Optical Cable Corporation Reports Fourth Quarter and Fiscal Year 2012 Financial Results

    Optical Cable Corporation Reports Fourth Quarter and Fiscal Year 2012
                              Financial Results

OCC® Achieves Highest Net Sales in Company History for the Third Consecutive
Year

PR Newswire

ROANOKE, Va., Dec. 20, 2012

ROANOKE, Va., Dec. 20, 2012 /PRNewswire/ -- Optical Cable Corporation (Nasdaq
GM: OCC) ("OCC^®" or the "Company") today announced financial results for its
fourth quarter and fiscal year ended October 31, 2012. 

The Company achieved increases in net sales, gross profit and net income both
during the fourth quarter of fiscal year 2012 and during fiscal year 2012,
when compared to the same periods last year.

OCC's consolidated net sales for fiscal year 2012 were $83.5 million—the
highest in the Company's history and exceeding the records for consolidated
net sales previously set in fiscal years 2011 and 2010.

Fourth Quarter 2012 Financial Results

OCC's consolidated net sales increased 12.5% to $22.1 million for the fourth
quarter of fiscal 2012, compared to consolidated net sales of $19.7 million
for the fourth quarter of fiscal year 2011. The increase in net sales during
the fourth quarter of fiscal 2012 was attributable primarily to increased
sales of the Company's fiber optic cable products.

OCC achieved increased net sales growth both in the United States and
internationally during the fourth quarter of fiscal 2012, compared to the same
period last year. Net sales to customers in the United States increased 14.5%
and net sales to customers outside of the United States increased 6.3% as
compared to the prior year period.

Gross profit increased 4.6% to $7.8 million in the fourth quarter of fiscal
2012, compared to $7.4 million in the fourth quarter of fiscal year 2011.
Gross profit margin, or gross profit as a percentage of net sales, decreased
to 35.0% in the fourth quarter of fiscal 2012 from 37.7% for the same period
last year.

OCC recorded net income attributable to the Company of $435,000, or $0.07 per
basic and diluted share, for the fourth quarter of fiscal 2012, compared to
$236,000, or $0.04 per basic and diluted share, for the fourth quarter of
fiscal 2011.

Fiscal Year 2012 Financial Results

OCC's consolidated net sales increased 13.9% to $83.5 million for fiscal 2012,
compared to net sales of $73.3 million for fiscal 2011. The increase in net
sales was primarily attributable to increased sales of the Company's fiber
optic cable products. Net sales to customers in the United States increased
11.6% and net sales to customers outside of the United States increased 21.1%
as compared to the prior year period. 

Gross profit increased 20.0% to $31.6 million in fiscal 2012, compared to
$26.3 million in fiscal 2011. Gross profit margin increased to 37.8% in
fiscal 2012 from 35.8% in fiscal 2011.

OCC recorded net income attributable to the Company of $2.7 million, or $0.43
per basic and diluted share, for fiscal year 2012, compared to $666,000, or
$0.11 per basic and diluted share, for fiscal year 2011.

During fiscal year 2012, OCC generated positive cash flow from operating
activities, with net cash provided by operating activities of $2.0 million.
OCC also purchased and retired 267,000 shares of common stock and declared
regular quarterly dividends to shareholders totaling $0.06 per share during
the year.

Management's Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, "We are
pleased that we extended our track-record of success in fiscal year 2012,
despite continued macroeconomic and market weakness. Our record sales and
earnings performance reflect the continued successful execution of our
long-term strategy, which includes product line expansion, product innovation
and a focus on providing comprehensive customer solutions, and also reflect
the strength of OCC's operating leverage."

Mr. Wilkin added, "OCC has a solid balance sheet, which together with the
Company's outstanding financial and operational performance, enabled us to
increase the return of capital to shareholders through our quarterly dividend
and share repurchase programs in fiscal year 2012. Looking ahead to fiscal
year 2013, we are confident that we have the right strategies in place to
continue winning new business and creating shareholder value."

Conference Call Information

As previously announced, OCC will host a conference call today, Thursday,
December 20, 2012, at 10:00 a.m. Eastern Time. Individuals wishing to
participate in the conference call should call (888) 868-9083 or (973)
935-8512. For interested individuals unable to join the call, a replay will
be available through December 27, 2012, by dialing (855) 859-2056 or (404)
537-3406, pass code 80795901. The call will also be broadcast live over the
Internet and can be accessed by visiting the investor relations section of the
Company's website at www.occfiber.com.

Company Information

Optical Cable Corporation ("OCC^®") is a leading manufacturer of a broad range
of fiber optic and copper data communication cabling and connectivity
solutions primarily for the enterprise market, offering an integrated suite of
high quality, warranted products which operate as a system solution or
seamlessly integrate with other providers' offerings. OCC's product offerings
include designs for uses ranging from commercial, enterprise network,
datacenter, residential and campus installations to customized products for
specialty applications and harsh environments, including military, industrial,
mining, petrochemical and broadcast applications. OCC products include fiber
optic and copper cabling, fiber optic and copper connectors, specialty fiber
optic and copper connectors, fiber optic and copper patch cords,
pre-terminated fiber optic and copper cable assemblies, racks, cabinets,
datacom enclosures, fiber optic and copper patch panels, face plates,
multi-media boxes, wireless distributed antenna systems, fiber optic reels and
accessories and other cable and connectivity management accessories. OCC
products are designed to meet the most demanding needs of end-users,
delivering a high degree of reliability and outstanding performance
characteristics.

