GARDNER, Mass., May 14, 2015 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (OTCQB:PEYE) (the "Company") today announced operating results on an unaudited basis for its third quarter and nine months ended March 31, 2015, of fiscal year 2015.
Third quarter highlights include:
- Revenues of $1.142 million, representing a 17% sequential increase over the second quarter of fiscal 2015, and a 37% increase over the third quarter of fiscal 2014;
- Gross margin of 27.4%, an improvement compared to 16.6% in the second quarter of fiscal 2015;
- Company responding to increasing interest in Microprecision™ optics and their use in reusable and single-use medical devices.
Commenting on the quarter's results, Precision Optics' CEO Joseph Forkey said, "We continue to see solid demand for our traditional products as well as early market acceptance of products based on our latest technology. Our third quarter revenues were the highest in over ten years. Our gross margin percentage was significantly higher than recent quarters. While some of this increase in margin is due to efficiencies of scale, much is also due to our focus over the last six months on increased manufacturing efficiencies, especially as we bring new products into production. We are maintaining this focus and broadening our efforts to drive higher margins."
Dr. Forkey concluded, "Looking forward, we continue to see a strong pipeline of opportunities, particularly in the area of micro-optics and micro-assemblies based on optics designed specifically for small CMOS-based medical camera systems. Working with major partners, we have now developed a next-generation CMOS-based medical camera which has the highest resolution of any camera with diameter in the 1 – 2 mm range. We look forward to demonstrating this new innovation at the Medical Design and Manufacturing (MD&M) exhibit which will be held in New York City, June 9 – 11, 2015. We are expanding our go-to-market efforts to ensure both large established medical device companies and small, emerging technology players see the value our newest products can offer."
Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal third 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 August 13, 2015. The audio replay can be accessed by dialing 1-877-344-7529 toll free from the US or 1-412-317-0088, and then the replay access code of 10065931.
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 March 31, 2015 and June 30, 2014, and statements of operations for the three and nine months ended March 31, 2015 and 2014 and statements of cash flows for the nine months ended March 31, 2015 and 2014 (unaudited):
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PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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March 31, 2015 |
June 30, 2014 |
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| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and Cash Equivalents | $ 283,275 | $ 202,380 |
| Accounts Receivable, net | 542,473 | 531,049 |
| Inventories, net | 1,248,742 | 988,878 |
| Prepaid Expenses | 70,826 | 91,922 |
| Total Current Assets | 2,145,316 | 1,814,229 |
| PROPERTY AND EQUIPMENT | ||
| Machinery and Equipment | 2,428,682 | 2,368,709 |
| Leasehold Improvements | 553,596 | 553,596 |
| Furniture and Fixtures | 148,303 | 148,303 |
| Vehicles | 19,674 | 19,674 |
| 3,150,255 | 3,090,282 | |
| Less: Accumulated Depreciation | (3,090,684) | (3,075,722) |
| Net Property and Equipment | 59,571 | 14,560 |
| Patents, net | 18,644 | 7,672 |
| TOTAL ASSETS | $ 2,223,531 | $ 1,836,461 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts Payable | $ 866,706 | $ 715,192 |
| Customer Advances | 100,600 | 26,200 |
| Accrued Employee Compensation | 234,779 | 200,207 |
| Accrued Professional Services | 59,052 | 60,250 |
| Accrued Warranty Expense | 25,000 | 25,000 |
| Other Accrued Liabilities | 23,034 | 69,028 |
| Total Current Liabilities | 1,309,171 | 1,095,877 |
| STOCKHOLDERS' EQUITY | ||
| Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding –6,344,806 shares at March 31, 2015 and 4,455,134 shares at June 30, 2014 | 63,448 | 44,551 |
| Additional Paid-in Capital | 43,117,175 | 42,146,750 |
| Accumulated Deficit | (42,266,263) | (41,450,717) |
| Total Stockholders' Equity | 914,360 | 740,584 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,223,531 | $ 1,836,461 |
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PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2015 AND 2014 (UNAUDITED) |
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Three Months Ended March 31, |
Nine Months Ended March 31, |
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| 2015 | 2014 | 2015 | 2014 | |
| Revenues | $ 1,141,892 | $ 833,451 | $ 2,949,154 | $ 2,748,594 |
| Cost of Goods Sold | 828,963 | 644,219 | 2,361,575 | 2,093,712 |
| Gross Profit | 312,929 | 189,232 | 587,579 | 654,882 |
| Research and Development Expenses, net | 140,177 | 132,957 | 355,782 | 360,012 |
| Selling, General and Administrative Expenses | 410,549 | 443,220 | 1,104,466 | 1,146,136 |
| Gain on Sale of Assets | (691) | (6,511) | (17,901) | (7,658) |
| Total Operating Expenses | 550,035 | 569,666 | 1,442,347 | 1,498,490 |
| Operating Loss | (237,106) | (380,343) | (854,768) | (843,608) |
| Other Income | 39,222 | -- | 39,222 | -- |
| Net Loss | (197,884) | (380,434) | (815,546) | (843,608) |
| Loss Per Share: | ||||
| Basic | $ (0.03) | $ (0.09) | $ (0.13) | $ (0.19) |
| Diluted | $ (0.03) | $ (0.09) | $ (0.13) | $ (0.19) |
| Weighted Average Common Shares Outstanding: | ||||
| Basic | 6,334,757 | 4,455,134 | 6,241,438 | 4,455,134 |
| Diluted | 6,334,757 | 4,455,134 | 6,241,438 | 4,455,134 |
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PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED MARCH 31, 2015 AND 2014 (UNAUDITED) |
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Nine Months Ended March 31, |
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| 2015 | 2014 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net Loss | $ (815,546) | $ (843,608) |
| Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities -- | ||
| Depreciation and Amortization | 14,962 | 16,842 |
| Gain on Sale of Assets | (17,901) | (7,658) |
| Stock-based Compensation Expense | 42,750 | 108,924 |
| Non-cash Consulting Expense | 38,625 | 73,898 |
| Non-cash Gain on Settlement of Liabilities by Issuing Common Stock | (39,222) | -- |
| Changes in Operating Assets and Liabilities -- | ||
| Accounts Receivable, net | (11,424) | (203,211) |
| Inventories | (259,864) | (24,036) |
| Prepaid Expenses | 21,096 | (42,299) |
| Accounts Payable | 165,514 | 254,295 |
| Customer Advances | 74,400 | (10,262) |
| Accrued Expenses | 61,770 | 8,257 |
| Net Cash Used In Operating Activities | (724,840) | (668,858) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Additional Patent Costs | (10,972) | (8,524) |
| Purchases of Property and Equipment | (59,973) | – |
| Proceeds from Sale of Assets | 17,901 | 7,658 |
| Net Cash Used In Investing Activities | (53,044) | (866) |
| 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 March 31, 2015 | (121,512) | – |
| Net Cash Provided by Financing Activities | 858,779 | – |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 80,895 | (669,724) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 202,380 | 1,034,587 |
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 283,275 | $ 364,863 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
| Cash Paid for Income Taxes | $ 912 | $ 912 |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||
| Issuance of 172,520 Shares of Common Stock for Services Rendered to the Company | $ 93,793 | $ – |
| Private Placement Expenses Incurred But Not Yet Paid as of March 31, 2015 | $ 6,000 | $ – |