Precision Optics Corporation, Inc. Announces Operating Results for the Second Quarter and Six Months of Fiscal Year 2017
GARDNER, Mass., Feb. 14, 2017 (GLOBE NEWSWIRE) — Precision Optics Corporation, Inc. (PEYE) (the “Company”) today announced operating results on an unaudited basis for its second quarter and six months ended December 31, 2016, of fiscal year 2017.
Second quarter highlights include:
- Completion of an $800,000 private placement offering;
- $353,182 decrease in revenues during quarter ended December 31, 2016 compared to the same quarter of the prior year;
- Gross margin improvements during the quarter and six months ended December 31, 2016 to 24.7% and 21.7%, respectively, compared to 22.7% in the quarter ended December 31, 2015 and 19.3% in the six months ended December 31, 2015;
- Reductions in SG&A expenses of $64,601 and $85,845 in the quarter and six month periods ended December 31, 2016, respectively, when compared to SG&A expenses in the same periods of the prior year;
- Increasing market demand for small sized and disposable micro cameras;
- Development of smaller CMOS camera module using low cost, high performance proprietary technology.
Commenting on the results, Company CEO, Joseph Forkey, said, “In spite of the recent progress Precision Optics has made with margins, cost containment and increasing product and engineering service activities, we experienced a 37% decline in revenues during the three months ended December 31, 2016 compared to the previous year. The decline occurred in both the engineering service and production categories. With the exception of one product that we no longer manufacture, the declines resulted principally from timing delays related to engineering project development and release to production schedules and from the cyclical purchasing patterns of some traditional products by our customers. We continue to see robust activity in existing and prospective customer demand for our unique design, engineering and production capabilities, and believe this quarter’s revenue decline will be temporary.”
Dr. Forkey continued, “We are pleased with the margin improvements even at this lower level of revenue, which represents our improving operational performance in engineering and production services relating to our core technologies. Margins increased to 24.7% and 21.7% during the three and six months ended December 31, 2016, principally as a result of efficient production of three traditional products comprising 43% of production revenue during the six months, and from cost containment efforts, including the elimination of our internal thin film coating operation.”
Dr. Forkey concluded, “We are seeing accelerating demand in the medical device market for small sized, disposable micro cameras used in many different endoscope configurations and applications. Precision Optics has once again lead the market with the recent introduction of a smaller CMOS camera module utilizing its proprietary techniques to accomplish a low cost, high performance product with a diameter of less than 1mm. I would like to thank our recent investors for their support in participating in the $800,000 round of financing completed in November 2016. This financing allows us to continue our efforts to cultivate our unique technologies and related product pipeline opportunities.”
Quarterly Conference Call Details
The Company has scheduled a conference call to discuss the fiscal second quarter 2017 financial results for Tuesday, February 14, 2017 at 5:00 PM Eastern. To participate in the conference call, please dial 1-844-826-3042 toll free from the U.S., or 1-412-317-5187 for international callers, 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 February 28, 2017. The audio replay can be accessed by dialing 1-877-344-7529 toll free from the U.S., or 1-412-317-0088 for international callers, and entering Replay Access Code 10101395.
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, MicroprecisionTM 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.