Optical Cable Corporation announced financial results for its second quarter ended April 30, 2016. Consolidated net sales for the second quarter of fiscal year 2016 were $16.3 million, down 12.5%.
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This compares to net sales of $18.7 million for the second quarter of fiscal year 2015. Sequentially, net sales increased 16.3% in the second quarter of fiscal 2016, compared to net sales of $14.0 million for the first quarter of fiscal 2016.
Net sales were negatively impacted by a decrease in demand in certain industry market segments, including oil & gas and mining specialty markets, as well as the wireless carrier market, when compared to the same period last year. The strong U.S. dollar also impacted sales outside of the U.S. during the second quarter of fiscal year 2016.
Gross profit was $4.6 million, compared to $5.7 million in the second quarter of fiscal year 2015. Sequentially, gross profit increased 29.9% in the second quarter, compared to the first quarter of fiscal year 2016.
Gross profit margin, or gross profit as a percentage of net sales, was 27.9% in the second quarter of fiscal year 2016, compared to 30.4% in the second quarter of fiscal year 2015, and compared to 24.9% in the first quarter of fiscal year 2016.
SG&A expenses decreased 17.3% to $5.4 million for the second quarter of fiscal year 2016 from $6.5 million for the second quarter of fiscal year 2015. The decrease in SG&A expenses during the second quarter of fiscal 2016 compared to the same period last year was the result of targeted cost reduction efforts across all expense categories.
OCC recorded a net loss attributable to the Company of $983,000, or $0.15 per basic and diluted share, for the second quarter of fiscal year 2016, compared to a net loss attributable to the Company of $490,000, or $0.08 per basic and diluted share, for the second quarter of fiscal year 2015.
Bottom line results were negatively impacted by an increase of $421,000 in income tax expense in the second quarter of fiscal year 2016, compared to the second quarter of fiscal year 2015. ■