Q4 2024 Optical Cable Corp Earnings Call
Operator: Operator Assistance, please press star zero. Good morning.
Please press Star zero.
[music].
Shelby: Good morning, My name is Shelby and I will be your conference operator today at this time I would like to welcome you to optical cable Corporation's fourth quarter and fiscal year 'twenty 'twenty four earnings conference call. All lines have been placed on mute to prevent any background noise.
Shelby: My name is Shelby and I will be your conference operator today. At this time, I would like to welcome you to Optical Cable Corporation's fourth quarter and fiscal year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise.
Shelby: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If you wish to remove yourself from the queue, please press star 2.
Shelby: After the Speakers' remarks, there will be a question and answer session.
Speaker Change: If you would like to ask a question at that time. Please press star one on your telephone keypad, if you wish to remove yourself from the queue. Please press star two Mr. Hoffman you may begin your conference.
Spencer Hoffman: Mr. Hoffman, you may begin your conference. Thank you and good morning and thank you for joining us for Optical Cable Corporation's fourth quarter and fiscal year 2024 conference call. By this time everyone should have a copy of the earnings press release issued earlier today. You can also visit www.occfiber.com for a copy.
Mr. Hoffman: Thank you.
Mr. Hoffman: Good morning, and thank you for joining us for optical cable Corporation fourth quarter and fiscal year 2024 conference call.
Mr. Hoffman: But as Todd everyone should have a copy of the earnings press release issued earlier today.
Mr. Hoffman: Can also visit www dot FCC fiber dot com for a copy.
Spencer Hoffman: On the call with us today are Neil Wilkin, President and Chief Executive Officer of OCC, and Tracy Smith, Senior Vice President and Chief Financial Officer. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements that involve risks and uncertainty. The actual future results of Optical Cable Corporation may differ materially through a number of factors and risks, including, but not limited to, those factors referenced in the forward-looking statement section of this morning's press release. These cautionary statements apply to the contents of the Internet webcast on www.occfiber.com, as well as today's call.
Speaker Change: On the call with US today are Neil Wilkin, President and Chief Executive Officer of OCC.
Speaker Change: Tracy Smith, senior Vice President and Chief Financial Officer.
Speaker Change: Before we begin I'd like to remind everyone that this call may contain forward looking statements that involve risks and uncertainties.
Speaker Change: Actual future results of optical cable corporation may differ materially due to a number of factors and risks, including but not limited to those factors referenced in the forward looking statements section of this morning's press release.
Speaker Change: These cautionary statements apply to the contents of the Internet webcast on www Dot occ's fiber dot com as well to this call.
Spencer Hoffman: With that, I'll turn the call over to Neil Wilkin.
Speaker Change: With that I'll turn the call over to Yale Welcome Neel. Please begin.
Neil Wilkin: Neil, please begin. Thank you, Spencer, and good morning, everyone. I will begin the call today with a few opening remarks. Tracy will then review the fourth quarter and full year results for the three-month and 12-month periods ended October 31st, 2024, in some additional detail. After Tracy's remarks, we will answer as many of your questions as we can. As is our normal practice, we will only take questions from analysts and institutional investors during the Q&A session. However, as always, we also offer other shareholders the opportunity to submit questions in advance of our earnings call. Instructions regarding such submissions are included in our press release announcing the date and time of our call.
Neel: Thank you Spencer and good morning, everyone.
Neel: I will begin the call today with a few opening remarks.
Neel: Tracy will then review the fourth quarter and full year results for the three month and 12 month periods ended October 31, 2024, and some additional detail.
Speaker Change: After Tracy's remarks, we will answer as many of your questions. As we can as is our normal practice, we will only take questions from analysts and institutional investors during the Q&A session.
Speaker Change: However, as always we also offer other shareholders the opportunity to submit questions in advance of our earnings call.
Speaker Change: Instructions regarding such submissions are included in our press release announcing the date and time of our call.
