Business
OPTICAL CABLE CORPORATION REPORTS FOURTH QUARTER AND FISCAL 2023 FINANCIAL RESULTS
OCC® Achieves Increases in Net Sales, Gross Profit, Gross Profit Margin and Net Income in Fiscal 2023 Compared to Fiscal 2022 ROANOKE, Va., Dec. 20, 2023
About this update from Optical Cable Corporation
[{"type":"text","content":"OCC® Achieves Increases in Net Sales, Gross Profit, Gross Profit Margin and Net Income in Fiscal 2023 Compared to Fiscal 2022\nROANOKE, Va., Dec. 20, 2023 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) (\"OCC®\" or the \"Company\") today announced financial results for its fiscal year and its fourth quarter ended October 31, 2023.\n\n \n \n \n \n \n \n\n \nFiscal Year 2023 Financial Results\nConsolidated net sales for fiscal year 2023 increased 4.5% to $72.2 million, compared to net sales of $69.1 million for fiscal year 2022. The Company achieved increases in net sales in its specialty markets in fiscal year 2023, compared to the prior year, but the increases were partially offset by decreases in its enterprise and wireless carrier markets.\nThe industry has experienced a softening of demand, particularly in the enterprise and carrier markets during the year, the Company noted. Despite this market volatility, OCC's net sales increased during fiscal year 2023 as a result of OCC's growth in its specialty markets and a substantial backlog/forward load at the beginning of fiscal 2023. During the first half of fiscal year 2023, the Company's net sales increased 19.8%, while its net sales decreased 8.5% during the second half of fiscal year 2023, in both cases compared to the same periods during the prior fiscal year.\nOCC's gross profit increased 8.7% to $22.3 million in fiscal year 2023, compared to gross profit of $20.5 million in fiscal year 2022. Gross profit margin, or gross profit as a percentage of net sales, increased to 30.9% in fiscal year 2023 compared to 29.7% for fiscal year 2022.\nDuring the first half of fiscal year 2023, the Company's gross profit margin was 35.1% compared to 28.7% in the first half of fiscal year 2022—demonstrating the Company's operating leverage and production efficiencies at increased production volumes.\nOCC's gross profit margin tends to be higher when it achieves higher net sales due to its operating leverage, as was the case in the first half of fiscal year 2023, relative to the prior year. In addition to the positive impact of this operating leverage, OCC's gross profit margin reflects increased production efficiency, specifically in the first half of fiscal 2023, as well as the impact of a more fully trained workforce. The Company's gross profit margin is also reflective of prod...