Company: OCC
Filing Date: 2025-09-11
Form Type: 10-Q
Source: 0001437749-25-028857
Chunk: 43

Company: OPTICAL CABLE CORP
Filing Date: 2025-09-11
Form: 10-Q
Item: Item 1
Chunk 43
---
 the same period last year. We can experience fluctuations in sales from quarter to quarter in the various markets (both industries and geographies) in which we operate for various reasons.

At the end of the first nine months of fiscal year 2025, our sales order backlog/forward load was $7.1 million compared to $7.2 million as of April 30, 2025, $6.6 million as of January 31, 2025, and $5.7 million as of October 31, 2024.

Net sales for the first nine months of fiscal year 2025 were positively impacted by general market improvements in our industry overall, as well as in our military and severe duty markets specifically.

Gross Profit

Our gross profit was $16.3 million in the first nine months of fiscal year 2025, an increase of 39.5% compared to gross profit of $11.7 million in the first nine months of fiscal year 2024. Gross profit margin increased to 30.6% in the first nine months of fiscal year 2025 compared to 24.7% in the first nine months of fiscal year 2024.

Gross profit margin for the first nine months of fiscal 2025, when compared to the same period last year, was positively impacted by higher volumes, as fixed charges were spread over higher sales—the impact of operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.

Selling, General, and Administrative Expenses

SG&A expenses increased 8.2% to $16.9 million during the first nine months of fiscal year 2025, compared to $15.7 million for the same period last year. SG&A expenses as a percentage of net sales were 31.8% in the first nine months of fiscal year 2025, compared to 33.2% in the first nine months of fiscal year 2024.

The increase in SG&A expenses during the first nine months of fiscal year 2025 compared to the same period last year was primarily the result of increases in employee and contracted sales personnel-related costs totaling $643,000 and shipping costs totaling $298,000. Included in employee and contracted sales personnel-related costs are compensation costs and sales incentives. Compensation costs increased due to new hires, net of terminations, and certain rate increases. Sales incentives and shipping costs increased primarily due to increases in net sales.

22