OPTICAL CABLE CORP Q4 FY2024 earnings call

• Entering 2024, OCC faced industry-wide macroeconomic pressures, but by fiscal year 2024 end, weakness began to subside. Fourth quarter 2024 saw growth in net sales, gross profit, gross profit margin, income from operations, and earnings per share compared to the prior year quarter. - OCC chose not to reduce production personnel during lower volumes, positioning it well for future growth. - Key strengths include enviable market positions, brand recognition, industry relationships, extensive industry experience, significant production capacity, broad product offerings, and a diverse geographic footprint.

Consolidated net sales for fiscal year 2024 were $66.7 million, a decrease of 7.6% compared to fiscal year 2023. The fourth quarter of fiscal year 2024 saw net sales increase 12.4% to $19.5 million compared to the same period in fiscal year 2023. Gross profit in fiscal year 2024 was $18.2 million, a decrease of 18.3% from fiscal year 2023, but the fourth quarter of fiscal year 2024 gross profit was $6.5 million, an increase of 68.6% from the prior year. SG&A expenses in fiscal year 2024 were $21.5 million, an increase of 1.3% from fiscal year 2023. OCC recorded a net loss of $4.2 million or $0.54 per basic and diluted share for fiscal year 2024 compared to net income of $2.1 million or $0.26 per basic and diluted share for fiscal year 2023. For the fourth quarter of fiscal year 2024, net income was $373,000 or $0.05 per basic and diluted share compared to a net loss of $1.3 million or $0.17 per basic and diluted share in the prior year quarter.

• Expect growing strength in targeted markets and customer base in 2025. - Focus on driving growth, operating efficiently, and capturing additional opportunities. - Anticipate continued improvement in net sales in 2025 compared to 2024.

• Industry-wide macroeconomic pressures impacted net sales in prior periods. - Restatement of prior period financial statements due to reclassification of revolver balance as a current liability per GAAP.

Q: Given that we are already more than halfway through Q1, could management please comment on current trading and whether it expects typical seasonality patterns in 2025?

A: Of course. We can't forecast exactly what's going to happen in 2025. But typically, the first half of our fiscal year tend to be a little lower than the second half of our fiscal years. And various things can affect that during the year based on order volume or certain orders from customers, but typically, that's how we see our seasonality.