Optical Cable Corporation Narrows Q1 Loss to $397,500 as Gross Profit Jumps 16%

Optical Cable Corporation, a manufacturer of fiber optic and copper data communication cabling and connectivity solutions, reported a net loss of $397,529 for the three months ending January 31, 2026, down 64% from a loss of $1.1 million in the same quarter a year earlier. The company's operating loss narrowed to $208,295 from $852,352 in the prior-year period. Read more earnings reports.

Gross profit climbed 16% to $5.4 million in Q1 FY2026 from $4.6 million a year earlier, as cost of goods sold held nearly flat at $11.1 million in both periods. The improvement came as the company reduced its operating loss by more than 75%.

Labor and related expenses rose to $3.8 million from $3.7 million, while selling, general and administrative expenses increased to $5.6 million from $5.5 million. The company recorded a tax benefit of $21,463 in the quarter compared to tax expense of $12,067 in the prior-year period.

Cash and equivalents dropped to $125,867 at January 31, 2026, from $237,508 at the end of the prior fiscal year on October 31, 2025. The company generated $1.2 million in cash from operations during the quarter, down from $2.7 million in the year-earlier period.

Total assets declined to $38.8 million from $40.1 million at fiscal year-end October 31, 2025. Accounts receivable fell to $8.1 million from $10.3 million, while inventory rose to $20.9 million from $19.8 million. Property, plant and equipment held steady at $6.6 million.

Total liabilities decreased to $17.7 million from $18.5 million at the prior fiscal year-end. Current liabilities dropped to $16.2 million from $16.9 million. Stockholders' equity rose to $18.1 million from $16.5 million at October 31, 2025, reflecting the smaller quarterly loss.

The company used $1.1 million in cash for financing activities during the quarter, compared to $2.7 million in the year-earlier period. Cash used in investing activities totaled $163,834, up from $75,275 a year ago.

Common shares outstanding decreased to 8,189,399 at quarter-end from 8,227,871 at the prior fiscal year-end. The company reported a loss of $0.05 per share compared to a loss of $0.14 per share in the prior-year quarter, based on weighted average shares of 8.6 million and 7.8 million, respectively.