Thu, Jun 5, 4:32 PM (33 days ago)
**Optical Cable Corporation (OCC, Ticker: OCC) Q2 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q2 2025 net sales increased by 8.9% to $17.5 million, with a 11.5% increase from Q1 2025. Six-month net sales rose by 7.5% to $33.3 million. - **Profit Margins:** Gross profit margin improved to 30.4% in Q2 2025, up from 25.1% in Q2 2024. Six-month gross profit margin was 29.9%. - **Expenses:** SG&A expenses increased by 8.0% to $5.7 million in Q2 2025, but as a percentage of net sales, it slightly decreased to 32.7%. - **Net Loss:** Q2 2025 net loss was $698,000, or $0.09 per share, an improvement from $1.6 million, or $0.21 per share, in Q2 2024. Six-month net loss was $1.8 million, or $0.23 per share. **Cash Flow & Earnings:** - **Cash Flow:** Net cash provided by operating activities was $2.8 million in the first half of 2025, a significant improvement from $113,000 in the same period last year. - **Earnings Changes:** Earnings improved due to higher gross profit and better cost management. **Trends & Uncertainties:** - **Market Trends:** General market improvements and strength in military markets positively impacted sales. - **Uncertainties:** Fluctuations in sales due to large orders, economic conditions, and competitive pressures remain uncertainties. **Future Operations Impact:** - **Debt & Financing:** OCC has a revolving credit facility with available credit of $2.6 million as of Q2 2025. The company intends to refinance its real estate loan before maturity. - **Capital Expenditures:** Budgeted for $1.0 million in capital expenditures for the fiscal year, to be funded through working capital, cash from operations, or borrowings. **Summary:** OCC showed improved financial performance in Q2 2025 with increased revenue, better profit margins, and reduced net loss. The company's focus on cost management and strategic financing will be crucial for sustaining growth amidst market uncertainties.