Precision Optics Reports Fourth Quarter and Fiscal Year 2019 Financial Results
GARDNER, Mass., Sept. 26, 2019 /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 fourth quarter and fiscal year ended June 30, 2019.
Fourth quarter fiscal 2019 highlights:
-- Revenue for the quarter (ended June 30, 2019) was $2.4 million compared
to $1.5 million in the same quarter of the previous fiscal year, an
increase of 63% driven primarily by an increase in production revenue
for medical devices that incorporate the Company's Microprecision(TM)
technology, as well as one month of contribution from Ross Optical.
-- Ross Optical contributed $656,000 to Precision Optics' revenue during
the month of June 2019.
-- Production revenue was $912,000 in the quarter, an increase of 18%
compared to $770,000 in the same quarter of the previous fiscal year.
-- Gross margins of 36% in the quarter continued to improve sequentially
for the second consecutive quarter.
-- Net loss of $109,000 during the quarter included $128,000 of business
acquisition expenses and $117,000 of stock-based compensation.
Fiscal year 2019 highlights:
-- Revenue for the fiscal year (ended June 30, 2019) was $6.8 million
compared to $4.0 million in the previous fiscal year, an increase of
69%.
-- Production revenue during the fiscal year increased 140% to $3.7 million
compared to $1.5 million in the previous fiscal year.
-- Excluding the one-month contribution from Ross Optical, the fiscal year
revenue was $6.1 million, an increase of 52% compared to the previous
fiscal year.
Pro forma (assuming a full year of Ross Optical) financial highlight:
-- For the 12 months of fiscal year 2019 (ended June 30, 2019), pro forma
financial results show a combined organization (Precision Optics and
Ross Optical) with $10.5 million in sales and gross margin of
approximately 36%.
Precision Optics' CEO, Joseph Forkey, commented, "Our financial results from the fourth quarter and from fiscal year 2019 overall, continue to demonstrate the success of our business model. By utilizing our proprietary optical technology to develop and manufacture state-of-the art custom medical imaging products, we enable the world's leading medical device companies to bring next generation, minimally invasive devices and 3D surgical robotic systems to market. The transition of a number of these Precision Optics enabled projects to commercialization by our customers drove a 140% increase in production revenues during fiscal 2019. Based on order visibility on currently commercialized products, as well as expected near-term commercialization of products currently in our pipeline, we believe fiscal 2020 should be another strong year for Precision Optics."
Dr. Forkey continued, "Fiscal 2019 was a milestone year for us also because of the acquisition of Ross Optical Industries. We completed this acquisition - the first ever for Precision Optics - on July 1(st). One of the benefits of the acquisition is that it expands our readily accessible customer base, particularly in the defense industry, where we believe there are opportunities for use of our Microprecision(TM) micro optics and imaging systems. The acquisition also extends our product offering to include a wider range of lens and optical system sizes, drives economies of scale within our organization, and allows the combined company to leverage our technical proficiency in offering end-to-end solutions to the expansive Ross Optical customer base. We look forward to the many opportunities we believe are available to drive further growth and efficiencies in 2020 and beyond."
The following table summarizes the fourth quarter (unaudited) and year results for the periods ended June 30, 2019 and 2018:
Three Months
Year
Ended June 30,
Ended June 30,
---
2019 2018 2019 2018
---
Revenues $
2,380,406 $
1,460,932 $
6,804,169 $
4,038,048
Gross Profit 848,313 558,801 2,122,478 1,481,918
Stock Compensation Expenses 105,990 10,339 462,093 43,672
Business Acquisition Expenses 128,111 128,111
Other 722,189 530,145 2,144,817 1,786,865
Total Operating Expenses 956,290 540,484 2,735,021 1,830,537
Operating Income (Loss) (107,977) 18,317 (612,543) (348,619)
Net Income (Loss) (109,155) 16,992 (614,871) (351,390)
Income (Loss) Per Share:
Basic and Diluted $
(0.01) $
0.00 $
(0.05) $
(0.04)
===
Weighted Average Common Shares
Outstanding:
Basic and Diluted 12,061,710 10,131,007 11,486,079 9,826,151
Conference Call Details
The Company has scheduled a conference call to discuss the fiscal year end and fourth quarter 2019 financial results for Thursday, September 26, 2019 at 5:00 p.m. EDT.
Call-in Information: Interested parties can access the conference call by dialing (877) 317-6789 or (412) 317-6789.
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/2109/31676.
Replay: A teleconference replay of the call will be available until October 3, 2019 at (877) 344-7529 or (412) 317-0088, confirmation #10135010. A webcast replay will be available at https://www.webcaster4.com/Webcast/Page/2109/31676.
