Precision Optics Reports First Quarter Fiscal Year 2023 Financial Results

Conference Call Scheduled for today, November 14, 2022 at 5:00pm ET

GARDNER, Mass., Nov. 14, 2022 /PRNewswire/ -- Precision Optics Corporation, Inc. (OTCQB: PEYE, PEYED), 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 2023.

First quarter fiscal 2023 highlights:

• Revenue for the quarter ended September 30, 2022 increased 118% to $5.09 million compared to $2.34 million in the same quarter of the previous fiscal year. Lighthouse Imaging, which was acquired on October 4, 2021, contributed $1.33 million in first quarter revenue.
• Excluding contributions from Lighthouse, revenue for the first quarter increased 61% compared to the same quarter of the previous year.
• Gross margins for the quarter ended September 30, 2022 were 34% compared to 30% in the same quarter of the previous year. Excluding Lighthouse, gross margins were 42%.
• Net loss for the quarter was $73,511 which compared to net loss of $576,801 in the same quarter of the previous year.
• Adjusted EBITDA, defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation and other income, was $110,484 for the quarter ended September 30, 2022 compared to ($197,416) in the same quarter of the previous year.

Precision Optics' CEO, Joseph Forkey, commented, "I am extremely pleased with the results of the first quarter which reflect record revenue, increasing gross margins and positive adjusted EBITDA. We advanced a number of programs from our pipeline to production over the past few quarters which contributed to strong organic growth for the quarter. Our robust combined sales pipeline is a positive indicator for continued growth, and we are focused on leveraging our existing costs to deliver continued improvement in profitability."

"Our business strategy of engaging with customers at the very early stages of the product development cycle by leveraging our cutting-edge technological capabilities to enable their product requirements is working well. This approach, which has the ability to provide the Company with ongoing manufacturing revenue for many years once a product has transitioned from development into production, provides enhanced predictability to our operations and outlook. We have now demonstrated the success of this business strategy with products that are currently in production and range from next generation cardiovascular endoscopes to otoscopy and spinal surgery devices, as well as defense and aerospace programs. With a growing production base and large pipeline that continues to move projects through the development process, I believe we are in a great position to continue our financial performance into the future."

Update on Intent to List Shares on Nasdaq Capital Market

Consistent with previous announcements, the Company successfully completed a reverse stock split on November 1, 2022 in order to satisfy the Nasdaq minimum share price requirement.  Simultaneous with the reverse split, the company's ticker symbol on OTCQB became "PEYED".  Nasdaq has notified the Company that it has now satisfied all requirements to list its stock on the Nasdaq stock exchange.  The Company anticipates its shares will begin trading on the Nasdaq stock exchange under the new ticker symbol, "POCI", upon completion of Nasdaq processing in the coming days.

The following table summarizes the first quarter (unaudited) results for the periods ended September 30, 2022 and 2021 (Common Share figures in this table reflect pre-split figures):

Conference Call Details
Date and Time: Monday, November 14, 2022, 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://app.webinar.net/O8Vb6b5oMqA.

Replay: A teleconference replay of the call will be available until November 21, 2022 at (877) 344-7529 or (412) 317-0088, replay access code 9521239. A webcast replay will be available at https://app.webinar.net/O8Vb6b5oMqA.

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 Lighthouse Imaging division's electronic imaging expertise and 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.

Non-GAAP Financial Measures

Precision Optics has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the Unites States of America ("non-GAAP"). The non-GAAP financial measure is adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). Adjusted EBITDA also excludes from Net income from continuing operations the effect of Stock-based compensation, Restructuring and other acquisition related expenses.

This non-GAAP financial measure assists Precision Optics management in comparing its operating performance over time because certain items may obscure the underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete acquisition or restructuring plans that are fundamentally different from the ongoing productivity of the Company. Precision Optics management also believes that presenting this measure allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measure presented above to GAAP results has been provided in the financial tables included with this press release.

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 September 30, 2022 and June 30, 2022, and Statements of Operations, for the quarter ended September 30, 2022 and 2021:

SOURCE Precision Optics Corporation