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Optical Cable Corp. (OCCF) Reports Slight Third Quarter Earnings Decline on 40% Sales Increase

Optical Cable Corporation (OCCF), a manufacturer of fiber optic cables, reported third quarter 2008 financial results this afternoon after the close. Revenues jumped 40.4% to $16.4 million compared to $11.7 million for the same period in 2007. Excluding the impact of the acquisition of SMP Data Communications on May 30, 2008, revenues would have been $13.1 million, demonstrating an organic growth rate of 11.7%. Gross profit increased 31.8% to $6.2 million, up from $4.7 million in the third quarter of fiscal 2007. Net income fell 10% to $482,000, or 8 cents per share, compared to $538,000, or 9 cents per share, for the comparable period last year. No analysts currently cover the stock.

“We are pleased that Optical Cable continues to show significant net sales growth both in our U.S. and international markets despite weakness in the global economy,” said Neil Wilkin, President and CEO of Optical Cable. “This marks the fifth consecutive quarter in which Optical Cable has increased net sales and gross profit compared to the same period in the prior year. The acquisition of SMP Data Communications has enabled Optical Cable to offer an integrated suite of cabling and connectivity solutions which, together with our other strategic and marketing initiatives, position Optical Cable for strong financial performance and shareholder value creation.”

Shares of OCCF closed at $5.80 today and have traded in a 52-week range of $3.31 – $7.45. With 6 million shares outstanding, OCCF has a market cap of $35 million and a trailing twelve-month P/E of 11.6. OCCF has shareholders’ equity of $34.7 million.

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