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Precision Optics Corporation, Inc. Announces Operating Results for the Second Quarter and Six Months of Fiscal Year 2018

GARDNER, Mass., Feb. 14, 2018 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (OTCQB:PEYE) (the “Company”) today announced operating results on an unaudited basis for its fiscal year 2018 second quarter and six months ended December 31, 2017.

Financial highlights include:

  • 35% increase in quarterly revenues: $813,000 second quarter fiscal 2018 revenues compared to $602,000 in the second quarter of fiscal 2017;
  • 27% increase in six month revenues: $1,841,000 six month fiscal 2018 revenues compared to six month 2017 revenues of $1,451,000;
  • Increased gross margins in Fiscal 2018: 37% gross margin in fiscal 2018 second quarter and six months, compared to 25% and 22% in fiscal 2017 second quarter and six months, respectively;
  • Reduced net loss in Fiscal 2018: Second quarter and six months fiscal 2018 net loss of $60,000 and $89,000, respectively, compared to $312,000 and $605,000 in fiscal 2017 second quarter and six months, respectively.

/EIN News/ -- Commenting on the second quarter results, Joseph Forkey, Company CEO said, “Continued strength in our financial performance at current sales levels reinforces our confidence that the Company will achieve improved operational results when increasing manufacturing orders raise overall revenue levels. Our focus on controlling costs, optimizing the use of resources and maximizing production yields is reflected in increased revenues and gross margins with simultaneous reductions in operating expenses and net losses in both the quarter and six months ended December 31, 2017.”

Dr. Forkey continued, “Our sustained pipeline of engineering design projects calls upon our many unique technical capabilities including Microprecision™ micro-optics, custom design of medical grade cameras and endoscopes, CMOS imaging systems, illumination technologies, and 3D endoscopes. We are pleased to report that a number of engineering projects are transitioning to production, and we have now received production orders from three existing customers totaling over $2.1 Million with deliveries scheduled over the next eighteen months. Each of these three products utilizes our proprietary Microprecision™ technologies, and should significantly contribute to increasing revenues and continuously improving operational results in coming quarters.”

Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal Second quarter 2018 financial results for Wednesday, February 14, 2018 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, Corp. 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 28, 2018. 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 10116867.

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

Investor Contact:
PCG Advisory Group
Kirin M. Smith
Chief Operating Officer
Telephone: 646-863-6519
Email: Ksmith@PCGAdvisory.com
Website: www.PCGAdvisory.com

Following are the Company’s consolidated balance sheets as of December 31, 2017 and June 30, 2017, and statements of operations for the three and six months ended December 31, 2017 and 2016 and statements of cash flows for the six months ended December 31, 2017 and 2016 (unaudited):

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

    December 31,
2017
    June 30,
2017
 
ASSETS                
CURRENT ASSETS                
Cash and Cash Equivalents   $ 381,752     $ 118,405  
Accounts Receivable, net     753,152       468,548  
Inventories, net     987,791       1,055,447  
Prepaid Expenses     78,432       55,985  
Total Current Assets     2,201,127       1,698,385  
PROPERTY AND EQUIPMENT                
Machinery and Equipment     2,507,190       2,507,190  
Leasehold Improvements     553,596       553,596  
Furniture and Fixtures     148,303       148,303  
      3,209,089       3,209,089  
                 
Less: Accumulated Depreciation and Amortization     (3,152,639 )     (3,136,835 )
Net Fixed Assets     56,450       72,254  
                 
Patents, net     47,275       30,086  
                 
TOTAL ASSETS   $ 2,304,852     $ 1,800,725  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
CURRENT LIABILITIES                
Current Portion of Capital Lease Obligation   $ 8,672     $ 8,391  
Accounts Payable     699,507       694,958  
Customer Advances     463,289       180,137  
Accrued Employee Compensation     179,601       189,783  
Accrued Professional Services     107,500       71,000  
Accrued Warranty Expense     25,000       25,000  
Other Accrued Liabilities     46,125       49,512  
Total Current Liabilities     1,529,694       1,218,781  
                 
