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Precision Optics Corporation, Inc. Announces Operating Results for the First Quarter of Fiscal Year 2016 Ended September 30, 2015

GARDNER, Mass., Nov. 12, 2015 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (OTCQB:PEYE) (the “Company”) today announced operating results on an unaudited basis for its first quarter ended September 30, 2015.

First quarter highlights include:

  • Revenues of $858 thousand, representing a 3.3% increase over the first quarter of fiscal 2015;
  • Gross margin of 15.4%, an improvement compared to 13.5% in the first quarter of fiscal 2015;
  • On October 19, 2015, the Company completed a Private Placement of 1,044,776 shares of stock at a price of $0.67 per share, raising gross proceeds of $700,000;
  • Increase in engineering / design projects using Company’s MicroprecisionTM optics for reusable and single-use medical devices


Commenting on the first quarter results, Joseph Forkey, Company CEO said, “Our sales include products such as complete medical devices, sub-assemblies and optical components, but they also include engineering services, usually for design and prototype of new products. While our revenues for the first quarter were lower than the previous quarter, we are very excited about the increased level of interest from many medical device companies to engage us for engineering services relating to development of new products, many using CMOS based micro camera modules. We expect revenues from engineering services will increase in the near term, but more importantly, they will ultimately lead to greater revenue increases as those development projects transition into production.”

Dr. Forkey continued, “The largest category for requests of our engineering services relates to the OV6946 CMOS camera module announced in June as part of our partnership with OmniVision Technologies, Inc. and Fujikura Ltd. We are receiving a great reception due to the superior image quality, small size and cost structure we have achieved with this 1.6 mm camera module, but we are also very encouraged by our customers’ appreciation for our broader ability to design customized CMOS based micro imaging systems for use in their existing and future medical devices. It is particularly encouraging to see a number of new development projects entering our development pipeline just at the time when a number of other projects are moving from the development process toward full production. Progress in building this pipeline reinforces our confidence that our technology is ideally suited for next generation reusable and single-use imaging devices based on micro CMOS based cameras with diameters in the range of 1mm or less.”

The following table summarizes the first quarter results for the periods ended September 30, 2015 and 2014 (unaudited):

Three Months Ended
September 30,
2015 2014
Revenues $858,427 $830,714
Gross Profit 132,338 112,138
Operating Expenses 514,228 408,577
Net Loss (381,890) (296,439)
Loss Per Share:
Basic $(0.06) $(0.05)
Diluted $(0.06) $(0.05)


Weighted Average Common Shares Outstanding:
Basic and Diluted 6,389,806 6,069,131


Quarterly Conference Call Details

The Company has scheduled a conference call to discuss the fiscal first quarter 2016 financial results for Thursday, November 12, 2015 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 November 26, 2015. 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 10076232.

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


PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30,
2015
June 30,
2015
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $111,718 $241,051
Accounts Receivable, net 459,128 588,042
Inventories, net 1,018,727 1,073,256
Prepaid Expenses 57,988 65,182
Total Current Assets 1,647,561 1,967,531
PROPERTY AND EQUIPMENT
Machinery and Equipment 2,435,499 2,431,127
Leasehold Improvements 553,596 553,596
Furniture and Fixtures 148,303 148,303
Vehicles 19,674 19,674
3,157,072 3,152,700
Less: Accumulated Depreciation (3,102,534) (3,096,993)
Net Property and Equipment 54,538 55,707
Patents, net 20,087 18,644
TOTAL ASSETS $1,722,186 $2,041,882
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts Payable $871,341 $912,150
Customer Advances 122,300 118,800
Accrued Employee Compensation 192,417 222,222
Accrued Professional Services 95,950 60,735
Accrued Warranty Expense 25,000 25,000
Other Accrued Liabilities 29,857 36,087
Total Current Liabilities 1,336,865 1,374,994
STOCKHOLDERS’ EQUITY
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding – 6,389,806 shares at September 30, 2015 and June 30, 2015 63,898 63,898
Additional Paid-in Capital 43,332,823 43,232,500
Accumulated Deficit (43,011,400) (42,629,510)
Total Stockholders’ Equity 385,321 666,888
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,722,186 $2,041,882




PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2015 AND 2014
(UNAUDITED)
Three Months
Ended September 30,
2015 2014
Revenues $858,427 $830,714
Cost of Goods Sold 726,089 718,576
Gross Profit 132,338 112,138
Research and Development Expenses, net 150,768 76,712
Selling, General and Administrative Expenses 365,026 347,147
Gain on Sale of Assets (1,566) (15,282)
Total Operating Expenses 514,228 408,577
Net Loss $(381,890) $(296,439)
Loss Per Share:
Basic $(0.06) $(0.05)
Diluted $(0.06) $(0.05)
Weighted Average Common Shares Outstanding:
Basic 6,389,806 6,069,131
Diluted 6,389,806 6,069,131



PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2015 AND 2014
(UNAUDITED)
Three Months
Ended September 30,
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(381,890) $(296,439)
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities -
Depreciation and Amortization 5,541 3,888
Gain on Sale of Assets (1,566) (15,282)
Stock-based Compensation Expense 100,323 27,000
Non-cash Consulting Expense 4,500 11,250
Changes in Operating Assets and Liabilities -
Accounts Receivable, net 128,914 (149,252)
Inventories 54,529 76,929
Prepaid Expenses 7,194 18,346
Accounts Payable (40,809) (244,207)
Customer Advances 3,500 (25,780)
Accrued Expenses (5,320) 2,391
Net Cash Used In Operating Activities (125,084) (591,156)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional Patent Costs (1,443) (851)
Purchases of Property and Equipment (4,372) (31,736)
Proceeds from Sale of Assets 1,566 15,282
Net Cash Used In Investing Activities (4,249) (17,305)
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 September 30, 2014 - (46,719)
Net Cash Provided by Financing Activities - 933,572
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (129,333) 325,111
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 241,051 202,380
CASH AND CASH EQUIVALENTS, END OF PERIOD $111,718 $527,491
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash Paid for Income Taxes $912 $912
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Issuance of 90,298 Shares of Common Stock to Consultants $- $65,016


PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800 Telefax 978 / 630-1487

Source:Precision Optics Corporation