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OPTICAL CABLE CORPORATION REPORTS THIRD QUARTER OF FISCAL 2023 FINANCIAL RESULTS
OCC® Achieves Increases in Net Sales, Gross Profit, Gross Profit Margins and Net Income in First Nine Months of Fiscal 2023 Compared to Prior Year Period
About this update from Optical Cable Corporation
[{"type":"text","content":"OCC® Achieves Increases in Net Sales, Gross Profit, Gross Profit Margins and Net Income in First Nine Months of Fiscal 2023 Compared to Prior Year Period\nROANOKE, Va., Sept. 12, 2023 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) (\"OCC®\" or the \"Company\") today announced financial results for its third quarter ended July 31, 2023.\n\nThird Quarter 2023 Financial Results \nConsolidated net sales for the third quarter of fiscal year 2023 decreased 2.5% to $16.9 million, compared to net sales of $17.4 million for the same period last year, with decreased net sales in the Company's enterprise market partially offset by increased net sales in its specialty markets. \nGross profit increased 6.4% to $5.1 million in the third quarter of fiscal year 2023, compared to gross profit of $4.8 million for the same period last year.\nGross profit margin, or gross profit as a percentage of net sales, increased to 30.2% in the third quarter of fiscal year 2023 compared to 27.7% in the third quarter of fiscal year 2022. OCC realized improved gross profit margins compared to the third quarter of fiscal year 2022 despite a comparable decrease in net sales levels. The Company attributes this margin improvement to gains in production efficiency as well as the impact of a more fully trained workforce. \nSG&A expenses were $5.0 million in both the third quarters of fiscal year 2023 and 2022. SG&A expenses as a percentage of net sales were 29.3% in the third quarter of fiscal 2023, compared to 28.5% in the prior year period.\nFor the third quarter of fiscal year 2023, OCC recorded net income of $101,000, or $0.01 per basic and diluted share, compared to a net loss of $372,000, or $0.05 per basic and diluted share, for the third quarter of fiscal year 2022. In addition to improved sales and gross profit, the Company's results reflect the gain on additional insurance proceeds received during the third quarter of fiscal year 2023 for damage to property and equipment totaling $256,000, which was recorded as other income, net on the Company's statement of operations.\nFiscal Year-to-Date 2023 Financial Results\nConsolidated net sales for the first nine months of fiscal year 2023 increased 11.9% to $54.8 million, compared to net sales of $49.0 million for the first nine months of fiscal year 2022. The Company achieved increases in net sales in...