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Precision Optics Corporation, Inc. Announces Operating Results for the Third Quarter and Nine Months of Fiscal Year 2015

GARDNER, Mass., May 14, 2015 (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, 2015, of fiscal year 2015.

Third quarter highlights include:

  • Revenues of $1.142 million, representing a 17% sequential increase over the second quarter of fiscal 2015, and a 37% increase over the third quarter of fiscal 2014;
  • Gross margin of 27.4%, an improvement compared to 16.6% in the second quarter of fiscal 2015;
  • Company responding to increasing interest in Microprecision™ optics and their use in reusable and single-use medical devices.

Commenting on the quarter's results, Precision Optics' CEO Joseph Forkey said, "We continue to see solid demand for our traditional products as well as early market acceptance of products based on our latest technology. Our third quarter revenues were the highest in over ten years. Our gross margin percentage was significantly higher than recent quarters. While some of this increase in margin is due to efficiencies of scale, much is also due to our focus over the last six months on increased manufacturing efficiencies, especially as we bring new products into production. We are maintaining this focus and broadening our efforts to drive higher margins."

Dr. Forkey concluded, "Looking forward, we continue to see a strong pipeline of opportunities, particularly in the area of micro-optics and micro-assemblies based on optics designed specifically for small CMOS-based medical camera systems. Working with major partners, we have now developed a next-generation CMOS-based medical camera which has the highest resolution of any camera with diameter in the 1 – 2 mm range. We look forward to demonstrating this new innovation at the Medical Design and Manufacturing (MD&M) exhibit which will be held in New York City, June 9 – 11, 2015. We are expanding our go-to-market efforts to ensure both large established medical device companies and small, emerging technology players see the value our newest products can offer."

Quarterly Conference Call Details

The Company has scheduled a conference call to discuss the fiscal third quarter 2015 financial results for today 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 August 13, 2015. The audio replay can be accessed by dialing 1-877-344-7529 toll free from the US or 1-412-317-0088, and then the replay access code of 10065931.

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, 2015 and June 30, 2014, and statements of operations for the three and nine months ended March 31, 2015 and 2014 and statements of cash flows for the nine months ended March 31, 2015 and 2014 (unaudited):

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31,
2015
June 30,
2014
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 283,275 $ 202,380
Accounts Receivable, net 542,473 531,049
Inventories, net 1,248,742 988,878
Prepaid Expenses 70,826 91,922
Total Current Assets 2,145,316 1,814,229
PROPERTY AND EQUIPMENT
Machinery and Equipment 2,428,682 2,368,709
Leasehold Improvements 553,596 553,596
Furniture and Fixtures 148,303 148,303
Vehicles 19,674 19,674
3,150,255 3,090,282
Less: Accumulated Depreciation (3,090,684) (3,075,722)
Net Property and Equipment 59,571 14,560
Patents, net 18,644 7,672
TOTAL ASSETS $ 2,223,531 $ 1,836,461
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 866,706 $ 715,192
Customer Advances 100,600 26,200
Accrued Employee Compensation 234,779 200,207
Accrued Professional Services 59,052 60,250
Accrued Warranty Expense 25,000 25,000
Other Accrued Liabilities 23,034 69,028
Total Current Liabilities 1,309,171 1,095,877
STOCKHOLDERS' EQUITY
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding –6,344,806 shares at March 31, 2015 and 4,455,134 shares at June 30, 2014 63,448 44,551
Additional Paid-in Capital 43,117,175 42,146,750
Accumulated Deficit (42,266,263) (41,450,717)
Total Stockholders' Equity 914,360 740,584
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,223,531 $ 1,836,461

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED
MARCH 31, 2015 AND 2014
(UNAUDITED)
Three Months
Ended March 31,
Nine Months
Ended March 31,
2015 2014 2015 2014
Revenues $ 1,141,892 $ 833,451 $ 2,949,154 $ 2,748,594
Cost of Goods Sold 828,963 644,219 2,361,575 2,093,712
Gross Profit 312,929 189,232 587,579 654,882
Research and Development Expenses, net 140,177 132,957 355,782 360,012
Selling, General and Administrative Expenses 410,549 443,220 1,104,466 1,146,136
Gain on Sale of Assets (691) (6,511) (17,901) (7,658)
Total Operating Expenses 550,035 569,666 1,442,347 1,498,490
Operating Loss (237,106) (380,343) (854,768) (843,608)
Other Income 39,222 -- 39,222 --
Net Loss (197,884) (380,434) (815,546) (843,608)
Loss Per Share:
Basic $ (0.03) $ (0.09) $ (0.13) $ (0.19)
Diluted $ (0.03) $ (0.09) $ (0.13) $ (0.19)
Weighted Average Common Shares Outstanding:
Basic 6,334,757 4,455,134 6,241,438 4,455,134
Diluted 6,334,757 4,455,134 6,241,438 4,455,134

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED
MARCH 31, 2015 AND 2014
(UNAUDITED)
Nine Months
Ended March 31,
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (815,546) $ (843,608)
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities --
Depreciation and Amortization 14,962 16,842
Gain on Sale of Assets (17,901) (7,658)
Stock-based Compensation Expense 42,750 108,924
Non-cash Consulting Expense 38,625 73,898
Non-cash Gain on Settlement of Liabilities by Issuing Common Stock (39,222) --
Changes in Operating Assets and Liabilities --
Accounts Receivable, net (11,424) (203,211)
Inventories (259,864) (24,036)
Prepaid Expenses 21,096 (42,299)
Accounts Payable 165,514 254,295
Customer Advances 74,400 (10,262)
Accrued Expenses 61,770 8,257
Net Cash Used In Operating Activities (724,840) (668,858)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional Patent Costs (10,972) (8,524)
Purchases of Property and Equipment (59,973)
Proceeds from Sale of Assets 17,901 7,658
Net Cash Used In Investing Activities (53,044) (866)
CASH FLOWS FROM FINANCING ACTIVITIES:
Gross Proceeds from July 2014 Private Placement of Common Stock 980,291
Private Placement Expenses Incurred and Paid as of March 31, 2015 (121,512)
Net Cash Provided by Financing Activities 858,779
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 80,895 (669,724)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 202,380 1,034,587
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 283,275 $ 364,863
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash Paid for Income Taxes $ 912 $ 912
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Issuance of 172,520 Shares of Common Stock for Services Rendered to the Company $ 93,793 $ –
Private Placement Expenses Incurred But Not Yet Paid as of March 31, 2015 $ 6,000 $ –

CONTACT: PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800 Telefax 978 / 630-1487Source:Precision Optics Corporation