Precision Optics Reports Third Quarter Fiscal Year 2021 Financial Results

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Precision Optics Corporation (OTCQB: PEYE) reported its third-quarter results for the fiscal year ending March 31, 2021, with revenue of $2.46 million, up from $2.37 million year-over-year. The net income reached $552,280, attributed partly to the forgiveness of the SBA PPP Loan. Despite a slight decline in gross margins at 33%, the company maintains a strong cash position of $782,000. CEO Joseph Forkey highlighted a robust market for micro-optic devices, with an expected increase in production levels and engineering projects moving into production as key growth drivers.

Positive

• Revenue increased to $2.46 million, up from $2.37 million YoY.
• Net income of $552,280, a significant turnaround from a loss of $466,000 YoY.
• Strong cash position with $782,000 available at quarter-end.
• Expected growth from a burgeoning engineering pipeline and new projects.

Negative

• Gross margins declined to 33% from 34% YoY.
• Production revenue of $1.9 million was flat compared to the previous quarter and down by $250,000 YoY.
• Engineering revenue decreased sequentially, indicating potential volatility.

GARDNER, Mass., May 13, 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 third quarter fiscal year ended March 31, 2021.

Third quarter fiscal 2021 highlights:

• Revenue for the quarter ended March 31, 2021 was $2.46 million compared to $2.37 million in the same quarter of the previous fiscal year.
• Gross margins for the quarter ended March 31, 2021 were 33% compared to 34% in the same quarter of the previous fiscal year; and compared to 31% for the quarter ended December 31, 2020.
• Net Income of $552,280 during the quarter included $809,000 of Other Income due to the forgiveness of the SBA PPP Loan as well as $86,000 of stock-based compensation. This compared to a loss of $466,000, including $76,000 of stock-based compensation in the same quarter of the previous fiscal year.
• The Company's cash position remains strong with an ending balance for the third quarter of $782,000.

Precision Optics' CEO, Joseph Forkey, commented, "The market opportunity for micro-optic and 3D-enabled devices and components in the medical and defense industries continues to be robust. Large, established industry players, and well-funded startup companies are looking for enabling technology partners, such as Precision Optics, that can make next generation products a reality. Over the past couple of years, we have made significant progress expanding the number of jointly developed projects in our engineering pipeline.  We expect many of these to move into production in the coming year to help drive growth."

Dr. Forkey continued, "While our ongoing production levels continue to be depressed due to the pandemic, the increase in engineering pipeline activity has helped to cushion the impact on overall revenues.  Our production revenue of $1.9 million during the quarter was flat compared to the most recent quarter and was down about $250,000 from the third quarter a year ago. Engineering revenue of $550,000 was down sequentially, but was up year-over-year, and is expected to increase again in future quarters.  Due to revenue recognition timing, reported revenue growth quarter-to-quarter may not reflect the full underlying growth trend of the business.  Further, we have efficiently managed the business with year-to-date improvements in adjusted EBITDA of over $500,000 compared to the same period a year ago. With a burgeoning pipeline, near-term projects expected to move from the pipeline to production, and the resumption of normalized production levels for products impacted by the pandemic, we believe we are well positioned heading into fiscal 2022."

The following table summarizes the third quarter (unaudited) results for the periods ended March 31, 2021 and 2020:

		Three Months
		Ended Mar 31,
		2021	2020
Revenues		$      2,458,290	$      2,374,584
Gross Profit		818,024	817,019
Stock Compensation Expenses		74,794	64,334
Other		999,248	1,218,132
Total Operating Expenses		1,074,042	1,282,466
Operating Income (Loss)		(256,018)	(465,447)
Net Income (Loss)		552,278	(466,130)
Income (Loss) per Share
	Basic	$                0.04	$              (0.04)
	Fully Diluted	$                0.04	$              (0.04)
Weighted Average Common Shares Outstanding
	Basic	13,243,595	12,982,494
	Fully Diluted	14,068,459	12,982,494

 

Conference Call Details
The Company has scheduled a conference call to discuss the third quarter 2021 financial results for Thursday, May 13, 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 Internet webcast, which is available at https://www.webcaster4.com/Webcast/Page/2109/40924.  

