Optical Cable Corp (OCC) 2026 Q3 法說會逐字稿

Good morning, everyone. My name is Bo, and I will be your conference operator today. At this time, I would like to welcome you to Optical Cable Corporation's third-quarter of fiscal year 2026 earnings conference call.

各位早安。我叫 Bo，今天將擔任本次電話會議的接線員。此刻，我謹代表公司歡迎各位參加 Optical Cable Corporation（光纜公司）2026 會計年度第三季財報電話會議。

(Operator Instructions)

（接線員指示）

With that, Ms. Felix, you may begin your conference.

那麼，Felix 女士，您可以開始會議。

Good morning and thank you for joining us for Optical Cable Corporation's third-quarter of fiscal year 2026 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. On the call with us today are Neil Wilkin, President and Chief Executive Officer of OCC; and Tracy Smith, Executive Vice President, and Chief Financial Officer.

各位早安，感謝各位參加 Optical Cable Corporation 2026 會計年度第三季電話會議。此時，各位應已收到公司今日稍早發布的財報新聞稿副本。您也可以造訪 www.occfiber.com 取得副本。今天與我們一同出席電話會議的有：OCC 總裁兼執行長 Neil Wilkin，以及執行副總裁兼財務長 Tracy Smith。

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements that involve risks and uncertainties. The 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. These cautionary statements apply to the contents of the Internet webcast on www.occfiber.com, as well as today's call.

在開始之前，我想提醒各位，本次電話會議可能包含涉及風險與不確定性的前瞻性陳述。由於多項因素與風險，Optical Cable Corporation 未來的實際結果可能與前瞻性陳述有重大差異，包括但不限於今日上午新聞稿中「前瞻性陳述」段落所提及的因素。這些警示性聲明同樣適用於 www.occfiber.com 的網路直播內容，以及今天的電話會議。

With that, I'll turn the call over to Neil Wilkin. Neil, please begin.

那麼，我將把電話會議交給 Neil Wilkin。Neil，請開始。

Thank you, Caroline, and good morning, everyone. I will begin the call today with a few opening remarks. Tracy will then review the third-quarter results for the three month and nine month periods ended July 31, 2026, 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 -- take live questions from analysts and institutional investors during the Q&A session.

謝謝你，Caroline，各位早安。今天我將先做幾點開場說明。接著 Tracy 會就截至 2026 年 7 月 31 日止三個月與九個月期間的第三季業績，提供更進一步的細節。Tracy 發言後，我們將盡可能回答各位的問題。依照我們一貫作法，我們只會在問答環節接受分析師的提問——並在問答環節接受分析師與機構投資人的現場提問。

However, 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. I will say that today, we got more questions than we typically would get on a quarter from individual investors. We'll answer as many of those as we can. And then when we get to the Q&A for institutional investors, please limit your questions to things that were not addressed by the questions from the individual shareholders, and we'll be limiting the questions we'll take from institutional investors to one question per person. With that, we'll begin.

不過，我們也提供其他股東在財報電話會議前預先提交問題的機會。關於提交方式的說明，已包含在我們公告本次電話會議日期與時間的新聞稿中。我想說的是，今天我們收到的個人投資人提問數量，比一般單季通常收到的更多。我們會盡可能回答其中的問題。接著進入機構投資人的問答時，請將問題限制在個人股東提問未涵蓋的事項；同時，我們也會將機構投資人每人可提問的問題數限制為一題。那麼，我們開始。

Following a solid start to the year, we continued to build on OCC's strong growth and momentum during the third-quarter of fiscal year 2026, delivering year-over-year increases of net sales, gross profit, and net income. Net sales increased 22% to $24.3 million and gross profit increased 43.9% to $9.1 million during the third-quarter. Our net sales increase was largely driven by strong demand in OCC's enterprise, data center, and specialty markets. Our strong gross profit results during the third-quarter and also fiscal year-to-date continue to demonstrate the benefit of OCC's manufacturing operating leverage.

在本年度有一個穩健的開局之後，我們在 2026 會計年度第三季持續延續並強化 OCC 強勁的成長與動能，實現淨銷售額、毛利與淨利的年增。第三季淨銷售額成長 22% 至 2,430 萬美元，毛利成長 43.9% 至 910 萬美元。我們的淨銷售額成長主要由 OCC 的企業、資料中心與特殊應用市場的強勁需求所帶動。第三季以及本會計年度迄今的強勁毛利表現，持續展現 OCC 製造營運槓桿所帶來的效益。

As our production volumes increase, our fixed manufacturing costs are spread over higher sales volumes and manufacturing efficiencies also tend to increase. As of the end of the third-quarter, our sales order backlog and forward load stood at $13.5 million.

隨著產量提升，我們的固定製造成本可分攤至更高的銷售量上，而製造效率也往往會提高。截至第三季末，我們的銷售訂單積壓（backlog）與前置負荷（forward load）為 1,350 萬美元。

We are now in the last quarter of our fiscal year, and we are confident in OCC's ability to build on our momentum and capitalize on the opportunities ahead. At the same time, we continue to explore opportunities to further strengthen OCC's capabilities and support long-term growth. As always, we remain focused on delivering exceptional service to our customers and end users and driving sustainable value creation for our shareholders.

