GARDNER, Mass., May 15, 2019 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (OTCQB: PEYE) (the “Company”) today announced operating results on an unaudited basis for its fiscal year 2019 third quarter and nine months ended March 31, 2019.

Financial highlights include:

  • Revenues of $1,386,000 in the quarter ended March 31, 2019 compared to $736,000 in the same quarter of the prior year, representing 88% growth;
  • Revenues of $4,424,000 in the nine months ended March 31, 2019 compared to $2,577,000 in the same nine month period of the prior year, representing 72% growth;
  • Improved gross margin of 33% in the quarter ended March 31, 2019 compared to 24% in the preceding quarter ended December 31, 2018;
  • 208% and 264% increase in production revenues in the quarter and nine month periods ended March 31, 2019 as compared to the same periods of the prior year;
  • 15% increase in production revenues in the quarter ended March 31, 2019 compared to the preceding quarter ended December 31, 2018.

Precision Optics’ CEO, Joseph Forkey, commented, "I am pleased with the results of the quarter which show strong year-over-year revenue growth and improvements in many key aspects of our business. Our strategic decision to work closely with a number of key medical device and defense companies at the very early design stage of projects over the last number of years, is beginning to pay off.  Production revenues increased for the third quarter in a row, reflecting the ongoing success of the three development projects that transitioned to production during the last year.  We have strong indications that all three will continue beyond current orders through this calendar year and into the future.  Our gross margin for the quarter recovered nicely to a level of 33% compared to the previous quarter’s gross margin of 24%.  This was due in large part to our focus on margin improvement and we believe the opportunity remains to drive margins higher in the future."

Dr. Forkey continued, "Our pipeline continues to advance with a number of projects moving closer to commercialization that could drive growth over the coming years. We see large market opportunities for our products and services and so have begun to invest in an expansion of our sales, engineering and manufacturing resources.  These investments will add capacity to our unique complement of specialized, vertically integrated, in-house skills and capabilities that allow us to take a project from the conception and design phase all the way through to volume production.  Our recent results have validated our confidence in the growth of markets for micro-imaging and 3D imaging in medical systems and in our ability to ‘enable’ the next generation of technologies, which continues to be a key differentiator for Precision Optics.  We look forward to driving ongoing revenue growth and profitably scaling our operations into the future."

The following table summarizes the third quarter and nine month results for the periods ended March 31, 2019 and 2018 (unaudited):

 Three Months Ended
March 31,
  Nine Months Ended
March 31,
 
 2019  2018  2019  2018 
Revenues$1,386,454  $735,597  $4,423,763  $2,577,116 
                
Gross Profit 455,936   236,153   1,274,165   923,117 
                
Total Operating Expenses 536,115   514,976   1,778,731   1,290,053 
                
Operating Loss (80,179)  (278,823)  (504,566)  (366,936)
                
Net Loss (80,483)  (279,271)  (505,716)  (386,382)
                
Loss Per Share:               
Basic and Diluted$(0.01) $(0.03) $(0.04 $(0.04
                
Weighted Average Common Shares Outstanding:               
Basic and Diluted 12,020,328   10,095,139   11,294,902   9,724,904 
                

Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal third quarter 2019 financial results for Wednesday, May 15, 2019 at 5:00 PM Eastern Time. To participate in the conference call, please dial 1-844-826-3042 toll free from the U.S., or 1-412-317-5187 for international callers, and ask to be connected to the Precision Optics Corporation 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 May 22, 2019. The audio replay can be accessed by dialing 1-877-344-7529 toll free from the U.S., or 1-412-317-0088 for international callers, and entering Replay Access Code 10130914.

About Precision Optics Corporation
Precision Optics Corporation enables innovation in minimally invasive surgery, diagnostics and treatment through optics and photonics. 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 market-leading 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

Following are the Company’s consolidated balance sheets as of March 31, 2019 and June 30, 2018, and statements of operations for the three and nine months ended March 31, 2019 and 2018 and statements of cash flows for the nine months ended March 31, 2019 and 2018 (unaudited):

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

  March 31,
2019
  June 30,
2018
 
ASSETS        
CURRENT ASSETS        
Cash and Cash Equivalents $1,352,767  $402,738 
Accounts Receivable, net  826,828   796,923 
Inventories, net  1,129,846   1,144,068 
Prepaid Expenses  139,438   70,991 
Total Current Assets  3,448,879   2,414,720 
         
