Optical Cable Corporation (OCC) swung to a net profit for the quarter ended Oct. 31, 2016. The company has made a net profit of $0.76 million, or $ 0.11 a share in the quarter, against a net loss of $2.96 million, or $0.48 a share in the last year period.
Revenue during the quarter grew 3.35 percent to $17.31 million from $16.75 million in the previous year period. Gross margin for the quarter expanded 583 basis points over the previous year period to 35.87 percent. Operating margin for the quarter period stood at positive 5.19 percent as compared to a negative 4.42 percent for the previous year period.
Operating income for the quarter was $0.90 million, compared with an operating loss of $0.74 million in the previous year period.
Neil Wilkin, president and chief executive officer of OCC, said, "Over the course of the fiscal year, we demonstrated our ability to adjust course in a challenging market environment to position OCC for success. We focused on two categories of initiatives this year - cost reductions and sales, marketing and product initiatives. As a result of our initiatives and the positive impact of seasonality, we achieved success in both of these areas, with a $3.3 million reduction in SG&A expense this year and sequential quarterly improvements in net sales, gross profit, gross profit margin and profitability since the first quarter."
Working capital declines
Optical Cable Corporation has witnessed a decline in the working capital over the last year. It stood at $22.20 million as at Oct. 31, 2016, down 5.57 percent or $1.31 million from $23.50 million on Oct. 31, 2015. Current ratio was at 6.38 as on Oct. 31, 2016, up from 5.17 on Oct. 31, 2015.
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