Optical Cable Reports Strong Q3 Earnings Amid Supply Constraints
Optical Cable Corporation (NASDAQ:OCC) reported a significant improvement in third-quarter results, with sales rising 22% year over year to $24.3 million and net income reaching $1.9 million or $0.21 per share. The company attributed the growth to strong demand from enterprise, data-center, and specialty markets such as military applications. Gross margin expanded notably to 37.4%, driven by higher production volumes that improved manufacturing efficiencies. Despite robust sales and profitability, Optical Cable faces ongoing supply constraints due to optical-fiber shortages and extended raw-material lead times, which are limiting its ability to scale up production. The company is considering additional investments in equipment and staffing while relying on working capital and a credit revolver for funding operations. Management remains optimistic about the second half of fiscal 2026 but acknowledged potential seasonal effects and longer data-center sales cycles. Backlog levels remain high at $13.5 million, reflecting sustained demand across key markets.
