Optical Cable (OCC) - 2025 Q1 - Quarterly Report

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$1.1 million, or $0.14 per share, during the first quarter of fiscal year 2025, compared to$1.4 million, or $0.18 per share, for the comparable period last year[94] - Loss from operations improved by 39.1$(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$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]