PEYE Precision Optics Corp. Inc.

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

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

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 Investors can find Real-Time Quotes and market information for the Company on .

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 
         

 

EN
12/02/2019

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