Precision Optics Corporation, Inc. Announces Operating Results for the Fourth Quarter and Fiscal Year Ended June 30, 2015

GARDNER, Mass., Oct. 13, 2015 (GLOBE NEWSWIRE) — Precision Optics Corporation, Inc. (OTCQB:PEYE) (the “Company”) today announced operating results on an unaudited basis for its fourth quarter ended June 30, 2015.

Fourth quarter highlights include:

  • Revenues of $963 thousand, representing a 6.7% increase over the fourth quarter of fiscal 2014;
  • Gross margin of 21.9%, an improvement compared to 16.2% in the fourth quarter of fiscal 2014;

Fiscal year highlights include:

  • Revenues of $3.9 million, representing a 7.1% increase over fiscal 2014, the third consecutive year of increasing revenues, and the highest revenues in over ten years;
  • Increase in engineering / design projects using Company’s Microprecision™ optics for reusable and single-use medical devices.

Precision Optics’ CEO, Joseph Forkey, commented, “We continue to make significant progress on both near term goals of increasing sales, improving margins and driving towards profitability, as well as the longer term goal of positioning the company as the industry leader in the growing market for very small, high quality optics and optical systems for medical device applications. We are pleased to report another year of increased revenues, continuing the trend of the past three years and we expect growth to accelerate in fiscal 2016. Our growth is being driven by increasing demand for our traditional products combined with ongoing higher interest in our latest technology.  In particular, revenues associated with engineering and design work continue to grow.  This work is mainly focused on incorporating our latest Microprecision™ technology for small, high quality optics, into specific products.”

Dr. Forkey continued, “The increasing size and scope of these development projects are also a strong indicator of the future prospects for our new technology.  We announced in June our partnership with OmniVision Technologies, Inc. and Fujikura Ltd., and the official release of the resulting 1.6 mm micro-camera module which has the best image quality of any camera of comparable size.  The response to this announcement from potential users of this product has been overwhelmingly positive and continues to drive the increase in custom development projects, with the goal of incorporating this micro-camera into new medical devices.  This response helps to confirm our belief that our Microprecision™ technology is well suited to achieve size, quality and cost requirements for next generation single-use, minimally invasive medical device systems.”

The following table summarizes the fourth quarter and year results for the periods ended June 30, 2015 and 2014 (unaudited):

 

    Three Months
Ended June 30,

    Year
Ended June 30,

 
    2015     2014     2015     2014  
Revenues   $ 962,906     $ 902,587     $ 3,912,060     $ 3,651,181  
                                 
Gross Profit     210,692       145,913       798,271       800,795  
                                 
Operating Expenses     568,977       462,031       2,011,324       1,960,521  
                                 
Operating Loss     (358,285 )     (316,118 )     (1,213,053 )     (1,159,726 )
                                 
Net Loss     (363,247 )     (317,030 )     (1,178,793 )     (1,160,638 )
                                 
Loss Per Share:                                
Basic   $ (0.06 )   $ (0.07 )   $ (0.19   $ (0.26 )
Diluted   $ (0.06 )   $ (0.07 )   $ (0.19   $ (0.26 )
                                 
Weighted Average Common Shares Outstanding:                                
Basic and Diluted     6,437,364       4,455,134       6,272,264       4,455,134  

Quarterly Conference Call Details 

The Company has scheduled a conference call to discuss the fiscal fourth quarter and year end 2015 financial results for Tuesday, October 20, 2015 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 November 3, 2015. 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 10074673.

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 June 30, 2015 and June 30, 2014, and statements of operations for the year ended June 30, 2015 and 2014 and statements of cash flows for the year ended June 30, 2015 and 2014 (unaudited):

