GARDNER, Mass., Feb. 16, 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 second quarter fiscal year ended December 31, 2020.
Second quarter fiscal 2021 highlights:
Revenue for the quarter ended December 31, 2020 was $2.79 million compared to $2.80 million in the same quarter of the previous fiscal year, essentially flat year over year; and up slightly sequentially compared to $2.76 million in the quarter ended September 30, 2020.
Gross margins for the quarter ended December 31, 2020 were 31% compared to 33% in the same quarter of the previous fiscal year; and compared to 35% for the quarter ended September 30, 2020.
Net loss of $213,000 during the quarter included $157,000 of stock-based compensation. This compared to a loss of $551,000, including $275,000 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 second quarter of $816,000.
Precision Optics' CEO, Joseph Forkey, commented, "The positive operating trends we saw in the first quarter continued as we reported another quarter of sequential revenue growth and significant year-over-year improvements in our adjusted EBITDA, all while still working through the ongoing impacts to certain commercial projects from COVID-19 discussed in recent quarters. While our two largest customers continue to adjust the timing of ongoing production due to COVID-19 disruptions, both are optimistic about the long-term prospects for their products and anticipate an uptick in demand as pandemic restrictions start to subside. Much of the reduction in revenue due to these delays has been filled by a significant increase in our Engineering product pipeline activity which has rebounded strongly after a lull at the beginning of the pandemic almost a year ago."
Dr. Forkey continued, "Capitalizing on these opportunities, our team has done a great job of expanding our pipeline and advancing key projects to pre-commercialization stage. A strong indicator of this progress is that engineering revenue through the first six months of fiscal 2021 has surpassed that from all of fiscal 2020. This engineering revenue, which is derived from work performed on pipeline projects for our customers, has the potential to be a leading indicator of our future long-term production revenue. I believe the strategy we laid out to make investments in Sales & Marketing, Engineering and overall corporate operational infrastructure in order to identify, capture, and execute on additional pipeline opportunities, is progressing nicely. We have a number of projects in what we believe are the final stage of pre-commercialization, and a pipeline that is larger than at any point in our company's recent history. All told, while there are still challenges to be overcome relating to the impacts from COVID-19, I am pleased with the progress being made in the business to position us well for both the near- and long-term."
The following table summarizes the second quarter (unaudited) results for the periods ended December 31, 2020 and 2019:
Three Months Ended Dec 31,
Stock Compensation Expenses
Total Operating Expenses
Operating Income (Loss)
Net Income (Loss)
Income (Loss) per Share
Basic and Diluted
Weighted Average Common Shares Outstanding
Basic and Diluted
Conference Call Details The Company has scheduled a conference call to discuss the second quarter 2021 financial results for Tuesday, February 16, 2021 at 5:00 p.m. ET.
Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or (412) 317-5705.
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, Microprecision™ 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, 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 [email protected]
Following are the Company's Consolidated Balance Sheets at December 31, 2020 and June 30, 2020, and Statements of Operations, for the three and six month periods ended December 31, 2020 and 2019:
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Accounts receivable (net of allowance for doubtful accounts of $249,883 at December 31, 2020 and $248,450 at June 30, 2020)
Total current assets
Machinery and equipment
Furniture and fixtures
Less—Accumulated depreciation and amortization
Net fixed assets
Operating lease right-to-use asset
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of capital lease obligation
Current portion of acquisition earn out liability
Note payable to bank
Accrued compensation and other
Current portion of operating lease liability
Total current liabilities
Capital lease obligation, net of current portion
Acquisition earn out liability
Operating lease liability, net of current portion
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 13,191,789 shares at December 31, 2020 and June 30, 2020
Additional paid-in capital
Total stockholders' equity
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES