Sales Performance - Consolidated net sales for Q2 FY2025 increased by 8.9% to $17.5 million compared to $16.1 million in Q2 FY2024[2] - Net sales to international customers rose by 27.1%, while domestic sales increased by 4.6% in Q2 FY2025[3] - For the first half of FY2025, net sales totaled $33.3 million, a 7.5% increase from $31.0 million in the first half of FY2024[8] Profitability - Gross profit for Q2 FY2025 increased by 32.1% to $5.3 million, resulting in a gross profit margin of 30.4%[5][6] - Gross profit for the first half of FY2025 was $10.0 million, up 28.5% from $7.8 million in the first half of FY2024[10] Expenses and Losses - SG&A expenses rose to $5.7 million in Q2 FY2025, compared to $5.3 million in Q2 FY2024[7] - The net loss for Q2 FY2025 was $698,000, or $0.09 per share, an improvement from a net loss of $1.6 million, or $0.21 per share, in Q2 FY2024[7] - The company reported a net loss of $1.8 million for the first half of FY2025, compared to a net loss of $3.0 million in the same period last year[12] Future Outlook - The sales order backlog increased to $7.2 million at the end of Q2 FY2025, up from $6.6 million at the end of Q1 FY2025[3] - Management noted positive industry trends and plans to focus on disciplined execution to drive shareholder value in the second half of the year[13]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ Commission file number 0-27022 (Address of principal executive offices, including zip code) (540) 265-0690 (Registrant' ...

Optical Cable (OCC) Q2 2025 Earnings Call June 05, 2025 11:00 AM ET Speaker0 Good morning, and thank you for joining us for Optical Cable Corporation's Second Quarter Fiscal Year twenty twenty five Conference Call. By this time, everyone should have a copy of the earnings press release issued earlier today. You can also visit www.occfiber.com for a copy. On the call with us today are Neil Wilkin, President and Chief Executive Officer of OCC and Tracy Smith, Senior Vice President and Chief Financial Officer. ...

Group 1 - The Oklahoma Corporation Commission (OCC) has approved Public Service Company of Oklahoma's (PSO) acquisition of the Green Country Power Plant, a 795 MW natural gas-fired facility, to enhance its capacity to meet rising energy demands [1][2] - This acquisition is expected to be finalized by July 2025 and is part of PSO's commitment to provide affordable and reliable energy while supporting economic development in Oklahoma [2][3] - The purchase will not only strengthen grid reliability but also generate local benefits, including increased ad valorem tax revenue that will support Tulsa County schools, public services, and job creation [3] Group 2 - PSO serves nearly 575,000 customer accounts in eastern and southwestern Oklahoma and has approximately 4,400 megawatts of diverse generating capacity, primarily from wind and natural gas [4] - The company operates over 20,000 miles of distribution lines and 3,800 miles of transmission lines, making it one of the largest distributors of wind energy in the state [4] - PSO was recognized with an Emergency Response Award by the Edison Electric Institute in January 2025, highlighting its commitment to service and community [4]

Core Viewpoint - Wells Fargo & Company (WFC) is making progress in resolving regulatory issues, as evidenced by the termination of a 2015 agreement by the Office of the Comptroller of the Currency (OCC), which has positively impacted its stock price and moves the bank closer to lifting its $1.95-trillion asset cap [1][5]. Group 1: Regulatory Progress - The termination of the 2015 agreement is the 13th consent order resolved by Wells Fargo since 2019 and the seventh since the beginning of 2025, indicating a significant step forward in addressing regulatory challenges [2]. - The bank has faced scrutiny from regulators due to scandals, including the creation of millions of unauthorized accounts, leading to a $1.95-trillion asset cap imposed by the Federal Reserve since 2018 [3]. - CEO Charlie Scharf expressed confidence in the bank's regulatory improvements and highlighted ongoing efforts to strengthen compliance, including an annual allocation of $2 billion to enhance risk controls and operational processes [4]. Group 2: Impact of Asset Cap - The termination of the OCC's 2015 consent order brings Wells Fargo closer to lifting the asset cap, with the focus now on the remaining 2018 Federal Reserve board consent order [5]. - The asset cap has hindered the bank's growth potential, particularly affecting loan growth, which is crucial for the bank's asset base [6]. - Lifting the asset cap will enable Wells Fargo to offer loans without restrictions, supporting top-line expansion and positioning the bank for long-term growth [6]. Group 3: Stock Performance - Over the past year, WFC shares have gained 27.3%, compared to the industry's growth of 29.4%, reflecting a positive market response to the bank's regulatory progress [7].