Capital Lease Obligation, net of current portion     19,156       23,564  
                 
STOCKHOLDERS’ EQUITY                
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued
and Outstanding – 10,095,139 shares at December 31, 2017 and
8,872,916 shares at June 30, 2017
    100,952       88,729  
Additional Paid-in Capital     45,414,893       45,140,383  
Accumulated Deficit     (44,759,843 )     (44,670,732 )
Total Stockholders’ Equity     756,002       558,380  
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 2,304,852     $ 1,800,725  
                 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED
DECEMBER 31, 2017 AND 2016
(UNAUDITED)

    Three Months
Ended December 31,
    Six Months
Ended December 31,
 
    2017     2016     2017     2016  
Revenues   $ 812,773     $ 601,590     $ 1,841,519     $ 1,451,138  
                                 
Cost of Goods Sold     512,551       453,183       1,154,555       1,135,680  
Gross Profit     300,222       148,407       686,964       315,458  
                                 
Research and Development Expenses, net     90,031       119,215       208,458       236,207  
                                 
Selling, General and Administrative Expenses     270,035       342,487       566,619       686,269  
                                 
Gain on Sale of Assets     -       (1,200 )     -       (1,515 )
Total Operating Expenses     360,066       460,502       775,077       920,961  
                                 
Operating Loss     (59,844 )     (312,095 )     (88,113 )     (605,503 )
                                 
Interest Expense     (482 )     -       (998 )     -  
                                 
Net Loss     (60,326 )     (312,095 )     (89,111 )     (605,503 )
                                 
Loss Per Share:                                
Basic   $ (0.01 )   $ (0.04 )   $ (0.01 )   $ (0.08 )
Diluted   $ (0.01 )   $ (0.04 )   $ (0.01 )   $ (0.08 )
                                 
Weighted Average Common Shares Outstanding:                                
Basic     9,979,197       8,104,800       9,543,810       7,822,191  
Diluted     9,979,197       8,104,800       9,543,810       7,822,191  
                                 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
DECEMBER 31, 2017 AND 2016
(UNAUDITED)

    Six Months
Ended December 31,
 
    2017     2016  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net Loss   $ (89,111 )   $ (605,503 )
Adjustments to Reconcile Net Loss to Net Cash Provided From (Used In) Operating Activities -                
Depreciation and Amortization     15,804       16,019  
Gain on Sale of Assets           (1,515 )
Stock-based Compensation Expense     33,028       110,433  
Non-cash Consulting Expense     (3,387 )     17,400  
Changes in Operating Assets and Liabilities -                
Accounts Receivable, net     (284,604 )     308,293  
Inventories, net     67,656       35,560  
Prepaid Expenses     (22,447     (5,915
Accounts Payable     41,586       (168,433
Customer Advances     283,152       37,100  
Accrued Liabilities     26,318       (22,880 )
Net Cash Provided From (Used In) Operating Activities     67,995       (279,441
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
                 
Additional Patent Costs     (17,189     (5,848 )
Purchases of Property and Equipment           (25,843 )
Proceeds from Sale of Assets           1,515  
Net Cash Used In Investing Activities     (17,189     (30,176 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Payment of Capital Lease Obligation     (4,127 )     (3,864 )
Gross Proceeds from Private Placement of Common Stock     210,001       780,000  
Gross Proceeds from Exercise of Stock Purchase Warrants     6,667       -  
Net Cash Provided From Financing Activities     212,541       776,136  
                 
NET INCREASE IN CASH AND CASH EQUIVALENTS     263,347       466,519  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     118,405       50,059  
                 
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 381,752     $ 516,578  
                 
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES:                
Issuance of Common Stock in Settlement of Accounts Payable   $ 40,000     $  
Offering Costs Included in Accounts Payable   $ 2,963     $  

 

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