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OPTICAL CABLE CORPORATION REPORTS SECOND QUARTER OF FISCAL 2023 FINANCIAL RESULTS
OCC® Achieves Increases in Net Sales, Gross Profit and Net Income in Both Second Quarter and First Half of Fiscal 2023 Compared to Prior Year Periods ROANOKE,
About this update from Optical Cable Corporation
[{"type":"text","content":"OCC® Achieves Increases in Net Sales, Gross Profit and Net Income in Both Second Quarter and First Half of Fiscal 2023 Compared to Prior Year Periods\nROANOKE, Va., June 12, 2023 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) (\"OCC®\" or the \"Company\") today announced financial results for its second quarter ended April 30, 2023.\n\n \n \n \n \n \n \n\n \nSecond Quarter 2023 Financial Results\nConsolidated net sales for the second quarter of fiscal year 2023 increased 14.1% to $19.6 million, compared to net sales of $17.2 million for the same period last year, with increased net sales in the Company's specialty markets partially offset by decreased net sales in its enterprise market. \nGross profit increased 34.8% to $6.8 million in the second quarter of fiscal year 2023, compared to gross profit of $5.0 million for the same period last year. Gross profit margin, or gross profit as a percentage of net sales, increased to 34.6% in the second quarter of fiscal year 2023 compared to 29.3% in the second quarter of fiscal year 2022.\nOCC's increased gross profit margin reflects the Company's strong operating leverage, as higher net sales levels are achieved and fixed manufacturing costs are spread over higher sales. This operating leverage positively impacted the Company's gross profit margin during both the second quarter and first half of fiscal year 2023, when compared to the same periods last year.\nSG&A expenses increased to $5.7 million during the second quarter of fiscal year 2023 and were 28.9% of consolidated net sales, compared to $5.0 million for the second quarter of fiscal year 2022 and 29.3% of consolidated net sales. 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 2023, OCC recorded net income of $2.4 million, or $0.31 per basic and diluted share, compared to a net loss of $228,000, or $0.03 per basic and diluted share, for the second quarter of fiscal year 2022. As detailed below, in addition to improved sales and gross profit, the Company's results benefited from the gain on insurance proceeds received for damage to property and equipment totaling $1.7 million, which was recorded as other income, net on the Company's statement of operations during the second quarter of fiscal year 20...