Precision Optics Reports Third Quarter Fiscal Year 2020 Financial Results
Conference Call Scheduled for today, May 14, 2020 at 5:00pm ET
GARDNER, Mass., May 14, 2020 /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 third quarter fiscal year ended March 31, 2020.
Third quarter fiscal 2020 highlights:
- Revenue for the quarter ended March 31, 2019 was $2.4 million compared to $1.4 million in the same quarter of the previous fiscal year, an increase of 71% driven primarily by Ross Optical operating as a division of Precision Optics. Revenues for the quarter were impacted by approximately $300,000 - $400,000 during the third quarter due to COVID-19.
- Gross margins for the quarter ended March 31, 2020 of 34% compared to 33% in the same quarter of the prior year.
- Net loss of $466,130 during the quarter included $75,567 of stock-based compensation.
- On April 14, 2020 the Company raised $250,000 from existing accredited investors with the sale of 200,000 shares at a purchase price of $1.25 per share. On May 6, 2020 the Company received an $809,000 loan from the Small Business Administration (SBA) Paycheck Protection Program.
Precision Optics' CEO, Joseph Forkey, commented, "I am proud of the efforts by our team during the third quarter as we placed a high priority on the safety of our employees, while striving to meet the demands of our customers. Both our operations in Massachusetts and Texas were deemed essential operations and remained open with prudent workplace precautions. I am grateful to our employees who have worked diligently to keep our operations going during this difficult time. I am also grateful to our shareholders, led by the Pessin family, along with Hershey Strategic Capital and others for their quick support during the early days of the pandemic. The proceeds from our limited financing along with funds from the Paycheck Protection Program put us in a good position to maintain our operations and support our customers despite the real and potential impacts of the pandemic on our business and industry."
"During the quarter, we saw increased pull through in our Ross Optical division as customers built inventory in advance of disruptions that may occur due to COVID-19. This improvement however was offset by delays in shipments due to supply chain issues and a decrease in operational efficiency due to the enactment of workplace safety guidelines. Subsequent to the end of the quarter, we were notified by one of our major customers of the need to moderate deliveries for the next three quarters due to the impact of COVID-19 on their operations. Overall, our customers are very well funded and our activity relating to customer products in development remained on track and should have minimal long-term impact of COVID-19."
The following table summarizes the second quarter (unaudited) results for the periods ended March 31, 2020 and 2019:
Three Months Ended March 31, | |||||||||
2020 | 2019 | ||||||||
Revenues | $ | 2,374,584 | $ | 1,386,454 | |||||
Gross Profit | 817,019 | 455,936 | |||||||
Operating Expenses | 1,282,466 | 536,115 | |||||||
Net Loss | (466,130) | (80,483) | |||||||
Loss Per Share: | |||||||||
Basic and Diluted | $ | (0.04) | $ | (0.01) | |||||
Weighted Average Common Shares Outstanding: | |||||||||
Basic and Diluted | 12,982,494 | 12,020,328 | |||||||
Conference Call Details
The Company has scheduled a conference call to discuss the third quarter 2020 financial results for Thursday, May 14, 2020 at 5:00 p.m. EDT.
Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or (412) 317-5705.
Live Webcast Information: Interested parties can access the conference call via a live Internet webcast, which is available at https://www.webcaster4.com/Webcast/Page/2109/34529.
Replay: A teleconference replay of the call will be available until May 21, 2020 at (877) 344-7529 or (412) 317-0088 confirmation #10143454. A webcast replay will be available at https://www.webcaster4.com/Webcast/Page/2109/34529.
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 March 31, 2020 and June 30, 2019, and Statements of Operations, Stockholders' Equity and Cash Flows for the three month periods ended March 31, 2020 and 2019:
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
March 31, | June 30, | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 632,131 | $ | 2,288,426 | ||||
Accounts receivable (net of allowance for doubtful accounts of $247,701 and $246,953 at March 31, 2020 and June 30, 2019, respectively) | 1,479,077 | 2,165,107 | ||||||
Inventories | 2,167,523 | 1,734,604 | ||||||
Prepaid expenses | 131,279 | 180,336 | ||||||
Total current assets | 4,410,010 | 6,368,473 | ||||||
Fixed Assets: | ||||||||
Machinery and equipment | 2,905,516 | 2,748,715 | ||||||
Leasehold improvements | 724,680 | 668,446 | ||||||
Furniture and fixtures | 178,640 | 168,450 | ||||||
3,808,836 | 3,585,611 | |||||||
Less—Accumulated depreciation and amortization | 3,278,054 | 3,202,605 | ||||||
Net Fixed Assets | 530,782 | 383,006 | ||||||
Operating lease right-to-use asset | 132,000 | – | ||||||
Patents, net | 86,908 | 54,087 | ||||||
Goodwill | 687,664 | 687,664 | ||||||
TOTAL ASSETS | $ | 5,847,364 | $ | 7,493,230 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Current portion of capital lease obligation | $ | 70,436 | $ | 9,572 | ||||
Accounts payable | 1,533,342 | 1,174,263 | ||||||
Customer advances | 310,525 | 450,192 | ||||||
Accrued compensation and other | 483,781 | 533,944 | ||||||
Amount due for business acquisition | – | 1,443,341 | ||||||
Operating lease liability | 56,196 | – | ||||||
Total Current Liabilities | 2,454,280 | 3,611,312 | ||||||
Capital lease obligation, net of current portion | 38,001 | 5,027 | ||||||
Acquisition earn out liability | 500,000 | 500,000 | ||||||
Operating lease liability | 75,804 | – | ||||||
Stockholders' Equity: | ||||||||
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 12,991,789 shares at March 31, 2020 and 12,071,139 shares at June 30, 2019 | 129,918 | 120,712 | ||||||
Additional paid-in capital | 49,389,419 | 48,893,172 | ||||||
Accumulated deficit | (46,740,058) | (45,636,993) | ||||||
Total stockholders' equity | 2,779,279 | 3,376,891 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,847,364 | $ | 7,493,230 | ||||
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED March 31, 2020 AND 2019 (UNAUDITED) | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues | $ | 2,374,584 | $ | 1,386,454 | $ | 7,686,330 | $ | 4,423,763 | ||||||||
Cost of goods sold | 1,557,565 | 930,518 | 4,977,255 | 3,149,598 | ||||||||||||
Gross profit | 817,019 | 455,936 | 2,709,075 | 1,274,165 | ||||||||||||
Research and development expenses, net | 319,875 | 121,640 | 700,605 | 347,851 | ||||||||||||
Selling, general and administrative expenses | 962,591 | 414,475 | 3,111,397 | 1,430,880 | ||||||||||||
Total operating expenses | 1,282,466 | 536,115 | 3,812,002 | 1,778,731 | ||||||||||||
Operating loss | (465,447) | (80,179) | (1,102,927) | (504,566) | ||||||||||||
Interest income (expense) | (683) | (304) | (138) | (1,150) | ||||||||||||
Net Loss | $ | (466,130) | $ | (80,483) | $ | (1,103,065) | $ | (505,716) | ||||||||
Loss Per Share: | ||||||||||||||||
Basic and diluted | $ | (0.04) | $ | (0.01) | $ | (0.09) | $ | (0.04) | ||||||||
Weighted Average Common Shares Outstanding: | ||||||||||||||||
Basic and diluted | 12,982,494 | 12,020,328 | 12,898,004 | 11,294,902 | ||||||||||||
SOURCE Precision Optics Corporation
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