Optical Cable (OCC) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 increased 8.9% year-over-year to $17.5 million, with growth driven by specialty and military markets and stable enterprise markets.

• Gross profit rose 32.1% to $5.3 million in Q2 FY2025, with gross margin improving to 30.4% from 25.1% in Q2 FY2024, aided by production efficiencies and higher volumes.

• Net loss narrowed to $698,000 ($0.09 per share) in Q2 FY2025 from $1.6 million ($0.21 per share) in Q2 FY2024.

• Sales order backlog increased to $7.2 million at quarter-end, up from $6.6 million at Q1 end and $5.7 million at FY2024 end.

• Focus remains on disciplined execution and capitalizing on growth opportunities, particularly in specialty, military, and enterprise markets.

Financial highlights

• First half FY2025 net sales grew 7.5% year-over-year to $33.3 million; gross profit up 28.5% to $10 million; gross margin at 29.9% vs. 25% prior year.

• Q2 FY2025 SG&A expenses were $5.7 million (32.7% of net sales), up from $5.3 million (33%) in Q2 FY2024, mainly due to higher personnel and shipping costs.

• Net loss for the first half FY2025 improved to $1.8 million ($0.23 per share) from $3 million ($0.39 per share) in the prior year.

• Cash at April 30, 2025 was $894,000, up from $244,000 at October 31, 2024, mainly due to $2.8 million net cash from operations.

• Sales to international customers increased 27.1% year-over-year in Q2 FY2025; U.S. sales up 4.6%.

Outlook and guidance

• Optimism for the second half of FY2025, with positive industry trends and typical seasonality expected to drive higher sales.

• Management expects current cash flow, cash on hand, and the Revolver to fund operations for at least the next twelve months.

• No specific forward-looking revenue or margin guidance provided.