我們現在已進入本會計年度最後一季，並對 OCC 能夠延續動能、把握未來機會充滿信心。同時，我們也持續探索進一步強化 OCC 能力、支持長期成長的機會。一如既往，我們仍專注於為客戶與終端使用者提供卓越服務，並為股東創造可持續的價值。

And with that, I'll turn the call over to Tracy, who will review in additional detail our third-quarter of fiscal year 2026 financial results.

那麼，我將把電話會議交給 Tracy，由她更詳細說明我們 2026 會計年度第三季的財務結果。

Thank you, Neil. Consolidated net sales for the third-quarter of fiscal 2026 increased 22% to $24.3 million compared to $19.9 million for the same period last year. Consolidated net sales for the first nine months of fiscal 2026 were $62.9 million, an increase of 18.3% compared to net sales of $53.2 million for the same period last year.

謝謝你，Neil。2026 會計年度第三季合併淨銷售額較去年同期成長 22% 至 2,430 萬美元，去年同期為 1,990 萬美元。2026 會計年度前九個月合併淨銷售額為 6,290 萬美元，較去年同期的 5,320 萬美元成長 18.3%。

During the third-quarter and first nine months of fiscal 2026, we experienced an increase in net sales in our enterprise, data center and specialty markets compared to the same periods last year as we continued to see general market growth opportunities in our industry, both domestically and internationally, with strength specifically in our enterprise, data center and specialty markets.

在 2026 會計年度第三季及前九個月期間，隨著我們持續看到產業在國內與國際市場的整體成長機會，且企業、資料中心與特殊應用市場表現尤為強勁，我們在企業、資料中心與特殊應用市場的淨銷售額較去年同期增加。

As Neil mentioned, our sales order backlog and forward load increased to $13.5 million at the end of the third-quarter of fiscal 2026 as compared to $13.3 million as of April 30, 2026, $10.4 million as of January 31, 2026, and $7.3 million as of October 31, 2025.

如 Neil 所提及，截至 2026 會計年度第三季末，我們的銷售訂單積壓與前置負荷增加至 1,350 萬美元；相較之下，2026 年 4 月 30 日為 1,330 萬美元、2026 年 1 月 31 日為 1,040 萬美元、2025 年 10 月 31 日為 730 萬美元。

Turning to gross profit. Our gross profit increased 43.9% to $9.1 million in the third-quarter of fiscal 2026 compared to $6.3 million in the third-quarter of fiscal 2025. Gross profit margin, our gross profit as a percentage of net sales, increased to 37.4% in the third-quarter of fiscal 2026, compared to 31.7% in the third-quarter of the prior year. Gross profit increased 35.5% to $22.1 million in the first nine months of fiscal 2026, compared to $16.3 million in the first nine months of fiscal 2025. Gross profit margin increased to 35% in the first nine months of fiscal 2026, compared to 30.6% for the same period last year.

接著談毛利。我們 2026 會計年度第三季毛利較 2025 會計年度第三季的 630 萬美元成長 43.9% 至 910 萬美元。毛利率（毛利占淨銷售額比重）在 2026 會計年度第三季提升至 37.4%，相較於前一年度同期的 31.7%。2026 會計年度前九個月毛利較 2025 會計年度前九個月的 1,630 萬美元成長 35.5% 至 2,210 萬美元。前九個月毛利率提升至 35%，相較於去年同期的 30.6%。

Gross profit margin for the third-quarter and first nine months of fiscal 2026 was positively impacted by higher volumes and the resulting positive impact of our strong operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.

2026 會計年度第三季與前九個月的毛利率，受惠於較高的出貨量以及我們強勁營運槓桿所帶來的正面影響。此外，我們的毛利率百分比在每一季高度取決於產品組合，並可能因產品組合變動而有所波動。

SG&A expenses increased to $7 million in the third-quarter of fiscal year 2026 compared to $5.7 million for the same period last year. SG&A expenses as a percentage of net sales were 28.7% in the third-quarter of fiscal 2026 compared to 28.8% in the third-quarter of fiscal 2025. SG&A expenses increased to $18.8 million in the first nine months of fiscal year 2026 compared to $16.9 million for the same period last year.

SG&A（銷售、一般及管理）費用在 2026 會計年度第三季增加至 700 萬美元，去年同期為 570 萬美元。SG&A 費用占淨銷售額比重在 2026 會計年度第三季為 28.7%，相較於 2025 會計年度第三季的 28.8%。2026 會計年度前九個月 SG&A 費用增加至 1,880 萬美元，去年同期為 1,690 萬美元。

SG&A expenses as a percentage of net sales were 29.9% in the first nine months of fiscal 2026 compared to 31.8% in the first nine months of fiscal 2025. The increase in SG&A expenses during the third-quarter and first nine months of fiscal 2026 compared to the same periods last year was primarily the result of increases in employee costs, contracted sales personnel-related costs, and shipping costs.

