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Optical Cable Corporation Reports Fiscal Year And Fourth Quarter 2020 Financial Results
ROANOKE, Va., Dec. 21, 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., Dec. 21, 2020 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) (\"OCC®\" or the \"Company\") today announced financial results for its fiscal year 2020 and its fourth quarter ended October 31, 2020. \nFiscal Year 2020 Financial Results\nConsolidated net sales for fiscal year 2020 were $55.3 million, a decrease of 22.5% compared to net sales of $71.3 million for fiscal year 2019. The Company experienced a year-over-year decrease in net sales in its enterprise and specialty markets, including the wireless carrier market, in fiscal year 2020, compared to last year. We believe net sales during fiscal year 2020 were negatively impacted by the COVID-19 pandemic, as certain customers limited their operations and reduced or delayed product purchases. While net sales for both the enterprise and specialty markets were negatively impacted, the Company's specialty markets were most significantly impacted, with net sales declining 30.0% compared to last year. Net sales in the Company's enterprise markets decreased 11.4% in fiscal year 2020, compared to fiscal year 2019. \nOCC reported gross profit of $14.1 million in fiscal year 2020, a decrease of 23.0% compared to gross profit of $18.3 million in fiscal year 2019. Gross profit margin, or gross profit as a percentage of net sales, was 25.5% in fiscal year 2020 compared to 25.7% for fiscal year 2019. \nThe Company's gross profit margins tend to be higher when the Company achieves higher net sales levels, as certain fixed manufacturing costs are spread over higher sales. This operating leverage, which benefits OCC at higher sales levels, typically negatively impacts our gross profit margins, as fixed costs were spread over lower sales. Despite lower COVID-19 impacted sales, the Company's gross profit margins remained relatively steady in fiscal year 2020, and increased to 30.3% in the fourth quarter, as OCC realized improved throughput and efficiency gains from initiatives which began in fiscal year 2019.\nSG&A expenses decreased 17.9% to $19.2 million during fiscal year 2020 from $23.4 million for fiscal year 2019. The decrease in SG&A expenses during fiscal year 2020 compared to last year was primarily the result of decreases in employee-related costs and certain other costs impacted by the COVID-19 pandemic, such as travel expenses, marketing expenses and shipping c...