Neil Wilkin: Entering 2024, OCC's net sales were challenged by industry-wide macroeconomic pressures, which began towards the end of fiscal year 2023 and became more persistent during the year. These pressures impacted many of our targeted markets, particularly our enterprise markets and certain of our specialty markets, including the wireless carrier market. I'm pleased to share that as we ended fiscal 2024 and look forward to 2025 and beyond, the sun is starting to peek through. While OCC's net sales for fiscal year 2024 decreased 7.6 percent to 66.7 million dollars compared to 2023, weakness across our industry has begun to subside.
Speaker Change: Entering 2020 for Occ's net sales were challenged by industry wide macroeconomic pressures, which began towards the end of fiscal year 2023 and became more persistent during the year.
Speaker Change: These pressures impacted many of our targeted markets, particularly our enterprise markets in certain of our specialty markets, including the wireless carrier market.
I'm pleased to share that as we ended fiscal 2024 and look forward to 2025 and beyond the sun starting to peek through.
Speaker Change: Wow Occ's net sales for fiscal year, 2024 decreased seven 6% to $66 $7 million compared to 2023.
Speaker Change: Mix across our industry has begun to subside.
Neil Wilkin: Thanks to strong execution of our growth strategies and our deeply entrenched market position, OCC has experienced a relatively low decline in revenues during this period compared to some of our peers. At the same time, we believe we have also been able to position OCC to capitalize on the opportunities ahead, and we are ready to hit the ground running in the new year. For the fourth quarter of fiscal year 2024, OCC achieved growth across all key measures, net sales, gross profit, gross profit margin, income from operations, and earnings per share, all increased when compared to the fourth quarter of fiscal year 2023.
Thanks to strong execution of our growth strategies and are deeply entrenched market position OCC has experienced a relatively low decline in revenues during this period compared to some of our peers.
Speaker Change: At the same time, we believe we have also been able to physician ACC to capitalize on the opportunities ahead, and we are ready to hit the ground running in the later year.
Speaker Change: For the fourth quarter of fiscal year 2020 for OCC achieved growth across all key measures net sales gross profit gross profit margin income from operations and earnings per share all increased when compared to the fourth quarter of fiscal year 2023.
Neil Wilkin: We increased net sales 12.4% during the fourth quarter of fiscal year 2024 compared to the same period in fiscal 2023 and sequentially increased net sales 20.1% compared to the third quarter of fiscal 2024, making this our third consecutive quarter of sequential net sales growth for the year. OCC's increase in net sales and positive earnings during the fourth quarter of fiscal 2024 demonstrate the disproportionately positive impact of our operating leverage on profitability as production volumes increase. As OCC net sales grow, our gross profit, gross profit margin and profitability also tend to increase at faster rates than net sales.
Speaker Change: We increased net sales at 12, 4% during the fourth quarter of fiscal year 2024, compared to the same period in fiscal 2023 and sequentially increased net sales, 21% compared to the third quarter of fiscal 2020 for making this our <unk>.
Speaker Change: Third consecutive quarter of sequential net sales growth for the year.
Speaker Change: Occ's increase in net sales and positive earnings during the fourth quarter of fiscal 2024 demonstrate the disproportionally positive impact of our operating leverage and profitability as production volumes increase.
Speaker Change: So does he see net sales grow our growth gross profit gross profit margin of profitability also tend to increase at faster rates than net sales.
Neil Wilkin: During fiscal year 2024, gross profit was $18.2 million, a decrease of 18.3% compared to fiscal 2023, while net sales decreased 7.6% in fiscal 2024 compared to 2023. However, during the fourth quarter of fiscal year 2024, OCC achieved a 33.5% gross profit margin. and a disproportionate increase of 68.6% in gross profit in both cases compared to the same period of fiscal year 2023. While our gross profit and gross profit margins can also be impacted by product mix, generally as OCC's net sales production volumes increase, substantial fixed manufacturing costs are spread over higher sales volumes, and importantly, manufacturing efficiencies also tend to increase, particularly for fiber optic cable production.
