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Optical Cable shares jump double digits on strong revenue growth in fiscal second quarter

Last updated: 15:21 11 Jun 2018 EDT, First published: 14:58 11 Jun 2018 EDT

Fiber optic
The company provides cables for telecommunication companies and the US military

Optical Cable Corporation (NASDAQ:OCC) released its second fiscal quarter results early Monday, reporting strong revenue growth.

The cable manufacturer reported earnings of US$0.18 on net sales of US$26.9mln compared with an earnings loss of US$0.04 per share on net sales of US$15.8mln in the previous year’s second quarter. The company does not currently have analyst coverage for earnings estimates.

The company manufacturers fiber optic cables for telecommunications companies in the US and China. Optical Cable also provides cable technology to the US military.

"Our strategic focus is on sales and marketing initiatives in targeted markets to drive sales, as well as increasing operational efficiency.  We are optimistic that our success in both of these areas will positively impact our bottom line and enable us to deliver enhanced shareholder value," said CEO Neil Wilkin in a press release.

READ: Small-Cap Snapshot: Genworth Financial jumps after regulators OK takeover by China Oceanwide

The company credits its increase in sales during the first half of the fiscal year to orders from a "large customer." As the company continues to fulfill the orders, it will have a positive impact on net sales in the third quarter. However, net sales in the third quarter are expected to be lower than the second quarter due to a backlog.

Shares of Optical Cable jumped more than 12% to US$3.40 in Monday afternoon trading.

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