Earnings Call Excerpt
Optical Cable Corporation (OCCF)
F2Q08 Earnings Call
June 12, 2008 11:30 am ET
Executives
Neil D. Wilkin, Jr. – President and Chief Executive Officer
Tracy G. Smith – Chief Financial Officer
Andrew Siegel – Director, Investor Relations
Analysts
Craig Bach – The Market’s Edge
Jeff Smith – Thomson Davis
Paul [Benish] – Individual Shareholder
Presentation
Operator
Good morning and welcome to Optical Cable Corporation’s Conference Call. I will now turn the call over to Andrew Siegel.
Andrew Siegel
Good morning and thank you all for participating in Optical Cable Corporation’s Second Quarter Fiscal year 2008 Conference Call. By this time every one should have obtained a copy of the earnings release. If you haven’t, please visit, www.occfiber.com for a copy. On the call with us today is Neil Wilkin, President and Chief Executive Officer of Optical Cable Corporation. Before we begin, I’d like to remind everyone that this call may contain forward-looking statements that involve risks and uncertainties. The actual future results of Optical Cable Corporation may differ materially due to a number of factors including but not limited to those factors set forth in detail in the forward-looking statement section of yesterday’s press release. These cautionary statements apply to the contents of the internet webcast on www.occfiber.com as well as today’s call. Now I’d like to turn the call over to Neil Wilkin. Neil, please begin.
Neil D. Wilkin, Jr.
Good morning everyone. Joining me here today at Optical Cable Corporation’s office is Tracy Smith, our Chief Financial Officer. I’d like to begin the call today with a few opening remarks, then I’ll have Tracy review the second quarter results for the 3-month and 6-month periods ending April 30, 2008, in more detail. After Tracy’s remarks, I’ll provide a few closing comments, and finally we’ll answer as many of your questions as we can. I’d like to note that during the Q&A session, we will, as we normally do, take questions from analysts and institutional investors. Additionally, we will also answer a number of questions from individual investors that were submitted prior to today’s call. As a reminder, when we do offer an opportunity for shareholders to submit questions in advance of our earnings call, we will include instructions regarding such submissions in our press release announcing the date and time of our earnings call as we did for today’s call.
The Optical Cable Corporation team delivered another quarter of strong financial performance for our shareholders. For the fourth consecutive quarter, we experienced increases in our net sales, gross profits, and net income when compared to the same period last year. Net sales increased 21.2% to $13.5 million during the second quarter of fiscal 2008 when compared to the same period last year, and fiscal year to date net sales has increased 28.2% when compared to the same period last year. Also during the second quarter, gross profit as a percentage of net sales increased to 42.6% compared to 36.5% during the same period last year, and during a historically slower part of the year, Optical Cable posted net income of 15 cents per share, exceeding the 14 cents per share and 13 cents per share earned during the first quarter and fourth quarter of fiscal 2007 respectively. Through the second quarter, OCC’s trailing 12-month earnings per share is 51 cents with a 12 times P/E ratio at yesterday’s closing price of $6.10 per share. We are pleased with our financial performance during fiscal year 2008 to date. Our strategies and investments are positively impacting our results as evidenced by year-over-year increases in net sales, gross profits, and net income. We are also pleased that our share prices are beginning to be positively impacted by Optical Cable’s solid performance and outstanding potential for continued shareholder value creation.
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