About Precision Optics Corporation
Precision Optics Corporation enables innovation in minimally invasive surgery, diagnostics and treatment through optics and photonics. 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(TM) micro-optics with characteristic dimensions less than 1 millimeter, and other advanced optical systems for market-leading 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
peye@lythampartners.com
Following are the Company's Consolidated Balance Sheets at June 30, 2019 and June 30, 2018, and Statements of Operations, Stockholders' Equity and Cash Flows for the years ended June 30, 2019 and 2018:
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT JUNE 30,
2019 2018
---
ASSETS
Current Assets:
Cash and cash equivalents $
2,288,426 $
402,738
Accounts receivable (net of allowance for
doubtful accounts of $246,953 at June
30, 2019 and $232,500 at June 30, 2018) 2,165,107 796,923
Inventories 1,734,604 1,144,068
Prepaid expenses 180,336 70,991
Total current assets 6,368,473 2,414,720
Fixed Assets:
Machinery and equipment 2,748,715 2,511,638
Leasehold improvements 668,446 553,596
Furniture and fixtures 168,450 148,303
3,585,611 3,213,537
Less-Accumulated depreciation and
amortization 3,202,605 3,164,051
Net fixed assets 383,006 49,486
Patents, net 54,087 47,275
Goodwill 687,664
-
TOTAL ASSETS $
7,493,230 $
2,511,481
===
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of capital
lease obligation $
9,572 $
8,962
Accounts payable 1,174,263 703,538
Customer advances 450,192 857,842
Accrued compensation and other 533,944 362,502
Amount due for business acquisition 1,443,341
-
Total current liabilities 3,611,312 1,932,844
Capital lease obligation, net of current
portion 5,027 14,601
Acquisition earn out liability 500,000
-
Stockholders' Equity:
Common stock, $0.01 par value: 50,000,000
shares authorized; issued and
outstanding - 12,071,139 shares at June
30, 2019 and 10,197,139 shares at June
30, 2018 120,712 101,972
Additional paid-in capital 48,893,172 45,484,186
Accumulated deficit (45,636,993) (45,022,122)
Total stockholders' equity 3,376,891 564,036
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $
7,493,230 $
2,511,481
===
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30,
2019 2018
---
Revenues $
6,804,169 $
4,038,048
Cost of goods sold 4,681,691 2,556,130
Gross profit 2,122,478 1,481,918
Research and development
expenses, net 505,300 456,377
Selling, general and
administrative expenses 2,101,610 1,374,160
Business acquisition expenses 128,111
-
Total operating expenses 2,735,021 1,830,537
Operating loss (612,543) (348,619)
Interest expense (1,416) (1,859)
Loss before provision for
income taxes (613,959) (350,478)
Provision for income taxes 912 912
Net loss $
(614,871) $
(351,390)
===
Loss per share:
Basic and fully
diluted $
(0.05) $
(0.04)
===
Weighted average common shares
outstanding:
Basic and fully diluted 11,486,079 9,826,151
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED JUNE 30,
Number of Common Additional Accumulated Total
Shares Stock Paid-in Deficit Stockholders'
Capital Equity
Balance, July 1, 2017 8,872,916 $
88,729 $
45,140,383 $
(44,670,732) $
558,380
Proceeds from private
placement of common stock,
net of issuance costs of
$2,963 555,556 5,556 241,482
- 247,038
Proceeds from exercise of
stock purchase warrants 666,667 6,667
-
- 6,667
Issuance of common stock for
consulting services 102,000 1,020 49,980
- 51,000
Stock-based compensation
-
- 52,341
- 52,341
Net loss
-
-
- (351,390) (351,390)
Balance, June 30, 2018 10,197,139 $
101,972 $
45,484,186 $
(45,022,122) $
564,036
Proceeds from private
placement of common stock,
net of issuance costs of
$12,250 1,600,000 16,000 1,971,750
- 1,987,750
Proceeds from exercise of
stock options 74,000 740 53,160
- 53,900
Issuance of common stock for
services 200,000 2,000 208,000
- 210,000
Proceeds from private
placement of common stock
subscribed, net of estimated
issuance costs of $12,250
-
- 912,750
- 912,750
Stock-based compensation
-
- 263,326
- 263,326
Net loss
-
-
- (614,871) (614,871)
Balance, June 30, 2019 12,071,139 $
120,712 $
48,893,172 $
(45,636,993) $
3,376,891
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30,
2019 2018
---
Cash Flows from Operating
Activities:
Net loss $
(614,871) $
(351,390)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities-
Depreciation and amortization 38,554 27,216
Provision for doubtful accounts
receivable 8,083 227,500
Stock-based compensation expense 473,326 52,341
Non-cash consulting expense
- 2,400
Changes in operating assets and
liabilities, net of effects of
business acquisition-
Accounts receivable (723,369) (555,875)
Inventories 137,510 (88,621)
Prepaid expenses (106,456) (15,006)
Accounts payable 69,365 48,580
Customer advances (432,000) 677,705
Accrued compensation and other 118,165 75,807
Net cash provided by (used in)
operating activities (1,031,693) 100,657
Cash Flows from Investing
Activities:
Cash acquired in business
acquisition, net of $56,659 paid
at year end 106,545
-
Additional patent costs (6,812) (17,189)
Purchases of fixed assets (140,038) (4,448)
Net cash used in investing
activities (40,305) (21,637)
Cash Flows from Financing
Activities:
Payment of capital lease obligation (8,964) (8,392)
Gross proceeds from private
placements of common stock 2,925,000 210,001
Gross proceeds from exercise of
stock options and warrants 53,900 6,667
Private placement expenses paid (12,250) (2,963)
Net cash provided by financing
activities 2,957,686 205,313
Net increase in cash and cash
equivalents 1,885,688 284,333
Cash and cash equivalents,
beginning of year 402,738 118,405
Cash and cash
equivalents, end of year $
2,288,426 $
402,738
===
Supplemental disclosure of cash
flow information:
Cash paid during the year
for income taxes $
912 $
912
===
Supplemental disclosure of non-
cash financing activities:
Issuance of common stock
for services $
210,000 $
51,000
===
Private placement
expenses incurred but
not yet paid $
12,250
$
-
===
Issuance of common stock
in settlement of
accounts payable
$
- $
40,000
View original content:http://www.prnewswire.com/news-releases/precision-optics-reports-fourth-quarter-and-fiscal-year-2019-financial-results-300926435.html
SOURCE Precision Optics Corporation
