Precision Optics Corporation, Inc. Announces Operating Results for the Third Quarter and Nine Months of Fiscal Year 2016
GARDNER, Mass., May 16, 2016 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (OTCQB:PEYE) (the “Company”) today announced operating results on an unaudited basis for its third quarter and nine months ended March 31, 2016, of fiscal year 2016.
Third quarter highlights include:
- Revenues of $1,141 thousand, representing a 19.5% sequential increase over the second quarter of fiscal 2016;
- Gross margin of 24.0%, an improvement compared to 22.7% in the second quarter of fiscal 2016 and a decline compared to 27.4% in the third quarter of fiscal 2015;
- Increased engineering / design projects, and associated revenue, using the Company’s Microprecision™ optics for reusable and single-use medical devices.
Commenting on the results, Company CEO, Joseph Forkey said, “This past quarter demonstrated the ongoing progress we are making towards the related goals of commercial implementation of our newest technologies, and revenue growth to achieve profitable operations. Our revenues were $1.141 million, virtually equal to quarterly revenues a year ago, which were $1.142 million and the highest in over ten years. We are also pleased to report that our ongoing efforts to control costs have been successful in reducing our cash requirements at comparable revenue levels, when we fully account for non-cash expenses. As we continue our push to achieve and move beyond profitable operations, we will control and reduce costs wherever possible while still maintaining the resources necessary to take full advantage of existing and new opportunities.
Dr. Forkey continued, “Design and engineering services were at record levels this past quarter at over $650,000, with six projects making up over 85% of this engineering revenue. This demonstrates the potential in the near term for engineering services to contribute significantly to revenue as we incorporate our latest technology into new products for customers in well-funded development projects. It also indicates the potential for a number of significant, on-going production orders in the near future as these projects transition from development into production. During the past year, we have often commented on the developing interest in new products that utilize micro CMOS cameras enabled by our Microprecision™ lens technology. It is mainly interest in this area that has supported the significant growth in design and engineering revenue this quarter. This increase, combined with the ongoing high rate of new inquiries into our capabilities in this area, reinforces our belief that our technology is ideally positioned to satisfy the growing demand for small re-usable and single-use CMOS based endoscopes.”
Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal third quarter 2016 financial results for May 16, 2016 at 4:30 PM Eastern. To participate in the conference call, please dial 1-866-652-5200 toll free from the U.S., or 1-412-317-6060, and ask to be connected to the Precision Optics 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 May 30, 2016. The audio replay can be accessed by dialing 1-412-317-0088 locally or 1-877-344-7529, toll free then enter conference ID number 10086255.
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.
Following are the Company’s consolidated balance sheets as of March 31, 2016 and June 30, 2015, and statements of operations for the three months and nine months ended March 31, 2016 and March 31, 2015 and statements of cash flows for the nine months ended March 31, 2016 and March 31, 2015 (unaudited):
| PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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| March 31, 2016 |
June 30, 2015 |
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| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and Cash Equivalents | $ | 172,269 | $ | 241,051 | ||||
| Accounts Receivable, net | 607,976 | 588,042 | ||||||
| Inventories, net | 1,053,302 | 1,073,256 | ||||||
| Prepaid Expenses | 100,194 | 65,182 | ||||||
| Total Current Assets | 1,933,741 | 1,967,531 | ||||||
| PROPERTY AND EQUIPMENT | ||||||||
| Machinery and Equipment | 2,479,471 | 2,431,127 | ||||||
| Leasehold Improvements | 553,596 | 553,596 | ||||||
| Furniture and Fixtures | 148,303 | 148,303 | ||||||
| Vehicles | 19,674 | 19,674 | ||||||
| 3,201,044 | 3,152,700 | |||||||
| Less: Accumulated Depreciation and Amortization | (3,115,345 | ) | (3,096,993 | ) | ||||
| Net Property and Equipment | 85,699 | 55,707 | ||||||
| Patents, net | 22,874 | 18,644 | ||||||
| TOTAL ASSETS | $ | 2,042,314 | $ | 2,041,882 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current Portion of Capital Lease Obligation | $ | 7,728 | $ | - | ||||
| Accounts Payable | 1,025,422 | 912,150 | ||||||
