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CST: 20/11/2019 00:24:31   

Precision Optics Corporation, Inc. Announces Operating Results for the Second Quarter and Six Months of Fiscal Year 2019

280 Days ago

GARDNER, Mass., Feb. 12, 2019 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (OTCQB: PEYE) (the “Company”) today announced operating results on an unaudited basis for its fiscal year 2019 second quarter and six months ended December 31, 2018.

Financial highlights include:

  • Revenues of $1,478,000 in the quarter ended December 31, 2018 compared to $813,000 in the same quarter of the prior year, representing 82% growth;

  • Revenues of $3,037,000 in the six months ended December 31, 2018 compared to $1,842,000 in the same six month period of the prior year, representing 65% growth;

  • 282% and 310% increase in production revenues in the quarter and six month periods ended December 31, 2018 as compared to the same periods of the prior year, driving company-wide growth;

  • Non-cash stock-based compensation expense of $353,000 contributing to net loss of $425,000 in the six months ended December 31, 2018;

  • 27% gross margin in the six months ended December 31, 2018 compared to 37% in the six months ended December 31, 2017.

Precision Optics’ CEO, Joseph Forkey, commented, “Our second quarter revenues remained strong with an increase of 82% compared to last year, and continuing at over $1.4 million for the third consecutive quarter.  This substantial year-over-year increase continues to be driven by revenues from three customer programs that transitioned into production in 2018.  We expect that production for all three of these programs will continue, with receipt of follow-on orders expected during the next few months.  Our margins were negatively impacted in the second quarter by issues associated with two customer projects – one in manufacturing and one in engineering.  We are addressing these issues and expect both to be corrected in the near term, leading to improved bottom line results.”

Dr. Forkey continued, “Despite design challenges with one particularly large engineering project, which impacted revenues and gross margins in the second quarter, our engineering pipeline remains strong.  We continue to move through the design and prototype phases on a number of projects, and certain customers anticipate that their projects will enter commercialization and transition to long-term production over the next twelve months.  We are seeing continued growth of the markets for our specialty technologies in the areas of Microprecision™ micro-optics and 3D endoscope-based products.  We are executing on our strategy of investment and expansion in order to take advantage of these market opportunities.  Forecasting the timing of growth can be difficult when they are based on large customer programs, but we have visibility to a greater level of quarterly revenue and believe we are well positioned for long-term growth.”

The following table summarizes the second quarter and six month results for the periods ended December 31, 2018 and 2017 (unaudited):

    Three Months Ended
December 31,
    Six Months Ended
December 31,
 
    2018     2017     2018     2017  
Revenues   $ 1,477,851     $ 812,773     $ 3,037,309     $ 1,841,519  
                                 
Gross Profit     355,722       300,222       818,229       686,964  
                                 
Operating Expenses     481,329       360,066       1,242,616       775,077  
                                 
Operating Loss     (125,607 )     (59,844 )     (424,387 )     (88,113 )
                                 
Net Loss     (125,948 )     (60,326 )     (425,233 )     (89,111 )
                                 
Loss Per Share:                                
Basic and Diluted   $ (0.01 )   $ (0.01 )   $ (0.04 )   $ (0.01 )
                                 
Weighted Average Common Shares Outstanding:                                
Basic and Diluted     11,618,878       9,979,197       10,940,074       9,543,810  
                                 

Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal second quarter 2019 financial results for Tuesday, February 12, 2019 at 5:00 PM Eastern Time. To participate in the conference call, please dial 1-844-826-3042 toll free from the U.S., or 1-412-317-5187 for international callers, and ask to be connected to the Precision Optics Corporation conference call.

An audio replay of the conference call will be available approximately one hour after the conclusion of the call and will be made available until February 19, 2019. The audio replay can be accessed by dialing 1-877-344-7529 toll free from the U.S., or 1-412-317-0088 for international callers, and entering Replay Access Code 10128620.

About Precision Optics Corporation
Precision Optics Corporation has been a leading developer and manufacturer of advanced optical instruments since 1982. Using proprietary optical technologies, the Company designs and produces next generation medical instruments, MicroprecisionTM micro-optics with characteristic dimensions less than 1 millimeter, and other advanced optical systems for a broad range of customers including some of the largest global medical device companies. The Company’s innovative medical instrumentation line includes state-of-the-art endoscopes and endocouplers as well as custom illumination and imaging products for use in minimally invasive surgical procedures. The Company believes that current advances in its proprietary micro-optics and 3D imaging technologies present significant opportunities for expanding applications to numerous potential medical products and procedures.  The Company’s website is www.poci.com. Investors can find Real-Time Quotes and market information for the Company on www.otcmarkets.com/stock/PEYE/quote.

About Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express the Company’s intentions, beliefs, expectations, strategies, predictions or any other statements related to the Company’s future activities or future events or conditions. These statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by the Company’s management. These statements are not guarantees of future performances and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those risks discussed in the Company’s annual report on Form 10-K and in other documents that we file from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this report, except as required by law.

