By PR Newswire Press Release
ROANOKE, Va. — Optical Cable Corporation (Nasdaq GM: OCCF) today announced financial results for its fiscal first quarter ended January 31, 2009.
First Quarter 2009 Financial Results
Consolidated net sales for the first quarter of fiscal 2009 increased 18.1% to $15.0 million compared to net sales of $12.7 million for the comparable period last year. The sale of products historically sold by SMP Data Communications, acquired by Optical Cable on May 30, 2008, added $3.8 million to the Company's consolidated net sales during the first fiscal quarter of 2009.
Gross profit decreased 10.2% to $4.8 million in the first quarter of fiscal 2009, compared to $5.3 million in the first quarter of fiscal 2008. Gross profit margin for the first quarter of fiscal 2009 decreased to 32.0% compared to 42.1% for the first quarter of fiscal 2008. The gross profit margin associated with the sale of connectivity products was 19.8% for the first quarter of fiscal year 2009, and the gross profit margin associated with fiber optic cable sales was 36.2%. This is consistent with the fact that Optical Cable's fiber optic cable products have historically had higher margins than those of the connectivity products now sold by Optical Cable as a result of the Company's acquisition of SMP Data Communications.
Optical Cable recorded a net loss of $742,000, or mce_marker.12 per basic and diluted share, for the first quarter of fiscal year 2009, compared to net income of $862,000, or mce_marker.14 per basic and diluted share, for the same period last year. The Company's results were negatively impacted by additional integration costs associated with the acquisition of SMP Data Communications, as well as pressure on gross profit margins due to softer volumes.
“We are pleased with our solid net sales results given the current global economic downturn. We believe our sales strength demonstrates that our markets are responding favorably to our expanded product offerings and our enhanced ability to provide more complete cabling and connectivity solutions,” stated Mr. Neil Wilkin, President and CEO of Optical Cable Corporation.
“Importantly, we ended the first quarter with positive cash flow and a strong balance sheet, despite our first quarter loss. Optical Cable is financially and strategically well-positioned, and we will continue to focus on growing sales and controlling expenses. We are confident that as the economic environment improves, our financial results will reflect the benefits of our strategy and our strong position in our markets,” stated Mr. Wilkin.