SG&A 費用占淨銷售額比重在 2026 會計年度前九個月為 29.9%，相較於 2025 會計年度前九個月的 31.8%。2026 會計年度第三季與前九個月 SG&A 費用較去年同期增加，主要是因員工成本、外包銷售人員相關成本，以及運輸費用上升所致。

Included in employee costs and contracted sales personnel-related costs are compensation costs and sales incentives. OCC recorded net income of $1.9 million, or $0.21 per basic and diluted share for the third-quarter of fiscal 2026 compared to net income of $302,000, or $0.04 per basic and diluted share for the third-quarter of fiscal 2025. OCC recorded net income of $2.5 million, or $0.28 per basic and diluted share for the first nine months of fiscal 2026 compared to a net loss of $1.5 million, or $0.19 per basic and diluted share for the first nine months of fiscal 2025.

員工成本與外包銷售人員相關成本包含薪酬成本與銷售獎勵。OCC 在 2026 會計年度第三季錄得淨利 190 萬美元，基本及稀釋每股盈餘為 0.21 美元；相較之下，2025 會計年度第三季淨利為 30.2 萬美元，基本及稀釋每股盈餘為 0.04 美元。OCC 在 2026 會計年度前九個月錄得淨利 250 萬美元，基本及稀釋每股盈餘為 0.28 美元；相較之下，2025 會計年度前九個月為淨損 150 萬美元，基本及稀釋每股虧損為 0.19 美元。

With that, I'll turn the call back over to you, Neil.

那麼，我把電話會議交回給你，Neil。

Thank you, Tracy. As I previously mentioned, we received a large number of questions in advance of today's call, some of which came in just before the call. We believe that some of these questions that have been submitted will be of interest to most participants.

謝謝你，Tracy。如我先前提到的，我們在今天會議前收到大量問題，其中有些是在會議開始前不久才送達。我們認為，這些已提交的問題中，有一些會是大多數與會者感興趣的。

So we're going to go through those questions first, and then we will address any remaining questions live from analysts or institutional investors. As we've stated before, we'd like to take one question from each institutional investor because I think we're going to be covering a lot of the questions you may have through the previously submitted questions.

因此，我們會先逐一處理這些問題，之後再回答分析師或機構投資人的現場剩餘提問。如同我們先前所說，我們希望每位機構投資人只提一個問題，因為我認為我們將透過先前提交的問題涵蓋你們可能想問的許多內容。

Caroline, if you'd please begin by reading the questions we've received that we were provided in advance of the call, and we'll proceed to respond.

Caroline，請你先開始朗讀我們在會議前收到的問題，然後我們將依序回覆。

Thanks, Neil. The first question is, can you please go into more detail about how backlog and quarterly revenue have been changing in this new demand cycle and how it is different from prior instances where backlog has bumped to above $10 million? You had said in prior calls that you expected the second half of 2026 to be very strong. Is this reflected in current and future expected backlog? Is that assumption still valid?

謝謝你，Neil。第一個問題是，你能否更詳細說明在這一輪新的需求循環中，積壓訂單（backlog）與季度營收是如何變化的，以及這與過去積壓訂單曾攀升至1,000萬美元以上的情況有何不同？你在先前的電話會議中曾表示，你預期2026年下半年會非常強勁。這是否已反映在目前及未來預期的積壓訂單中？這項假設仍然成立嗎？

Or is the second half of 2026 looking different at all, positive or negative? How long do you expect this higher backlog to sustain?

或者，2026年下半年目前看起來是否有任何不同（正面或負面）？你預期這種較高的積壓訂單能維持多久？

So there's a lot of questions in that first statement. As you can see from our press release earlier this morning, our results during the third-quarter of fiscal year 2026 support our previous expectation that the second half of 2026 would be very strong. We continue to believe that that's going to be the case. We continue to have a robust backlog and forward load that are increasing. At the same time, sales are increasing.

所以第一段陳述裡有很多問題。如你從我們今天早上較早發布的新聞稿所見，我們在2026會計年度第三季的業績支持我們先前對2026年下半年將非常強勁的預期。我們仍然相信情況會如此。我們持續擁有強勁的積壓訂單與前置訂單量（forward load），而且它們正在增加。同時，銷售也在增加。

We can't specifically comment on how long we expect our higher backlog to continue. However, as we've seen in the past, the backlog when it increases to a certain level, certainly is indicative of what we believe we're going to see in the following quarter or so. But a lower backlog doesn't necessarily mean that, that's going to generate a lower sales number, and we've talked about that previously.

我們無法具體評論我們預期較高的積壓訂單會持續多久。不過，如同我們過去所見，當積壓訂單增加到某個水準時，確實可反映我們認為接下來一季左右可能會看到的情況。但較低的積壓訂單不一定代表會帶來較低的銷售數字，我們之前也談過這點。

It's not a data point we've always described, but we've only been disclosing it to folks through our press releases and 10-Qs when we believe that, that number has some significant value. I think I can also say that even though we don't know what the backlog will do, we still do believe that the industry in general is seeing high levels of demand, and there does not appear to be any indication that demand is weakening, at least as far as we can see at the moment.

