Lightera acquires stake in Optical Cable Corporation

ROANOKE, Va. - Lightera, LLC has purchased a 7.24% stake in Optical Cable Corporation (NASDAQ:OCC) as part of a new strategic collaboration agreement announced Monday. The news has sparked investor interest, with OCC’s stock surging nearly 24% over the past week, according to InvestingPro data.

The partnership aims to expand product offerings in the data center and enterprise sectors by combining portions of both companies’ product portfolios. Under the agreement, OCC will sell integrated cabling and connectivity solutions that incorporate technologies from both firms. With a market capitalization of $30 million and a healthy current ratio of 1.89, OCC maintains strong liquidity to support this strategic initiative.

"We recognize the importance of this strategic joint effort with OCC and the potential opportunities it brings to expand Lightera’s presence in the data center and enterprise Passive Optical LAN sectors," said Foad Shaikhzadeh, Chairman and CEO of Lightera.

Neil Wilkin, Chairman, President and CEO of OCC, expressed confidence that the collaboration "will significantly expand our opportunities in the data center and enterprise sectors, will accelerate OCC sales growth, and will create significant value for OCC and its shareholders."

Lightera, headquartered in Norcross, Georgia, specializes in optical fiber and connectivity solutions for various industries including telecommunications, enterprise, and data centers. The company is part of Furukawa Electric Group.

OCC, based in Roanoke, Virginia, manufactures fiber optic and copper cabling and connectivity products for commercial, enterprise network, and data center installations, as well as specialized applications in harsh environments.

The companies have previously worked together over many years, with Lightera formerly operating as OFS Fitel, LLC. Financial details of Lightera’s investment were not disclosed in the press release statement.

In other recent news, Optical Cable Corporation reported strong financial results for the second quarter of fiscal year 2025. The company achieved an 8.9% increase in consolidated net sales, reaching $17.5 million, and improved its gross profit margin by 5.3 percentage points to 30.4%. Despite these positive developments, Optical Cable Corporation recorded a net loss of $698,000, although this was a notable improvement from the previous year. The company’s sales backlog also grew by 26.3% from October 2024, indicating potential future demand. Analysts noted the company’s focus on growth strategies and operating efficiencies, with an emphasis on expanding gross profit margins. The company remains optimistic about the second half of FY2025, expecting continued sales and profitability improvements. Additionally, Optical Cable Corporation is closely monitoring the tariff landscape, which has had some impact on its supply chain operations. The company is also exploring opportunities in Tier 2 and Tier 3 data centers, while maintaining a strong position in the military and enterprise markets.

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