Precision Optics Reports First Quarter Fiscal Year 2021 Financial Results

Conference Call Scheduled for today, November 12, 2020 at 5:00pm ET

 

GARDNER, Mass., Nov. 12, 2020 /PRNewswire/ -- Precision Optics Corporation, Inc. (OTCQB: PEYE), a leading designer and manufacturer of advanced optical instruments for the medical and defense industries, announced operating results on an unaudited basis for its first quarter fiscal year ended September 30, 2020.

First quarter fiscal 2021 highlights:

  • Revenue for the quarter ended September 30, 2020 was $2.76 million compared to $2.51 million in the same quarter of the previous fiscal year, an increase of 10%; and up 23% sequentially compared to $2.24 million in the fourth quarter of the previous fiscal year.
  • Gross margins for the quarter ended September 30, 2020 of 35% compared to 39% in the same quarter of the prior year; and compared to 29% for the quarter ended June 30, 2020.
  • Net income of $763 during the quarter included $71,146 of stock-based compensation. This compared to a loss of $86,110 in the same quarter a year ago and loss of $323,085 in the fourth quarter of fiscal 2020.
  • The Company's cash position remains strong with an ending balance for the first quarter of $900,510.

Precision Optics' CEO, Joseph Forkey, commented, "I am pleased with the operating performance during the first quarter which included a return to revenue growth. Our revenues grew sequentially by 23%, and by 10% year over year, as we saw a recovery in shipments on orders that had been delayed due to issues surrounding COVID-19 over the past few quarters. This growth in revenue, coupled with sequential improvement in gross margins and continued efficient management of expenses, lead to slight net income profitability and positive adjusted EBITDA. Importantly, our balance sheet remained strong with more than $900,000 in cash."

Dr. Forkey concluded, "Our team continues to maintain a safe overall workplace for our employees while meeting the expectations and demands of our customers. Production disruptions resulting from COVID-19 related precautions created a slightly elevated backlog going into the quarter, which we have largely now delivered. Importantly, COVID-19 did not materially alter end-market programs and we are seeing the progression of numerous pipeline projects that have the ability to be significant contributors to revenue over the next few quarters and years. We are still not out of the woods as it relates to the near term impacts from COVID-19 as customers work through excess inventory and evaluate the velocity of sell through of their end products in the market. However, the increase we have seen in pipeline projects as well as requests for quotation gives me optimism. We continue to have confidence that our existing production programs will ultimately return to pre-pandemic levels and combined with new programs that are building today, we expect to have a larger base of revenue. Our business today is inherently growing nicely."

The following table summarizes the first quarter (unaudited) results for the periods ended September 30, 2020 and 2019:

   

Three Months

   

Ended Sept 30,

   

2020

2019

 

Revenues

$ 2,757,901

$ 2,514,984

       
 

Gross Profit

975,178

974,117

       
 

Stock Compensation Expenses

59,913

110,272

 

Other

913,665

949,727

 

Total Operating Expenses

973,578

1,059,999

       
 

Operating Income (Loss)

1,600

(85,882)

       
 

Net Income (Loss)

793

(86,110)

       
 

Income (Loss) per Share

$ 0.00

$ (0.01)

   

Basic and Diluted

   
       
 

Weighted Average Common Shares Outstanding

   
   

Basic and Diluted

13,191,789

12,832,389

   

Fully Diluted

13,684,233

12,832,389

Conference Call Details
The Company has scheduled a conference call to discuss the first quarter 2021 financial results for Thursday, November 12, 2020 at 5:00 p.m. ET.

Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or (412) 317-5705.

Live Webcast Information: Interested parties can access the conference call via a live Internet webcast, which is available at https://www.webcaster4.com/Webcast/Page/2109/38482.

Replay: A teleconference replay of the call will be available until November 19, 2020 at (877) 344-7529 or (412) 317-0088, confirmation # 10149688. A webcast replay will be available at https://www.webcaster4.com/Webcast/Page/2109/38482.

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, Microprecision™ 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, except as required by law.

