Business
Optical Cable Corporation Reports Second Quarter 2021 Financial Results
Net Sales Sequentially Increase 32.5% ROANOKE, Va., June 14, 2021 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company") today
About this update from Optical Cable Corporation
[{"type":"text","content":"Net Sales Sequentially Increase 32.5%\n\n\nROANOKE, Va., June 14, 2021 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) (\"OCC®\" or the \"Company\") today announced financial results for its second quarter ended April 30, 2021. \nSecond Quarter 2021 Financial Results\nConsolidated net sales for the second quarter of fiscal year 2021 increased 5.9% to $15.7 million, compared to net sales of $14.9 million for the same period last year. The Company increased net sales in both its enterprise and specialty markets, including the wireless carrier market, in the second quarter of fiscal year 2021, compared to the same period last year. \nSequentially, net sales increased 32.5% in the second quarter of fiscal year 2021, compared to net sales of $11.9 million for the first quarter of fiscal year 2021.\nThe Company believes net sales during the second quarter of fiscal year 2021 were positively impacted by the lifting of some restrictions and reopening of certain markets that had been negatively impacted by the COVID-19 pandemic. During the second quarter, the Company began to see positive indicators in many of its markets. \nGross profit was $4.8 million in the second quarter of fiscal year 2021, an increase of 20.6% compared to gross profit of $4.0 million for the same period last year. Gross profit margin, or gross profit as a percentage of net sales, increased to 30.6% in the second quarter of fiscal year 2021 compared to 26.9% in the second quarter of fiscal year 2020. \nSequentially, gross profit increased 108.7% in the second quarter of fiscal year 2021, compared to gross profit of $2.3 million for the first quarter of fiscal year 2021.\nOCC achieved increased manufacturing efficiencies during the second quarter of fiscal year 2021 due to manufacturing improvement initiatives and the Company's operating leverage. 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, and the Company benefited from this positive operating leverage during the second quarter of fiscal year 2021. \nSG&A expenses decreased 17.3% to $4.6 million during the second quarter of fiscal year 2021, compared to $5.5 million for the second quarter of fiscal year 2020. The decrease in SG&A expenses was primarily the result of decreases in bad debt expen...