Optical Cable Corporation (OCC), a leading provider of fiber optic and copper data communication cabling and connectivity solutions, has released its financial results for the third quarter of 2023. The company reported a net income of $101 thousand for the quarter, marking a significant improvement from the loss of $372 thousand in the same period last year. Additionally, OCC reported net sales of $16.94 million for the third quarter, showcasing the company's steady performance in a competitive market.
Strong Quarter for OCC with Positive Net Income
Optical Cable Corporation achieved a significant milestone in the third quarter of 2023 by reporting a net income of $101 thousand, a substantial turnaround from the net loss of $372 thousand in the same quarter of the previous year. This positive net income reflects the company's effective cost management and growth strategies.
OCC maintained its revenue momentum in Q3 2023, reporting total net sales of $16.94 million. Although slightly lower than the $17.38 million generated in the same period last year, this revenue figure highlights the company's resilience in a competitive market. For the nine months ended July 31, 2023, OCC reported total net sales of $54.85 million, compared to $49.02 million in the prior-year period.
Gross Profit and Operating Income
The company's gross profit for the quarter reached $5.12 million, an improvement from the $4.81 million reported in Q3 2022. This increase in gross profit is attributed to effective cost control measures and operational efficiency. Despite challenges in the market, OCC managed to enhance its profitability.
Selling, general, and administrative (SG&A) expenses for the third quarter amounted to $4.96 million, similar to the previous year's $4.95 million. Additionally, royalty expenses and amortization of intangible assets remained relatively stable at $7 thousand and $14 thousand, respectively.
Income from operations for the third quarter of 2023 was $138 thousand, compared to a loss of $166 thousand in the same period last year. This improvement underscores OCC's ability to manage its operations efficiently.
Interest Expense and Other Income
Interest expense for the quarter was $298 thousand, while the company reported a gain of $256 thousand on insurance proceeds received for damage to property and equipment. Other net income (expense) was $4 thousand, and other income (expense) netted out to $(38) thousand. These factors contributed to the company's overall financial performance.
Income Before Income Taxes and Net Income
Income before income taxes reached $100 thousand for Q3 2023, a significant improvement compared to the loss of $362 thousand in the same period last year. Income tax expense (benefit) was $(1) thousand. Consequently, Optical Cable Corporation reported a net income of $101 thousand for the third quarter of 2023, compared to a net loss of $372 thousand in the prior-year period.
Earnings per Share and Shares Outstanding
Basic and diluted earnings per share for Q3 2023 were $0.01, a positive swing from a loss of $0.05 per share in the same quarter of the previous year. The weighted average shares outstanding for both basic and diluted calculations remained relatively stable at 7,867 and 7,517, respectively.
Optical Cable Corporation's financial results for the third quarter of 2023 reflect a positive turnaround with a net income of $101 thousand and steady revenue generation of $16.94 million. The company's ability to maintain profitability and effectively manage costs demonstrates its resilience in the market. With a focus on innovation and operational efficiency, OCC is well-positioned for continued growth and success.