Financial Data and Key Metrics Changes - Consolidated net sales for Q2 FY2025 increased by 8.9% to $17.5 million compared to $16.1 million in the same period last year, driven by growth in specialty markets [7] - Sequentially, net sales increased by 11.5% from $15.7 million in Q1 FY2025 [7] - Gross profit rose by 32.1% or $1.3 million to $5.3 million in Q2 FY2025, with gross profit margin increasing to 30.4% from 25.1% in Q2 FY2024 [8] - SG&A expenses increased to $5.7 million in Q2 FY2025, but as a percentage of net sales, it decreased to 32.7% from 33% in the prior year [9] Business Line Data and Key Metrics Changes - Sales in specialty markets contributed to the overall net sales growth, while enterprise markets remained stable [7] - Gross profit margin improvements were attributed to production efficiencies from higher volumes and operating leverage [9] Market Data and Key Metrics Changes - The sales backlog increased to $7.2 million at the end of Q2 FY2025, up from $6.6 million at the end of Q1 FY2025 and $5.7 million at the end of Q4 FY2024 [5][8] Company Strategy and Development Direction - The company is focused on disciplined execution and capitalizing on growth opportunities to enhance shareholder value [6] - There is an ongoing evaluation of cable and connectivity offerings to better address customer needs, particularly in Tier two and Tier three data centers [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of FY2025, citing positive trends and an increase in backlog [29] - The company has seen less impact from tariffs compared to competitors, benefiting from having all manufacturing facilities located in the U.S. [31] Other Important Information - The company does not provide forward-looking guidance but has shared insights on market trends and expectations based on historical performance [28] Q&A Session Summary Question: Demand from data centers and growth opportunities - Management clarified that while there is significant demand in the data center market, OCC has not targeted hyperscale data centers but is seeing growth in Tier two and Tier three markets [15][16] Question: Operational leverage potential - Management indicated that operational leverage can be seen in historical results, with fixed costs spread over larger volumes leading to benefits [23][24] Question: Business related to copper vs. fiber - Management stated that fiber constitutes the largest portion of the business, although copper remains significant [26] Question: Update on data centers and opportunities - Management acknowledged ongoing opportunities in data centers, particularly in Tier two and Tier three, and mentioned the addition of loose tube fiber cable products [27] Question: Company outlook compared to previous quarters - Management noted that while they do not provide guidance, they have seen positive trends and backlog increases compared to previous quarters [28][29] Question: Impact of tariffs and Build in America trends - Management confirmed that while tariffs have impacted the company, the effect has been less severe than for others in the industry due to U.S.-based manufacturing [31] Question: Backlog significance - Management explained that the backlog includes all confirmed orders regardless of expected shipment dates, indicating both near-term and future demand [33] Question: Expected sequential revenue growth - Management reiterated that while they do not provide revenue guidance, they typically see stronger sales in the second half of the fiscal year due to seasonality [34] Question: Gross margin at full capacity - Management stated that gross profit margins at full capacity are highly dependent on product mix, making specific predictions difficult [35]