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Net sales growth of 26.6% was primarily driven by robust demand in enterprise, data center, and severe duty market sectors.

Gross profit increased disproportionately at 42.4% due to strong manufacturing operating leverage as volumes increased.

The company is specifically targeting multi-tenant and enterprise data centers (Tier 2), benefiting from the broader hyperscale demand cycle.

Sales order backlog and forward load reached $13.3 million, representing an 82% increase since the end of fiscal year 2025.

Management attributes improved profitability to SG&A operating leverage, with expenses as a percentage of sales falling despite higher shipping and incentive costs.

Market improvements are being observed both domestically and internationally across a diverse range of targeted sectors.

The company maintains a strategy of diversification across product offerings and customers to mitigate sector-specific volatility.

Management expects revenue to be positively impacted by continued data center market strength throughout the second half of fiscal 2026.

The company is evaluating increases in manufacturing staff and machine capacity to support anticipated long-term growth.

Current manufacturing and staffing levels are believed to have sufficient room to support additional near-term revenue growth.

OCC intends to mitigate potential raw material price increases by prospectively adjusting selling prices.

Industry-wide optical fiber shortages are causing increased lead times, though management believes they can manage these dynamics without halting growth.

Gross profit margins remain heavily dependent on quarterly product mix and can vary significantly based on the specific items manufactured.

The sales cycle for data center projects is noted as being longer than the cycles in OCC's other targeted market sectors.

Industry-wide optical fiber shortages, driven by high demand, are currently impacting lead times across the sector.

Military sales are characterized as difficult to predict, as they are driven by replenishment needs and ally demand rather than just active conflicts.

Management believes Tier 1 growth positively impacts multi-tenant and enterprise data centers, which are OCC's primary focus.

While the sales cycle for these projects is longer, they contributed significantly to Q2 revenue and are expected to continue doing so in H2.

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OCC is not currently experiencing significant challenges with labor availability or costs during its capacity ramp.

The company is utilizing existing excess capacity while simultaneously evaluating personnel and equipment additions for future needs.

The partnership with Lightera is viewed as complementary, with Lightera serving as a long-term supplier of optical fiber.

Despite industry-wide shortages, OCC has not faced significant problems with fiber supply, though some specific customer impacts have occurred.

Management declined to provide a specific revenue figure for full capacity, noting it is highly dependent on product mix and staffing.

They confirmed that current levels still allow for growth, but investments in capacity are being considered for the long term.

OCC manufactures products suitable for certain power grid applications and expects to benefit from increased grid CapEx.

Management clarified that they do not sell actual power cables, focusing instead on related infrastructure products.