Speaker Change: During fiscal year 2024, gross profit was $18 $2 million a decrease of 18, 3% compared to fiscal 2023, while net sales decreased 7.6% in fiscal 2024 compared to 2023.
Speaker Change: However, during the fourth quarter fiscal year 2020 for OCC achieved a 33, 5% gross profit margin.
Speaker Change: And a disproportionate increase of 68, 6% and gross profit in both cases compared to the same period in fiscal year 2023.
Speaker Change: While our gross profit and gross profit margins can also be impacted by product mix generally as he sees net sales production volumes increase substantial fixed manufacturing costs are spread over higher sales volumes and importantly.
Speaker Change: Manufacturing efficiencies also tend to increase particularly for fiber optic cable production.
Neil Wilkin: A key differentiator between OCC and our peers has been our decision to forego implementing reductions in production personnel during the periods of lower production volumes. In taking this disciplined approach, we considered our expectations of our future growth opportunities along with the time and resources necessary to train new personnel to the level we and our customers expect. in staying loyal to our principles and to our people. in leaner periods, OCC is ideally positioned to hit the ground running and capture the opportunities ahead. We benefited from this discipline and forward thinking approach in the fourth quarter of 2024, and we expect to continue benefiting from it in fiscal year 2025 and beyond.
Speaker Change: A key differentiator between OCC and our peers and spent Argus decision to forego implementing reductions in production personnel during the periods of lower production volumes.
Speaker Change: Taking this disciplined approach, we considered our expectations about future growth opportunities along with the time and resources necessary to train new personnel to the level, we and our customers expect.
Speaker Change: And staying loyal to our principles and to our people.
Speaker Change: Our periods OCC is ideally positioned to hit the ground running and capture the opportunities ahead.
We benefited from this discipline and forward thinking approach in the fourth quarter of 2024, and we expect to continue benefiting from that in fiscal year 2025 and beyond.
Neil Wilkin: OCC also incurs significant SG&A expenses to maintain and build our competitive strengths, capabilities, and presence in our targeted market. and also incur significant public company costs that are included in SG&A. Many of these expenses are relatively fixed rather than varying with net sales. with OCC benefiting from our SG&A expenses operating leverage as net sales increase. Looking ahead to 2025, we see indications of growing strength in our targeted markets and among our customer base, as well as potential opportunities to expand our product offering. Moving forward, we continue to focus on driving growth, operating efficiently, and identifying and capturing additional opportunities to ensure we are executing for our customers and end users.
Speaker Change: OCC also incur significant SG&A expenses to maintain and build our competitive strengths and capabilities and presence in our targeted markets.
Speaker Change: And also in car.
Speaker Change: Significant public company costs that are included in SG&A.
Speaker Change: Many of these expenses are relatively fixed rather than bearing the next sales with OCC benefiting from our SG&A expenses operating leverage as that sales increase.
Looking ahead to 2025, we.
Speaker Change: We see indications of growing strength in our targeted markets and among our customer base as well as potential opportunities to expand our product offerings.
Speaker Change: Moving forward, we continue to focus on driving growth operating efficiently and identifying and capturing additional opportunities to ensure we are executing at all.
Speaker Change: Executing for our customers and end users.
Neil Wilkin: As we continue to drive sales, we are confident our significant operating leverage with respect to manufacturing costs and SG&A costs enable us to generate increased profitability and long-term value for shareholders. OCC remains committed to leveraging our core strengths and capabilities to offer top-tier products and application solutions to our customers and to compete successfully against much larger competitors. The OCC team is proud of its strengths and capabilities that have differentiated OCC for over 41 years of being a leading company in the fiber optic industry.
Speaker Change: As we continue to drive sales, we are confident our significant operating leverage with respect to manufacturing.
Speaker Change: Costs, and SG&A cost enable us to generate increased profitability and long term value for shareholders.
