Precision Optics Reports First Quarter Fiscal Year 2022 Financial Results

Conference Call Scheduled for today, November 15, 2021 at 5:00pm ET

News provided by

Nov 15, 2021, 16:30 ET

GARDNER, Mass., Nov. 15, 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 first quarter fiscal year ended September 30, 2021.

Financial results for the first quarter of fiscal 2022 do not include contributions from Lighthouse Imaging which was acquired on October 4, 2021.

First quarter fiscal 2022 highlights:

Revenue for the quarter ended September 30, 2021 was $2.34 million compared to $2.76 million in the same quarter of the previous fiscal year. Production revenue during the quarter was $1.96 million – the highest level in the last four quarters.
Subsequent to the end of the quarter, the company received a production order for its lead defense program of approximately $875,000.
Gross margins for the quarter ended September 30, 2021 were 27% compared to 35% in the same quarter of the prior year.
Net loss of $576,801 during the quarter included $131,656 of stock-based compensation and $172,174 of acquisition related expenses. This compared to net income of $793 in the same quarter a year ago.
The Company's cash position at the end of the first quarter was $1,669,569. This cash balance reflects a portion of the proceeds of an equity offering closed in conjunction with the acquisition of Lighthouse Imaging. It does not include complete proceeds from the offering, nor the impact of expenses associated with the acquisition.

Precision Optics' CEO, Joseph Forkey, commented, "We believe Fiscal 2022 will be a transformative one for Precision Optics. With the October 2021 acquisition of Lighthouse Imaging, we have joined two of the industry leaders in medical optics and digital imaging. Combining Precision Optics' next generation capabilities in micro-optics, optical systems and robust optics supply chain, with Lighthouse Imaging's leading-edge optical imaging electronics and systems engineering, we are well positioned to respond to the quickly growing market for CMOS and LED-based optical imaging systems, particularly in the medical device space. We look forward to the successful integration of the two groups, which has already started in earnest, and to the resulting increase in our ability to assist our customers in bringing next generation products to the market."

"While total revenue for the first quarter was down compared to a year ago, production revenue was the highest it has been in the last four quarters. Engineering product pipeline revenue and margins were lower this quarter, due in large part to delays and cost overruns on a particular existing project, but also due to new order delays. We are addressing both of these issues and expect better financial performance in our engineering projects going forward. These corrections, combined with a new order for approximately $875,000 we received in October from our lead defense program, as well as slightly higher orders for traditional products, give us confidence that revenue levels will rebound in the second quarter and beyond."

"Adding Lighthouse Imaging's development pipeline with POC's, further enhances our portfolio of products with target commercialization release dates in the next twelve months. This, coupled with the long-term benefits of combining POC and Lighthouse technical capabilities, gives us great optimism for the future of Precision Optics," concluded Dr. Forkey.

The following table summarizes the first quarter (unaudited) results for the periods ended September 30, 2020 and 2019:

		Three Months Ended Sept 30,
		Three Months Ended Sept 30,
		2021	2020
Revenues		$ 2,336,344	$ 2,757,901

Gross Profit		639,032	975,178

Stock Compensation Expenses		131,656	59,913
Business Acquisition Expenses		172,174
Other		907,154	913,665
Total Operating Expenses		1,210,984	973,578

Operating Income (Loss)		(571,952)	1,600

Net Income (Loss)		(576,801)	793

Income (Loss) per Share		$ (0.04)	$ 0.00
	Basic and Diluted

Weighted Average Common Shares Outstanding
	Basic	13,282,476	13,191,789
	Fully Diluted	13,282,476	13,684,233

Conference Call Details

Date and Time: Monday, November 15, 2021 at 5:00pm ET

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 webcast, which is available at https://www.webcaster4.com/Webcast/Page/2109/43565.

Replay: A teleconference replay of the call will be available until November 22, 2021 at (877) 344-7529 or (412) 317-0088, confirmation # 10161469. A webcast replay will be available at https://www.webcaster4.com/Webcast/Page/2109/43565.

About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics and 3D imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Ross Optical division's high volume world-wide sourcing, inspecting and production resources, the Company is able to design and manufacture next-generation product solutions to the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.

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.

Following are the Company's Consolidated Balance Sheets at September 30, 2021 and June 30, 2021, and Statements of Operations, for the three month periods ended September 30, 2021 and 2020:

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

	September 30, 2021		June 30, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	1,669,569	$	861,650
Accounts receivable (net of allowance for doubtful accounts of $252,133 at September 30, 2021 and $251,383 at June 30, 2021)		1,711,192		1,878,755
Inventories		2,120,890		1,885,395
Prepaid expenses		142,326		150,635
Total current assets		5,643,977		4,776,435

Fixed Assets:
Machinery and equipment		3,108,023		3,084,511
Leasehold improvements		793,536		792,723
Furniture and fixtures		178,640		178,640
		4,080,199		4,055,874
Less—Accumulated depreciation and amortization		3,503,902		3,461,622
Net fixed assets		576,297		594,252

Operating lease right-to-use asset		46,244		61,247
Patents, net		147,743		141,702
Goodwill		687,664		687,664

TOTAL ASSETS	$	7,101,925	$	6,261,300

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of capital lease obligation	$	38,923	$	38,347
Current portion of acquisition earn out liability		166,667		166,667
Accounts payable		1,286,240		1,205,149
Customer advances		336,572		450,084
Accrued compensation and other		883,770		589,616
Operating lease liability		46,244		61,247
Total current liabilities		2,758,416		2,511,110

Capital lease obligation, net of current portion		142,446		152,397
Acquisition earn out liability, net of current portion		166,666		166,666
Operating lease liability, net of current portion		–		–

Stockholders' Equity:
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 13,282,476 shares at September 30, 2021 and at June 30, 2021		132,825		132,825
Additional paid-in capital		50,614,351		50,464,280
Common Stock Subscribed		1,030,000
Accumulated deficit		(47,742,779)		(47,165,978)
Total stockholders' equity		4,034,397		3,431,127

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,101,925	$	6,261,300

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2021 AND 2020
(UNAUDITED)

	Three Months Ended September 30,
	2021		2020
Revenues	$	2,336,344	$	2,757,901

Cost of Goods Sold		1,697,312		1,782,723
Gross Profit		639,032		975,178

Research and Development Expenses, net		105,186		151,576

Selling, General and Administrative Expenses		933,624		822,002
Business acquisition expenses		172,174		-
Total Operating Expenses		1,210,984		973,578

Operating Income (Loss)		(571,952)		1,600

Interest Expense		(4,849)		(807)

Net Income (Loss)	$	(576,801)	$	793

Loss Per Share:
Basic and Fully Diluted	$	(0.04)	$	0.00

Weighted Average Common Shares Outstanding:
Basic		13,282,476		13,191,789
Fully Diluted		13,282,476		13,684,233