Precision Optics Corporation Announces Fourth Quarter and Year End Results

    GARDNER, Mass., Sept. 3 /PRNewswire-FirstCall/ -- Precision Optics
 Corporation, Inc. (Nasdaq:   POCI) today announced operating results on an
 unaudited basis for the fourth quarter of fiscal year 2004 ended June 30,
 2004.
 
     Fourth Quarter Operating Results
     Revenues - For the quarter ended June 30, 2004, revenues were $285,576
 compared to $363,947 for the same period last year, a decrease of 21.5%.
 Revenues in the quarter decreased 9.0% from the preceding quarter ended March
 31, 2004.
 
     Net Loss - For the quarter ended June 30, 2004, net loss was $1,011,525,
 or $0.58 per share, an increase of $3,353, from the net loss of $1,008,172, or
 $0.58 per share, for the same period last year.  The weighted average common
 shares outstanding were 1,752,053 during both periods.
 
     Special Charges - Net loss for the quarter ended June 30, 2004 included
 provisions for obsolete and slow moving inventories of $191,200.  Net loss for
 the quarter ended June 30, 2003 included a provision for asset impairment of
 $123,511.
 
     Fiscal Year 2004 Operating Results
     Revenues - For the year ended June 30, 2004, revenues were $1,464,964
 compared to $2,399,217 for the same period last year, a decrease of 38.9%.
 
     Net Loss - For the year ended June 30, 2004, net loss was $3,684,076, or
 $2.10 per share, an increase of $756,314 compared to the net loss of
 $2,927,762, or $1.67 per share, for the year ended June 30, 2003.  The
 weighted average common shares outstanding were 1,752,053 during both periods.
 
     Special Charges - Net loss for the year ended June 30, 2004 and 2003
 included provisions for asset impairment and restructuring of $52,208 and
 $176,642, respectively. Net loss for the year ended June 30, 2004 included
 provisions for obsolete and slow-moving inventories of $500,000.
 
     Cash Flow and Expenditures
     For the quarter ended June 30, 2004, cash and cash equivalents decreased
 by approximately $602,000 compared to a decrease of approximately $781,000 for
 the previous quarter ended March 31, 2004. Cash disbursements during the
 quarter ended March 31, 2004 included approximately $52,000 paid for employee
 severance costs.
     Capital equipment expenditures during the year ended June 30, 2004 were
 approximately $33,600, up 21% from the same period in 2003.  Future capital
 expenditures will depend on future sales and the success of ongoing research
 and development efforts.
     For the quarter ended June 30, 2004, research and development expenses
 were approximately $339,000, up 2% from $333,000 for the quarter ended
 June 30, 2003.  Quarterly research and development expenses depend on the
 Company's assessment of new product opportunities.
 
     Successful Completion of Rights Offering
     As previously announced, in July 2004, the Company completed a rights
 offering to stockholders.  Stockholders exercised subscription rights to
 purchase the entire 5,256,159 shares of common stock offered at a subscription
 price of $1.00 per share, raising gross proceeds of $5,256,159.
     There were 1,324,666 shares purchased through the exercise of basic
 subscription rights and an additional 3,931,493 shares purchased through the
 over subscription privilege. The Company received subscriptions for a total of
 7,554,093 shares, exceeding the total number of shares offered by 2,297,934
 shares, or 43.7%.
 
     Customer Relationships
     The Company is in discussions with several customers regarding
 manufacturing of prototypes of advanced endoscopes incorporating ultra-small
 lenses, ranging in size from .5 mm to 1 mm, which include utilization of the
 Company's patent-pending micro-precision(TM) lens technology.  These
 initiatives encompass a variety of innovative techniques involving minimally
 invasive surgery.
 
     Expense Reduction
     As previously announced, the Company has taken additional measures to
 realign its cost structure with current revenue expectations.  In January
 2004, the Company reduced its workforce by five full-time employees, a 15%
 reduction.  As a result of this action, the Company recorded a non-recurring
 pretax charge to earnings of $52,208 for employee severance benefits in the
 quarter ended March 31, 2004.  In addition, the Company is in the process of
 reviewing other expense areas to determine where additional reductions in
 discretionary spending can be achieved.
 
     Outlook
     The Company expects its recent pattern of quarter-to-quarter revenue
 fluctuations to continue, due to the uncertain timing of orders from customers
 and their size in relation to total revenues. The Company continues to move
 forward with new products and technical innovations, in particular, the
 development of a new generation (patent pending) of its world-class product
 line of 3-D endoscopes, the development of a new prototype 2.7 mm endoscope,
 and new instruments utilizing the Company's new micro-precision(TM) lens
 technology (patent pending) for endoscopes under 1 mm.  The Company continues
 to explore potential applications of single-molecule technology and
 nanotechnology.
 
