Wed, Sep 11, 4:01 PM (100 days ago)
In the third quarter of fiscal year 2024, Optical Cable Corporation (OCC) reported a 4.2% decline in net sales to $16.2 million, down from $16.9 million in the same period last year. This trend reflects ongoing challenges in the industry, particularly in specialty markets like wireless carriers. Gross profit decreased significantly by 23.4% to $3.9 million, resulting in a gross profit margin of 24.2%, down from 30.2% in the prior year, due to lower production volumes and decreased efficiency. Operating expenses rose to $5.2 million, leading to a net loss of $1.6 million, or $0.20 per share, compared to a net income of $101,000 in Q3 2023. For the nine months ended July 31, 2024, net sales fell 14% to $47.2 million, with gross profit down 36.6% to $11.7 million. Total assets dropped 14.3% to $37.6 million, mainly due to a $4.5 million decrease in inventories. Cash flow from operating activities improved to $665,000, contrasting with a net cash outflow of $929,000 in the previous year. The company’s liquidity remains stable, with a current ratio of 4.2:1, but ongoing macroeconomic uncertainties and customer concentration risks persist.