PROPERTY AND EQUIPMENT        
Machinery and Equipment  2,586,359   2,511,638 
Leasehold Improvements  590,641   553,596 
Furniture and Fixtures  148,303   148,303 
   3,325,303   3,213,537 
         
Less: Accumulated Depreciation and Amortization  (3,187,533)  (3,164,051)
Net Fixed Assets  137,770   49,486 
         
Patents, net  49,807   47,275 
         
TOTAL ASSETS $3,636,456  $2,511,481 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
CURRENT LIABILITIES        
Current Portion of Capital Lease Obligation $9,416  $8,962 
Accounts Payable  644,729   704,450 
Customer Advances  258,928   857,842 
Accrued Employee Compensation  194,354   238,590 
Accrued Professional Services  65,000   98,000 
Accrued Warranty Expense  25,000   25,000 
Total Current Liabilities  1,197,427   1,932,844 
         
Capital Lease Obligation, net of current portion  7,481   14,601 
         
STOCKHOLDERS’ EQUITY        
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding – 12,038,139 shares at March 31, 2019 and 10,197,139 shares at June 30, 2018  120,382   101,972 
Additional Paid-in Capital  47,839,004   45,484,186 
Accumulated Deficit  (45,527,838)  (45,022,122)
Total Stockholders’ Equity  2,431,548   564,036 
         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $3,636,456  $2,511,481 
         

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED
MARCH 31, 2019 AND 2018
(UNAUDITED)

 Three Months
Ended March 31,
  Nine Months
Ended March 31,
 
 2019  2018  2019  2018 
Revenues$1,386,454  $735,597  $4,423,763  $2,577,116 
                
Cost of Goods Sold 930,518   499,444   3,149,598   1,653,999 
Gross Profit 455,936   236,153   1,274,165   923,117 
                
Research and Development Expenses, net 121,640   126,365   347,851   334,823 
Selling, General and Administrative Expenses 414,475   388,611   1,430,880   955,230 
Total Operating Expenses 536,115   514,976   1,778,731   1,290,053 
                
Operating Loss (80,179)  (278,823)  (504,566)  (366,936)
                
Interest Expense (304)  (448)  (1,150)  (1,446)
                
Net Loss$(80,483) $(279,271) $(505,716) $(368,382)
                
Loss Per Share:               
Basic and Diluted$(0.01) $(0.03) $(0.04) $(0.04)
                
Weighted Average Common Shares Outstanding:               
Basic and Diluted 12,020,328   10,095,139   11,294,902   9,724,904 
                

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED
MARCH 31, 2019 AND 2018
(UNAUDITED)

 Nine Months
Ended March 31,
 
 2019  2018 
CASH FLOWS FROM OPERATING ACTIVITIES:       
Net Loss$(505,716 $(368,382)
Adjustments to Reconcile Net Loss to Net Used In Operating Activities -       
Depreciation and Amortization 23,482   21,728 
Stock-based Compensation Expense 356,103   42,002 
Non-cash Consulting Expense    6,588 
Bad Debt Expense    113,750 
Changes in Operating Assets and Liabilities -       
Accounts Receivable, net (29,905  (224,367)
Inventories, net 14,222   (68,973)
Prepaid Expenses (68,447  (32,645)
Accounts Payable (59,721  (12,379)
Customer Advances (598,914  441,204 
Accrued Liabilities (85,236)  (25,308)
Net Cash Used In Operating Activities (954,132)  (106,782)
        
CASH FLOWS FROM INVESTING ACTIVITIES:       
Additional Patent Costs (2,532  (17,189)
Purchases of Property and Equipment (111,766)   
Net Cash Used In Investing Activities (114,298)  (17,189)
        
CASH FLOWS FROM FINANCING ACTIVITIES:       
Payment of Capital Lease Obligation (6,666)  (6,242)
Gross Proceeds from Private Placement of Common Stock 2,000,000   210,001 
Proceeds from Exercise of Stock Purchase Warrants    6,667 
Proceeds from Exercise of Stock Options 29,375    
Private Placement Expense Paid  (4,250)  (2,963)
Net Cash Provided From Financing Activities 2,018,459   207,463 
        
NET INCREASE IN CASH AND CASH EQUIVALENTS 950,029   83,492 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 402,738   118,405 
        
CASH AND CASH EQUIVALENTS, END OF PERIOD$1,352,767  $201,897 
        
        
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:       
Cash Paid for Income Taxes$912  $912 
        
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES:       
Issuance of Common Stock in Settlement of Accounts Payable$  $40,000 
Offering Costs Included in Accrued Liabilities$8,000  $