Andrew Siegel - Partner Neil D. Wilkin - Chairman, Chief Executive Officer and President Tracy G. Smith - Chief Financial Officer, Senior Vice President and Corporate Secretary

Good morning. I will be your conference operator today. At this time, I would like to welcome you to the Optical Cable Corporation Third Quarter 2013 Earnings Conference Call. [Operator Instructions] Mr. Siegel, you may begin your conference.

Thanks, Jackie. Good morning. And thank you all for participating on Optical Cable Corporation's Third Quarter Fiscal Year 2013 Conference Call. By this time, everyone should have a copy of the earnings press release. If you don't have it, please visit occfiber.com for a copy. On the call with us today is Neil Wilkin, Chairman, President and Chief Executive Officer of OCC. 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 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 content of the Internet webcast on occfiber.com, as well as today's call. Now I'll turn the call over to Neil Wilkin. Neil, please begin.

Thank you, Andrew, and good morning, everyone. Joining me today on the call is Tracy Smith, our Senior Vice President, Chief Financial Officer. I'll begin today's call with a few opening remarks, Tracy will then review the third quarter results for the 3-month and 9-month periods ended July 31, 2013, in some detail. After Tracy's remarks, I will answer as many of your questions as we can. As is the normal practice, we will take questions from analysts and institutional investors during the Q&A session. We also will offer individual 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. While our year-over-year results were impacted by decreased sales to 2 customers, we are encouraged by sales growth achieved with other customers in other markets, growth we believe reflects the strength of our underlying business. Despite continued economic headwinds in certain of our markets, we are confident that the company is well positioned. OCC is investing to support a broader product offering across many of our product lines and to expand our production capabilities, as we believe appropriate, given our expected sales opportunities. We believe these investments will support future growth and enhance shareholder value. Net sales for the third quarter of fiscal year 2013 were $19.6 million, down 10.9% when compared to net sales of $22 million for the third quarter of fiscal year 2012, primarily as a result of decreased sales to 2 major customers. Excluding the impact of these 2 customers, OCC's net sales would have increased 4.8% during the third quarter of fiscal year 2013 compared to the same period last year. Sequentially, net sales increased 2.5% in the third quarter of fiscal year 2013 compared…

Thanks, Neil. Net sales for the third quarter of fiscal 2013 decreased 10.9% to $19.6 million compared to net sales of $22 million for the same period last year, primarily as a result of the decreased sales to 2 major customers. Net sales to customers in the United States decreased 11% in the third quarter of fiscal 2013 compared to the same period last year, and net sales to customers outside of the United States decreased 10.8% compared to the same period last year. Net sales for the first 9 months of fiscal 2013 decreased 8.7% to $56 million compared to net sales of $61.4 million for the same period last year. We experienced an increase in net sales during the first 9 months of fiscal 2013 in our specialty markets compared to the same period last year, but this increase was offset by decreases in net sales in our commercial market. Net sales to customers in the United States decreased 12.8% in the first 9 months of fiscal 2013 compared to the same period last year, while net sales to customers outside of the United States increased 2.2% compared to the same period last year. The decrease in net sales during the third quarter and first 9 months of fiscal year 2013 compared to the same period last year is primarily due to the fact that we recognized net sales totaling in the aggregate approximately $5.1 million and $11 million, respectively, during the third quarter and the first 9 months of fiscal 2012, as the result of the number of large orders for 2 major customers that did not recur at the same levels during the third quarter and the first 9 months of fiscal 2013. Excluding the impact of these 2 customers, OCC's net sales would have increased…

Thank you, Tracy. And now, we are happy to answer as many of your questions as we can. Operator, if you could please indicate the instructions for participants to call in their questions, I'd appreciate it.

[Operator Instructions] And at this time, it appears we have no audio questions. I would like to turn the floor back over to Mr. Wilkin.

Andrew, do we have any questions that have been submitted in advance by individual shareholders?

Neil, we don't. No individual shareholders submitted questions in advance of this call.

Okay. Well, with that, I would like to thank everyone for participating on today's call. And as always, we appreciate your time and interest in OCC. Thank you.

Thank you. This concludes today's conference call. You may now disconnect.