Company Contact:
PRECISION OPTICS CORPORATION
22 East Broadway
Gardner, Massachusetts 01440-3338
Telephone: 978-630-1800

Investor Contact:
LYTHAM PARTNERS, LLC
Robert Blum
Phoenix | New York
Telephone: 602-889-9700
peye@lythampartners.com

Following are the Company's Consolidated Balance Sheets at September 30, 2020 and June 30, 2020, and Statements of Operations, for the three month periods ended September 30, 2020 and 2019:

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 
   

September 30,
2020

   

June 30,
2020

 

ASSETS

               

Current Assets:

               

Cash and cash equivalents

 

$

900,510

   

$

1,134,697

 

Accounts receivable (net of allowance for doubtful accounts of $249,200 at September 30, 2020 and $248,450 at June 30, 2020)

   

1,585,001

     

1,481,437

 

Inventories

   

2,138,390

     

2,197,244

 

Prepaid expenses

   

112,015

     

133,707

 

Total current assets

   

4,735,916

     

4,947,085

 
                 

Fixed Assets:

               

Machinery and equipment

   

2,915,847

     

2,907,533

 

Leasehold improvements

   

754,438

     

731,801

 

Furniture and fixtures

   

178,640

     

178,640

 
     

3,848,925

     

3,817,974

 

Less—Accumulated depreciation and amortization

   

3,349,910

     

3,314,824

 

Net fixed assets

   

499,015

     

503,150

 
                 

Operating lease right-to-use asset

   

104,380

     

118,403

 

Patents, net

   

104,887

     

95,229

 

Goodwill

   

687,664

     

687,664

 
                 

TOTAL ASSETS

 

$

6,131,862

   

$

6,351,531

 
                 

LIABILITIES AND STOCKHOLDERS' EQUITY

               

Current Liabilities:

               

Current portion of capital lease obligation

 

$

33,047

   

$

51,761

 

Current portion of acquisition earn out liability

   

166,667

     

166,667

 

Note payable to bank

   

808,962

     

808,962

 

Accounts payable

   

1,022,803

     

1,066,005

 

Customer advances

   

206,665

     

417,059

 

Accrued compensation and other

   

578,723

     

581,770

 

Operating lease liability

   

58,136

     

57,156

 

Amount due for business acquisition

   

     

 

Total current liabilities

   

2,875,003

     

3,149,380

 
                 

Capital lease obligation, net of current portion

   

33,582

     

35,810

 

Acquisition earn out liability

   

333,333

     

333,333

 

Operating lease liability

   

46,244

     

61,247

 
                 

Stockholders' Equity:

               

Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 13,191,789 shares at September 30, 2020 and June 30, 2020

   

131,918

     

131,918

 

Additional paid-in capital

   

49,774,132

     

49,702,986

 

Accumulated deficit

   

(47,062,350)

     

(47,063,143)

 

Total stockholders' equity

   

2,843,700

     

2,771,761

 
                 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

6,131,862

   

$

6,351,531

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED

SEPTEMBER 30, 2020 AND 2019

(UNAUDITED)

 
   

Three Months
Ended September 30,

 
   

2020

   

2019

 

Revenues

 

$

2,757,901

   

$

2,514,984

 
                 

Cost of Goods Sold

   

1,782,723

     

1,540,867

 

Gross Profit

   

975,178

     

974,117

 
                 

Research and Development Expenses, net

   

151,576

     

152,154

 
                 

Selling, General and Administrative Expenses

   

822,002

     

907,845

 

Total Operating Expenses

   

973,578

     

1,059,999

 
                 

Operating Income (Loss)

   

1,600

     

(85,882)

 
                 

Interest Expense

   

(807)

     

(228)

 
                 

Net Income (Loss)

 

$

793

   

$

(86,110)

 
                 

Income (Loss) Per Share:

               

Basic and Fully Diluted

 

$

0.00

   

$

(0.01)

 
                 

Weighted Average Common Shares Outstanding:

               

Basic

   

13,191,789

     

12,832,389

 

Fully Diluted

   

13,684,233

     

12,832,389

 

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SOURCE Precision Optics Corporation


Company Codes: OTC-PINK:PEYE, OTC-QB:PEYE

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