Date: Thu, 20 Nov 1997 23:48:34 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 18372 Last-modified: Thu, 04 Sep 1997 09:40:03 GMT Optical Cable Corporation - July 1997 Press Releases


August '97 Press Releases

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E-Mail Ken Harber, VP Finance - kharber@occfiber.com
E-Mail Robert Kopstein, President/CEO - kopstein@occfiber.com



August 19, 1997


OCC Reports Record Quarterly Revenues
for Third Quarter


Optical Cable Corporation (NASDAQ:OCCF) today announced that it booked $14.3 million in sales for its third fiscal quarter ended July 31, 1997, a new quarterly record. The previous record of $13.8 million was achieved in last year's fiscal fourth quarter, which ended October 31, 1996. Revenues for the third quarter of 1997 grew 32% from $10.9 million in the third quarter of 1996 and grew 35% sequentially from $10.6 million in the second quarter of 1997.

Optical Cable reported that the month of July was also a record in terms of sales. The Company booked revenues of $5.8 million in the month compared to the previous record of $5.5 million in October 1996.

Commenting on the record revenues, Robert Kopstein, President and Chief Executive Officer said, "We are very pleased to report these strong results, particularly given that the prior records were both achieved in the fourth quarter of 1996, typically our strongest quarter."

In a Dow Jones interview that ran on Friday, August 15, Mr. Kopstein was quoted saying that third quarter revenues "surpassed...internal projections by 5%" and that he is "more than comfortable" with estimates that the company will earn between $0.05 and $0.06 per share in the third quarter. He was further quoted saying that "orders remain strong in the fourth quarter, when sales typically show a 20% growth from the third quarter." Optical Cable plans to report results for its fiscal third quarter ended July 31, 1997 by the end of the month.

Optical Cable Corporation manufactures and markets a broad range of fiber optic cables for "high bandwidth" transmission of data, video and audio communications over moderate distances. Optical Cable Corporation's cables can be used both indoors and outdoors and utilize a tight-buffered coating that protects the optical fiber.

Note: This news release contains certain forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected or forecasted. Such risks and uncertainties include, but are not limited to, those disclosed in the Company's Annual Report and Form 10-K for fiscal year 1996.

To receive additional information on Optical Cable Corporation, via fax, at no charge, dial 1-800-PRO-INFO and enter code OCCF. Or use this link to get an updated OCCF Stock Quote.


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August 15, 1997


Optical Cable CEO Comfortable With 3Q
FY97 Net Views



(Dow Jones - August 15, 1997) Chief Executive Robert Kopstein said he was "very comfortable" with analysts’ earnings estimates of 23 cents a share for the fiscal year because the company is coming off record-high sales in the third quarter and is heading into a fourth quarter that is typically the company’s strongest period.

Such results for the year ending in October would represent 21% earnings growth over fiscal 1996 for the fiber-optic cable maker.

Kopstein also told Dow Jones he is "more than comfortable" with estimates the company will earn between 5 cents and 6 cents a share in the third quarter ended in July.

In fact, he said, those estimates may be conservative.

The company, which posted net income of 5 cents a share in third quarter of 1996, expects to report results for the latest third quarter by the end of the month.

Kopstein said third-quarter sales jumped 32% to $14.2 million from $10.8 million a year ago and were up 34% over the second quarter. That performance surpassed the Roanoke, Va., fiber optical cable manufacturer’s internal projections by 5%.

Furthermore, orders remain strong in the fourth quarter, when sales typically show 20% growth from the third quarter, he said.

The growing demand for fiber-optic cable, particularly for the extra-rugged cable the company makes, has Kopstein expecting improved profitability. At the same time, he sees increased visibility for the company since two research firms recently began covering it.

Also boosting his enthusiasm: Optical Cable’s recently expanded manufacturing plant; the company’s absence of long-term debt; and expectation that selling, general and administrative expenses as a percentage of sales will continue to drop.

The company has been profitable since its inception as an S Corporation in 1987. It went public in April 1996 and posted a 26% operating margin during that fiscal year.

The worldwide market for fiber-optic cable, estimated at $5.9 billion in 1996, is rising about 20% a year, and Optical Cable is focusing on one of the fastest growing segments: supplying cable used over moderate distances (less than 10 miles) to connect local area networks, telephone company local loops and cable TV systems, according to the company and analysts.

Kopstein believes Optical Cable’s rugged, easy-to-install and easy-to-remove cable will allow the company to unseat Seicor, a joint venture between Siemens AG and Corning Inc. (GLW), as the leader in that market.

The cable, which has a coating that protects the optical fiber indoors or outdoors, is for "high bandwidth" transmissions of data, video and audio communications.

To receive additional information on Optical Cable Corporation, via fax, at no charge, dial 1-800-PRO-INFO and enter code OCCF. Or use this link to get an updated OCCF Stock Quote.


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August 15, 1997


CEO Sees Boost From Japan Market Entry



(Dow Jones - August 15, 1997) Optical Cable’s recent break into the Japanese market will buttress sales for commercial and securities applications, Chief Executive Kopstein said. Other markets in the Far East and South America also are fast-growing he said.

International sales accounted for about 27% of the company’s $45 million total for fiscal 1996 and so far this year have comprised nearly a third of sales.

"We’ve been gaining ground internationally, "Kopstein said.

He sees increasing demand for the company’s extra-rugged, or military-style, cable for use in guardless security systems, such as those used in prisons, or by broadcasters, as higher quality pictures and digital transmission become standard.

Optical Cable products have been used in winter and summer Olympics and other sporting events, and national political conventions.

