Optical Cable Corporation Reports Second Quarter 2013 Financial Results

   Optical Cable Corporation Reports Second Quarter 2013 Financial Results

PR Newswire

ROANOKE, Va., June 12, 2013

ROANOKE, Va., June 12, 2013 /PRNewswire/ -- Optical Cable Corporation (Nasdaq
GM: OCC) ("OCC^®" or the "Company") today announced financial results for its
fiscal second quarter ended April 30, 2013.

Second Quarter 2013 Financial Results

Consolidated net sales for the second quarter of fiscal year 2013 were $19.1
million, down 13.3% when compared to net sales of $22.1 million for the second
quarter of fiscal year 2012—when OCC achieved the second highest quarterly net
sales in the Company's history. Sequentially, net sales increased 10.6% in
the second quarter of fiscal year 2013, compared to net sales of $17.3 million
for the first quarter of the year. 

Gross profit margin, or gross profit as a percentage of net sales, decreased
to 34.9% in the second quarter of fiscal year 2013 from 40.2% in the second
quarter of fiscal year 2012. Gross profit margin in the second quarter was
negatively impacted as certain fixed manufacturing costs were spread over
lower sales volumes, as well as due to increases in production costs and
manufacturing capacity in anticipation of higher future production volumes.
Gross profit decreased 24.8% to $6.7 million in the second quarter of fiscal
year 2013, compared to $8.9 million in the second quarter of fiscal 2012.

OCC recorded net income attributable to the Company of $42,000, or $0.01 per
basic and diluted share, for the second quarter of fiscal year 2013, compared
to $949,000, or $0.15 per basic and diluted share, for the second quarter of
fiscal year 2012.

Fiscal Year-to-Date 2013 Financial Results

Consolidated net sales for the first half of fiscal year 2013 decreased 7.5%
to $36.4 million, compared to net sales of $39.4 million for the same period
in fiscal year 2012—which was a record sales year for OCC. The Company
experienced an increase in net sales during the first half of fiscal year 2013
in its specialty markets, compared to the same period last year, but this
increase was offset by decreases in net sales in its commercial markets.

Gross profit margin decreased to 36.2% in the first half of fiscal year 2013,
from 38.1% in the first half of fiscal year 2012. Gross profit decreased
12.1% to $13.2 million in the first half of fiscal year 2013, compared to
$15.0 million in the first half of fiscal 2012.

OCC recorded net income attributable to the Company of $172,000, or $0.03 per
basic and diluted share, for the first half of fiscal year 2013, compared to
$1.1 million, or $0.18 per basic and diluted share, for the same period last
year.

Management's Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, "We believe
our second fiscal quarter results reflect difficult year-over-year comparisons
relative to the record setting results for the second quarter of fiscal year
2012, which we believe were not representative of our typical quarterly
seasonality patterns. We experienced weakness in certain of our markets
during the first half of fiscal year 2013. Our gross profit was also impacted
in the second quarter of 2013 by increases in plant capacity that we made to
accommodate previous large orders for major customers. Despite continued
economic headwinds in certain of our markets, we are confident that the
Company is well-positioned to deliver improving results going forward."

Mr. Wilkin added, "OCC's balance sheet remains strong, and we remain confident
in the underlying strength of our business, our market position, our
comprehensive suite of products, and our strategic plan to enhance shareholder
value. We look forward to delivering improved financial and operational
performance in the second half of the fiscal year."

Conference Call Information

As previously announced, OCC will host a conference call today, June 12, 2013,
at 11:00 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 June
19, 2013, by dialing (800) 585-8367 or (404) 537-3406, pass code 91148990.
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's facilities are
ISO 9001:2008 registered, and OCC's Roanoke and Dallas facilities are
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 INCOME

(thousands, except per share data)

(unaudited)


                          Three Months Ended         Six Months Ended
                          April 30,                  April 30,
                          2013         2012          2013          2012
Net sales                 $  19,124  $  22,051   $  36,420   $  39,385
Cost of goods sold        12,459       13,190        23,231        24,374
 Gross profit        6,665        8,861         13,189        15,011
SG&A expenses             6,405        7,410         12,593        13,375
Royalty (income) expense, (44)         (101)         4             (287)
net
Amortization of           23           33            47            67
intangible assets
 Income from         281          1,519         545           1,856
operations
Interest expense, net     (113)        (140)         (221)         (284)
Other, net                (11)         (2)           (15)          (2)
 Other expense, net  (124)        (142)         (236)         (286)
 Income before       157          1,377         309           1,570
income taxes
Income tax expense        82           470           122           510
 Net income          $       $         $         $  
                          75           907           187           1,060
Net income (loss)
attributable to
 noncontrolling       33           (42)          15            (81)
interest
Net income attributable   $       $    949  $         $  
to OCC                    42                         172           1,141
Net income attributable
to OCC
 per share: Basic and $         $          $         $    
diluted                   0.01        0.15         0.03          0.18
Weighted average shares
outstanding:
 Basic and diluted    6,219        6,391         6,265         6,339
Cash dividends declared   $        $          $    0.04  $   
per common share          0.02         0.015                       0.03





OPTICAL CABLE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(thousands)

(unaudited)


                                            April 30,         October 31,
                                            2013               2012
Cash                                        $      783    $      591
Trade accounts receivable, net              10,454             12,601
Inventories                                 19,468             18,464
Other current assets                        2,630              3,109
 Total current assets                   33,335             34,765
Non-current assets                          14,460             12,997
 Total assets                           $     47,795   $    47,762
Current liabilities                         $      6,388  $     7,927
Non-current liabilities                     11,614             9,800
 Total liabilities                      18,002             17,727
Total shareholders' equity attributable to  30,388             30,644
OCC
Noncontrolling interest                     (595)              (609)
 Total shareholders' equity             29,793             30,035
 Total liabilities and shareholders'    $    47,795    $    47,762
equity



SOURCE Optical Cable Corporation

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