Speaker Change: OCC remains committed to leveraging our core strengths and capabilities to offer top tier products and application solutions to our customers and to compete successfully against much larger competitors.
Speaker Change: The OCC team is proud of its strengths and capabilities that are differentiated OCC for over 41 years of being a leading company in the fiber optic industry.
Neil Wilkin: I would like to highlight a few of those for you today. First, our enviable market positions, brand recognition, and industry relationships with loyal customers, decision makers, and end users across a broad range of targeted markets. Next, our extensive industry experience and expertise, our engineering, sales, business development teams are well respected for their deep product and application experience and expertise, which enables OCC to create its portfolio of innovative, high-performance products and associated intellectual property. Additionally, OCC has significant available production capacity at our facility. Supported by knowledgeable and experienced manufacturing quality and engineering team. OCC possesses an incredible, broad, and varied offering of fiber optic and copper cabling and connectivity products and solutions.
Speaker Change: I would like to highlight a few of those for you today.
Speaker Change: First our enviable market positions brand recognition and industry relationships with loyal customers decision makers and end users across a broad range of targeted markets.
Speaker Change: Next our extensive industry experience and expertise our engineering sales and business development teams are well respected for their deep product and application experience and expertise, which enables us to create a portfolio of innovative high performance products and associated intellectual.
Speaker Change: <unk>.
Speaker Change: Additionally, OCC has significant available production production capacity at our facilities supported by knowledgeable and experienced manufacturing quality and engineering teams.
OCC possesses an incredible broad and varied offering.
Speaker Change: Fiber optic and copper cabling and connectivity products and solutions that enable us to deliver products and solutions.
Neil Wilkin: that enable us to deliver products and solutions. that meet the unique needs of our customers and end users in our various target markets. and we also take pride in our broad and diverse geographic footprint. where currently we sell our products and solutions to customers in approximately 50 countries every year. And this is just a few of the reasons why FCC holds such a strong position in our targeted market. are immensely proud of the OCC's teams. accomplishment this past year, and grateful for their hard work, particularly given the macroeconomic weakness that has impacted our industry for more than a year.
Speaker Change: Meet the unique needs of our customers and end users in our various target markets.
Speaker Change: And we also take pride in our broad and diverse geographic footprint.
Speaker Change: We're currently we sell our products and solutions to customers and approximately 50 countries every year.
Speaker Change: And this is just a few of the reasons why FCC holds such a strong position in our targeted markets.
Oh actually proud of the Occ's teams.
Speaker Change: Accomplishments this past year and grateful for their hard work, particularly given the macroeconomic weakness that has impacted our industry for more than a year.
Neil Wilkin: Their commitment to serving our customers and end users with OCC's suite of mission-critical solutions will continue to drive our success. We remain committed to identifying growth opportunities and executing our strategies and initiatives to grow and create long-term value for our shareholders.
Speaker Change: Their commitment to serving our customers and end users with OCC suite of mission critical solutions, we will continue to drive our success.
Speaker Change: We remain committed to identifying growth opportunities and executing our strategies and initiatives to grow and create long term value for our shareholders.
Tracy Smith: And with that, I'll turn the call over to Tracy, who will review in additional detail our fourth quarter and fiscal year 2024 financial Thank you, Neal. Consolidated net sales for fiscal 2024 were $66.7 million, a decrease of 7.6% compared to $72.2 million for fiscal 2023, with sales decreases experienced in both the company's enterprise and specialty markets, including the wireless carrier market. Our net sales were negatively impacted by industry-wide macroeconomic pressures in fiscal year 2024, which began to impact the company's net sales during fiscal year 2023 and continued through the third quarter of fiscal 2024.
Tracy Smith: And with that I'll turn the call over to Tracy.
Tracy Smith: The review and additional detail, our fourth quarter and fiscal year 2024 financial results. Thank you Neil.
