Friday, March 19, 2010
Optical Cable sees losses in 1st quarter
The latest from The Ticker blog
Optical Cable Corp. lost nearly $2 million during fiscal 2009, and that losing trend continued through the Roanoke County-based company's first quarter ended Jan. 31.
During its first three months of fiscal 2010, Optical Cable lost $316,000, or 5 cents per share. But first quarter 2009 was worse. During that period, the company lost $742,000, or 12 cents per share.
Thus, during a conference call Thursday, Neil Wilkin, Optical Cable's president and chief executive officer, emphasized "improving results of operations." But he said earnings might not improve until the second half of fiscal 2010. The company employs 334, including about 200 people based in Roanoke County.
Wilkin said Optical Cable's results, similar to others in the industry, tend to lag recoveries that follow recessions.
Optical Cable has been acquiring or investing in companies deemed compatible with the high-tech manufacturer's goal of meeting customer demand for more than just a spool of fiber-optic cable. It has added products that include connectors and copper cable.
According to Wilkin, related expenses of acquisitions, investments and consolidations, combined with a global recession, have hurt earnings.
In June 2008, the company announced it had acquired SMP Data Communications. In November, Optical Cable announced it had acquired Applied Optical Systems.
On Thursday, Optical Cable stock, which trades on the Nasdaq exchange, closed at $3.05, down 11 cents.
