Precision Optics Reports Fourth Quarter and Fiscal Year 2021 Financial Results

Rhea-AI Summary

Precision Optics Corporation (OTCQB: PEYE) reported a robust performance for the fourth quarter and fiscal year ending June 30, 2021. Q4 revenue grew to $2.67 million, up 19% from last year. Total fiscal year revenue reached a record $10.67 million, an increase from $9.92 million in FY 2020. However, net loss for Q4 was $442,443, higher than $323,085 in the previous year, largely due to stock-based compensation. The company maintained a solid cash position of $862,000 as of year-end, with operating expenses down 9% year-over-year.

Positive

• Q4 revenue increased by 19% year-over-year.
• Record annual revenue of $10.67 million, up from $9.92 million.
• Operating expenses decreased by 9% compared to fiscal 2020.
• Strong cash position of $862,000 at year-end.

Negative

• Net loss for Q4 increased to $442,443 from $323,085 in the previous year.
• Gross margin declined to 32% from 34% year-over-year.

GARDNER, Mass., Sept. 28, 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 fourth quarter and fiscal year ended June 30, 2021.

Fourth quarter fiscal 2021 highlights:

• Revenue for the quarter ended June 30, 2021 was $2.67 million compared to $2.24 million in the same quarter of the previous fiscal year, an increase of 19%.
• Gross margins for the quarter ended March 31, 2021 were 29% compared to 29% in the same quarter of the previous fiscal year; and compared to 33% for the quarter ended March 31, 2021.
• Net Loss of $442,443 during the quarter included $419,678 of stock-based compensation. This compared to a loss of $323,085, including $64,334 of stock-based compensation in the same quarter of the previous fiscal year.

Fiscal year 2021 highlights:

• Revenue for the year ended June 30, 2021 was a record $10.67 million compared to $9.92 million in the previous fiscal year.
• Gross margins for the year ended June 30, 2021 were 32% compared to 34% in the previous fiscal year.
• Net Loss of $102,826 during the year included $808,962 of Other Income due to the forgiveness of the SBA PPP Loan as well as $733,930 of stock-based compensation. This compared to a loss of $1,426,149, including $547,345 of stock-based compensation in the previous fiscal year.
• The Company's cash position remains strong with an ending balance for the year of $862,000.

"I am extremely pleased with the overall performance of Precision Optics in fiscal 2021, highlighted by record annual revenues and a product pipeline that is larger than at any point in the Company's history," commented Precision Optics' CEO, Joseph Forkey. "We continued to focus on operational efficiencies, with operating expenses down 9% compared to fiscal 2020, culminating in an annual improvement to adjusted EBITDA of nearly $750,000. We see this as a tremendous achievement in the face of a rather difficult environment last year for a number of our customers, and our associated products, in the medical device space due to the pandemic.  Our ability to back-fill some of these reductions in production with new development work in our product pipeline should position us well for fiscal 2022 and beyond."

"Despite the impact the pandemic has had on certain surgical applications in the near-term, the long-term market for these products and others that require our capabilities remains extremely robust. Both large, established corporate players, and well-funded startup companies, are aggressively pursuing development efforts for next generation applications that leverage the unique and proprietary micro-optic and 3D capabilities we provide. Our end-to-end solutions allow these visionary companies to innovate in ways they are unable to achieve on their own. Over the past few years, this increasing awareness of our enabling capabilities is gaining traction as our product development pipeline of projects continues to expand. Unique to our business model is the ability to attract new product engagements that generate revenue initially through engineering development work and later through long-term production that can support stable growth for many years."

Dr. Forkey concluded, "With a strong fiscal 2021 behind us, we look forward to building upon this momentum going forward."

The following table summarizes the fourth quarter and fiscal year (unaudited) results for the periods ended June 30, 2021 and 2020:

		Three Months			Year
		Ended Jun 30,			Ended Jun 30,
		2021	2020		2021	2020
Revenues		$      2,673,266	$      2,237,025		$    10,674,907	$      9,923,355
Gross Profit		785,943	653,501		3,433,585	3,362,576
Stock Compensation Expenses		339,718	64,334		620,271	457,413
Other		884,665	909,223		3,718,897	4,328,146
Total Operating Expenses		1,224,383	973,557		4,339,168	4,785,559
Operating Income (Loss)		(438,440)	(320,056)		(905,583)	(1,422,983)
Interest expense		(3,100)	(864)		(5,302)	(1,002)
Gain on forgiveness of bank note		0			808,962	0
Total Other		(3,100)	(864)		803,660	(1,002)
Net Income (Loss)		(442,452)	(323,085)		(102,835)	(1,426,150)
Income (Loss) per Share
	Basic and diluted	$              (0.03)	$              (0.02)		$              (0.01)	$              (0.11)
Weighted Average Common Shares Outstanding
	Basic and diluted	13,341,619	13,161,020		13,281,351	12,998,915

Conference Call Details
The Company has scheduled a conference call to discuss the fourth quarter and fiscal year 2021 financial results for Tuesday, September 28, 2021 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 Internet webcast, which is available at https://www.webcaster4.com/Webcast/Page/2109/42952.