Core Viewpoint - The termination of Wells Fargo's 2021 consent order by the OCC signifies progress in the bank's compliance efforts, marking the 11th consent order closed since 2019, and reflects positively on the bank's management under CEO Charlie Scharf [1][4][9]. Summary by Relevant Sections Consent Order Details - In 2021, the OCC imposed a $250 million fine on Wells Fargo for deficiencies in its home lending loss mitigation program and for failing to comply with a 2018 consent order regarding excessive fees charged to customers [2][3]. Management Remarks - CEO Charlie Scharf expressed satisfaction with the OCC's decision to terminate the consent order, highlighting improvements in the timeframe for closing consent orders compared to historical cases [4]. Compliance Progress - Scharf emphasized the bank's commitment to addressing compliance issues, stating that detailed plans have been developed for each consent order, which regulators have reviewed [5]. Recent Developments - The OCC has recently terminated several consent orders related to Wells Fargo's compliance risk management and legacy practices, indicating a trend towards resolving regulatory issues [6][7]. Future Implications - The termination of consent orders is expected to bolster investor confidence regarding the potential lifting of the $1.95 trillion asset cap imposed in 2018, which would allow Wells Fargo to expand its lending capabilities [8][9]. Stock Performance - Wells Fargo's shares have increased by 28.3% over the past six months, outperforming the industry growth of 13.7% [10].

Financial Performance - Consolidated net sales for Q1 FY 2025 increased by 6.0% to $15.7 million, compared to $14.9 million in Q1 FY 2024[3] - Gross profit rose by 24.6%, or $913,000, to $4.6 million, resulting in a gross profit margin of 29.4% compared to 25.0% in the prior year[5][6] - Net sales to international customers increased by 21.3%, while sales within the U.S. grew by 2.3%[4] - The company recorded a net loss of $1.1 million, or $0.14 per share, an improvement from a net loss of $1.4 million, or $0.18 per share, in Q1 FY 2024[8] Operational Metrics - The sales order backlog increased to $6.6 million from $5.7 million as of October 31, 2024[4] - SG&A expenses increased to $5.5 million, representing 34.7% of net sales, up from 34.3% in the previous year[7] - Total current assets decreased to $28.0 million from $30.6 million as of October 31, 2024[21] - Total liabilities decreased to $18.1 million from $19.5 million, while total shareholders' equity fell to $19.7 million from $20.8 million[21] Market Insights - The company noted strong momentum in enterprise and specialty markets, particularly in military sectors[9] - The company is focused on executing growth strategies and improving operational efficiency to drive long-term value[9]

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2025 increased by 6% to $15.7 million compared to $14.9 million in Q1 2024 [14] - Gross profit increased by 24.6% or $913,000 to $4.6 million in Q1 2025 compared to $3.7 million in Q1 2024 [15] - Gross profit margin improved to 29.4% in Q1 2025 from 25% in Q1 2024 [15] - Net loss for Q1 2025 was $1.1 million or $0.14 per share, compared to a net loss of $1.4 million or $0.18 per share in Q1 2024 [16] Business Line Data and Key Metrics Changes - Net sales in enterprise and specialty markets increased, with sales to customers outside the U.S. rising by 21.3% and sales within the U.S. increasing by 2.3% [14] - Sales order backlog and forward load increased approximately 16% to $6.6 million compared to $5.7 million as of October 31, 2024 [10][14] Market Data and Key Metrics Changes - The company noted improvements in both enterprise and specialty markets, including the military sector [9] - The overall market weakness experienced since fiscal 2023 is beginning to subside, leading to a more optimistic outlook [8][9] Company Strategy and Development Direction - The company is focused on executing growth strategies and operating efficiently to drive results, including gross profit margin expansion [9] - The company is monitoring proposed tariffs and their potential impacts on raw material purchases and exports [12] - The company aims to capitalize on growth opportunities and drive long-term value for customers and shareholders [11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the outlook for 2025 despite experiencing typical seasonality in the first quarter [29][47] - The company has not changed its outlook since the annual report, indicating a positive trend in the industry [29][47] - The demand for communication bandwidth is expected to continue increasing, positively impacting the company [49] Other Important Information - SG&A expenses increased to $5.5 million in Q1 2025 from $5.1 million in Q1 2024, primarily due to higher employee and contracted sales personnel costs [16] Q&A Session Summary Question: Impact of tariffs on the company - Management acknowledged potential impacts from tariffs but does not expect significant effects at this time [21][22] Question: Advantage from Buy America, Built America initiative - Management noted that being U.S.-based could provide a competitive advantage, but they are not solely relying on this for increased sales [23][24][25] Question: Outlook for the company given recent economic changes - Management stated that the outlook has not changed and remains optimistic despite seasonal impacts [29][47] Question: Operational leverage and revenue scenarios - Management discussed the significant operating leverage and its impact on gross profit and margins, with sensitivity to revenue scenarios [34][35] Question: Benefits from AI data center demand - Management confirmed opportunities to benefit from the demand in data centers, including those driven by AI [40][42] Question: New product launches - Management refrained from discussing specific new products but indicated ongoing reviews of new opportunities based on customer needs [44][45] Question: Changes in industry outlook - Management believes the prospects are strong due to increasing demand for communication bandwidth [49]

