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Here is another small compelling company.

What Optical Cable Corp does

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. Further information on Optical Cable Corporation is available through the company's website on the World Wide Web at http://www.occfiber.com .

New technology

ROANOKE, Va., Feb. 7 /PRNewswire/ -- Optical Cable Corporation (Nasdaq: OCCF - news), a manufacturer of fiber optic cable, and FONS Corporation, a manufacturer of fiber optic connectivity products, recently developed cable assembly products specifically designed for use in the rapidly growing application of Controlled Environment Vaults (CEVs) for a leader in smart broadband optical networks.
As fiber optic distribution is driven to within 500 feet of subscribers it must be buried in residential neighborhoods and housed in suitable environments including CEVs, which are below ground, two-piece structures. Since space is at a premium in these vaults, Optical Cable and FONS Corporation provided single-mode cable assemblies that are small in diameter, yet both flexible and rugged. The end customer for the project was a Regional Bell Operating company, with a very aggressive deployment schedule for delivering broadband voice, video, data and Internet services within their operating network. This deployment is the largest commitment to date from any major carrier to drive high-speed fiber optic-based technology deep into their network.
Working together, engineers from Optical Cable and FONS were able to quickly design and prototype a unique cable assembly that is approximately 50% smaller than standard cable without sacrificing strength and bend performance. FONS' extensive experience in the development and manufacture of a broad range of fiber optic interconnect devices enabled a rapid adaptation of existing designs to this new requirement. While Optical Cable Corporation's business base is commercial, its technology base is in small, lightweight, mechanically rugged military tactical fiber optic cables. With Optical Cable's versatile manufacturing processes, this technology was readily adapted to the new commercial application.

Robert Kopstein, President and Chief Executive Officer of Optical Cable commented, ``Fiber optic distribution offers the highest speed delivery rates possible. Driving fiber optic distribution to within 500 feet of subscribers will enable high-speed services, both incoming and outgoing, through traditional customer interfaces like twisted pair copper wire, which is currently used for telephone service. This is a significant advantage compared to network architectures such as Fiber to the Node (FTTN) and Hybrid Fiber Coax (HFC).'

Financials

ROANOKE, Va., Jan. 3 /PRNewswire/ -- Optical Cable Corporation (Nasdaq: OCCF - news) today announced results for its fiscal fourth quarter and year ended October 31, 1999. Net sales for the fourth quarter of fiscal 1999 rose 11.4% to a record $14.8 million from $13.3 million in the same period last year. Net income for the fourth quarter of fiscal 1999 increased 76.5% to set a new record of $3.08 million, or $0.082 per diluted share, compared to net income of $1.74 million, or $0.046 per diluted share, in the year ago period.

Net sales for the year ended October 31, 1999 rose 0.2% to $50.7 million from $50.6 million in the year ended October 31, 1998. Net income for fiscal 1999 increased 14.2% to $8.31 million, or $0.219 per diluted share, compared to net income of $7.27 million, or $0.188 per diluted share, in fiscal 1998.

Results for the fourth quarter reflect a continued strengthening in sales as well as a broadening of the Company's customer base. The gross profit margin in the fourth quarter increased to 49.2%, a strong improvement over the gross profit margin of 40.9% reported in the fourth quarter of 1998 and the gross profit margin of 43.0% reported in the third quarter of 1999. For the month of October, the Company's gross profit margin reached approximately 54%. For the year, the gross profit margin improved to 45.7% from 42.0% in fiscal 1998.

OCCF had a nice run today, up 30%. I don't own any shares at this time, but I believe this company has promise.
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