Conference Call Scheduled for today,
September 28, 2023, at 5:00pm ET
GARDNER,
Mass., Sept. 28, 2023 /PRNewswire/ -- Precision
Optics Corporation, Inc. (NASDAQ: POCI), 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, 2023.
FY 2023 Financial Highlights (Year Ended June 30, 2023):
- Revenue increased 34% to $21.0
million, a new record, compared to $15.7 million in the previous fiscal year.
- Production revenue reached a new annual record of $14.3 million, an increase of 39% compared to the
previous fiscal year.
- Engineering revenue was a record $6.7
million, an increase of 25% compared to the previous fiscal
year.
- Gross margin was 36.8% compared to 31.4% in the previous fiscal
year.
- Net loss was ($144,613) which
compared to net loss of ($928,416) in
the previous year.
- Adjusted EBITDA, defined as earnings before interest, taxes,
depreciation, amortization, stock-based compensation and other
income, was a record $491,219,
compared to $(242,293) in the
previous fiscal year. Adjusted EBITDA for fiscal 2023 included the
impact of a one-time increase in the allowance for doubtful
accounts of $464,000 for a single
customer.
Q4 2023 Financial Highlights (3 Months Ended June 30, 2023):
- Revenue increased 5% to $5.02
million, compared to $4.79
million in the same quarter of the previous fiscal
year.
- Production revenue was $3.0
million compared to $3.1
million in the same quarter of the previous fiscal
year.
- Engineering revenue was $2.0
million compared to $1.7
million in the same quarter of the previous fiscal
year.
- Gross margin was 38.5% compared to 30.1% in the same quarter of
the previous year.
- Net loss for the quarter was ($96,125) which compared to net income of
$269,293 in the same quarter of the
previous year. Net loss for the fourth quarter of fiscal 2023
was negatively impacted by the increase in the allowance for
doubtful accounts discussed above.
- Adjusted EBITDA was $(412,026)
for the quarter compared to $237,153
in the same quarter of the previous year. Adjusting for the
one-time increase in the allowance for doubtful accounts, adjusted
EBITDA would have been $ 51,974.
Recent Additional Highlights:
- In April 2023, the Company
announced the receipt of an initial product development order for a
next-generation urological endoscopy program totaling approximately
$1.3 million from an established
medical device company.
- The Company has made a significant investment in its management
team. In April 2023, appointed
Mahesh Lawande in the newly created
role of Chief Operating Officer of Precision Optics and in June
appointed Wayne Coll as Chief
Financial Officer
- In May 2023, the Company
announced the receipt of a follow-on product development order for
a next generation single-use urology program totaling approximately
$1.5 million from an established
medical device company leveraging the Company's unique expertise in
micro-optics, medical systems, and digital imaging.
- In June 2023, the Company
strengthened its balance sheet through a combination of three
actions: A new $750,000 term loan
with Main Street Bank; expansion of its line of credit facility to
$1.25 million from $500,000; and the completion of a warrant-less
common stock private placement providing $2.52 million in gross proceeds.
Precision Optics' CEO, Joseph
Forkey, commented, "Fiscal year 2023 was a year of
tremendous progress for Precision Optics as we continued to
leverage our unique technological and production capabilities to
drive record revenues and positive Adjusted EBITDA. Our business
model, where we apply our technical knowledge to support a customer
from the early design phase all the way through mass manufacture,
continues to show great signs of success. During fiscal year 2023,
we achieved both record production revenue of $14.3 million and record engineering revenue of
$6.7 million. Also, gross margins
increased to 37% compared to 31% last fiscal year. We continue to
increase our technical resources and to successfully attract new
programs to our product development pipeline. This pipeline
is the strongest indicator of long-term revenue growth potential
and expanded substantially in the fourth quarter as we scaled up
efforts on several key programs that we expect to be long-term
contributors to our business growth."
"I am also very excited that the Company was able to attract
Mahesh Lawande, Chief Operating
Officer and Wayne Coll, Chief
Financial Officer, both of whom have repeated experience in driving
medical device technology companies to greater levels of
efficiency, profitability and growth."
"Overall, I am pleased with the many accomplishments of fiscal
year 2023. The company achieved record revenues, improved gross
margins, and record Adjusted EBITDA. We have been delivering
against significant customer programs and expect the pipeline of
new projects to result in accelerated growth in the second half of
Fiscal 2024."
