Precision Optics Corporation, Inc. Announces Operating Results For The First Quarter Of Fiscal Year 2017 Ended September 30, 2016

GARDNER, Mass., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (OTCQB:PEYE) (the "Company") today announced operating results on an unaudited basis for its first quarter ended September 30, 2016.

First quarter highlights include:
  • Revenues of $850 thousand, nearly the same as $856 thousand in the first quarter of fiscal 2016;
  • 19.7% gross margin, a relative improvement of 28% compared to gross margin of 15.4% in the first quarter of fiscal 2016;
  • 23% year-over-year decrease in quarterly net loss on similar level quarterly revenues; and
  • On-going progress toward conversion of multiple engineering projects to production orders.

Commenting on the first quarter results, Joseph Forkey, Company CEO said, "While our revenues in the first quarter of fiscal 2017 were nearly the same as a year ago, gross margin was significantly higher, reflecting, in part, improvements in manufacturing efficiencies that we have achieved over the past year.  As our overall revenues increase, we expect these efficiencies to continue to help us achieve higher margins.  These improved gross margins as well as lower operating expenses, contributed to reduced losses at the same level of revenues compared to the same quarter one year ago.

Dr. Forkey continued, "We are pleased with our improved performance at this level of sales while we continue our progress toward increased production revenues resulting from conversion of our engineering service contracts. We are also seeing continued interest in our development capabilities as we evaluate new requests from existing and new potential customers for our engineering services on various medical device visualization systems that can benefit from our unique technologies and know-how."

The following table summarizes the first quarter results for the periods ended September 30, 2016 and 2015 (unaudited):
    Three Months Ended September 30,  
    2016     2015    
Revenues   $ 849,548     $ 858,427    
                   
Gross Profit     167,051       132,338    
                   
Operating Expenses     460,459       514,228    
                   
Net Loss     (293,408 )     (381,890 )  
                   
Loss Per Share:                  
Basic   $ (0.04 )   $ (0.06 )  
Diluted   $ (0.06 )   $ (0.06 )  
                   
Weighted Average Common Shares Outstanding:                  
Basic and Diluted     7,539,582       6,389,806    

Quarterly Conference Call Details The Company has scheduled a conference call to discuss the fiscal first quarter 2017 financial results for Monday, November 14, 2016 at 5:00 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 November 28, 2016. The audio replay can be accessed by dialing 1-412-317-0088 locally or 1-877-344-7529, toll free then enter conference ID number 10093345.

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 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, 2016 and June 30, 2016, and statements of operations for the three months ended September 30, 2016 and 2015 and statements of cash flows for the three months ended September 30, 2016 and 2015 (unaudited):
   
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
(UNAUDITED)  
   
    September 30, 2016     June 30, 2016  
ASSETS                
CURRENT ASSETS                
Cash and Cash Equivalents   $ 202,406     $ 50,059  
Accounts Receivable, net     566,053       750,380  
Inventories, net     992,472       1,133,451  
Prepaid Expenses     81,832       88,129  
Total Current Assets     1,842,763       2,022,019  
PROPERTY AND EQUIPMENT                
Machinery and Equipment     2,482,971       2,479,471  
Leasehold Improvements     553,596       553,596  
Furniture and Fixtures     148,303       148,303  
Vehicles     19,674       19,674  
      3,204,544       3,201,044  
                 
Less: Accumulated Depreciation and Amortization     (3,130,470 )     (3,122,849 )
Net Fixed Assets     74,074       78,195  
                 
Patents, net     23,214       22,874  
                 
TOTAL ASSETS   $ 1,940,051     $ 2,123,088  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
CURRENT LIABILITIES                
Current Portion of Capital Lease Obligation   $ 7,987     $ 7,857  
Accounts Payable     1,211,646       1,151,561  
Customer Advances     11,025       -  
Accrued Employee Compensation     184,307       238,381  
Accrued Professional Services     91,350       65,550  
Accrued Warranty Expense     25,000       25,000  
Other Accrued Liabilities     24,162       15,612  
Total Current Liabilities     1,555,477       1,503,961  
                 
Capital lease obligation, net of current portion     29,909       31,955  
                 
STOCKHOLDERS' EQUITY                
Common stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding - 7,539,582 shares at September 30, 2016 and June 30, 2016     75,396       75,396  
Additional Paid-in Capital     44,236,952       44,176,051  
Accumulated deficit     (43,957,683 )     (43,664,275 )
Total Stockholders' Equity     354,665       587,172  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,940,051     $ 2,123,088  

   
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
FOR THE THREE MONTHS ENDED  
SEPTEMBER 30, 2016 AND 2015  
(UNAUDITED)  
   
    Three Months Ended September 30,  
    2016     2015  
Revenues   $ 849,548     $ 858,427  
                 
Cost of Goods Sold     682,497       726,089  
                 
Gross Profit     167,051       132,338  
                 
Research and Development Expenses, net     116,992       150,768  
                 
Selling, General and Administrative Expenses     343,782       365,026  
                 
Gain on Sale of Assets     (315 )     (1,566 )
                 
Total Operating Expenses     460,459       514,228  
                 
Net Loss   $ (293,408 )   $ (381,890 )
                 
Loss Per Share:                
Basic   $ (0.04 )   $ (0.06 )
Diluted   $ (0.04 )   $ (0.06 )
                 
Weighted average common shares outstanding:                
Basic     7,539,582       6,389,806  
Diluted     7,539,582       6,389,806  

   
PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
FOR THE THREE MONTHS ENDED  
SEPTEMBER 30, 2016 AND 2015  
(UNAUDITED)  
   
    Three Months Ended September 30,  
    2016     2015  
CASH FLOWS FROM OPERATING ACTIVITIES                
Net Loss   $ (293,408 )   $ (381,890 )
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities:                
Depreciation and Amortization     7,621       5,541  
Gain on Sale of Assets     (315 )     (1,566 )
Stock-based Compensation Expense     60,901       100,323  
Non-cash Consulting Expense     8,550       4,500  
Changes in Operating Assets and Liabilities:                
Accounts Receivable, net     184,327       128,914  
Inventories     140,979       54,529  
Prepaid Expenses     6,297       7,194  
Accounts Payable     60,085       (40,809 )
Customer Advances     11,025       3,500  
Accrued Expenses     (28,274 )     (5,320
Net Cash Provided From (Used In) Operating Activities     157,788       (125,084 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Additional Patent Costs     (340 )     (1,443 )
Purchases of Property and Equipment     (3,500 )     (4,372 )
Proceeds from Sale of Assets     315       1,566  
Net Cash Used In Investing Activities     (3,525 )     (4,249 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Payment of Capital Lease Obligation     (1,916     -  
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     152,347       (129,333 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     50,059       241,051  
                 
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 202,406     $ 111,718  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                
Cash Paid for Income Taxes   $ -     $ 912  

 
Company Contact:PRECISION OPTICS CORPORATION22 EAST BROADWAYGARDNER, MASSACHUSETTS 01440-3338Telephone: 978-630-1800Investor Contact:Kirin M. Smith, Chief Operating OfficerPCG Advisory GroupTelephone: 646-863-6519 Email: Ksmith@PCGAdvisory.comwww.pcgadvisory.com