Optical Cable Corporation (NASDAQ:OCC) Q1 2025 Earnings Conference Call March 10, 2025 11:00 AM ET Company Participants Spencer Hoffman - Investor Relations Neil Wilkin - President & Chief Executive Officer Tracy Smith - Senior Vice President & Chief Financial Officer Conference Call Participants Assaf Nathan - Eden Discovery Operator Good morning. My name is Madison, and I will be your conference operator today. At this time, I would like to welcome you to Optical Cable Corporation's First Quarter of Fisca ...

Financial Performance - Consolidated net sales for the first quarter of fiscal year 2025 increased 6.0% to $15.7 million, compared to $14.9 million for the same period last year[94] - Gross profit increased 24.6%, or $913,000, to $4.6 million in the first quarter of fiscal year 2025, compared to $3.7 million for the first quarter of fiscal year 2024[94] - Gross profit margin increased to 29.4% during the first quarter of fiscal year 2025, compared to 25.0% for the first quarter of fiscal year 2024[94] - Net loss was $1.1 million, or $0.14 per share, during the first quarter of fiscal year 2025, compared to $1.4 million, or $0.18 per share, for the comparable period last year[94] - Loss from operations improved by 39.1% to $(852,000) in the first quarter of fiscal year 2025, compared to $(1,400,000) in the first quarter of fiscal year 2024[96] Expenses - SG&A expenses were $5.5 million during the first quarter of fiscal year 2025, compared to $5.1 million for the same period last year[94] - SG&A expenses as a percentage of net sales were 34.7% during the first quarter of fiscal year 2025, compared to 34.3% during the same period in fiscal year 2024[94] - SG&A expenses rose 7.2% to $5.5 million, representing 34.7% of net sales in Q1 FY 2025, compared to 34.3% in Q1 FY 2024[103] Sales and Market Performance - Net sales to international customers rose 21.3%, while sales in the U.S. increased by 2.3% in Q1 FY 2025 compared to the same period last year[98] - Sales order backlog increased to $6.6 million from $5.7 million as of October 31, 2024[99] Assets and Liabilities - Total assets decreased by 6.3% to $37.8 million as of January 31, 2025, primarily due to a $2.7 million decrease in trade accounts receivable[119] - Total liabilities decreased by 7.4% to $18.1 million, mainly due to a $2.7 million reduction in note payable[120] Cash Flow and Financing - Net cash provided by operating activities was $2.7 million in Q1 FY 2025, compared to net cash used of $261,000 in Q1 FY 2024[126] - The maximum aggregate principal amount subject to the Revolver is $18.0 million, with interest accruing at a rate of 9.0% as of January 31, 2025[135] - As of January 31, 2025, the company had $5.7 million of outstanding borrowings on the Revolver and $3.4 million in available credit[139] - The company anticipates capital expenditures of $1.0 million for the fiscal year 2025, which will be funded from working capital, cash from operations, or borrowings under the Revolver[140] - Future cash flow from operations, cash on hand, and the existing Revolver are expected to be adequate to fund operations for at least the next twelve months[142] - The Revolver has a maturity date of July 24, 2027, and the company believes it will continue to be able to borrow to fund operations[137] - The company has no material commitments for capital expenditures as of January 31, 2025[140] - The company has not experienced any material adverse changes that would trigger an event of default under the Revolver[137] - The Revolver requires a lockbox arrangement for daily cash sweeps to reduce the outstanding balance[137] Company Operations - The company primarily manufactures fiber optic cables at its Roanoke facility, which is ISO 9001:2015 registered[83] - The company offers a broad range of fiber optic and copper data communication products for various markets, including enterprise and harsh environments[81] - OCC's subsidiary Centric Solutions provides cabling and connectivity solutions specifically for the data center market[87] Accounting and Compliance - The company is currently evaluating the impact of new accounting standards issued by the FASB on financial statement disclosures[147][148][149]