Replay: A teleconference replay of the call will be available until October 5, 2021 at (877) 344-7529 or (412) 317-0088, confirmation # 10160368. A webcast replay will be available at https://www.webcaster4.com/Webcast/Page/2109/42952.

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 June 30, 2021 and June 30, 2020, and Statements of Operations, for the twelve month periods ended June 30, 2021 and 2020:

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES Consolidated Balance Sheets at June 30, 2021 and 2020
		2021				2020
ASSETS
Current Assets:
Cash and cash equivalents		$	861,650			$	1,134,697
Accounts receivable (net of allowance for doubtful accounts of $251,383    at June 30, 2021 and $248,450 at June 30, 2020)			1,878,755				1,481,437
Inventories			1,885,395				2,197,244
Prepaid expenses			150,635				133,707
Total current assets			4,776,435				4,947,085
Fixed Assets:
Machinery and equipment			3,084,511				2,907,533
Leasehold improvements			792,723				731,801
Furniture and fixtures			178,640				178,640
			4,055,874				3,817,974
Less—Accumulated depreciation and amortization			3,461,622				3,314,824
Net fixed assets			594,252				503,150
Operating lease right-to-use asset			61,247				118,403
Patents, net			141,702				95,229
Goodwill			687,664				687,664
TOTAL ASSETS		$	6,261,300			$	6,351,531
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of capital lease obligation		$	38,347			$	51,761
Current portion of acquisition earn out liability			166,667				166,667
Note payable to bank			–				808,962
Accounts payable			1,205,149				1,066,005
Customer advances			450,084				417,059
Accrued compensation and other			589,616				581,770
Operating lease liability			61,247				57,156
Total current liabilities			2,511,110				3,149,380
Capital lease obligation, net of current portion			152,397				35,810
Acquisition earn out liability			166,666				333,333
Operating lease liability			–				61,247
Stockholders' Equity:
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and    outstanding – 13,282,476 shares at June 30, 2021 and 13,191,789 shares    at June 30, 2020			132,825				131,918
Additional paid-in capital			50,464,280				49,702,986
Accumulated deficit			(47,165,978)				(47,063,143)
Total stockholders' equity			3,431,127				2,771,761
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	6,261,300			$	6,351,531

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES Consolidated Statements of Operations for the Years Ended June 30, 2021 and 2020
		2021				2020
Revenues		$	10,674,907			$	9,923,355
Cost of goods sold			7,241,322				6,560,779
Gross profit			3,433,585				3,362,576
Research and development expenses, net			624,253				886,129
Selling, general and administrative expenses			3,714,915				3,899,430
Total operating expenses			4,339,168				4,785,559
Operating loss			(905,583)				(1,422,983)
Interest expense			(5,302)				(1,002)
Gain on forgiveness of bank note			808,962				–
Loss before provision for income taxes			(101,923)				(1,423,985)
Provision for income taxes			912				2,165
Net loss		$	(102,835)			$	(1,426,150)
Loss per share:
Basic and fully diluted		$	(0.01)			$	(0.11)
Weighted average common shares outstanding:
Basic and fully diluted			13,281,351				12,998,915

 

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SOURCE Precision Optics Corporation

FAQ

What are the fiscal results for Precision Optics Corporation for Q4 2021?

Precision Optics reported Q4 revenue of $2.67 million, a 19% increase from $2.24 million in Q4 2020.

What was the total revenue for Precision Optics Corporation for fiscal year 2021?

The total revenue for Precision Optics for fiscal year 2021 was a record $10.67 million, compared to $9.92 million in fiscal year 2020.

How did the net loss for Precision Optics Corporation change in Q4 2021?

The net loss for Q4 2021 was $442,443, up from $323,085 in the same quarter of the previous year.

What is the outlook for Precision Optics Corporation following fiscal year 2021?

Precision Optics anticipates continued growth driven by a robust product pipeline and operational efficiencies.

What is the stock symbol of Precision Optics Corporation?

The stock symbol for Precision Optics Corporation is PEYE.