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
    2015     2014  
ASSETS                
Current Assets:                
Cash and cash equivalents   $ 241,051     $ 202,380  
Accounts receivable (net of allowance for doubtful accounts of $22,500 in 2015 and 2014)     588,042       531,049  
Inventories     1,073,256       988,878  
Prepaid expenses     65,182       91,922  
Total current assets     1,967,531       1,814,229  
Fixed Assets:                
Machinery and equipment     2,431,127       2,368,709  
Leasehold improvements     553,596       553,596  
Furniture and fixtures     148,303       148,303  
Vehicles     19,674       19,674  
      3,152,700       3,090,282  
Less—Accumulated depreciation and amortization     3,096,993       3,075,722  
Net fixed assets     55,707       14,560  
Patents, net     18,644       7,672  
    $ 2,041,882     $ 1,836,461  
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current Liabilities:                
Accounts payable   $ 912,150     $ 715,192  
Customer advances     118,800       26,200  
Accrued employee compensation     222,222       200,207  
Accrued professional services     60,735       60,250  
Accrued warranty expense     25,000       25,000  
Other accrued liabilities     36,087       69,028  
Total current liabilities     1,374,994       1,095,877  
Commitments                 
Stockholders’ Equity:                
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 6,389,806 shares at June 30, 2015 and 4,455,134 shares at June 30, 2014     63,898       44,551  
Additional paid-in capital     43,232,500       42,146,750  
Accumulated deficit     (42,629 ,510 )     (41,450,717 )
                 
Total stockholders’ equity     666,888       740,584  
    $ 2,041,882     $ 1,836,461  

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED
JUNE 30, 2015 AND 2014
(UNAUDITED)
 
    2015     2014  
Revenues   $ 3,912,060     $ 3,651,181  
Cost of goods sold     3,113,789       2,850,386  
Gross profit     798,271       800,795  
Research and development expenses, net     492,937       471,106  
Selling, general and administrative expenses     1,545,462       1,503,443  
Gain on sale of assets     (27,075 )     (14,028 )
Total operating expenses     2,011,324       1,960,521  
Operating loss     (1,213,053 )     (1,159,726 )
Other income     35,172        
Loss before provision for income taxes     (1,177,881 )     (1,159,726 )
Provision for income taxes     912       912  
Net loss   $ (1,178,793 )   $ (1,160,638 )
Loss per share:                
Basic   $ (0.19 )   $ (0.26 )
Diluted   $ (0.19 )   $ (0.26 )
                 
Weighted average common shares outstanding:                
Basic     6,272,264       4,455,134  
Diluted     6,272,264       4,455,134  

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED
JUNE 30, 2015 AND 2014
(UNAUDITED)
 
    2015
  2014
Cash Flows from Operating Activities:                
Net loss     (1,178,793 )   $ (1,160,638 )
Adjustments to reconcile net loss to net cash used in operating activities-                
Depreciation and amortization     21,271       20,020  
Gain on sale of assets     (27,075 )     (14,028 )
Stock-based compensation expense     125,675       141,033  
Non-cash consulting expense     66,750       64,507  
Non-cash gain on settlement of liabilities by issuing common stock     (35,172 )      
Changes in operating assets and liabilities-                
Accounts receivable, net     (56,993 )     (252,349
Inventories     (84,378 )     (92,705 )
Prepaid expenses     26,740       (30,355 )
Accounts payable     210,958       425,937  
Customer advances     92,600       (11,844
Accrued expenses     64,624       24,391  
Net cash used in operating activities     (773,793 )     (886,031 )
                 
Cash Flows from Investing Activities:                
Proceeds from sale of assets     27,075       14,028  
Additional patent costs     (10,972 )     (8,524
Purchases of fixed assets     (62,418 )     (1,680 )
Net cash provided by (used in) investing activities     (46,315     3,824  
                 
Cash Flows from Financing Activities:                
Proceeds from July 2014 private placement of common stock     980,291       50,000  
Private placement expenses incurred and paid as of June 30, 2015     (121,512 )      
Net cash provided by financing activities     858,779       50,000  
Net (decrease) increase in cash and cash equivalents     38,671       (832,207
Cash and cash equivalents, beginning of year     202,380       1,034,587  
Cash and cash equivalents, end of year   $ 241,051     $ 202,380  
                 
Supplemental Disclosure of Cash Flow Information:                
Cash paid during the year for income taxes   $ 912     $ 912  
                 
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:                
Issuance of 217,520 shares of common stock for services rendered to the company   $ 126,643     $  
Private placement expenses incurred but not yet paid as of June 30, 2015   $ 6,000     $  
CONTACT: PRECISION OPTICS CORPORATION
22 EAST BROADWAY
GARDNER, MASSACHUSETTS 01440-3338
Telephone 978 / 630-1800
Telefax 978 / 630-1487