Precision Optics Reports Third Quarter Fiscal Year 2020 Financial Results

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
    --  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
    --  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                  $

      Profit                         817,019                          455,936

      Expenses                     1,282,466                          536,115

     Net Loss                      (466,130)                        (80,483)

     Loss Per

      Basic and
       Diluted               $
           (0.04)                    $


      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

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

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(TM) 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 Investors can find Real-Time Quotes and market information for the Company on

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:
22 East Broadway
Gardner, Massachusetts 01440-3338
Telephone: 978-630-1800

Investor Contact:
Robert Blum
Phoenix | New York
Telephone: 602-889-9700

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:




                                                                            March 31,                                               June 30,
                                                                                 2020                                                    2019



     Current Assets:

     Cash and cash equivalents                                                                      $
              632,131                      $

      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                      $

                                  LIABILITIES AND STOCKHOLDERS' EQUITY


     Current Liabilities:

      Current portion of capital lease
       obligation                                                                                     $
              70,436                         $

     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

       EQUITY                                                                                      $
              5,847,364                      $




                March 31, 2020 AND 2019


                Three Months                             
                Nine Months
                                        Ended March 31,                                                  Ended March 31,

                                  2020                                      2019                                              2020                  2019

     Revenues                         $
              2,374,584                                    $
              1,386,454                 $
          7,686,330     $

      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)    $

     Loss Per Share:

     Basic and diluted                   $
              (0.04)                                      $
              (0.01)                   $
          (0.09)       $

      Weighted Average Common
       Shares Outstanding:

     Basic and diluted                           12,982,494                                               12,020,328                        12,898,004          11,294,902

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SOURCE Precision Optics Corporation