Shares of the company’s thinly-traded stock closed Thursday at 15 - 65 times projected earnings for fiscal 1997. Kopstein, named Virginia’s Entrepreneur of the Year in 1997 for technology in a program sponsored by Ernst & Young, took the company public himself and owns 93% of the 38.6 million shares outstanding.

The stock’s high valuation is one reason Soundview Financial Group analyst Chandan Sarkar, one of two researchers who recently picked up coverage, is recommending a short-term hold on the shares. Optical Cable’s fundamentals, however, have him rating the company a long-term buy.

Anthony Tucker Inc., which began coverage Aug. 7, also issued a buy recommendation and reported a 12-month price target of 18.

The upbeat third quarter expectations is good news after Optical Cable’s second quarter.

Shares hit a 52-weed low of 7 1/8 June 6 after the company reported second-quarter net income fell 5.4% to $1.3 million, or 4 cents a share, from $1.4 million in pro-forma earnings a year ago.

Net Sales in the second quarter rose a 4.5% to $10.6 million but a slowdown in the European market was blamed for a 6.6% drop in international sales.

Kopstein at the time blamed the day’s volatility ( the stock eventually closed at 9, off 7/8, or 9%) on that earnings report and efforts by short sellers to drive share prices down.

Optical Cable has a huge short interest ratio - 967,920 shares as of July 15 with a short interest ratio of 22 days, the 19th highest ratio on the NASDAQ Stock Market. That is, it would take that many days to cover the short interest if trading continued at the average daily volume of the month. In a short sale, the investor sells borrowed shares in hopes of replacing them later at a lower cost and pocketing the difference in price.

The stock recently was up ½ at 15 ½, and the shares have gained more than 66% since hitting the low in June.

For his part, Kopstein still sees the shares as undervalued, saying he expects their price to hit 25 in the near term. "In the entire year since we went public," he said, "I’ve not sold any of my 36 million shares." Several weeks after the company went public at $10 a share, the stock soared to $136, before a 2-for-1 stock split.

To receive additional information on Optical Cable Corporation, via fax, at no charge, dial 1-800-PRO-INFO and enter code OCCF. Or use this link to get an updated OCCF Stock Quote.


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August 1, 1997


Attention: Shareholders in "OCCF"



We are pleased to tell you that the quarter has just been completed with a new quarterly record being set for sales and a new monthly record high for sales was also set in July. Sales for the third quarter was approximately $14.3 million versus $10.86 million in the same period last year and $10.6 million for the second quarter. Business levels continue to strengthen with the fourth quarter typically being our strongest quarter of the year. Please find attached some of our recent press releases for information purposes.

On a more serious note, I have not responded in quite a while on the "Short Interest" in "OCCF". As reported in several earlier press releases, the few large funds that control most of the "Short Interest" continue to manipulate the stock price. It is the value of your stock that they are playing with. Presently they have sold 967,920 shares that they do not own, depressing significantly the value of your shares. Remember, "short interest" selling means that someone has borrowed your shares without your knowledge, then sold them without your knowledge, and is hoping to buy them back cheap and then return them to your account. Several stock brokers have suggested that the only way that we can drive the "Short Interest" manipulators out of "OCCF" is to have all shareholders request their shares back in certificate form. Presently 2.41 million shares are at brokerage firms in street-name and 265,000 shares are in the original stock certificates. If your "OCCF" stock is in an account at your stock brokers office and you wish to assist in eliminating the "Short Interest" manipulators and to increase the value of your shares, please try the following: We shall monitor the process and send out additional newsletters approximately every two weeks so that you can stay informed with how many shares are in certificates versus in street-name at stock broker offices. As the number of shares in street name gradually declines, the "Short Interest" manipulators will be forced to buy back that 967,920 shares. Talk to your friends at home or work and let them watch and see what happens when shareholders take the initiative to drive these underhanded manipulators out of "OCCF". This process might take a little while to complete, so be patient, inform others, and wait for the next update.

For your information, here is an approximate background on when, at what price range, and how much stock the "Short Interest" manipulators have sold to depress the value in "OCCF".

	DATE		NUMBER OF SHARES
	SOLD		  SOLD "SHORT"		PRICE RANGE
        ----------------------------------------------------
	June 1996	   568,000		 $20 to $30
	August 1996	   157,000		 $18 to $20
	September 1996	    30,000		 $16 to $18
	March 1997	    65,000		 $15 to $17
	April 1997	   165,000		 $12 to $13


At what price would you be willing to sell your shares back to these "Short Interest" manipulators? A good question that only you can answer. Remember, it is like you loaning someone a stick to beat you up with and then asking yourself what happened. The "battle" has just begun and with the help of our 6,500 shareholders, victory shall be ever so sweet to you.

Yours truly,

Robert Kopstein, President/CEO

To receive additional information on Optical Cable Corporation, via fax, at no charge, dial 1-800-PRO-INFO and enter code OCCF. Or use this link to get an updated OCCF Stock Quote.


Return to the Press Release Index


E-Mail:

Ken Harber, VP Finance - kharber@occfiber.com
Robert Kopstein, President/CEO - kopstein@occfiber.com


If you or any of your friends or associates would like to read or print a copy of the prospectus, our prospectus is available to download on the internet at the following address:
http://www.occfiber.com/public.pdf

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E-mail: sadams@occfiber.com ............... http://www.occfiber.com

Optical Cable Corporation,
                                         P.O. Box 11967 *   Roanoke, VA 24022-1967 USA,
                              Phone (540) 265-0690 * Fax (540) 265-0724,
                                    Sales Dept. (800) 622-7711