Company Contact:
Precision Optics Corporation
22 East Broadway
Gardner, Massachusetts, 01440-3338
Telephone: 978-630-1800

Following are the Company’s consolidated balance sheets as of December 31, 2018 and June 30, 2018, and statements of operations for the three and six months ended December 31, 2018 and 2017 and statements of cash flows for the six months ended December 31, 2018 and 2017 (unaudited):

 
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
             
    December 31,
2018
    June 30,
2018
 
ASSETS                
CURRENT ASSETS                
Cash and Cash Equivalents   $ 1,744,644     $ 402,738  
Accounts Receivable, net     728,636       796,923  
Inventories, net     1,095,525       1,144,068  
Prepaid Expenses     136,517       70,991  
Total Current Assets     3,705,322       2,414,720  
PROPERTY AND EQUIPMENT                
Machinery and Equipment     2,574,579       2,511,638  
Leasehold Improvements     566,839       553,596  
Furniture and Fixtures     148,303       148,303  
      3,289,721       3,213,537  
                 
Less: Accumulated Depreciation and Amortization     (3,178,645 )     (3,164,051 )
Net Fixed Assets     111,076       49,486  
                 
Patents, net     46,007       47,275  
                 
TOTAL ASSETS   $ 3,862,405     $ 2,511,481  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
CURRENT LIABILITIES                
Current Portion of Capital Lease Obligation   $ 9,262     $ 8,962  
Accounts Payable     752,020       703,538  
Customer Advances     294,650       857,842  
Accrued Employee Compensation     228,314       238,590  
Accrued Professional Services     74,250       98,000  
Accrued Warranty Expense     25,000       25,000  
Other Accrued Liabilities           912  
Total Current Liabilities     1,383,496       1,932,844  
                 
Capital Lease Obligation, net of current portion     9,894       14,601  
                 
STOCKHOLDERS’ EQUITY                
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding – 11,897,139 shares at December 31, 2018 and 10,197,139 shares at June 30, 2018     118,972       101,972  
Additional Paid-in Capital     47,797,398       45,484,186  
Accumulated Deficit     (45,447,355 )     (45,022,122 )
Total Stockholders’ Equity     2,469,015       564,036  
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 3,862,405     $ 2,511,481  
                 


 
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED
DECEMBER 31, 2018 AND 2017
(UNAUDITED)
             
    Three Months
Ended December 31,
    Six Months
Ended December 31,
 
    2018     2017     2018     2017  
Revenues   $ 1,477,851     $ 812,773     $ 3,037,309     $ 1,841,519  
                                 
Cost of Goods Sold     1,122,129       512,551       2,219,080       1,154,555  
Gross Profit     355,722       300,222       818,229       686,964  
                                 
Research and Development Expenses, net     125,413       90,031       226,211       208,458  
Selling, General and Administrative Expenses     355,916       270,035       1,016,405       566,619  
Total Operating Expenses     481,329       360,066       1,242,616       775,077  
                                 
Operating Loss     (125,607 )     (59,844 )     (424,387 )     (88,113 )
                                 
Interest Expense     (341 )     (482 )     (846 )     (998 )
                                 
Net Loss   $ (125,948 )   $ (60,326 )   $ (425,233 )   $ (89,111 )
                                 
Loss Per Share:                                
Basic   $ (0.01 )   $ (0.01 )   $ (0.04 )   $ (0.01 )
Diluted   $ (0.01 )   $ (0.01 )   $ (0.04 )   $ (0.01 )
                                 
Weighted Average Common Shares Outstanding:                                
Basic     11,618,878       9,979,197       10,940,074       9,543,810  
Diluted     11,618,878       9,979,197       10,940,074       9,543,810  
                                 


 
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
DECEMBER 31, 2018 AND 2017
(UNAUDITED)
       
    Six Months
Ended December 31,
 
    2018     2017  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net Loss   $ (425,233 )   $ (89,111 )
Adjustments to Reconcile Net Loss to Net Cash Provided From (Used In) Operating Activities -                
Depreciation and Amortization     15,862       15,804  
Stock-based Compensation Expense     353,212       33,028  
Non-cash Consulting Expense           (3,387 )
Changes in Operating Assets and Liabilities -                
Accounts Receivable, net     68,287       (284,604 )
Inventories, net     48,543       67,656  
Prepaid Expenses     (65,526 )     (22,447 )
Accounts Payable     48,482       41,586  
Customer Advances     (563,192 )     283,152  
Accrued Liabilities     (57,938 )     26,318  
Net Cash Provided From (Used In) Operating Activities     (577,503 )     67,995  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Additional Patent Costs           (17,189 )
Purchases of Property and Equipment     (76,184 )      
Net Cash Used In Investing Activities     (76,184 )     (17,189 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Payment of Capital Lease Obligation     (4,407 )     (4,127 )
Gross Proceeds from Private Placement of Common Stock     2,000,000       210,001  
Gross Proceeds from Exercise of Stock Purchase Warrants           6,667  
Net Cash Provided From Financing Activities     1,995,593       212,541  
                 
NET INCREASE IN CASH AND CASH EQUIVALENTS     1,341,906       263,347  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     402,738       118,405  
                 
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 1,744,644     $ 381,752  
                 
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES:                
Issuance of Common Stock in Settlement of Accounts Payable   $     $ 40,000  
Offering Costs Included in Current Liabilities   $ 23,000     $ 2,963  
                 

 

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