• Precision Optics Reports Fourth Quarter and Fiscal Year 2024 Financial Results

    来源: Nasdaq GlobeNewswire / 30 9月 2024 16:30:00   America/New_York

    GARDNER, Mass., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, announced operating results on an unaudited basis for its fourth quarter and fiscal year ended June 30, 2024.

    FY 2024 Financial Highlights (Year Ended June 30, 2024):

    • Revenue was $19.1 million compared to $21.0 million in the previous fiscal year. Revenue of $19.1 million, exceeded the high end of the expected range announced on August 14, 2024 of $18.9 million.
    • Production revenue was $10.8 million, a decrease of 25% compared to the previous fiscal year.
    • Engineering revenue was a record $8.3 million, an increase of 24% compared to the previous fiscal year.
    • Gross margin was 30.3% compared to 36.8% in the previous fiscal year, which included a one-time sale of $600,000 in technology rights relating to a single-use medical device..
    • Net loss was ($3.0) million which compared to net loss of ($0.1) million in the previous year.
    • Adjusted EBITDA, defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation and other income, was $(1.6) million, compared to $0.5 million in the previous fiscal year.

    Q4 FY2024 Financial Highlights (3 Months Ended June 30, 2024):

    • Revenue was $4.7 million compared to $5.0 million in the same quarter of the previous fiscal year. Revenue of $4.7 million exceeded the implied high end of the range we announced on August 14, 2024 of 4.5 million.
    • Engineering revenue was $1.9 million compared to $1.4 million in the same quarter of the previous fiscal year.
    • Production revenue was $2.8 million compared to $3.6 million in the same quarter of the previous fiscal year.
    • Gross margins were 21.7% compared to 35.0% in the same quarter of the previous year.
    • Net loss for the quarter was ($1.4) million, compared to $(0.1) million in the same quarter of the previous year.
    • Adjusted EBITDA was $(1.1) million for the quarter compared to $(0.4) million in the same quarter of the previous year.

    Recent Additional Highlights:

    • In May 2024, the Company announced the receipt of a $9 million production order for a high volume single-use cystoscopy surgery program. The program began production shipments of product in July, 2024.
    • Subsequent to the end of the fiscal year, in August 2024 the Company announced a closing of a $1.4 million registered direct offering of common stock, which included participation from directors and officers.

    Precision Optics' CEO, Joseph Forkey, commented, “Upon exiting fiscal 2023, we were facing the loss of several significant programs that would not be continuing in fiscal 2024, totaling more than $7 million in annualized revenue. Due to the strength of our engineering pipeline, we backfilled a significant portion of the shortfall with record levels of product development revenue coupled with new products entering production. Currently several programs are transitioning from the development phase to production, including the program associated with the $9 million purchase order we announced in May. We have now reached a new phase for the Company, with a sizeable and growing base of production programs and product development revenue continuing at the record levels we achieved last year.”

    “As we look forward to fiscal 2025, we expect our first quarter revenue will be in the range of $4.2 to $4.4 million, relatively flat compared to the previous year’s first quarter. Revenue for the first quarter was impacted by certain challenges in the start-up and ramp of key production programs. However, these issues are mostly now resolved, and with the growth of production and ongoing strong product development sales, we expect double digit revenue growth for fiscal 2025 with significant increases in revenue beginning with the second quarter of fiscal 2025,” Dr. Forkey concluded.

    The following table summarizes the fourth quarter (unaudited) and fiscal year to date results for the periods ended June 30, 2024, and 2023:

     Three Months Year
     Ended June 30 Ended June 30
     20242023 20242023
    Revenues$4,716,226 $5,024,140 $19,104,350 $21,044,467 
          
    Gross Profit 1,024,451  1,934,945   5,797,777  7,909,956 
          
    Stock Compensation Expenses 210,393  139,686   959,784  884,066 
    Other 2,170,410  2,407,733   7,562,326  7,664,437 
    Total Operating Expenses 2,380,803  2,547,419   8,522,110  8,548,503 
          
    Operating Income (Loss) (1,356,352) (612,475)  (2,724,333) (638,548)
          
    Net Income (Loss) (1,411,106) (96,125)  (2,951,377) (144,613)
          
    Income (Loss) per Share     
    Basic & Fully Diluted$(0.23)$(0.02) $(0.49)$(0.03)
                  
    Weighted Average Common Shares Outstanding             
    Basic & Fully Diluted 6,071,846  5,666,034   6,068,329  5,666,034 
                  

    Note: The Common Shares in this table reflect shares on a post reverse split basis for all periods presented.

    Conference Call Details
    Date and Time: Monday, September 30, 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/0Aa98ozwG53.

    Replay: A teleconference replay of the call will be available until October 3, 2024, at (877) 344-7529 or (412) 317-0088, replay access code 7367981. A webcast replay will be available at https://app.webinar.net/0Aa98ozwG53.