這並不是我們一直都會描述的數據點；我們只有在認為該數字具有相當重要價值時，才會透過新聞稿與10-Q向外界揭露。我想我也可以說，即使我們不知道積壓訂單會如何變化，我們仍然相信整體產業正處於高需求水準，至少就我們目前所見，沒有任何需求正在走弱的跡象。

This does not necessarily mean that we will not see any seasonality. Our first-quarter has many holidays in it, including Thanksgiving, Christmas, other December holidays, as well as New Year's. So, at this point, we're not really sure what we'll see in the first-quarter, but we are seeing a significant amount of demand across the board in all of our markets.

這不一定表示我們不會看到任何季節性。我們的第一季包含許多假期，包括感恩節、聖誕節、其他12月假期，以及新年。因此，目前我們並不確定第一季會看到什麼情況，但我們確實在所有市場中都看到相當顯著的整體需求。

Thanks, Neil. Next question is, can you touch on performance of OCC traditional markets, including defense?

謝謝你，Neil。下一個問題是，你能談談OCC傳統市場（包括國防）的表現嗎？

Yes. I mean, as we noted in our press release this morning, our enterprise, data center, and specialty market sectors are all increasing during this quarter and during our year-to-date periods for -- through the third-quarter of 2026. Our specialty markets include market sectors such as the military market sector.

可以。我的意思是，如同我們今天早上的新聞稿所提到的，我們的企業、資料中心與特殊市場部門在本季以及截至2026年第三季的年初至今期間都在成長。我們的特殊市場包含例如軍事市場等市場領域。

Thanks, Neil. Next question. Can you comment on OCC's working capital position and if you feel you have enough working capital to sustain the planned growth?

謝謝你，Neil。下一個問題。你能評論一下OCC的營運資金狀況，以及你是否認為你們有足夠的營運資金來支撐計畫中的成長？

Tracy, you will take this one.

Tracy，這題由你來回答。

Yes, sure. Our working capital is strong at $19.2 million at the end of the third-quarter and improved compared to $13.9 million at the end of fiscal year 2025. We do believe that our working capital and credit revolver are sufficient to support and sustain our working capital needs.

好的，當然。我們的營運資金很強勁，在第三季末為1,920萬美元，較2025會計年度末的1,390萬美元有所改善。我們確實相信，我們的營運資金以及循環信用額度（credit revolver）足以支持並滿足我們的營運資金需求。

Thanks, Tracy. The next question is, can you provide some color on the growth rates for new versus existing customers?

謝謝你，Tracy。下一個問題是，你能提供一些關於新客戶與既有客戶成長率的補充說明嗎？

I'll take that one as well. As we have noted previously, most of our sales are made through distributor channels. So we do not always have a clear picture of the customer purchasing our products through distribution or the end users of our products. However, we believe that our growth is being driven by both our existing customers and new customers and end users.

我也來回答這題。如我們先前提到的，我們大部分的銷售是透過經銷通路完成。因此，我們不一定能清楚掌握透過通路購買我們產品的客戶，或我們產品的終端使用者。不過，我們相信我們的成長是由既有客戶以及新客戶與終端使用者共同驅動的。

Thanks, Tracy. Next question. On the last earnings call, Neil, you had said that the sales cycle is longer for data center. Could you elaborate on that? Is the pre-backlog sales process/pipeline longer because of customer qualifications?

謝謝你，Tracy。下一個問題。在上一次財報電話會議中，Neil，你曾說資料中心的銷售週期較長。你能進一步說明嗎？在進入積壓訂單之前的銷售流程／管線是否因客戶資格認證而更長？

So yes, I'll take that one. Yes, the sales cycle for certain portions of the data center market sector do tend to be longer. That can include qualification requirements as a new supplier for certain new products being supplied. However, as we're going through those qualification processes where they exist or indications or periods where the sales cycle is longer, that those hopefully potential sales do not show up in our backlog.

是的，我來回答。是的，資料中心市場部門的某些部分，其銷售週期確實往往較長。這可能包含作為新供應商、針對某些新供應產品所需的資格認證要求。不過，當我們進行這些（若存在的）資格認證流程，或在銷售週期較長的情況／期間時，那些希望成為的潛在銷售通常不會反映在我們的積壓訂單中。

Our forward load and backlog is really items where we've either received an order -- we received an order or where we expect that, that order is noncancelable and that we will be delivering it at some point in the future. Sometimes that's a short time period. Sometimes that's a longer time period because we do have some customers that stage the deliveries over time.

我們的前置訂單量與積壓訂單，基本上是指我們已收到訂單——也就是我們已收到訂單，或我們預期該訂單不可取消，且我們將在未來某個時間點交付。有時是很短的期間；有時是較長的期間，因為我們確實有一些客戶會將交付分階段、隨時間安排。

Next question. Does the flattish backlog versus the last quarter reflect a potential normalization in demand? Should we expect backlog to normalize further in Q4, given that Q1 is the softest quarter in terms of seasonality?