The following table summarizes the fourth quarter and fiscal
year (unaudited) results for the periods ended June 30, 2023, and 2022:
Note: The Common Shares in this table reflect shares on a
post reverse split basis for all periods presented.
|
|
Three Months
|
|
Fiscal Year
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
2023
|
2022
|
|
2023
|
2022
|
Revenues
|
$5,024,140
|
$4,793,511
|
$21,044,467
|
$15,678,248
|
|
|
|
|
|
|
|
Gross Profit
|
1,934,945
|
1,441,363
|
|
7,734,136
|
4,928,187
|
|
|
|
|
|
|
|
Stock Compensation
Expenses
|
142,242
|
150,377
|
|
884,606
|
800,473
|
Business Acquisition
Expenses
|
-
|
-
|
|
-
|
162,125
|
Other
|
2,398,177
|
1,711,456
|
|
7,488,618
|
5,479,479
|
Total Operating
Expenses
|
2,547,419
|
1,861,833
|
|
8,372,684
|
6,442,077
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
(612,475)
|
(420,470)
|
|
(638,548)
|
(1,513,891)
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
(96,125)
|
269,293
|
|
(144,613)
|
(928,416)
|
|
|
|
|
|
|
|
Income (Loss) per
Share
|
|
|
|
|
|
|
Basic and Fully
Diluted
|
$(0.02)
|
0.05
|
|
$(0.03)
|
$(0.18)
|
|
|
|
|
|
|
|
Weighted Average Common
Shares Outstanding
|
|
|
|
|
|
|
Basic and Fully
Diluted
|
5,687,526
|
5,295,720
|
|
5,666,034
|
5,295,720
|
Conference Call Details
Date and Time:
Thursday, September 28, 2023, 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/nKYp4AE46Pz.
Replay: A teleconference replay of the call will be
available until October 5, 2023, at
(877) 344-7529 or (412) 317-0088, replay access code 5811443.
A webcast replay will be available at
https://app.webinar.net/nKYp4AE46Pz.
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 (Loss)
the effect of stock-based compensation, restructuring and other
acquisition-related items.
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
performance 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
Telephone: 602-889-9700
poci@lythampartners.com
Following are the Company's Consolidated Balance Sheets at
June 30, 2023 and June 30, 2022, and Statements of Operations, for
the three and twelve months ended June 30,
2023 and 2022:
PRECISION OPTICS
CORPORATION, INC. AND SUBSIDIARIES
Consolidated Balance
Sheets at June 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,925,852
|
|
|
$
|
605,749
|
Accounts receivable,
net of allowance for doubtful accounts of $606,715
at June 30, 2023
and $44,135 at June 30, 2022
|
|
|
3,907,407
|
|
|
|
2,663,872
|
Inventories
|
|
|
2,776,216
|
|
|
|
3,022,147
|
Prepaid
expenses
|
|
|
249,681
|
|
|
|
213,448
|
Total current
assets
|
|
|
9,859,156
|
|
|
|
6,505,216
|
|
|
|
|
|
|
|
|
Fixed
Assets:
|
|
|
|
|
|
|
|
Machinery and
equipment
|
|
|
3,227,481
|
|
|
|
3,215,412
|
Leasehold
improvements
|
|
|
825,752
|
|
|
|
843,903
|
Furniture and
fixtures
|
|
|
242,865
|
|
|
|
219,999
|
Total fixed
assets
|
|
|
4,296,098
|
|
|
|
4,279,314
|
Less—Accumulated
depreciation and amortization
|
|
|
3,862,578
|
|
|
|
3,651,843
|
Net fixed
assets
|
|
|
433,520
|
|
|
|
627,471
|
|
|
|
|
|
|
|
|
Operating lease
right-to-use asset
|
|
|
358,437
|
|
|
|
517,725
|
Patents, net
|
|
|
265,111
|
|
|
|
229,398
|
Goodwill
|
|
|
8,824,210
|
|
|
|
8,824,210
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
19,740,434
|
|
|
$
|
16,704,020
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
Current portion of
capital lease obligation
|
|
$
|
43,209
|
|
|
$
|
40,705
|
Current maturities of
long-term debt
|
|
|
513,259
|
|
|
|
367,714
|
Current portion of
acquisition earn out liability
|
|
|
–
|
|
|
|
166,667
|
Accounts
payable
|
|
|
2,432,264
|
|
|
|
2,239,175
|
Customer
advances
|
|
|
1,174,690
|
|
|
|
905,113
|
Accrued compensation
and other
|
|
|
927,521
|
|
|
|
716,702
|
Operating lease
liability
|
|
|
