Optical Cable (OCC) investor relations material

Executive summary

• Net sales for Q1 FY2026 increased 4.4% year-over-year to $16.4 million, with growth in both enterprise and specialty markets and strong operating leverage.

• Gross profit rose 16.1% to $5.4 million, with gross margin improving to 32.7% from 29.4% year-over-year.

• Net loss narrowed to $398,000 ($0.05 per share) from $1.1 million ($0.14 per share) in Q1 FY2025.

• Sales order backlog increased over 50% to $10.4 million compared to the prior year period and $7.3 million at the prior fiscal year-end.

Financial highlights

• SG&A expenses were $5.6 million (33.8% of sales), up from $5.5 million; as a percentage of sales, 33.8% vs. 34.7% prior year.

• Loss from operations improved to $208,000 from $852,000 year-over-year.

• Other expense, net was $211,000, primarily interest expense.

• Income tax benefit was $21,000, compared to $12,000 expense in the prior year.

• Total assets decreased to $38.8 million from $40.1 million sequentially, mainly due to lower receivables.

Outlook and guidance

• Management expects continued sales growth in FY2026, supported by a strong backlog and increased activity in targeted sectors, especially data centers.

• Historical seasonality anticipated, with higher sales in the second half of the fiscal year.

• No specific revenue guidance provided, but backlog and forward load trends are positive.

• Future cash flow from operations, cash on hand, and the Revolver are expected to fund operations for at least the next twelve months.