下一個問題。與上一季相比，積壓訂單大致持平是否反映需求可能正在正常化？考量到Q1在季節性上是最疲弱的一季，我們是否應預期Q4的積壓訂單會進一步正常化？

I don't think that this -- the backlog increasing a slight amount indicates that demand is flattening in any way. We continue to see significant growth opportunities, and we have seen our backlog and sales forward load continue to grow this past month. This does not mean we may not experience some typical seasonality, as I mentioned before, in the first-quarter. But for now, we continue to see continued strength in demand for our products, even if it's not reflected in a small change in the backlog forward load as of the end of the quarter.

我不認為積壓訂單小幅增加代表需求以任何方式趨於平坦。我們持續看到顯著的成長機會，而且在過去這個月，我們也看到積壓訂單與銷售前置訂單量持續成長。這不表示我們不會如我先前提到的，在第一季經歷一些典型的季節性。但就目前而言，即使在季末的積壓訂單／前置訂單量僅有小幅變動未能反映出來，我們仍持續看到對我們產品的需求維持強勁。

Thanks, Neil. The next question is, SG&A rose to $7 million, above where the operating leverage story would predict. Was the Q2 to Q3 increase in employee and contracted sales personnel a onetime capacity step that now levels off? Or should we model continued SG&A growth as revenue scales? Put differently, where does SG&A settle as a percentage of sales at a $100 million-plus run rate?

謝謝你，Neil。下一個問題是，SG&A上升至700萬美元，高於營運槓桿敘事所預期的水準。從Q2到Q3員工與外包銷售人員的增加，是否是一次性的產能擴充步階，之後就會趨於平穩？或者，隨著營收擴大，我們應該建模SG&A持續成長？換句話說，在年化營收達到1億美元以上的運行水準時，SG&A占銷售額的比例會落在什麼水準？

I'll take that one. We don't generally provide guidance related to future or theoretical sales levels. However, certain sales compensation costs included in SG&A, as well as other costs such as shipping costs, generally tend to fluctuate with sales levels. However, this does not mean we will not see future benefits of SG&A operating leverage as sales continue to grow.

我來回答。我們一般不提供與未來或假設性銷售水準相關的指引。不過，SG&A中包含的某些銷售薪酬成本，以及其他如運輸成本等，通常會隨銷售水準而波動。然而，這不代表隨著銷售持續成長，我們未來不會看到SG&A營運槓桿帶來的效益。

Thanks, Tracy. Next question is on funding and dilution, with working capital rising alongside growth and cash still thin, how are you funding the ramp? And at what revenue level would you need to raise equity or expand the credit facility? Should shareholders anticipate a capital raise to support fiscal year 2027 growth?

謝謝你，Tracy。下一個問題關於資金與稀釋：隨著成長，營運資金同步上升，而現金仍偏薄，你們如何為擴張提供資金？在什麼營收水準下，你們會需要增資（發行股權）或擴大信用額度？股東是否應預期為支持2027會計年度成長而進行募資？

As we believe we've described previously, our cash is swept daily to repay the balance on our credit revolver. So our cash balance at any point in time will generally not be very high. At the current time, we believe we have sufficient availability on our credit revolver and from cash generated from operations to meet our needs for the near term.

如同我們先前所述，我們的現金每日會被歸集（swept）用以償還循環信用額度的餘額。因此，我們在任何時間點的現金餘額通常不會很高。目前我們相信，我們的循環信用額度可用額度以及營運所產生的現金，足以滿足我們短期內的需求。

Thanks, Tracy. Next question. Can you give some color on deliveries expected in Q4 and how you see margins progressing throughout fiscal year 2027?

謝謝你，Tracy。下一個問題。你能提供一些關於Q4預期交付情況的補充說明，以及你如何看待2027會計年度的毛利率走勢嗎？

Again, we don't provide forward guidance, so I won't comment on how we expect margins to progress throughout fiscal year 2027. I will say that we have continued to see strong sales and demand in August, but it is too early to comment on September.

同樣地，我們不提供前瞻指引，因此我不會評論我們預期2027會計年度毛利率將如何演進。我會說的是，我們在8月持續看到強勁的銷售與需求，但現在評論9月仍為時過早。

The next question is, can you comment on the increased demand cycle you were experiencing and how long it could last?

下一個問題是，你能評論一下你們正在經歷的需求上升循環，以及它可能會持續多久嗎？

Sure. As previously noted, we can't forecast specifically on how long we expect the increased demand cycle to continue. However, I can say that the industry, in general, is seeing high levels of demand, and there doesn't appear to be an indication of demand weakening in the near term.

當然。如先前所述，我們無法具體預測需求上升循環會持續多久。不過，我可以說整體產業正處於高需求水準，且短期內似乎沒有需求走弱的跡象。

Thanks, Tracy. Next question. Can you provide any sort of future outlook regarding customer demand signals?

謝謝你，Tracy。下一個問題。你能否提供任何關於客戶需求訊號的未來展望？

Caroline, so that you know we're having a little bit of trouble hearing you. If Bo could confirm that he's able to hear you okay, we're hearing your question, and we'll continue to answer them, but your signal is breaking up just a little bit.

