Optical Cable Corporation (OCC) reported significant financial improvements in its latest 10-Q filing for the second quarter of fiscal year 2026, ending April 30, 2026. The company achieved consolidated net sales of $22.2 million, marking a 26.6% increase from $17.5 million in the same quarter of the previous year. For the first half of fiscal year 2026, net sales reached $38.6 million, a 16.1% rise compared to $33.3 million in the first half of fiscal year 2025. The gross profit for the second quarter also saw a substantial increase of 42.4%, totaling $7.6 million, with a gross profit margin of 34.2%, up from 30.4% in the prior year.
The company’s operational performance showed a marked turnaround, with income from operations reported at $1.3 million for the second quarter, compared to a loss of $429,000 in the same period last year. This improvement was attributed to higher sales volumes and effective cost management, despite selling, general, and administrative (SG&A) expenses rising to $6.3 million from $5.7 million year-over-year. Net income for the quarter was $1.1 million, or $0.12 per share, a significant recovery from a net loss of $698,000, or $0.09 per share, in the prior year.
In terms of strategic developments, OCC has been actively enhancing its product offerings through a collaboration with Lightera, LLC, initiated in July 2025. This partnership aims to expand OCC's product portfolio, particularly in the data center and enterprise sectors. The collaboration included the issuance of 642,199 shares of redeemable restricted common stock to Lightera, which represents approximately 7.3% of OCC's outstanding shares as of April 30, 2026.
Operationally, OCC reported an increase in its sales order backlog to $13.3 million, up from $10.4 million at the end of the previous quarter. The company also noted a 45.3% increase in sales to international customers and a 21.2% increase in domestic sales during the second quarter. However, total liabilities rose to $20.2 million, primarily due to an increase in borrowings under its revolving credit facility, which stood at $7.3 million as of April 30, 2026.
Looking ahead, OCC's management expressed optimism about continued growth, driven by improvements in market conditions and demand for its products. The company anticipates that its existing cash flow, along with available credit, will be sufficient to support operations over the next twelve months. However, management also acknowledged potential risks, including fluctuations in raw material costs and market demand, which could impact future performance.
About OPTICAL CABLE CORP
Optical Cable Corporation designs and manufactures fiber optic and copper data communication cabling, connectors, and system solutions for enterprise, harsh environment, military, and specialty markets. Its products serve data centers, industrial facilities, military applications, and wireless infrastructure globally. The company emphasizes high-performance, reliable connectivity, innovative technology, and compliance with industry standards, supporting diverse communication needs across multiple sectors and environments.
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