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Precision Optics Corporation, Inc. Announces Operating Results for the First Quarter of Fiscal Year 2017 Ended September 30, 2016

GARDNER, Mass., Nov. 14, 2016 (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, 2016.

First quarter highlights include:

  • Revenues of $850 thousand, nearly the same as $856 thousand in the first quarter of fiscal 2016;
  • 19.7% gross margin, a relative improvement of 28% compared to gross margin of 15.4% in the first quarter of fiscal 2016;
  • 23% year-over-year decrease in quarterly net loss on similar level quarterly revenues; and
  • On-going progress toward conversion of multiple engineering projects to production orders.

Commenting on the first quarter results, Joseph Forkey, Company CEO said, “While our revenues in the first quarter of fiscal 2017 were nearly the same as a year ago, gross margin was significantly higher, reflecting, in part, improvements in manufacturing efficiencies that we have achieved over the past year. As our overall revenues increase, we expect these efficiencies to continue to help us achieve higher margins. These improved gross margins as well as lower operating expenses, contributed to reduced losses at the same level of revenues compared to the same quarter one year ago.

Dr. Forkey continued, “We are pleased with our improved performance at this level of sales while we continue our progress toward increased production revenues resulting from conversion of our engineering service contracts. We are also seeing continued interest in our development capabilities as we evaluate new requests from existing and new potential customers for our engineering services on various medical device visualization systems that can benefit from our unique technologies and know-how.”

The following table summarizes the first quarter results for the periods ended September 30, 2016 and 2015 (unaudited):

Three Months Ended
September 30,
2016 2015
Revenues $849,548 $858,427
Gross Profit 167,051 132,338
Operating Expenses 460,459 514,228
Net Loss (293,408) (381,890)
Loss Per Share:
Basic $(0.04) $(0.06)
Diluted $(0.06) $(0.06)
Weighted Average Common Shares Outstanding:
Basic and Diluted 7,539,582 6,389,806

Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal first quarter 2017 financial results for Monday, November 14, 2016 at 5:00 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 28, 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 10093345.

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, 2016 and June 30, 2016, and statements of operations for the three months ended September 30, 2016 and 2015 and statements of cash flows for the three months ended September 30, 2016 and 2015 (unaudited):

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30,
2016
June 30,
2016
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $202,406 $50,059
Accounts Receivable, net 566,053 750,380
Inventories, net 992,472 1,133,451
Prepaid Expenses 81,832 88,129
Total Current Assets 1,842,763 2,022,019
PROPERTY AND EQUIPMENT
Machinery and Equipment 2,482,971 2,479,471
Leasehold Improvements 553,596 553,596
Furniture and Fixtures 148,303 148,303
Vehicles 19,674 19,674
3,204,544 3,201,044
Less: Accumulated Depreciation and Amortization (3,130,470) (3,122,849)
Net Fixed Assets 74,074 78,195
Patents, net 23,214 22,874
TOTAL ASSETS $1,940,051 $2,123,088
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current Portion of Capital Lease Obligation $7,987 $7,857
Accounts Payable 1,211,646 1,151,561
Customer Advances 11,025 -
Accrued Employee Compensation 184,307 238,381
Accrued Professional Services 91,350 65,550
Accrued Warranty Expense 25,000 25,000
Other Accrued Liabilities 24,162 15,612
Total Current Liabilities 1,555,477 1,503,961
Capital lease obligation, net of current portion 29,909 31,955
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding – 7,539,582 shares at September 30, 2016 and June 30, 2016 75,396 75,396
Additional Paid-in Capital 44,236,952 44,176,051
Accumulated deficit (43,957,683) (43,664,275)
Total Stockholders’ Equity 354,665 587,172
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,940,051 $2,123,088



PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(UNAUDITED)
Three Months
Ended September 30,
2016 2015
Revenues $849,548 $858,427
Cost of Goods Sold 682,497 726,089
Gross Profit 167,051 132,338
Research and Development Expenses, net 116,992 150,768
Selling, General and Administrative Expenses 343,782 365,026
Gain on Sale of Assets (315) (1,566)
Total Operating Expenses 460,459 514,228
Net Loss $(293,408) $(381,890)
Loss Per Share:
Basic $(0.04) $(0.06)
Diluted $(0.04) $(0.06)
Weighted average common shares outstanding:
Basic 7,539,582 6,389,806
Diluted 7,539,582 6,389,806






PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(UNAUDITED)
Three Months
Ended September 30,
2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(293,408) $(381,890)
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities:
Depreciation and Amortization 7,621 5,541
Gain on Sale of Assets (315) (1,566)
Stock-based Compensation Expense 60,901 100,323
Non-cash Consulting Expense 8,550 4,500
Changes in Operating Assets and Liabilities:
Accounts Receivable, net 184,327 128,914
Inventories 140,979 54,529
Prepaid Expenses 6,297 7,194
Accounts Payable 60,085 (40,809)
Customer Advances 11,025 3,500
Accrued Expenses (28,274) (5,320)
Net Cash Provided From (Used In) Operating Activities 157,788 (125,084)
CASH FLOWS FROM INVESTING ACTIVITIES
Additional Patent Costs (340) (1,443)
Purchases of Property and Equipment (3,500) (4,372)
Proceeds from Sale of Assets 315 1,566
Net Cash Used In Investing Activities (3,525) (4,249)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Capital Lease Obligation (1,916)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 152,347 (129,333)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 50,059 241,051
CASH AND CASH EQUIVALENTS, END OF PERIOD $202,406 $111,718
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash Paid for Income Taxes $ $912


Company Contact: PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone: 978-630-1800 Investor Contact: Kirin M. Smith, Chief Operating Officer PCG Advisory Group Telephone: 646-863-6519 Email: Ksmith@PCGAdvisory.com www.pcgadvisory.com

Source:Precision Optics Corporation