Tracy Smith: Consolidated net sales for fiscal 2024 were $66 $7 million, a decrease of seven 6% compared to $72 $2 million for fiscal 2023 with sales decreases experienced in both the company's enterprise and specialty markets.
Tracy Smith: The wireless carrier market.
Tracy Smith: Our net sales were negatively impacted by industry wide and macro economic pressures in fiscal year, 2024, which began to impact the company's net sales during fiscal year 2023, and continued through the third quarter of fiscal 2024.
Tracy Smith: Consolidated net sales for the fourth quarter of fiscal 2024 increased 12.4% to $19.5 million compared to $17.3 million for the same period last year. OCC experienced increases in net sales in both its enterprise and specialty markets. As Neil mentioned, our quarterly net sales sequentially increased 20.1% during the fourth quarter of fiscal year 2024 compared to the third quarter. We achieved higher sequential net sales each quarter since the first quarter of fiscal year 2024, and we believe opportunities to improve net sales will continue during fiscal year 2025 compared to fiscal year 2024.
Tracy Smith: Consolidated net sales for the fourth quarter of fiscal 2024 increased 12, 4% to $19 $5 million compared to $17 $3 million for the same period last year.
Tracy Smith: OCC experienced increases in net sales impact of enterprise and specialty markets.
As Neil mentioned, our quarterly net sales sequentially increased 21% during the fourth quarter of fiscal year 2024, compared to the third quarter, we achieved higher sequential net sales each quarter since the first quarter of fiscal year 2024, and we believe opportunities to improve net sales will continue.
Tracy Smith: During fiscal year 2025, compared to fiscal year 2024.
Tracy Smith: Turning to gross profit, gross profit was $18.2 million in fiscal 2024, a decrease of 18.3% compared to $22.3 million in fiscal 2023. Gross profit margin was 27.3% in fiscal 2024 compared to 30.9% in fiscal 2023. Gross profit margin for fiscal 2024 was impacted by lower production volumes, resulting in fixed charges being spread over lower net sales, as well as decreased plant efficiency as lower production volumes impacted the flow of products through our manufacturing facility. both of which were effective operating. The variability of our gross profit margin in any quarter also reflects changes in product Our gross profit increased 68.6% to $6.5 million in the fourth quarter of fiscal 2024, compared to $3.9 million for the same period last year, as a result of production efficiencies created by increased volumes and the resulting positive impact of our operating level.
Tracy Smith: Turning to gross profit gross profit was $18 $2 million in fiscal 2024, a decrease of 18, 3% compared to $22 $3 million in fiscal 2023.
Tracy Smith: Gross profit margin was 27, 3% in fiscal 2024 compared to 39% in fiscal 2023.
Tracy Smith: Gross profit margin for fiscal 2024 was impacted by lower production volumes, resulting in fixed charge is being spread over lower net sales as well as.
Tracy Smith: Decreased plant efficiency as lower production volumes impacted the flow of product through our manufacturing facility.
Tracy Smith: Both of which were effects of operating leverage the variability of our gross profit margin in any quarter also reflects changes in product mix.
Tracy Smith: Our gross profit increased 68, 6% to $6 $5 million in the fourth quarter of fiscal 2024 compared to $3 $9 million for the same period last year.
Tracy Smith: After production efficiencies created by increased volumes and the resulting positive impact of our operating leverage.
Tracy Smith: Gross profit margin or gross profit as a percentage of net sales was 33.5% in the fourth quarter of fiscal 2024 compared to 22.4% in the fourth quarter of fiscal 2023.
Tracy Smith: Gross profit margin or gross profit as a percentage of net sales was 35 33, 5% in the fourth quarter of fiscal 2024 compared to 22, 4% in the fourth quarter of fiscal 2023.
