OCC - Earnings call transcript Q1 2024 | Optical Cable Corporation

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Operator

Good morning. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome you to Optical Cable Corporation's First Quarter of Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Mr. Hoffman, you may begin your conference.

Spencer Hoffman

you. Thank thank of us Call. Fiscal and Corporation's Optical for Quarter First Year you morning, for joining Cable Good XXXX Conference this today. have press should time, of By earnings the a release copy earlier issued everyone

You can for www.occfiber.com also a copy. visit

are Officer. us Executive OCC; Smith, On Tracy President President Vice of Wilkin, today call and Neil the and and Senior with Chief Officer Chief Financial

results forward-looking risks, on uncertainties. this to including, factors limited begin, morning's www.occfiber.com everyone that a today's future contain I'd call. as factors The may of and apply risks like those to remind of Optical These the may statements we release. contents referenced statements and well cautionary as Corporation in involve Before call but not press that due Cable differ to of actual this section materially of webcast forward-looking Internet statements the to, the number

to Neil, that, call Wilkin. please I'll Neil over begin. the turn With

Neil Wilkin

today begin as and Thank first good Spencer, some call answer period review for then Tracy quarter your Tracy's you, few ended as I results the questions XXXX, After we the remarks, morning, will opening additional XX, of can. and will X-month will remarks. the with many January we everyone. detail. a

practice, normal the and institutional Q&A take we investors our is questions As during session. only will from analysts

release call. However, date we the earnings submissions in regarding Instructions also our our announcing our offer of other of such press shareholders included the questions opportunity to and advance submit call. are time in

industry be by and our maintained strong of first pressures market quarter has to uncertainties. position the in impacted the markets as fiscal targeted a macroeconomic year OCC XXXX, various even During continued

and carrier positive of show markets our our relative and our to other that certain of there indicators are we While are markets positioned believe competitors. to enterprise we positively certain signs our softness, markets, including in of continue wireless

our the focused we stand in ready -- its to year. strategies, opportunities relative we fiscal market application. the benefit market XXXX our our environment. We of overall, current both to opportunities capture longstanding geographically executing our and we growth the industry to on improve market Overall, importantly, beginning market remain by does appropriate ensure target to opportunities expect diversification, from adjustments during make OCC and to year and

That reductions our said, implemented we have not others personnel in have industry like done.

this as of Our the areas well opportunities consistent time restraint new planned takes train view expected in operations. to regard of production as our considering is in it personnel with certain our

expenses of due does impact and sold our operating SG&A sales. to goods respect leverage, This relative short-term to approach results to cost both with

positions however, believe improve. longer markets this Importantly, they targeted better we approach term in OCC for as the our

Looking delivering to ahead, efforts our confident users value work and customers for our generate our are for by shareholders. through efficiently, that continued will end we and we

in over call detail quarter turn that, the our will who with I'll financial review results. fiscal of first And additional Tracy, to year XXXX

Tracy Smith

Consolidated for same fiscal million the sales XX.X% of were compared net $XX.X of Neil. you, period $XX.X million, for Thank net decrease XXXX a of the year. to last sales first quarter

net sales in in wireless the quarter to markets XXXX, primarily carrier decrease year. last compared we first period experienced enterprise fiscal the our During a of and same

remained forward of Our levels. backlog XXXX XXXX typical a of more order backlog year year and $XX fiscal year beginning fiscal returned the had level load of at at of $X from first higher-than-typical XXXX, normal beginning first and At the load to XXXX, net backlog the year approximately more more a fiscal benefited fiscal at million. of the sales end quarter forward sales quarter while of during forward sales positively and order comparable order million load of the than sales

our industry. quarter various net and Additionally, macroeconomic pressures, risks were uncertainties for first fiscal impacted negatively by of sales in the XXXX year

including wireless sales of our begin we year our softness, While certain our carrier there positive signs quarter in we net what believe markets, of Overall, the our in first have enterprise expect fiscal markets XXXX. markets. to during are certain show grow and other to of continue seen indicators we to to compared

profit. Turning gross to

XXXX quarter in sales, Our XXXX. million million period gross fiscal of the same XXXX profit first XX.X% last Gross quarter the $X.X in a quarter was gross to of XX% the as percentage to compared compared gross of our margin, year. of of profit fiscal fiscal the in for first first profit $X.X net profit was

as of as impacted over the operating for well manufacturing facilities, quarter margin of by and impact fiscal leverage. products flow profit lower sales the plant were was the volumes impacted lower sales first efficiency of through fewer negatively charges XXXX spread Gross reduced as fixed backlog as lower our

heavily Additionally, basis mix upon our quarterly profit product percentages product margin on are changes gross vary based may mix. and on dependent a in

expenses fiscal fiscal SG&A sales. of quarter expenses million XX.X% as sales were of operating decreased percentage last to XXXX to first of of compared in XXXX, period the same quarter the relative $X.X first in year which to reflects SG&A our the fiscal $X.X first million in a the year. to quarter XXXX net net for compared XX.X% leverage

the quarter decreased personnel-related commissions, due which the SG&A Included employee the sales first decreased costs employee during contracted fiscal and personnel-related The results result employee sales compared of decrease during of in and XXXX expenses are quarter net the of sales to XXXX. the same period in incentives financial year was contracted decreases last costs. year and fiscal primarily to and in first

$XXX,XXX net basic and million fiscal quarter net compared a XXXX. basic income first for $X.XX of diluted the OCC of recorded fiscal XXXX of share the loss first per diluted or of $X.XX for share per $X.X or and to quarter

back the to you, Neil. call I'll that, over With turn

Neil Wilkin

we from if institutional Again, are our it. any or happy call for Angela, and analysts your indicate they are -- please Thank the live have taking investors investors. any answer And only questions to could questions would for Tracy. now, we you if you, questions, institutional I participants them. in to have, appreciate instructions analysts

Operator

are turn this will Wilkin at It I now Neil questions time. Instructions] program appears additional no the over back [Operator remarks. to any for there

Neil Wilkin

by were investors with there submitted Thank earnings questions you, connection Angela. individual Spencer, release? were that in any today's

Spencer Hoffman

do Neil, any advance call have of a the in shareholder. noninstitutional not earnings-related submitted questions we by

turn I'll back over you. it to So

Neil Wilkin

Okay. quarter I'd XXXX our of fiscal to listening thank Great. Well, everyone call. first year for to conference like

As always, appreciate we your time Thank you. investment your and Optical Corporation. Cable in

Operator

conclude program. your Thank today's does This you participation. for

time. You may at any disconnect

Optical Cable (OCC) 13 Mar 242024 Q1 Earnings call transcript