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OPTICAL CABLE CORPORATION REPORTS SECOND QUARTER OF 2022 FINANCIAL RESULTS
OCC® Achieves Year-over-Year Increases in Net Sales and Gross Profit in the Second Quarter and First Half of Fiscal Year 2022 ROANOKE, Va., June 13, 2022
About this update from Optical Cable Corporation
[{"type":"text","content":"OCC® Achieves Year-over-Year Increases in Net Sales and Gross Profit in the Second Quarter and First Half of Fiscal Year 2022\n ROANOKE, Va., June 13, 2022 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) (\"OCC®\" or the \"Company\") today announced financial results for its second quarter ended April 30, 2022.\nSecond Quarter 2022 Financial Results\nConsolidated net sales for the second quarter of fiscal year 2022 increased 9.3% to $17.2 million, compared to net sales of $15.7 million for the same period last year, with increased net sales in the enterprise and specialty markets, including the wireless carrier market.\nSequentially, consolidated net sales increased 19.1% for the second quarter of fiscal year 2022, compared to net sales of $14.4 million for the first quarter of fiscal year 2022. \nThe Company's sales order backlog/forward load continues to be at higher than typical levels and product demand is robust with demand for OCC's products increasing during the second quarter of fiscal year 2022. \nProduction volumes were tempered during the second quarter of fiscal year 2022 by supply chain and labor constraints, impacting net sales. The Company believes labor constraints are beginning to show signs of easing in the third quarter of fiscal year 2022. \nGross profit increased 4.4% to $5.0 million in the second quarter of fiscal year 2022, compared to gross profit of $4.8 million for the same period last year. Sequentially, gross profit increased 24.4% in the second quarter of fiscal year 2022, compared to gross profit of $4.0 million for the first quarter of fiscal year 2022.\nGross profit margin, or gross profit as a percentage of net sales, was 29.3% in the second quarter of fiscal year 2022 compared to 30.6% in the second quarter of fiscal year 2021. The year-over-year decrease in gross profit margin was primarily due to rapid inflation causing increases in costs of raw materials for sales orders accepted prior to raw material cost increases. \nSG&A expenses increased to $5.0 million during the second quarter of fiscal year 2022, compared to $4.6 million for the second quarter of fiscal year 2021. The increase in SG&A expenses was primarily the result of net increases in employee and contracted sales personnel related costs.\nFor the second quarter of fiscal year 2022, OCC recorded a net loss of $228,000, o...