Caroline，讓你知道一下，我們這邊聽你有點吃力。如果Bo可以確認他是否能清楚聽到你，我們有聽到你的問題，我們也會繼續回答，但你的訊號有點斷斷續續。

Mr. Wilkin, are you having any problem hearing Caroline? Mr. Wilkin, I can hear her loud and clear at this time, sir.

Wilkin先生，你聽Caroline有任何問題嗎？Wilkin先生，我目前聽她非常清楚，先生。

Okay. Okay. Maybe on our end then. So hopefully, you can hear us. Please flag -- let us know if you're having any trouble hearing us.

好的。好的。那可能是我們這邊的問題。希望你能聽到我們。請提示——如果你聽我們有任何問題，請告訴我們。

Yes, we can hear you okay.

是的，我們可以清楚聽到你們。

Okay. So other than what we have already disclosed, we cannot really provide any additional future customer demand outlook.

好的。除了我們已經揭露的內容之外，我們無法再提供任何額外的未來客戶需求展望。

Thanks, Tracy. The next question is, are you seeing any new or emerging risks?

謝謝你，Tracy。下一個問題是，你們是否看到任何新的或正在浮現的風險？

We are not seeing any new or unusual market risk at this time. As we've described during our second- quarter earnings call, we have been seeing some industry-wide delays as a result of high product demand and certain fiber optic -- optical fiber shortages. Additionally, we've seen some longer lead times for certain raw materials, as one would expect given the current high demand for products. We expect these challenges will continue, but we also believe we're taking appropriate action to navigate those challenges.

目前我們沒有看到任何新的或異常的市場風險。如同我們在第二季財報電話會議中所述，由於產品需求強勁以及特定光纖—光學纖維短缺，我們看到一些全產業的延遲。此外，鑑於目前產品需求高漲，某些原物料的交期也拉長，這也在預期之中。我們預期這些挑戰將會持續，但我們也相信我們正採取適當行動來因應這些挑戰。

Thanks, Neil. The next question is, can you provide an update on OCC's plans to increase capacity? What level of capacity expansion are we talking about? And what is the plan?

謝謝你，Neil。下一個問題是：你能否提供 OCC 提升產能計畫的最新進度？我們談的是多大幅度的產能擴張？計畫是什麼？

We are regularly considering the need for investment in machinery and equipment and/or human resources to expand our capacity in general and also for specific opportunities. We are seeing some opportunities to increase our capacity currently. We do not generally comment publicly on the specific capacity expansion plans for various reasons, including for competitive reasons. And I think that answers the question.

我們會定期評估是否需要投資機器設備及／或人力資源，以擴充我們整體產能以及因應特定機會。目前我們確實看到一些提升產能的機會。基於多項原因（包括競爭因素），我們通常不會公開評論各項具體的產能擴張計畫。我想這就回答了這個問題。

Thanks, Neil. The next question is, can you provide an update on fiber shortages and potential challenges of higher fiber pricing on OCC's margins?

謝謝你，Neil。下一個問題是：你能否提供光纖短缺的最新情況，以及光纖價格上漲對 OCC 毛利率可能造成的挑戰？

Yes. Currently, the industry continues to experience optical fiber shortages due to excessive product demand for data centers as well as certain other product applications. We believe OCC is successfully managing these industry dynamics as we've demonstrated during the first nine months of this fiscal year. We do not believe these industry challenges will prevent us from continuing to report strong top line revenue growth during the remainder of fiscal year 2026.

好的。目前由於資料中心以及其他特定產品應用的需求過於旺盛，產業仍持續面臨光學纖維短缺。我們相信 OCC 正成功管理這些產業動態，正如我們在本會計年度前九個月的表現所證明。我們不認為這些產業挑戰會阻礙我們在 2026 會計年度剩餘期間持續呈報強勁的營收成長。

Notably, we work to limit potential impacts on our customers and our gross profits that these industry factors may have. Of course, as we've noted in the past, OCC's profit margins can also be impacted by product mix and other factors, which can be difficult to predict.

值得注意的是，我們致力於將這些產業因素對客戶及我們毛利的潛在影響降到最低。當然，如同我們過去所提到的，OCC 的利潤率也可能受到產品組合及其他因素影響，而這些往往難以預測。

Thanks, Neil. Next question. Can you share an update on any potential bottlenecks at ramping up manufacturing, including labor availability and cost?

謝謝你，Neil。下一個問題：在提升製造產能的過程中，是否有任何潛在瓶頸的最新情況可以分享，包括勞動力供給與成本？

We are able to -- we are seeing various different effects that are limiting our product shipments at some level, and so those are bottlenecks. Those are primarily impediments to ramping up manufacturing. The primary impediments to ramping up manufacturing at the current time is really optical fiber shortages, as we previously described. But as you can also see in our results, we've been able to generate increased sales despite those impediments.

我們能夠—我們確實看到各種不同的影響在某種程度上限制了我們的產品出貨，因此這些就是瓶頸；它們主要是擴大製造規模的障礙。目前擴大製造規模的主要障礙其實是光學纖維短缺，如同我們先前所描述。不過，從我們的業績也可以看出，儘管有這些障礙，我們仍能帶動銷售成長。

Thanks, Neil. Next question. Can you provide some color on inventory levels at OCC customers and dealers and if this is above or below average?

