SOURCE: Precision Optics Corporation

Precision Optics Corporation

November 13, 2014 16:05 ET

Precision Optics Corporation, Inc. Announces Operating Results for the First Quarter of Fiscal Year 2015 Ended September 30, 2014

GARDNER, MA--(Marketwired - Nov 13, 2014) - Precision Optics Corporation, Inc. (OTCQB: PEYE) (the "Company") today announced operating results on an unaudited basis for its quarter ended September 30, 2014, the first quarter of its fiscal year 2015.

First quarter highlights include:

  • Completion of $1 million financing
  • Addition of two new members to the Board of Directors
  • Addition of Director of Engineering
  • Initiation and continuation of significant development contracts for the design and manufacture of micro-optics based devices
  • Advancement of discussions with strategic partners related to medical devices utilizing the Company's Microprecision™ optics and next generation image sensors

Precision Optics' CEO Joseph Forkey commented, "We continue to make progress with the introduction of our unique proprietary technologies into new products for our customers, and the level of interest in our products and capabilities has continued to grow. This is the best indication that we remain on course for long-term growth and success. Our first quarter results demonstrate that our business is still at a stage where revenues associated with specific product programs can vary from quarter-to-quarter and costs of newly launched products can have a material impact on overall margins. We are acutely focused on improving our margins and believe that these efforts, along with ongoing strong interest in our new products, will result in solid financial performance in future quarters.

"We remain convinced our products and technology are market-leading and represent the future of minimally invasive medical devices for applications that require high quality imaging in small size devices. Ongoing interactions with our growing network of partners and customers supports our expectation that there are large existing and developing markets for this new technology. As we further execute on our growth strategy, we will continue to target revenue growth and margin improvement, with a clear focus on maximizing profitability and increasing shareholder value."

Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal first 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 February 16, 2015. The audio replay can be accessed by dialing 1-877-344-7529 locally or 1-412-317-0088, toll free then enter conference ID number 10056138.

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 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 September 30, 2014 and June 30, 2014, and statements of operations and cash flows for the three months ended September 30, 2014 and September 30, 2013 (unaudited):

 
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
           
  September 30,
2014
    June 30,
2014
 
ASSETS          
CURRENT ASSETS              
    Cash and Cash Equivalents $ 527,491     $ 202,380  
    Accounts Receivable, net   680,301       531,049  
    Inventories, net   911,949       988,878  
Prepaid Expenses   73,576       91,922  
Total Current Assets   2,193,317       1,814,229  
    PROPERTY AND EQUIPMENT              
    Machinery and Equipment   2,400,445       2,368,709  
    Leasehold Improvements   553,596       553,596  
    Furniture and Fixtures   148,303       148,303  
    Vehicles   19,674       19,674  
    3,122,018       3,090,282  
               
Less: Accumulated Depreciation   (3,079,610 )     (3,075,722 )
Net Property and Equipment   42,408       14,560  
Patents, net   8,523       7,672  
               
TOTAL ASSETS $ 2,244,248     $ 1,836,461  
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)              
CURRENT LIABILITIES              
Accounts Payable $ 547,886     $ 715,192  
Customer Advances   420       26,200  
Accrued Employee Compensation   251,545       200,207  
Accrued Professional Services   17,755       60,250  
Accrued Warranty Expense   25,000       25,000  
Other Accrued Liabilities   8,810       69,028  
Total Current Liabilities   851,416       1,095,877  
STOCKHOLDERS' EQUITY (DEFICIT)              
Common Stock, $0.01 par value -              
  Authorized - 50,000,000 shares; Issued and Outstanding - 6,262,584 shares at September 30, 2014 and 4,455,134 shares at June 30, 2014                   
                        62,626
                           
                        44,551
 
Additional Paid-in Capital   43,077,362       42,146,750  
Accumulated Deficit   (41,747,156 )     (41,450,717 )
Total Stockholders' Equity (Deficit)   1,392,832       740,584  
               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 2,244,248     $ 1,836,461  
 
 
 
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2014 AND 2013
(UNAUDITED)
 
     
  Three Months
Ended September 30,
 
  2014     2013  
Revenues $ 830,714     $ 907,426  
               
Cost of Goods Sold   718,576       647,192  
               
Gross Profit   112,138       260,234  
               
Research and Development Expenses, net   76,712       134,913  
               
Selling, General and Administrative Expenses   347,147       336,042  
               
Gain on Sale of Assets   (15,282 )     -  
               
Total Operating Expenses   408,577       470,955  
               
               
Net Loss $ (296,439 )   $ (210,721 )
               
Loss Per Share:              
Basic $ (0.05 )   $ (0.05 )
Diluted $ (0.05 )   $ (0.05 )
               
Weighted Average Common Shares Outstanding:              
Basic   6,069,131       4,455,134  
Diluted   6,069,131       4,455,134  
               
               
   
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
FOR THE THREE MONTHS ENDED  
SEPTEMBER 30, 2014 AND 2013  
(UNAUDITED)  
   
       
    Three Months
Ended September 30,
 
    2014     2013  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net Loss   $ (296,439 )   $ (210,721 )
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities -                
  Depreciation and Amortization     3,888       8,865  
  Gain on Sale of Assets     (15,282 )     -  
  Stock-based Compensation Expense     27,000       33,609  
  Non-cash Consulting Expense     11,250       -  
  Changes in Operating Assets and Liabilities -                
    Accounts Receivable, net     (149,252 )     (94,490 )
    Inventories     76,929       90,791  
    Prepaid Expenses     18,346       (24,858 )
    Accounts Payable     (244,207 )     56,429  
    Customer Advances     (25,780 )     (18,958 )
    Accrued Expenses     2,391       12,300  
Net Cash Used In Operating Activities     (591,156 )     (147,033 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Additional Patent Costs     (851 )     (8,524 )
Purchases of Property and Equipment     (31,736 )     -  
Proceeds from Sale of Assets     15,282       -  
Net Cash Used In Investing Activities     (17,305 )     (8,524 )
                 
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 September 30, 2014     (46,719 )     -  
                 
Net Cash Provided by Financing Activities     933,572       -  
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     325,111       (155,557 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     202,380       1,034,587  
                 
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 527,491     $ 879,030  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                
Cash Paid for Income Taxes   $ 912     $ 912  
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:                
Issuance of 90,298 Shares of Common Stock to Consultants   $ 65,016     $ -  
Private Placement Expenses Incurred But Not Yet Paid as of September 30, 2014   $ 76,901     $ -  
                 
                 

Contact Information

  • PRECISION OPTICS CORPORATION

    Telephone 978 / 630-1800
    Telefax 978 / 630-1487