OCC^® is internationally recognized for pioneering the design and production
of fiber optic cables for the most demanding military field applications, as
well as of fiber optic cables suitable for both indoor and outdoor use, and
creating a broad product offering built on the evolution of these fundamental
technologies. OCC also is internationally recognized for its role in
establishing copper connectivity data communications standards, through its
innovative and patented technologies.

Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices,
manufacturing and warehouse facilities located in each of Roanoke, Virginia,
near Asheville, North Carolina and near Dallas, Texas. OCC primarily
manufactures its fiber optic cables at its Roanoke facility which is ISO
9001:2008 registered and MIL-STD-790F certified, its enterprise connectivity
products at its Asheville facility which is ISO 9001:2008 registered, and its
military and harsh environment connectivity products and systems at its Dallas
facility which is ISO 9001:2008 registered and MIL-STD-790F certified.

Optical Cable Corporation, OCC, Procyon, Superior Modular Products, SMP Data
Communications, Applied Optical Systems, and associated logos are trademarks
of Optical Cable Corporation.

Further information about OCC^® is available at www.occfiber.com.

FORWARD-LOOKING INFORMATION

This news release by Optical Cable Corporation and its subsidiaries
(collectively, the "Company" or "OCC") may contain certain forward-looking
information within the meaning of the federal securities laws. The
forward-looking information may include, among other information, (i)
statements concerning our outlook for the future, (ii) statements of belief,
anticipation or expectation, (iii) future plans, strategies or anticipated
events, and (iv) similar information and statements concerning matters that
are not historical facts. Such forward-looking information is subject to known
and unknown variables, uncertainties, contingencies and risks that may cause
actual events or results to differ materially from our expectations, and such
known and unknown variables, uncertainties, contingencies and risks may also
adversely affect Optical Cable Corporation and its subsidiaries, the Company's
future results of operations and future financial condition, and/or the future
equity value of the Company. A partial list of such variables, uncertainties,
contingencies and risks that could cause or contribute to such differences
from our expectations or that could otherwise adversely affect Optical Cable
Corporation and its subsidiaries is set forth in Optical Cable Corporation's
quarterly and annual reports filed with the Securities and Exchange Commission
("SEC") under the heading "Forward-Looking Information." OCC's quarterly and
annual reports are available to the public on the SEC's website at
http://www.sec.gov. In providing forward-looking information, the Company
expressly disclaims any obligation to update this information, whether as a
result of new information, future events or otherwise except as required by
applicable laws and regulations.

(Financial Tables Follow)



OPTICAL CABLE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(thousands, except per share data)
(unaudited)
                          Three Months Ended         Fiscal Year Ended
                          October 31,                October 31,
                          2012          2011         2012          2011
Net sales                 $  22,134   $  19,667  $  83,523   $  73,339
Cost of goods sold        14,379        12,253       51,970        47,048
 Gross profit        7,755         7,414        31,553        26,291
SG&A expenses             7,027         6,880        27,300        25,169
Royalty (income) expense, 10            (138)        (299)         (783)
net
Amortization of           34            108          134           431
intangible assets
 Income from         684           564          4,418         1,474
operations
Interest expense, net     (123)         (145)        (550)         (620)
Other, net                20            (14)         16            1
 Other expense, net  (103)         (159)        (534)         (619)
 Income before       581           405          3,884         855
income taxes
Income tax expense       193           224          1,258         398
 Net income         $         $        $   2,626  $    
                          388           181                        457
Net loss attributable to
 noncontrolling       (47)          (55)         (123)         (209)
interest
Net income attributable   $         $        $   2,749  $    
to OCC                    435           236                        666
Net income attributable
to OCC
 per share: Basic and $          $         $         $   
diluted                   0.07         0.04        0.43          0.11
Weighted average shares
outstanding:
 Basic and diluted    6,475         6,302        6,456         6,305
Cash dividends declared   $   0.015  $        $   0.06   $   
per common share                        0.01                       0.04



OPTICAL CABLE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(thousands)
(unaudited)
                                              October 31,       October 31,
                                              2012               2011
Cash                                          $      591    $    1,092
Trade accounts receivable, net                12,601             10,798
Inventories                                   18,464             16,497
Other current assets                          3,109              3,136
 Total current assets                     34,765             31,523
Non-current assets                            12,997             13,422
 Total assets                             $     47,762   $   44,945
Current liabilities                           $      7,927  $    8,197
Non-current liabilities                       9,800              9,025
 Total liabilities                        17,727             17,222
Total shareholders' equity attributable to    30,644             28,209
OCC
Noncontrolling interest                       (609)              (486)
 Total shareholders' equity               30,035             27,723
 Total liabilities and shareholders'      $    47,762    $   44,945
equity



SOURCE Optical Cable Corporation

Website: http://www.occfiber.com
Contact: AT THE COMPANY: Neil Wilkin, Chairman, President & CEO,
+1-540-265-0690, investorrelations@occfiber.com, or Tracy Smith, Senior Vice
President & CFO, +1-540-265-0690, investorrelations@occfiber.com; or AT JOELE
FRANK, WILKINSON BRIMMER KATCHER: Andrew Siegel, +1-212-355-4449 ext. 127,
occ-jfwbk@joelefrank.com, or Aaron Palash, +1-212-355-4449 ext. 103,
occ-jfwbk@joelefrank.com
 
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