Business
Optical Cable Corporation Reports First Quarter 2020 Financial Results
ROANOKE, Va., March 16, 2020 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company") today announced financial results for its
About this update from Optical Cable Corporation
[{"type":"text","content":"ROANOKE, Va., March 16, 2020 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) (\"OCC®\" or the \"Company\") today announced financial results for its first quarter ended January 31, 2020. \nFirst Quarter 2020 Financial Results\nConsolidated net sales were $12.9 million in the first quarter of fiscal year 2020, compared to net sales of $16.8 million in the first quarter of fiscal year 2019. The year-over-year decrease in net sales was mostly due to a number of large orders from one customer in the wireless carrier market in the first quarter of fiscal year 2019 that did not recur at the same levels in the first quarter of fiscal year 2020. Net sales to this customer decreased $2.3 million in the first quarter of fiscal 2020, as compared to the first quarter of fiscal 2019. Historically, net sales to this customer have been volatile from quarter to quarter and from year to year.\nGross profit was $2.4 million in the first quarter of fiscal year 2020 compared to gross profit of $3.6 million in the same period last year, a decrease of 32.5%. Gross profit margin, or gross profit as a percentage of net sales, was 18.7% in the first quarter of fiscal year 2020 compared to 21.3% for the same period in fiscal year 2019. The lower gross profit margin in the first quarter of fiscal year 2020 was substantially impacted by fixed production costs being spread over lower total sales when compared to the first quarter of fiscal 2019, offsetting cost reductions and significant production throughput and efficiency improvements achieved principally in the Company's Roanoke production facility. \nSG&A expenses decreased 28.8% to $4.8 million during the first quarter of fiscal year 2020, compared to $6.8 million for the first quarter of fiscal year 2019. The decrease in SG&A expenses was primarily the result of decreases in employee related costs, but was also positively impacted by other cost reduction initiatives.\nFor the first quarter of fiscal year 2020, OCC recorded a net loss of $2.6 million, or $0.35 per basic and diluted share, compared to a net loss of $3.3 million, or $0.44 per basic and diluted share, for the first quarter of fiscal year 2019.\nDuring the first quarter of fiscal year 2020, OCC achieved net cash provided by operating activities of $544,000, while reducing accounts payable and accrued expenses, including accrued ...