168,677
|
|
|
|
150,565
|
Total current
liabilities
|
|
|
5,259,620
|
|
|
|
4,586,641
|
|
|
|
|
|
|
|
|
Capital lease
obligation, net of current portion
|
|
|
68,482
|
|
|
|
111,691
|
Long-term debt, net of
current maturities
|
|
|
2,175,980
|
|
|
|
1,961,141
|
Acquisition earn out
liability, net of current portion
|
|
|
–
|
|
|
|
705,892
|
Operating lease
liability, net of current portion
|
|
|
189,760
|
|
|
|
367,160
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
Common stock, $0.01 par
value: 50,000,000 shares authorized; issued and
outstanding –
6,066,518 shares at June 30, 2023 and 5,638,302 shares at June 30,
2022
|
|
|
60,665
|
|
|
|
56,383
|
Additional paid-in
capital
|
|
|
60,224,934
|
|
|
|
57,009,506
|
Accumulated
deficit
|
|
|
(48,239,007)
|
|
|
|
(48,094,394)
|
Total stockholders'
equity
|
|
|
12,046,592
|
|
|
|
8,971,495
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
19,740,434
|
|
|
$
|
16,704,020
|
PRECISION OPTICS
CORPORATION, INC. AND SUBSIDIARIES
Consolidated
Statements of Operations
for the Years Ended
June 30, 2023 and 2022
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
Revenues
|
|
$
|
21,044,467
|
|
|
$
|
15,678,248
|
Cost of goods
sold
|
|
|
13,310,331
|
|
|
|
10,750,061
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
7,734,136
|
|
|
|
4,928,187
|
|
|
|
|
|
|
|
|
Research and
development expenses, net
|
|
|
992,375
|
|
|
|
666,479
|
Selling, general and
administrative expenses
|
|
|
7,380,309
|
|
|
|
5,613,473
|
Business acquisition
expenses
|
|
|
–
|
|
|
|
162,125
|
Total operating
expenses
|
|
|
8,372,684
|
|
|
|
6,442,077
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(638,548)
|
|
|
|
(1,513,890)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(218,927)
|
|
|
|
(155,658)
|
Gain on forgiveness of
bank note
|
|
|
–
|
|
|
|
–
|
Gain on revaluation of
contingent earn-out liability
|
|
|
714,798
|
|
|
|
742,084
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
|
|
(142,677)
|
|
|
|
(927,464)
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
1,936
|
|
|
|
952
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(144,613)
|
|
|
$
|
(928,416)
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
Basic and fully
diluted
|
|
$
|
(0.03)
|
|
|
$
|
(0.18)
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic and fully
diluted
|
|
|
5,666,034
|
|
|
|
5,295,720
|
|
Note: The
Common Shares in this table reflect shares on a post reverse split
basis for all periods presented.
|
PRECISION OPTICS
CORPORATION, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAP FINANCIAL MEASURES
ADJUSTED
EBITDA
|
|
|
|
Three Months
Ended June 30,
|
|
|
Fiscal Year
Ended June 30,
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Net loss
(GAAP)
|
|
$
|
(96,125)
|
|
|
$
|
(113,899)
|
|
|
$
|
(144,613)
|
|
|
$
|
(928,418)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
|
149,242
|
|
|
|
231,115
|
|
|
|
919,032
|
|
|
|
915,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
53,275
|
|
|
|
66,207
|
|
|
|
210,735
|
|
|
|
190,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
51,484
|
|
|
|
52,778
|
|
|
|
218,927
|
|
|
|
159,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State Income
Taxes
|
|
|
1,936
|
|
|
|
952
|
|
|
|
1,936
|
|
|
|
952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
Expense
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
162,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of earn-out
liability
|
|
|
(571,838)
|
|
|
|
–
|
|
|
|
(714,798)
|
|
|
|
(742,052)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(non-GAAP)
|
|
$
|
(412,026)
|
|
|
$
|
237,153
|
|
|
$
|
491,219
|
|
|
$
|
(242,293)
|
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SOURCE Precision Optics Corporation