Tracy Smith: SG&A expenses increased 1.3% to $21.5 million during fiscal year 2024 from $21.2 million in fiscal year 2023. SG&A expenses as a percentage of net sales were 32.2% in FY2024 compared to 29.4% in FY2023. SG&A expenses were $5.9 million in the fourth quarter of fiscal year 2024 compared to $5.1 million for the same period last year. XG&A expenses as a percentage of net sales were 30% in the fourth quarter of fiscal 2024 compared to 29.7% in the fourth quarter of fiscal 2023. The increase in FD&A expenses during the fourth quarter and fiscal year 2024 compared to the same period last year was primarily the result of increases in employee and contracted sales personnel related costs.
Tracy Smith: SG&A expenses increased one 3% to $21 $5 million during fiscal year 2024 from $21 $2 million in fiscal year 2023.
Tracy Smith: SG&A expenses as a percentage of net sales were 32, 2% in fiscal 2024 compared to 29, 4% in fiscal 2023.
Tracy Smith: SG&A expenses were $5 $9 million in the fourth quarter of fiscal year 2024, compared to $5 $1 million for the same period last year.
Tracy Smith: SG&A expenses as a percentage of net sales were 30% in the fourth quarter of fiscal 2024 compared to 29, 7% in the fourth quarter of fiscal 2023.
Tracy Smith: The increase in SG&A expenses during the fourth quarter and fiscal year 2024, compared to the same periods last year was primarily the result of increases in employee and contracted sales personnel related call.
Tracy Smith: OCC recorded a net loss of $4.2 million or $0.54 per basic and diluted share for fiscal year 2024 compared to net income of $2.1 million or $0.26 per basic and diluted share for fiscal year 2023. For the fourth quarter of fiscal 2024, OCC recorded net income of $373,000, or $0.05 per basic and diluted share, compared to a net loss of $1.3 million, or $0.17 per basic and diluted share for the fourth quarter of fiscal 2023.
Tracy Smith: OCC recorded a net loss of $4 $2 million or 54 cents per basic and diluted share for fiscal year 2024, compared to net income of $2 $1 million or 26 cents per basic and diluted share for fiscal year 2023.
Tracy Smith: For the fourth quarter of fiscal 2020 for ACP recorded net income of $373000 or five cents per basic and diluted share compared to a net loss of $1 $3 million or 17 cents per basic and diluted share for the fourth quarter of fiscal 2023.
Tracy Smith: Sure.
Tracy Smith: Earlier today, we filed a Form 8K regarding the correction of a misclassification of the outstanding balance under our revolving credit agreement on our balance sheet for fiscal year 2023 and various interim periods. After reviewing relevant portions of the Financial Accounting Standards Board Accounting Standards Codification, as well as a review of various non-authoritative interpretations and guidance authored by certain major U.S. accounting firms, we determined that generally accepted accounting principles, or GAAP, required us to classify our revolver balance as a current liability rather than a non-current liability as it had been previously classified. As a result, and as reflected in the Form 8K we filed this morning regarding the correction of this revolver balance misclassification, we have restated certain of our prior period financial statements.
Tracy Smith: Earlier today, we filed a form 8-K regarding the collection of a misclassification of the outstanding balance under our revolving credit agreement on our balance sheet for fiscal year 2023, and various interim period.
Tracy Smith: After reviewing relevant portions of the financial accounting standards Board accounting standards codification as well as a review of various non authoritative interpretations and guidance authored by certain major U S. Accounting firms, we determined that generally accepted accounting principles or GAAP required us to classify our revolver balance.
Tracy Smith: And as a current liability rather than non current liability as it had been previously classified.
As a result and as reflected in the form 8-K, we filed this morning regarding the correction of this revolver balance and the classification, we have restated certain of our prior period financial statements.
Tracy Smith: The impact on the prior period financial statements of this corrected revolver balance classification is described in more detail in our Form 8K filed today and also in our consolidated financial statements for fiscal year 2024, including Note 20 to those financial statements included in our annual report on Form 10K for fiscal year 2024, which we plan to file with the SEC later today. This prior classification did not have any effect on our previously reported total assets, total liabilities, or total shareholders' equity. Further, the prior classification did not have any effect on our previously reported consolidated statements of operations, consolidated statements of shareholders' equity, or consolidated statements of cash flows.