謝謝你，Neil。下一個問題：你能否說明 OCC 客戶與經銷商的庫存水位？目前是高於或低於平均？

As you might expect, we're not able to specifically comment on inventory levels of our products at our customers. That said, given current market conditions, we believe it would be unusual for companies to be carrying inventory in excess of current expected demand.

如你所料，我們無法具體評論客戶端我們產品的庫存水位。不過，考量目前的市場狀況，我們認為企業持有超過目前預期需求的庫存會是不尋常的。

Thanks, Tracy. Next question. What is the typical duration of your backlog? And is this currently changing? Or does the data center-related business have different characteristics?

謝謝你，Tracy。下一個問題：你們的訂單積壓（backlog）通常維持多久？目前是否正在改變？或者與資料中心相關的業務是否有不同特性？

Various factors determine the duration of our sales order backlog and forward load, which are specific to each customer. Our backlog and forward load generally represents what we consider to be noncancelable orders. However, in some cases, customers may schedule out future deliveries, while others are expected to ship as soon as we can complete manufacturing. As a result, I would not say there is a typical duration. However, I would say that most of our sales order backlog and forward load is expected to be shipped within two to three quarters.

影響我們銷售訂單積壓與前置負荷（forward load）期間的因素很多，且因客戶而異。我們的 backlog 與 forward load 通常代表我們認定為不可取消的訂單。不過，在某些情況下，客戶可能會排定未來交貨時程；而另一些則預期我們一完成製造就立即出貨。因此，我不會說有一個典型期間。但我會說，我們大多數的銷售訂單積壓與前置負荷預期會在兩到三個季度內出貨。

Thanks, Tracy. Next question is, can you help us understand what level of capacity OCC is currently operating at? On the last earnings call, Tracy, you had mentioned that OCC is looking into expanding capacity. Could you provide some additional color on which products or end markets you may focus on?

謝謝你，Tracy。下一個問題是：你能否協助我們了解 OCC 目前的產能利用率大概在什麼水準？在上次財報電話會議中，Tracy 你提到 OCC 正在研究擴充產能。你能否再多提供一些細節，說明你們可能會聚焦哪些產品或終端市場？

OCC has different levels of capacity for different product families at each of our manufacturing facilities. And so yes, we are looking into expanding capacity for certain products at certain facilities, and this includes additional hires as well as additional equipment.

OCC 在各製造據點針對不同產品系列有不同的產能水準。因此，是的，我們正在研究在某些據點針對某些產品擴充產能，這包括增聘人員以及添購設備。

Thanks, Tracy. Next question. Does OCC have opportunities in the grid, battery, energy, and storage systems verticals?

謝謝你，Tracy。下一個問題：OCC 在電網、電池、能源與儲能系統等垂直領域是否有機會？

Yes. OCC has some fiber optic cable and connectivity opportunities in grid and energy vertical market sectors.

是的。OCC 在電網與能源等垂直市場領域有一些光纖電纜與連接解決方案的機會。

Thanks, Neil. The next question is, Google Data is projected to build a large campus of data centers very close to OCC's site in Roanoke. Does this present an opportunity for you?

謝謝你，Neil。下一個問題是：Google Data 預計在非常靠近 OCC 位於 Roanoke 的廠址附近興建一個大型資料中心園區。這是否為你們帶來機會？

OCC's primary focus in the data center market sector is multi-tenant data centers and enterprise data centers. However, we are following the Google data center project near us. And as you'd expect, we will explore potential opportunities on that project. And of course, we're very excited that they're going to be setting this data center up so close to our Roanoke facility.

OCC 在資料中心市場領域的主要重點是多租戶資料中心與企業資料中心。不過，我們也在關注附近的 Google 資料中心專案。如你所料，我們會探索該專案的潛在機會。當然，我們也非常興奮他們將把這座資料中心設在離我們 Roanoke 廠如此近的地方。

The next question is, this summer, Furukawa announced a significant capacity expansion through Lightera. Is this an opportunity for OCC?

下一個問題是：今年夏天，Furukawa 透過 Lightera 宣布大幅擴充產能。這對 OCC 來說是個機會嗎？

Well, as you'd expect, we don't speak for Furukawa or Lightera. However, from OCC's perspective, Lightera is not only a strategic collaboration partner with OCC, but they are also an important supplier to OCC. The strategic collaboration with Lightera does add certain products to OCC's product offering.

嗯，如你所料，我們不代表 Furukawa 或 Lightera 發言。不過，從 OCC 的角度來看，Lightera 不僅是 OCC 的策略合作夥伴，也是 OCC 的重要供應商。與 Lightera 的策略合作確實為 OCC 的產品組合增添了某些產品。

Thanks, Neil. The next question is, in June, the company significantly stepped up its manufacturing-related hiring in Plano. Is this in relation to the Lightera partnership? And am I correctly recalling that OCC does a lot of its data center-related connectivity work in Plano?

