GARDNER, MA--(Marketwired - November 13, 2014) - Precision Optics Corporation, Inc. (OTCQB: PEYE) (the "Company") today announced operating results on an unaudited basis for its quarter ended September 30, 2014, the first quarter of its fiscal year 2015.
First quarter highlights include:
- Completion of $1 million financing
- Addition of two new members to the Board of Directors
- Addition of Director of Engineering
- Initiation and continuation of significant development contracts for the design and manufacture of micro-optics based devices
- Advancement of discussions with strategic partners related to medical devices utilizing the Company's Microprecision™ optics and next generation image sensors
Precision Optics' CEO Joseph Forkey commented, "We continue to make progress with the introduction of our unique proprietary technologies into new products for our customers, and the level of interest in our products and capabilities has continued to grow. This is the best indication that we remain on course for long-term growth and success. Our first quarter results demonstrate that our business is still at a stage where revenues associated with specific product programs can vary from quarter-to-quarter and costs of newly launched products can have a material impact on overall margins. We are acutely focused on improving our margins and believe that these efforts, along with ongoing strong interest in our new products, will result in solid financial performance in future quarters.
"We remain convinced our products and technology are market-leading and represent the future of minimally invasive medical devices for applications that require high quality imaging in small size devices. Ongoing interactions with our growing network of partners and customers supports our expectation that there are large existing and developing markets for this new technology. As we further execute on our growth strategy, we will continue to target revenue growth and margin improvement, with a clear focus on maximizing profitability and increasing shareholder value."
Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal first 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 February 16, 2015. The audio replay can be accessed by dialing 1-877-344-7529 locally or 1-412-317-0088, toll free then enter conference ID number 10056138.
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 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, 2014 and June 30, 2014, and statements of operations and cash flows for the three months ended September 30, 2014 and September 30, 2013 (unaudited):
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, June 30,
2014 2014
------------- -------------
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 527,491 $ 202,380
Accounts Receivable, net 680,301 531,049
Inventories, net 911,949 988,878
Prepaid Expenses 73,576 91,922
------------- -------------
Total Current Assets 2,193,317 1,814,229
------------- -------------
PROPERTY AND EQUIPMENT
Machinery and Equipment 2,400,445 2,368,709
Leasehold Improvements 553,596 553,596
Furniture and Fixtures 148,303 148,303
Vehicles 19,674 19,674
------------- -------------
3,122,018 3,090,282
Less: Accumulated Depreciation (3,079,610) (3,075,722)
------------- -------------
Net Property and Equipment 42,408 14,560
------------- -------------
Patents, net 8,523 7,672
------------- -------------
TOTAL ASSETS $ 2,244,248 $ 1,836,461
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts Payable $ 547,886 $ 715,192
Customer Advances 420 26,200
Accrued Employee Compensation 251,545 200,207
Accrued Professional Services 17,755 60,250
Accrued Warranty Expense 25,000 25,000
Other Accrued Liabilities 8,810 69,028
------------- -------------
Total Current Liabilities 851,416 1,095,877
------------- -------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock, $0.01 par value -
Authorized - 50,000,000 shares; Issued and
Outstanding - 6,262,584 shares at September
30, 2014 and 4,455,134 shares at June 30,
2014 62,626 44,551
Additional Paid-in Capital 43,077,362 42,146,750
Accumulated Deficit (41,747,156) (41,450,717)
------------- -------------
Total Stockholders' Equity (Deficit) 1,392,832 740,584
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) $ 2,244,248 $ 1,836,461
============= =============
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2014 AND 2013
(UNAUDITED)
Three Months
Ended September 30,
----------------------------
2014 2013
------------- -------------
Revenues $ 830,714 $ 907,426
Cost of Goods Sold 718,576 647,192
------------- -------------
Gross Profit 112,138 260,234
------------- -------------
Research and Development Expenses, net 76,712 134,913
Selling, General and Administrative Expenses 347,147 336,042
Gain on Sale of Assets (15,282) -
------------- -------------
Total Operating Expenses 408,577 470,955
------------- -------------
Net Loss $ (296,439) $ (210,721)
============= =============
Loss Per Share:
Basic $ (0.05) $ (0.05)
Diluted $ (0.05) $ (0.05)
Weighted Average Common Shares Outstanding:
Basic 6,069,131 4,455,134
Diluted 6,069,131 4,455,134
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2014 AND 2013
(UNAUDITED)
Three Months
Ended September 30,
----------------------
2014 2013
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (296,439) $ (210,721)
Adjustments to Reconcile Net Loss to Net Cash Used
In Operating Activities -
Depreciation and Amortization 3,888 8,865
Gain on Sale of Assets (15,282) -
Stock-based Compensation Expense 27,000 33,609
Non-cash Consulting Expense 11,250 -
Changes in Operating Assets and Liabilities -
Accounts Receivable, net (149,252) (94,490)
Inventories 76,929 90,791
Prepaid Expenses 18,346 (24,858)
Accounts Payable (244,207) 56,429
Customer Advances (25,780) (18,958)
Accrued Expenses 2,391 12,300
---------- ----------
Net Cash Used In Operating Activities (591,156) (147,033)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional Patent Costs (851) (8,524)
Purchases of Property and Equipment (31,736) -
Proceeds from Sale of Assets 15,282 -
---------- ----------
Net Cash Used In Investing Activities (17,305) (8,524)
---------- ----------
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 325,111 (155,557)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 202,380 1,034,587
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 527,491 $ 879,030
========== ==========
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 $ -
========== ==========
Private Placement Expenses Incurred But Not Yet Paid
as of September 30, 2014 $ 76,901 $ -
========== ==========
PRECISION OPTICS CORPORATION
Telephone 978 / 630-1800
Telefax 978 / 630-1487
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