Precision Optics Corporation Announces Operating Results For The Third Quarter And Nine Months Of Fiscal Year 2017

GARDNER, Mass., May 15, 2017 (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, 2017, of fiscal year 2017.

Third quarter highlights include:

• Third quarter revenues of $983 thousand, representing a 63% increase over the second quarter of fiscal 2017, and a 14% decrease compared to revenues in the third quarter of fiscal 2016;
  
  
• Improved gross margin on lower revenues in both the three and nine month periods ended March 31, 2017 compared to the same periods of the prior fiscal year;
  
  
• Third quarter gross margins of 28% compared to 24% in fiscal 2017 and 2016, respectively, and 24% compared to 21% in the nine months ended March 31, 2017 and 2016, respectively;
  
  
• Reductions in SG&A expenses of $89 thousand and $176 thousand in the three and nine month periods ended March 31, 2017, respectively, compared to the same periods of the prior fiscal year;
  
  
• Continued expansion of the number of engineering services projects and customers utilizing the Company’s Microprecision™ optics expertise for reusable and single-use medical devices.

Commenting on the results, Company CEO, Joseph Forkey said, “In this third quarter our revenues rebounded from their temporary decline in the second quarter of fiscal 2017.  Improving efficiencies in our operations resulted in increased gross margins as well as lower selling, general and administrative expenses for the current quarter and nine months compared to last year.  Gross margin of 28% on revenues this past quarter of $983 thousand represents continued improvement and stabilization of margins realized on engineering services related to CMOS and other Microprecision™ technologies as well as traditional and new product production. As revenues increase from their current levels, we expect that higher capacity utilization will push margins higher resulting in rapidly enhanced financial performance.”

Dr. Forkey continued, “Design and engineering services represented 56% and 45% of total revenues for the current quarter and nine months. Equally important is that we worked on thirty-six different revenue-generating engineering projects during the last nine months.  This represents a 71% increase compared to the number of projects in the same period last year, and demonstrates the accelerating development of the market for new products based on our enabling micro optics technology. Our unique Microprecision™ capabilities are now well positioned for the growing demand for micro optical systems in the medical device industry. Our ability to effectively estimate, plan and execute these projects contributes directly to our improving margins and to our pipeline of increasing production business and overall company revenues.”