謝謝你，Neil。下一個問題是：6 月公司在 Plano 大幅增加與製造相關的招募。這是否與 Lightera 的合作夥伴關係有關？另外，我是否記得沒錯，OCC 有許多與資料中心相關的連接工作是在 Plano 進行？

Well, we're actually currently increasing staffing at each of our facilities with the largest increases at our fiber optic cable manufacturing facility in Roanoke and our connectivity and termination facility near Dallas. OCC has capabilities related to our targeted data center market sectors in each of our manufacturing facilities, including Roanoke, Dallas as well as some in Asheville as well.

其實我們目前正在各個據點增加人力，其中增幅最大的是 Roanoke 的光纖電纜製造廠，以及達拉斯附近的連接與端接（termination）廠。OCC 在各製造據點都具備與我們鎖定的資料中心市場領域相關的能力，包括 Roanoke、Dallas，以及 Asheville 也有一部分。

Thanks, Neil. The last question for today is, your last 10-Q changed its language around the Lightera partnership related to Lightera products being offered and sold by the company. Does this mean that OCC has started to realize the first sales related to the Lightera partnership in Q2? And could you give us an update for Q3?

謝謝你，Neil。今天最後一個問題是：你們上一份 10-Q 更改了與 Lightera 合作夥伴關係相關的措辭，提到公司正在提供並銷售 Lightera 產品。這是否表示 OCC 已在第二季開始認列與 Lightera 合作相關的首批銷售？你能否也提供第三季的最新情況？

As you would expect, we are beginning to see some sales of some Lightera products, thus the change in the language in the 10-Q.

如你所料，我們開始看到部分 Lightera 產品的銷售，因此 10-Q 的措辭才會有所調整。

Thanks, Tracy, and Neil. We have no other questions that were provided in advance of the call today at this time.

謝謝你，Tracy 與 Neil。目前我們沒有收到任何其他在今天電話會議前預先提供的問題。

Well, thank you, Caroline. And now we will answer any additional questions that analysts or institutional investors may have. We ask that you please limit yourself to one question. Bo, if you could please indicate the instructions to our participants to call in any questions they have. I'd appreciate it.

好的，謝謝你，Caroline。接下來我們將回答分析師或機構投資人可能提出的其他問題。請各位每人限問一題。Bo，麻煩你向與會者說明如何撥入提問。我將不勝感激。

Additionally, if you'd please mute individuals following their one question so that we can take as many of the questions from analysts and institutional investors that wish to ask.

另外，也請在每位提問者問完一題後將其靜音，這樣我們才能接到更多希望提問的分析師與機構投資人的問題。

(Operator Instructions)

（接線員指示）

[Sergi Mascaro, Eden Discovery].

[Sergi Mascaro，Eden Discovery]。

So the gross margin was very impressive this quarter, and I'm wondering if this improvement is just related to higher volumes or there are other factors or other one-offs impacting the gross margin?

本季的毛利率非常亮眼，我想請問這項改善是否只是與出貨量增加有關，或還有其他因素或一次性項目影響毛利率？

Well, our gross margin can vary based on manufacturing operating leverage, but also -- and other efficiencies, also product mix. And so we're pleased that we've been able to show an increase in our gross profit margins over the last couple of -- gross profit margin percentage over the last couple of quarters, and we're hoping that we'll continue to maintain higher margins at the production levels we're currently at.

嗯，我們的毛利率可能會因製造端的營運槓桿而變動，但也—還有其他效率提升，以及產品組合。因此，我們很高興在過去幾個—過去幾個季度的毛利率百分比有所提升，我們也希望在目前的產量水準下能持續維持較高的利潤率。

(Operator Instructions)

（接線員指示）

And Mr. Wilkin, it appears we have no further questions over the phone at this time. Sir, I'd like to turn the conference back to you for any closing comments.

Wilkin 先生，看起來目前電話線上沒有其他問題了。先生，我想把會議交回給您，請您做任何結語。

Okay. Well, thank you. I would like to thank everyone for listening to our third-quarter of fiscal year 2026 conference call today. As always, we appreciate your time and your investment in Optical Cable Corporation. Additionally, I would like to note that this Friday marks the 25 anniversary of the terrible attack on the United States on September 11, 2001.

好的。謝謝。我想感謝各位今天收聽我們 2026 會計年度第三季的電話會議。一如既往，我們感謝各位的時間，以及各位對 Optical Cable Corporation 的投資。此外，我也想提到，本週五是 2001 年 9 月 11 日美國遭受可怕攻擊事件的第 25 週年。

We are so grateful for our company's first responders and those that serve and support the US military for protecting us, protecting our freedom, and protecting our way of life. Thank you all. Have a good day.

我們非常感謝本公司第一線應變人員，以及為美國軍方服務與提供支持的人員，保護我們、保護我們的自由，並保護我們的生活方式。謝謝各位。祝大家有美好的一天。

Thank you very much, Mr. Wilkin, and thank you, Ms. Smith. Again, ladies and gentlemen, this brings us to the end of today's meeting. We do appreciate your time and participation. You may now disconnect.

非常感謝您，Wilkin 先生，也謝謝 Smith 女士。各位女士、先生，今天的會議到此結束。我們感謝各位的時間與參與。您現在可以斷線。