous year. The company experienced a notable rise in gross profit, which surged 28.5% to $10.0 million, resulting in a gross profit margin of 29.9%, up from 25.0% in the prior year. Despite these gains, OCC reported a net loss of $1.8 million, or $0.23 per share, an improvement from the $3.0 million loss, or $0.39 per share, recorded in the first half of fiscal year 2024.

In the second quarter alone, net sales rose 8.9% to $17.5 million, with gross profit increasing by 32.1% to $5.3 million. The gross profit margin for this quarter improved to 30.4%, compared to 25.1% in the same quarter last year. Selling, general, and administrative (SG&A) expenses also increased to $5.7 million, reflecting higher employee and shipping costs, but as a percentage of net sales, they decreased slightly to 32.7% from 33.0% year-over-year. The company’s loss from operations decreased significantly to $429,000 from $1.3 million in the prior year’s second quarter.

OCC's operational metrics indicate a positive trend, with net sales to customers outside the United States increasing by 24.3% and domestic sales rising by 3.5% in the first half of fiscal year 2025. The company’s sales order backlog grew to $7.2 million, up from $5.7 million at the end of the previous fiscal year. The increase in sales was attributed to improvements in the specialty markets and military sectors, alongside stable performance in enterprise markets.

The company’s total assets decreased by 3.2% to $39.1 million, primarily due to a $1.8 million drop in trade accounts receivable. Total liabilities rose by 2.3% to $20.0 million, driven by increased accounts payable and accrued expenses. OCC's cash position improved, with cash totaling $894,000 at the end of the reporting period, up from $244,000 at the end of the previous fiscal year. The company reported net cash provided by operating activities of $2.8 million, a significant increase from $113,000 in the same period last year.

Looking ahead, OCC remains cautiously optimistic about its financial outlook, citing potential challenges such as market conditions, supply chain constraints, and the timing of large orders. The company plans to continue leveraging its existing credit facilities to support operations and is focused on maintaining its market position while navigating the evolving economic landscape.