Tracy Smith: The impact on the prior period financial statements in best corrected revolver balance classification is described in more detail in our form 8-K filed today and also in our consolidated financial statements for fiscal year 2020 for concluding note 20 today's financial statements included in our annual report.
Tracy Smith: Port on Form 10-K for fiscal year, 2020 for which we plan to file with the SEC later today.
Tracy Smith: The prior classification did not have any effect on our previously reported title assets to liabilities, our kettle shareholders' equity.
Tracy Smith: Further the prior classification did not have any effect on our previously reported consolidated statements of operations consolidated statements of shareholders' equity our consolidated statements of cash flows.
Tracy Smith: There also was no impact on any covenants with lenders for the periods impacted as our borrowing arrangements do not include financial covenants that would be impacted by the classification of the revolver. and importantly nothing has changed with respect to our revolver agreement or with respect to the relationship with our lender. This is simply a reclassification of our revolver balance pursuant to GAAP.
Tracy Smith: Theyre also with no impact on any covenants with lenders for the periods impacted as our borrowing arrangements do not include financial covenants that would be impacted by the classification of the revolver.
Tracy Smith: And importantly, nothing has changed with respect to our revolver agreement are with respect to the relationship with our lender.
Tracy Smith: Simply a reclassification of our revolver balance pursuant to GAAP.
Tracy Smith: The term of OCC's revolver remains unchanged ending July 24, 2027 unless otherwise renewed.
Tracy Smith: The Occ's revolver remains unchanged ending July 24, 2027, unless otherwise renewed.
Neil Wilkin: With that I will turn the call back over to you Neal. Thank you, Tracy. And now, if any analysts or institutional investors have any questions, we're happy to answer them.
Tracy Smith: With that I will turn the call back over to your email.
Tracy Smith: Thank you Tracy.
Tracy Smith: And now if any analysts or institutional investors have any questions, we're happy to answer them.
Shelby: Shelby, if you could please indicate the instructions to our participants to call in any questions they may have, I would appreciate it. Again, we are only taking live questions from analysts and institutional investors.
Speaker Change: <unk> if you could please indicate the instructions to our.
Participants to call in any questions. They may have I would appreciate it again, we are only taking live questions from analysts and institutional investors.
Shelby: And at this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may withdraw your question at any time by pressing star 2. We will pause a moment to allow questions to queue. And again, that is star and one to ask a question.
Speaker Change: And at this time, if you'd like to ask a question. Please press star one on your telephone keypad you may withdraw your question at any time by pressing star too, we will pause a moment to allow questions to queue.
Speaker Change: And again that is star and one to ask a question.
Shelby: And I'm sure we have no questions in the queue at this time.
Speaker Change: And I'm showing we have no questions in the queue at this time.
Neil Wilkin: Thank you, Shelby. Spencer, I know we have at least one question submitted by an individual investor in advance. If you don't mind reading that, we're happy to respond. We do, thanks, and we have one question, and it is, given that we are already more than halfway through Q1, could management please comment on current trading and whether it expects typical seasonality patterns in 2025? Sure, so as we've talked about in our filings previously and continue to say, we do experience seasonality in our industry. Well, it's not always the case.
Shelby: Thank you Shelby.
Speaker Change: Spencer I know we have at least one question submitted by an individual investor in advance if you don't mind or even not we're happy to respond.
Shelby: We do think we have one question.
Speaker Change: Even though we are already appointed halfway through Q1 could management. Please comment on current trading and whether you expect typical seasonality patterns in 2025.
Speaker Change: Sure So as we've talked about in our filings previously.
Speaker Change: And continue to say.
Speaker Change: We do experience seasonality in our industry.
Speaker Change: While it is not always the case generally we think of seasonality.
Operator: Generally, we think of Susan as a We are experiencing technical difficulties, please remain on the line. And pardon the interruption, the phone line is connected.
