Optical Coating Laboratory (OCLI) is in the money. The new $20 bills to be exact. Optical Coating, maker of a film that plays with light, supplies the Treasury with pigments to use in the new $20 bills to stymie counterfeiters. But more lucratively, as a leading supplier of components that add to the capacity of fiber-optic networks, Optical Coating is now a player in a growing sector of the telecommunications business. Being near money has rubbed off on the company: In the past four years Optical Coating has bumped up revenue, more than doubled its share price and broken into a new territory. In the July quarter Optical Coating posted net income of $3.4 million, or 27 cents per share, up from $1.9 million, or 17 cents a share, a year earlier. Revenue rose 12% to $67.3 million from $60 million. Wall Street is valuing Optical Coating at $203 million, about 19 times profits and less than one time revenue. Shares of Optical Coating, which closed unchanged at 16 7/8 yesterday, are up 23% this year, easily beating the Nasdaq Composite Index's 2% decline and the Russell 2000's 23% loss.
|No Optical Illusion |
Optical Coating earnings and revenue
|*For nine months ended in June. All figures in millions.|