Precision Optics Reports Third Quarter Fiscal Year 2021 Financial Results

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 third quarter fiscal year ended March 31, 2021

GARDNER, Mass., May 13, 2021 /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 third quarter fiscal year ended March 31, 2021.

Third quarter fiscal 2021 highlights:

  • Revenue for the quarter ended March 31, 2021 was $2.46 million compared to $2.37 million in the same quarter of the previous fiscal year.
  • Gross margins for the quarter ended March 31, 2021 were 33% compared to 34% in the same quarter of the previous fiscal year; and compared to 31% for the quarter ended December 31, 2020.
  • Net Income of $552,280 during the quarter included $809,000 of Other Income due to the forgiveness of the SBA PPP Loan as well as $86,000 of stock-based compensation. This compared to a loss of $466,000, including $76,000 of stock-based compensation in the same quarter of the previous fiscal year.
  • The Company’s cash position remains strong with an ending balance for the third quarter of $782,000.

Precision Optics’ CEO, Joseph Forkey, commented, “The market opportunity for micro-optic and 3D-enabled devices and components in the medical and defense industries continues to be robust. Large, established industry players, and well-funded startup companies are looking for enabling technology partners, such as Precision Optics, that can make next generation products a reality. Over the past couple of years, we have made significant progress expanding the number of jointly developed projects in our engineering pipeline. We expect many of these to move into production in the coming year to help drive growth.”

Dr. Forkey continued, “While our ongoing production levels continue to be depressed due to the pandemic, the increase in engineering pipeline activity has helped to cushion the impact on overall revenues. Our production revenue of $1.9 million during the quarter was flat compared to the most recent quarter and was down about $250,000 from the third quarter a year ago. Engineering revenue of $550,000 was down sequentially, but was up year-over-year, and is expected to increase again in future quarters. Due to revenue recognition timing, reported revenue growth quarter-to-quarter may not reflect the full underlying growth trend of the business. Further, we have efficiently managed the business with year-to-date improvements in adjusted EBITDA of over $500,000 compared to the same period a year ago. With a burgeoning pipeline, near-term projects expected to move from the pipeline to production, and the resumption of normalized production levels for products impacted by the pandemic, we believe we are well positioned heading into fiscal 2022.”

The following table summarizes the third quarter (unaudited) results for the periods ended March 31, 2021 and 2020:

Three Months

Ended Mar 31,

2021

2020

Revenues

$ 2,458,290

$ 2,374,584

Gross Profit

818,024

817,019

Stock Compensation Expenses

74,794

64,334

Other

999,248

1,218,132

Total Operating Expenses

1,074,042

1,282,466

Operating Income (Loss)

(256,018)

(465,447)

Net Income (Loss)

552,278

(466,130)

Income (Loss) per Share

Basic

$ 0.04

$ (0.04)

Fully Diluted

$ 0.04

$ (0.04)

Weighted Average Common Shares
Outstanding

Basic

13,243,595

12,982,494

Fully Diluted

14,068,459

12,982,494

Conference Call Details
The Company has scheduled a conference call to discuss the third quarter 2021 financial results for Thursday, May 13, 2021 at 5:00pm 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/2109/40924.

Replay: A teleconference replay of the call will be available until May 20, 2021 at (877) 344-7529 or (412) 317-0088, confirmation # 10155310. A webcast replay will be available at https://www.webcaster4.com/Webcast/Page/2109/40924.

About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics and 3D imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Ross Optical division’s high volume world-wide sourcing, inspecting and production resources, the Company is able to design and manufacture next-generation product solutions to the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.

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 March 31, 2021 and June 30, 2020, and Statements of Operations, for the three and nine month periods ended March 31, 2021 and 2020:

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

March 31,
2021

June 30,
2020

ASSETS

Current Assets:

Cash and cash equivalents

$

781,845

$

1,134,697

Accounts receivable (net of allowance for doubtful accounts of $250,633 at
March 31, 2021 and $248,450 at June 30, 2020)

1,533,781

1,481,437

Inventories

1,949,281

2,197,244

Prepaid expenses

132,156

133,707

Total current assets

4,397,063

4,947,085

Fixed Assets:

Machinery and equipment

3,084,691

2,907,533

Leasehold improvements

765,780

731,801

Furniture and fixtures

178,640

178,640

4,029,111

3,817,974

Less—Accumulated depreciation and amortization

3,419,203

3,314,824

Net fixed assets

609,908

503,150

Operating lease right-to-use asset

75,804

118,403

Patents, net

135,536

95,229

Goodwill

687,664

687,664

TOTAL ASSETS

$

5,905,975

$

6,351,531

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Current portion of capital lease obligation

$

37,779

$

51,761

Current portion of acquisition earn out liability

166,667

166,667

Note payable to bank

808,962

Accounts payable

1,024,611

1,066,005

Customer advances

232,884

417,059

Accrued compensation and other

585,463

581,770

Current portion of operating lease liability

60,131

57,156

Total current liabilities

2,107,535

3,149,380

Capital lease obligation, net of current portion

162,200

35,810

Acquisition earn out liability

166,666

333,333

Operating lease liability, net of current portion

15,673

61,247

Stockholders’ Equity:

Common stock, $0.01 par value: 50,000,000 shares authorized; issued and
outstanding – 13,263,789 shares at March 31, 2021 and 13,191,789 June 30,
2020

132,638

131,918

Additional paid-in capital

50,044,789

49,702,986

Accumulated deficit

(46,723,526)

(47,063,143)

Total stockholders’ equity

3,453,901

2,771,761

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

5,905,975

$

6,351,531

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED

MARCH 31, 2021 AND 2020

(UNAUDITED)

Three Months
Ended March 31,

Nine Months
Ended March 31,

2021

2020

2021

2020

Revenues

$

2,458,290

$

2,374,584

$

8,001,641

$

7,686,330

Cost of Goods Sold

1,640,266

1,557,565

5,353,999

4,977,255

Gross Profit

818,024

817,019

2,647,642

2,709,075

Research and Development Expenses, net

146,063

319,875

443,609

700,605

Selling, General and Administrative Expenses

927,979

962,591

2,671,176

3,111,397

Total Operating Expenses

1,074,042

1,282,466

3,114,785

3,812,002

Operating Loss

(256,018)

(465,447)

(467,143)

(1,102,927)

Other Income (Expense)

Interest Expense

(666)

(683)

(2,202)

(138)

Gain on Forgiveness of Bank Note

808,962

808,962

Net Income (Loss)

$

552,278

$

(466,130)

$

339,617

$

(1,103,065)

Income (Loss) Per Share:

Basic

$

0.04

$

(0.04)

$

0.03

$

(0.09)

Fully Diluted

$

0.04

$

(0.04)

$

0.02

$

(0.09)

Weighted Average Common Shares Outstanding:

Basic

13,243,595

12,982,494

13,208,805

12,898,004

Fully Diluted

14,068,459

12,982,494

13,841,700

12,898,004

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SOURCE Precision Optics Corporation


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