     About Precision Optics
     Precision Optics Corporation, a leading developer and manufacturer of
 advanced optical instruments since 1982, designs and produces high-quality
 optical thin film coatings, medical instruments, and other advanced optical
 systems.  The Company's medical instrumentation line includes laparoscopes,
 arthroscopes and endocouplers and a world-class product line of 3-D endoscopes
 for use in minimally invasive surgical procedures.
     The Company is currently developing specialty instruments incorporating
 its patent-pending LENSLOCK(TM) technology which ensures lower cost, easier
 repairability and enhanced durability as well as ultra-small instruments (some
 with lenses less than one millimeter in diameter) utilizing patent-pending
 micro-precision(TM) lens technology. The Company is also exploring new
 initiatives in single-molecule technology and nanotechnology for biomedical
 and other applications.
     Precision Optics Corporation is certified to the ISO 9001 Quality
 Standard, and complies with the FDA Good Manufacturing Practices and the
 European Union Medical Device Directive for CE Marking of its medical
 products.  The Company's Internet Website is http://www.poci.com .
 
 
              PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                     FOR THE THREE AND TWELVE MONTHS ENDED
                             June 30, 2004 AND 2003
                                  (UNAUDITED)
 
                             -- THREE MONTHS --       -- TWELVE MONTHS --
 
                             2004         2003        2004          2003
 
     REVENUES              $285,576     $363,947   $1,464,964   $2,399,217
 
     COST OF GOODS SOLD     547,936      465,052    2,062,902    2,072,238
 
         Gross Profit
          (Loss)           (262,360)    (101,105)    (597,938)     326,979
 
     RESEARCH and
      DEVELOPMENT           338,651      332,610    1,319,345    1,235,252
 
     SELLING, GENERAL and
      ADMINISTRATIVE
      EXPENSES              411,389      460,929    1,731,713    1,881,313
 
     PROVISION FOR IMPAIRMENT
      AND RESTRUCTURING           -      123,511       52,208      176,642
 
     LOSS ON SALE OF ASSETS
      HELD FOR SALE               -            -            -       19,171
         Total Operating
          Expenses          750,040      917,050    3,103,266    3,312,378
         Operating
          Loss           (1,012,400)  (1,018,155)  (3,701,204)  (2,985,399)
 
     INTEREST INCOME          1,787       11,020       18,089       65,443
 
     INTEREST EXPENSE             -         (125)         (49)      (6,894)
 
     LOSS BEFORE PROVISION
      FOR INCOME
      TAXES             $(1,010,613) $(1,007,260) $(3,683,164) $(2,926,850)
 
     PROVISION FOR
      INCOME TAXES              912          912          912          912
 
     NET LOSS           $(1,011,525) $(1,008,172) $(3,684,076) $(2,927,762)
 
     Basic and Diluted
      Loss Per Share         $(0.58)      $(0.58)      $(2.10)      $(1.67)
 
     Weighted Average
      Common Shares
      Outstanding         1,752,053    1,752,053    1,752,053    1,752,053
 
 
              PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                                  (UNAUDITED)
                                     ASSETS
 
                                                 June 30, 2004  June 30, 2003
     CURRENT ASSETS
       Cash and Cash Equivalents                     $343,260     $3,504,414
       Accounts Receivable, Net                        80,195        191,669
       Inventories                                    917,998      1,257,288
       Prepaid Expenses                                80,646         91,213
       Deferred Financing Costs                       171,885              -
       Assets Held for Sale                                 -        152,550
         Total Current Assets                       1,593,984      5,197,134
     PROPERTY AND EQUIPMENT                         4,199,835      4,013,680
       Less:  Accumulated Depreciation             (3,920,593)    (3,723,350)
         Net Property and Equipment                   279,242        290,330
     OTHER ASSETS                                     224,088        236,156
     TOTAL ASSETS                                  $2,097,314     $5,723,620
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
     TOTAL CURRENT LIABILITIES                       $593,342       $534,017
 
     OTHER                                                 $-         $1,555
     STOCKHOLDERS' EQUITY
       Common Stock, $.01 par value-
        Authorized -- 20,000,000 shares
        Issued and Outstanding - 1,752,053 shares
        at June 30, 2004 and 2003                      17,521         17,521
       Additional Paid-in Capital                  27,770,175     27,770,175
       Accumulated Deficit                        (26,283,724)   (22,599,648)
         Total Stockholders' Equity                 1,503,972      5,188,048
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $2,097,314     $5,723,620
 
 
     Forward-looking statements contained in this news release, including those
     related to the Company's products under development and revenue estimates,
     are made under "safe harbor" provisions of the Private Securities
     Litigation Reform Act of 1995 and involve a number of risks and
     uncertainties that could materially affect future results. These risks and
     uncertainties, many of which are not within the Company's control,
     include, but are not limited to, the uncertainty and timing of the
     successful development of the Company's new products; the risks associated
     with reliance on a few key customers; the Company's ability to maintain
     compliance with requirements for continued listing on the NASDAQ SmallCap
     Market; the Company's ability to attract and retain personnel with the
     necessary scientific and technical skills, the timing and completion of
     significant orders; the timing and amount of the Company's research and
     development expenditures; the timing and level of market acceptance of
     customers' products for which the Company supplies components; performance
     of the Company's vendors; the ability of the Company to control costs
     associated with performance under fixed price contracts; and the continued
     availability to the Company of essential supplies, materials and services;
     and the other risk factors and cautionary statements listed from time to
     time in the Company's periodic reports filed with the Securities and
     Exchange Commission, including but not limited to, the Company's Annual
     Report on Form 10-KSB for the year ended June 30, 2003.
 
 

SOURCE Precision Optics Corporation, Inc.

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.