    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 designs and manufactures next-generation product solutions for 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, including single-use medical devices, 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 with 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 risk 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

     
    PRECISION OPTICS CORPORATION, INC.
    Consolidated Balance Sheets at June 30, 2024 and 2023
           
      2024  2023 
    ASSETS        
    Current Assets:        
    Cash and cash equivalents $405,278  $2,925,852 
    Accounts receivable, net of allowance for credit losses of $118,872 at June 30, 2024 and $606,715 at June 30, 2023  3,545,491   3,907,407 
    Inventories  2,868,100   2,776,216 
    Prepaid expenses  299,364   249,681 
    Total current assets  7,118,233   9,859,156 
             
    Fixed Assets:        
    Machinery and equipment  3,341,194   3,227,481 
    Leasehold improvements  810,914   825,752 
    Furniture and fixtures  416,425   242,865 
       4,568,533   4,296,098 
    Less—Accumulated depreciation and amortization  4,074,960   3,862,578 
    Net fixed assets  493,573   433,520 
             
    Operating lease right-of-use asset  189,999   358,437 
    Patents, net  286,559   265,111 
    Goodwill  8,824,210   8,824,210 
             
    TOTAL ASSETS $16,912,574  $19,740,434 
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current Liabilities:        
    Revolving line of credit $1,000,000  $- 
    Current portion of capital lease obligation  41,113   43,209 
    Current maturities of long-term debt  276,928   513,259 
    Accounts payable  1,397,313   2,432,264 
    Customer advances  1,172,350   1,174,690 
    Accrued compensation and other  840,662   927,521 
    Operating lease liability  178,450   168,677 
    Total current liabilities  4,906,816   5,259,620 
             
    Capital lease obligation, net of current portion  27,369   68,482 
    Long-term debt, net of current maturities  1,899,052   2,175,980 
    Operating lease liability, net of current portion  11,549   189,760 
             
    Stockholders’ Equity:        
    Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 6,073,939 shares at June 30, 2024 and 6,066,518 shares at June 30, 2023  60,739   60,665 
    Additional paid-in capital  61,197,433   60,224,934 
    Accumulated deficit  (51,190,384)  (48,239,007)
    Total stockholders’ equity  10,067,788   12,046,592 
             
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $16,912,574  $19,740,434 


     
    PRECISION OPTICS CORPORATION, INC.
    Consolidated Statements of Operations
    for the Years Ended June 30, 2024 and 2023
     
      2024  2023 
           
    Revenues $19,104,350  $21,044,467 
    Cost of goods sold  13,306,573   13,310,331 
             
    Gross profit  5,797,777   7,734,136 
             
    Research and development expenses, net  981,781   992,375 
    Selling, general and administrative expenses  7,540,329   7,380,309 
    Total operating expenses  8,522,110   8,372,684 
             
    Operating loss  (2,724,333)  (638,548)
             
    Other income (expense)        
    Interest expense  (225,108)  (218,927)
    Gain on revaluation of contingent earn-out liability     714,798 
             
    Loss before provision for income taxes  (2,949,441)  (142,677)
             
    Provision for income taxes  1,936   1,936 
             
    Net loss $(2,951,377) $(144,613)
             
    Loss per share:        
    Basic and fully diluted $(0.49) $(0.03)
             
    Weighted average common shares outstanding:        
    Basic and fully diluted  6,068,329   5,666,034 


     
    PRECISION OPTICS CORPORATION, INC.
    Consolidated Statements of Cash Flows
    For the Years Ended June 30, 2024 and 2023
     
      2024  2023 
    Cash Flows from Operating Activities:       
    Net loss $(2,951,377) $(144,613)
    Adjustments to reconcile net loss to net cash (used in) provided by operating activities-       
    Gain on revaluation of contingent earn-out liability  -   (705,892)
    Depreciation and amortization  212,382   210,735 
    Stock-based compensation expense  959,784   919,032 
    Non-cash interest expense  17,504   4,087 
    Changes in operating assets and liabilities:       
    Accounts receivable, net  361,916   (1,243,535)
    Inventories  (91,884)  245,931 
    Prepaid expenses  (49,683)  (36,233)
    Accounts payable  (1,034,951  193,089 
    Customer advances  (2,340  269,577 
    Accrued compensation and other  (104,363  206,732 
    Net cash used in operating activities  (2,683,012)  (81,090)
            
    Cash Flows from Investing Activities:       
    Additional patent costs  (21,448)  (35,713)
    Purchases of property and equipment  (272,435)  (16,784)
    Net cash used in investing activities  (293,883)  (52,497)
            
    Cash Flows from Financing Activities:       
    Payment of capital lease obligations  (43,209)  (40,705)
    Payments of long-term debt  (513,259)  (367,341)
    Issuance of long-term debt  -   750,000 
    Payment of debt issuance costs  -   (22,275)
    Payment of acquisition earn-out liability  -   (166,667)
    Borrowings on revolving line of credit  1,000,000     
    Gross proceeds from private placements of common stock  -   2,288,281 
    Gross proceeds from exercise of stock options  12,789   12,397 
    Net cash provided by financing activities  456,321   2,453,690 
            
    Net increase (decrease) in cash and cash equivalents  (2,520,574)  2,320,103 
    Cash and cash equivalents, beginning of year  2,925,852   605,749 
            
    Cash and cash equivalents, end of year $405,278  $2,925,852 
            
    Supplemental disclosure of cash flow information:       
    Cash paid during the year for income taxes $1,936  $1,936 
            


    PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    ADJUSTED EBITDA
                 
      Three Months Year
    Ended June 30,Ended June 30,
      2024 2023 2024 2023
    Net Income (loss) (GAAP) $(1,411,106) $(96,125) $(2,951,377) $(144,613)
                 
    Stock based compensation  210,393   149,242   959,784   919,032 
                 
    Depreciation and amortization  55,796   53,442   212,382   218,927 
                 
    State Income Taxes  1,936   1,936   1,936   1,936 
                 
    Revaluation of earn-out liability  -   (571,838)  -   (714,798)
                 
    Interest expense  52,818   53,552   225,108   210,735 
                 
    Adjusted EBITDA (non-GAAP) $(1,090,163) $(409,791) $(1,552,167) $491,219 
                 

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