Speaker Change: Okay.
We are experiencing technical difficulties. Please remain on the line.
Speaker Change: Yes.
Speaker Change: And pardon the interruption if your line is connected please continue with your conference.
Shelby: Please continue with your conference. Okay, thank you, Shelby.
Shelby: Thank you Shelby for some reason, we got disconnected so I am not sure what we let off the left off Spencer.
Neil Wilkin: For some reason, we got disconnected, so I'm not sure where we left off. Spencer, I heard the question. was my answer to my question, or is there anything I need to continue?
<unk> the question.
Shelby: With my answers or is there anything I need to continue.
Neil Wilkin: It didn't complete.
Neil Wilkin: Maybe we can tee it up and I'll ask the question again and we can jump back into it. So the question for everybody was, given that we are already more than halfway through Q1, could management please comment on current trading and whether it expects typical seasonality pattern in 2025? Of course, so. We can't forecast exactly what's going to happen in 2025, but typically the first half of our fiscal years tend to be a little lower than the second half of our fiscal years, and various things can affect that. during the year based on order volume or certain orders from customers, but typically that's how we see our seasonality.
Shelby: It Didnt complete maybe we can tee it up and I'll ask the question again, and we can you can you can jump back into it. So the question for everybody was.
Shelby: Given that we are already more than halfway through Q1 could management. Please comment on current <unk>.
Shelby: And whether it expect typical seasonality pattern in 2025.
Shelby: Of course so.
Shelby: Sure.
Shelby: We can't we can't forecast exactly what's going to happen in 2025, but typically the first half of our fiscal years tend to be a little lower than the second half of our fiscal years end.
Shelby: Various things can affect that.
Shelby: During the year based on order volume or certain orders from customers, but typically that's how we see our seasonality.
Neil Wilkin: Thank you Neil, that was the only question. Okay.
Shelby: That was the only question.
Shelby: Okay.
Neil Wilkin: Well, I'm sorry for the listeners for the the interruption, I'm not sure what happened. In any event, I would like to thank everyone for listening to our fourth quarter of fiscal year 2024 conference call today. As always, we appreciate your time and your investment and interest in Optical Cable Corporation.
Shelby: Oh I'm sorry for the other listeners for the.
Shelby: The interruption not sure what happened.
Shelby: In any event I would like to thank everyone for listening to our fourth quarter and fiscal year 2024 conference call today as always we appreciate your time and your investment and interest in optical cable Corporation.
Neil Wilkin: We at OCC hope you and your families have a wonderful holiday season and a happy new year.
Shelby: We at SCC Hope you and your families have a wonderful holiday season, and a happy new year.
Operator: And again, thank The conference has concluded. Thank you for your participation.
Shelby: And again thank you.
The conference has concluded. Thank you for your participation you may now disconnect.
Operator: You may now disconnect.
Shelby: Mhm.
Shelby:
Shelby: Okay.
Shelby: [music].
Shelby: Okay.
Shelby:
Shelby: Okay.
Shelby: Okay.
Shelby: Okay.
Shelby: Okay.
Shelby: [music].
Shelby: Okay.
Shelby: Uh huh.
Shelby: Okay.
Shelby: Yes.
Shelby: Okay.
Shelby: Okay.
Shelby: Okay.
Shelby: [music].
Shelby: Yes.
Shelby: [music].
Uh-huh.
[music].
Shelby: Uh huh.
Shelby: [music].
Hi.
Shelby: Uh-huh.
Shelby: [music].
Okay.
Shelby: [music].
Shelby: Hum.
Shelby: [music].
Shelby: Uh-huh.
Shelby: Uh-huh.
Shelby: [music].
Shelby: Okay.
[music].
Shelby: Okay.
Shelby: Thanks.
Shelby: Hey, Matt.
Shelby: Oh.
Shelby: Okay.
Shelby: [music].
Shelby: Okay.
Shelby: [music].
Shelby: <unk>.
Shelby: [music].