Company: OCC
Filing Date: 2025-09-11
Form Type: 10-Q
Source: 0001437749-25-028857
Chunk: 36

Company: OPTICAL CABLE CORP
Filing Date: 2025-09-11
Form: 10-Q
Item: Item 1
Chunk 36
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			Gross profit increased 61.2%, or $2.4 million, to $6.3 million in the third quarter of fiscal year 2025, compared to $3.9 million for the third quarter of fiscal year 2024, and increased 18.5% when compared to $5.3 million for the second quarter of fiscal year 2025.

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			Gross profit margin (gross profit as a percentage of net sales) increased to 31.7% during the third quarter of fiscal year 2025, compared to 24.2% for the third quarter of fiscal year 2024, and compared to 30.4% for the second quarter of fiscal year 2025.

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			SG&A expenses were $5.7 million during the third quarter of fiscal year 2025, compared to $5.2 million for the same period last year. SG&A expenses as a percentage of net sales were 28.8% during the third quarter of fiscal year 2025, compared to 32.3% during the same period in fiscal year 2024, and compared to 32.7% during the second quarter of fiscal year 2025.

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			Net income was $302,000, or $0.04 per share, during the third quarter of fiscal year 2025, compared to a net loss of $1.6 million, or $0.20 per share, for the comparable period last year.

Strategic Collaboration and Investment 

On July 7, 2025, Optical Cable Corporation and Lightera, LLC (“Lightera”) announced that the companies had entered into a strategic collaboration agreement to expand product offerings and solutions—especially for the data center and enterprise sectors. As part of this strategic collaboration, OCC and Lightera have combined portions of the product portfolios of both companies to deliver additional integrated cabling and connectivity solution offerings, which will include certain Lightera products being offered and sold by OCC.

In connection with this strategic collaboration, OCC and Lightera entered into a Stock Purchase Agreement (the “Agreement”), under which OCC issued 642,199 redeemable restricted shares of its common stock to Lightera for an aggregate purchase price of $2.0 million, with Lightera holding 7.24% of OCC’s outstanding common shares as of July 7, 2025.

Results of Operations

We sell our products internationally and domestically to our