| Customer Advances | 23,010 | 118,800 | ||||||
| Accrued Employee Compensation | 176,130 | 222,222 | ||||||
| Accrued Professional Services | 54,471 | 60,735 | ||||||
| Accrued Warranty Expense | 25,000 | 25,000 | ||||||
| Other Accrued Liabilities | 7,200 | 36,087 | ||||||
| Total Current Liabilities | 1,318,961 | 1,374,994 | ||||||
| Capital Lease Obligation, net of current portion | 33,968 | - | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding – 7,539,582 shares at March 31, 2016 and 6,389,806 shares at June 30, 2015 | 75,396 | 63,898 | ||||||
| Additional Paid-in Capital | 44,128,796 | 43,232,500 | ||||||
| Accumulated Deficit | (43,514,807 | ) | (42,629,510 | ) | ||||
| Total Stockholders’ Equity | 689,385 | 666,888 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,042,314 | $ | 2,041,882 | ||||
|
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2016 AND 2015 (UNAUDITED) |
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| Three Months Ended March 31, |
Nine Months Ended March 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 1,140,825 | $ | 1,141,892 | $ | 2,954,024 | $ | 2,949,154 | ||||||||
| Cost of Goods Sold | 867,292 | 828,963 | 2,331,131 | 2,361,575 | ||||||||||||
| Gross Profit | 273,533 | 312,929 | 622,893 | 587,579 | ||||||||||||
| Research and Development Expenses, net | 118,285 | 140,177 | 377,199 | 355,782 | ||||||||||||
| Selling, General and Administrative Expenses | 407,406 | 410,549 | 1,179,520 | 1,104,466 | ||||||||||||
| Gain on Sale of Assets | (8,480 | ) | (691 | ) | (26,948 | ) | (17,901 | ) | ||||||||
| Total Operating Expenses | 517,211 | 550,035 | 1,529,771 | 1,442,347 | ||||||||||||
| Operating Loss | $ | (243,678 | ) | $ | (237,106 | ) | $ | (906,878 | ) | $ | (854,768 | ) | ||||
| Interest Expense | (469 | ) | - | (469 | ) | - | ||||||||||
| Other Income | 22,050 | 39,222 | 22,050 | 39,222 | ||||||||||||
| Net Loss | (222,097 | ) | (197,884 | ) | (885,297 | ) | (815,546 | ) | ||||||||
| Loss Per Share: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.13 | ) | $ | (0.13 | ) | ||||
| Diluted | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.13 | ) | $ | (0.13 | ) | ||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic | 7,484,197 | 6,334,757 | 7,033,090 | 6,241,438 | ||||||||||||
| Diluted | 7,484,197 | 6,334,757 | 7,033,090 | 6,241,438 | ||||||||||||
| PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 31, 2016 AND 2015 (UNAUDITED) |
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| Nine Months Ended March 31, |
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| 2016 | 2015 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net Loss | $ | (885,297 | ) | $ | (815,546 | ) | ||
| Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities - | ||||||||
| Depreciation and Amortization | 18,352 | 14,962 | ||||||
| Gain on Sale of Assets | (26,948 | ) | (17,901 | ) | ||||
| Stock-based Compensation Expense | 194,133 | 42,750 | ||||||
| Non-cash Consulting Expense | 55,050 | 38,625 | ||||||
| Non-cash Gain on Settlement of Liabilities by Issuing Common Stock | (22,050 | ) | (39,222 | ) | ||||
| Changes in Operating Assets and Liabilities - | ||||||||
| Accounts Receivable, net | (19,934 | ) | (11,424 | ) | ||||
| Inventories | 19,954 | (259,864 | ) | |||||
| Prepaid Expenses | (35,012 | ) | 21,096 | |||||
| Accounts Payable | 113,272 | 165,514 | ||||||
| Customer Advances | (95,790 | ) | 74,400 | |||||
| Accrued Expenses | (65,943 | ) | 61,770 | |||||
| Net Cash Used In Operating Activities | (750,213 | ) | (724,840 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Additional Patent Costs | (4,230 | ) | (10,972 | ) | ||||
| Purchases of Property and Equipment | (4,554 | ) | (59,973 | ) | ||||
| Proceeds from Sale of Assets | 26,948 | 17,901 | ||||||
| Net Cash Provided by (Used in) Investing Activities | 18,164 | (53,044 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payment of Capital Lease Obligation | (2,094 | ) | - | |||||
| Gross Proceeds from Private Placement of Common Stock | 700,000 | 980,291 | ||||||
| Private Placement Expenses Incurred as of March 31 | (34,639 | ) | (121,512 | ) | ||||
| Net Cash Provided by Financing Activities | 663,267 | 858,779 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (68,782 | ) | 80,895 | |||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 241,051 | 202,380 | ||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 172,269 | $ | 283,275 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash Paid for Income Taxes | $ | 912 | $ | 912 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Issuance of Common Stock to Consultants | $ | 48,300 | $ | 93,793 | ||||
| Acquisition of Manufacturing Equipment Under Capital Lease | $ | 43,790 | $ | - | ||||
Contact: Amy Ives (978) 630-1800 info@poci.com
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