Replay: A teleconference replay of the call will be available until May 20, 2021 at (877) 344-7529 or (412) 317-0088, confirmation # 10155310. A webcast replay will be available at https://www.webcaster4.com/Webcast/Page/2109/40924.  

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.

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
peye@lythampartners.com

 

Following are the Company's Consolidated Balance Sheets at March 31, 2021 and June 30, 2020, and Statements of Operations, for the three and nine month periods ended March 31, 2021 and 2020:

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
		March 31, 2021				June 30, 2020
ASSETS
Current Assets:
Cash and cash equivalents		$	781,845			$	1,134,697
Accounts receivable (net of allowance for doubtful accounts of $250,633 at March 31, 2021 and $248,450 at June 30, 2020)			1,533,781				1,481,437
Inventories			1,949,281				2,197,244
Prepaid expenses			132,156				133,707
Total current assets			4,397,063				4,947,085
Fixed Assets:
Machinery and equipment			3,084,691				2,907,533
Leasehold improvements			765,780				731,801
Furniture and fixtures			178,640				178,640
			4,029,111				3,817,974
Less—Accumulated depreciation and amortization			3,419,203				3,314,824
Net fixed assets			609,908				503,150
Operating lease right-to-use asset			75,804				118,403
Patents, net			135,536				95,229
Goodwill			687,664				687,664
TOTAL ASSETS		$	5,905,975			$	6,351,531
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of capital lease obligation		$	37,779			$	51,761
Current portion of acquisition earn out liability			166,667				166,667
Note payable to bank			–				808,962
Accounts payable			1,024,611				1,066,005
Customer advances			232,884				417,059
Accrued compensation and other			585,463				581,770
Current portion of operating lease liability			60,131				57,156
Total current liabilities			2,107,535				3,149,380
Capital lease obligation, net of current portion			162,200				35,810
Acquisition earn out liability			166,666				333,333
Operating lease liability, net of current portion			15,673				61,247
Stockholders' Equity:
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 13,263,789 shares at March 31, 2021 and 13,191,789 June 30, 2020			132,638				131,918
Additional paid-in capital			50,044,789				49,702,986
Accumulated deficit			(46,723,526)				(47,063,143)
Total stockholders' equity			3,453,901				2,771,761
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	5,905,975			$	6,351,531

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED
MARCH 31, 2021 AND 2020
(UNAUDITED)
		Three Months Ended March 31,								Nine Months Ended March 31,
		2021				2020				2021				2020
Revenues		$	2,458,290			$	2,374,584			$	8,001,641			$	7,686,330
Cost of Goods Sold			1,640,266				1,557,565				5,353,999				4,977,255
Gross Profit			818,024				817,019				2,647,642				2,709,075
Research and Development Expenses, net			146,063				319,875				443,609				700,605
Selling, General and Administrative Expenses			927,979				962,591				2,671,176				3,111,397
Total Operating Expenses			1,074,042				1,282,466				3,114,785				3,812,002
Operating Loss			(256,018)				(465,447)				(467,143)				(1,102,927)
Other Income (Expense)
Interest Expense			(666)				(683)				(2,202)				(138)
Gain on Forgiveness of Bank Note			808,962				–				808,962				–
Net Income (Loss)		$	552,278			$	(466,130)			$	339,617			$	(1,103,065)
Income (Loss) Per Share:
Basic		$	0.04			$	(0.04)			$	0.03			$	(0.09)
Fully Diluted		$	0.04			$	(0.04)			$	0.02			$	(0.09)
Weighted Average Common Shares Outstanding:
Basic			13,243,595				12,982,494				13,208,805				12,898,004
Fully Diluted			14,068,459				12,982,494				13,841,700				12,898,004

 

 

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SOURCE Precision Optics Corporation

FAQ

What were Precision Optics' third-quarter earnings for fiscal year 2021?

Precision Optics reported earnings of $552,280 for the third quarter of fiscal year 2021.

How did the revenue for Precision Optics in Q3 2021 compare to Q3 2020?

Revenue for Q3 2021 was $2.46 million, an increase from $2.37 million in Q3 2020.

What is the stock symbol for Precision Optics Corporation?

The stock symbol for Precision Optics Corporation is PEYE.

What is the outlook for Precision Optics for fiscal year 2022?

Precision Optics expects growth driven by an expanding engineering pipeline and a recovery in production levels.