Optical Cable Corporation Acquires SMP Data Communications
Transaction Broadens Optical Cable's Product Line and Builds on its Position
as a Leading Provider of Fiber Optic Cables in the Enterprise Market
ROANOKE, VA, June 2, 2008-Optical Cable Corporation (Nasdaq GM:OCCF) announced
today that it has acquired Superior Modular Products Incorporated (doing business as SMP Data Communications), a leading supplier of fiber optic and copper connectivity products for the data communications industry. The transaction was consummated on May 30, 2008, and now SMP Data Communications is a wholly owned subsidiary of Optical Cable Corporation.
Optical Cable Corporation acquired SMP Data Communications from Preformed Line Products
Company (Nasdaq GM: PLPC) for a purchase price of $11.5 million, subject to certain
minimum working capital requirements and related purchase price adjustments. The transaction was effected by an Agreement and Plan of Merger, dated May 30, 2008, whereby SMP Data Communications merged with a newly formed wholly owned subsidiary of Optical Cable Corporation.
"Our long-term strategy for Optical Cable includes expanding our product offerings to provide our customers with more complete cabling and connectivity solutions. This acquisition builds on Optical Cable's strong presence in the enterprise market and is a major step toward fulfilling our long-term vision for Optical Cable," stated Neil Wilkin, President and CEO of Optical Cable Corporation.
SMP Data Communications will broaden Optical Cable's product offering to include a fiber optic and copper connectivity. SMP Data Communications manufactures more than 2,000 products including high performing enhanced Category 5e systems, high-density fiber optic enclosures, and cutting edge Category 6a connectivity solutions offering 10 Gig throughput.
"SMP Data Communications is an internationally respected and industry-leading innovator in copper and fiber optic connectivity products. Optical Cable now has the fiber optic and copper connectivity products necessary for us to offer an integrated suite of high quality cabling and connectivity solutions," stated Mr. Wilkin.
Founded in 1990, SMP Data Communications is located near Asheville, North Carolina, and
employs a total of approximately 120 persons, including manufacturing and office personnel.
SMP Data Communications net sales (unaudited) were approximately $21.0 million for
calendar year 2007.
Financing
On May 30, 2008, Optical Cable Corporation established $17.0 million in credit facilities with Valley Bank of Roanoke, Virginia, in connection with the acquisition of SMP Data Communications. Approximately, $8.7 million in bank debt financing was used in connection with the transaction, with the remaining purchase price and expenses funded with available cash. After the acquisition, Optical Cable has additional unused and available bank financing of approximately $8.3 million.
"Our new bank credit facilities increased our borrowing capacity to $17.0 million, up from our previous $13.5 million in credit from Valley Bank," stated Tracy Smith, Chief Financial Officer of Optical Cable Corporation. "Our strong, debt-free balance sheet has enabled us to fund prior capital expenditures and investments from operating cash flow. This made it possible to finance the acquisition of SMP Data Communications with bank financing, while maintaining appropriate financial flexibility for Optical Cable," Ms. Smith added.
Leadership
Bill Reynolds, previously the general manager of SMP Data Communications, will continue in his leadership role, serving as President of SMP Data Communications. Mr. Reynolds will also serve as a Senior Vice President of Optical Cable Corporation with responsibilities for sales in the U.S. for both Optical Cable Corporation and SMP Data Communications products.
Mr. Wilkin will serve as Chairman and CEO of SMP Data Communications, in addition to his existing position as Chairman, President and CEO of Optical Cable Corporation.
Ms. Smith will serve as Chief Financial Officer of SMP Data Communications, in addition to her existing position as Chief Financial Officer of Optical Cable.
Michael Newman, Vice President of International Sales for Optical Cable Corporation, will now have responsibilities for sales outside of the U.S. for both Optical Cable Corporation and SMP Data Communications products.
Mr. Reynolds' and Mr. Newman's teams, which will include both SMP Data Communications
and Optical Cable Corporation sales and marketing professionals, will also share certain other marketing and sales operations responsibilities.
"We look forward to welcoming the talented men and women of SMP Data Communications,
including its experienced management team, to the Optical Cable team," stated Mr. Wilkin.
About Optical Cable Corporation
Optical Cable Corporation is a leading manufacturer of fiber optic cables primarily sold into the enterprise market, and the premier manufacturer of military ground tactical fiber optic cables for the U.S. military. Founded in 1983, Optical Cable Corporation pioneered the design and production of fiber optic cables for the most demanding military field applications, as well as fiber optic cables suitable for both indoor and outdoor use. The Company's current broad product offering is built on the evolution of these fundamental technologies, and is designed to provide end-users with fiber optic cables that are easy and economical to install, provide a high
degree of reliability and offer outstanding performance characteristics. Optical Cable
Corporation sells its products worldwide for uses ranging from commercial and campus
installations to customized products for specialty applications and harsh environments,
including military applications. The Company manufactures its high quality fiber optic cables at its ISO 9001:2000 registered and MIL-STD-790F certified facility located in Roanoke,
Virginia.
Further information about Optical Cable Corporation is available on the World Wide Web at www.occfiber.com.
About SMP Data Communications
SMP Data Communications, headquartered near Asheville, North Carolina, is internationally recognized for its role in establishing the world's data communications standards, through its innovative and patented technologies. SMP, founded in 1990, manufactures and develops copper and fiber passive connectivity hardware components for use in commercial and residential applications. The company is a wholly owned subsidiary of Optical Cable Corporation (Nasdaq GM: OCCF).
Further information about SMP Data Communications is available on the World Wide Web at
www.smpdata.com.
OPTICAL CABLE CORPORATION
5290 Concourse Drive
Roanoke, VA 24019
(Nasdaq GM: OCCF)
www.occfiber.com
AT THE COMPANY:
Neil Wilkin
President & CEO
(540) 265-0690
investorrelations@occfiber.com
Tracy Smith
Vice President & CFO
(540) 265-0690
investorrelations@occfiber.com
Bill Reynolds
Senior Vice President of Sales
(828) 298-2260
sales@occfiber.com
Michael Newman
Vice President of Sales
(540) 265-0690
sales@occfiber.com
AT JOELE FRANK, WILKINSON BRIMMER KATCHER:
Andrew Siegel
(212) 355-4449 ext. 127
asiegel@joelefrank.com
Jaime Wert
(212) 355-4449 ext. 173
jwert@joelefrank.com
