Full Press Release Details
| PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800 Telefax 978 / 630-1487 POC:25-0331 Page 1 of 4 | |
| NEWS RELEASE | |
| FOR IMMEDIATE RELEASE | September 28, 2005 |
OPTICS CORPORATION ANNOUNCES
QUARTER AND YEAR END RESULTS
Precision Optics Corporation, Inc. (Nasdaq: POCI) today announced operating
results on an unaudited basis for the fourth quarter of fiscal year 2005 ended
Quarter Operating Results
the quarter ended June 30, 2005, revenues were $362,215 compared to $292,620
the same period last year, an increase of 23.7%. Revenues in the quarter
increased 9.1% from the preceding quarter ended March 31, 2005.
the quarter ended June 30, 2005, net loss was $1,114,108, or $0.16 per share,
increase of $102,583, from the net loss of $1,011,525, or $0.58 per share,
the same period last year. The weighted average common shares outstanding for
the quarter ended June 30, 2005 and 2004 were 7,008,212 and 1,752,053,
loss for the quarter ended June 30, 2005 included provisions for restructuring
and obsolete and slow moving inventories totaling $303,762. Net loss for the
quarter ended June 30, 2004 included provisions for obsolete and slow moving
inventories of $191,200.
Year 2005 Operating Results
the year ended June 30, 2005, revenues were $1,349,819 compared to $1,472,008
for the same period last year, a decrease of 8.3%.
the year ended June 30, 2005, net loss was $3,688,361, or $0.55 per share,
increase of $4,285 compared to the net loss of $3,684,076, or $2.10 per share,
for the year ended June 30, 2004. The weighted average common shares outstanding
were for the years ended June 30, 2005 and 2004 were 6,749,003 and 1,752,053,
loss for the years ended June 30, 2005 and 2004 included provisions for
restructuring and obsolete and slow moving inventories totaling $491,412 and
$552,208, respectively.
Flow and Expenditures
quarter ended June 30, 2005, cash and cash equivalents decreased by $866,229
compared to a decrease of $859,110 for the previous quarter ended March 31,
2005. Cash disbursements during the quarter ended June 30, 2005 included $84,501
paid for employee severance costs.
equipment expenditures during the year ended June 30, 2005 were $32,140, down
4.4% from the same period in 2004. Future capital expenditures will depend
future sales and the success of ongoing research and development
quarter ended June 30, 2005, research and development expenses were $233,194,
down 31.1% from $338,651 for the quarter ended June 30, 2004. Quarterly research
and development expenses depend on the Company's assessment of new product
Company is now manufacturing ultra-small lenses, prisms, assemblies and advanced
endoscopes with sizes ranging from 0.2 mm to 1 mm, for a number of customers.
The Company is also in discussions with several customers regarding
manufacturing of prototypes of similar products. These optical components and
instruments utilize a variety of innovative techniques including the Company's
patent-pending micro-precisionTM
Company has taken additional measures to realign its cost structure with current
revenue expectations. In June 2005, the Company reduced its annual labor cost
approximately $151,000, a 6.9% reduction. As a result of this action, the
Company recorded a non-recurring pretax charge to earnings of $89,512 for
employee severance benefits in the quarter ended June 30, 2005. In addition,
Company is in the process of reviewing other expense areas to determine where
additional reductions in discretionary spending can be achieved.
Company expects its recent pattern of quarter-to-quarter revenue fluctuations
continue, due to the uncertain timing of orders from customers and their size
relation to total revenues. The Company continues to move forward with new
products and technical innovations, in particular, the development of a new
generation (patent pending) of its world-class product line of 3-D endoscopes,
the development of a new prototype 2.7 mm endoscope, and new instruments
utilizing the Company's new micro-precisionTM
technology (patent pending) for endoscopes under 1 mm. The Company continues
explore potential applications of single-molecule technology and
Optics Corporation, a leading developer and manufacturer of advanced optical
instruments since 1982, designs and produces high-quality optical thin film
coatings, medical instruments, and other advanced optical systems. The Company's
medical instrumentation line includes laparoscopes, arthroscopes and
endocouplers and a world-class product line of 3-D endoscopes for use in
minimally invasive surgical procedures.
Company is currently developing specialty instruments incorporating its
patent-pending LENSLOCKTM
technology which ensures lower cost, easier repairability and enhanced
durability. The Company is aggressively pursuing ultra-small instruments (some
with lenses less than one millimeter in diameter) utilizing patent pending
technology. The Company is also exploring new initiatives in single molecule
technology and nanotechnology for biomedical and other applications.
Optics Corporation is certified to the ISO 9001 Quality Standard, and complies
with the FDA Good Manufacturing Practices and the European Union Medical Device
Directive for CE Marking of its medical products. The Company's Internet Website
OPTICS CORPORATION, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
THE THREE AND TWELVE MONTHS ENDED
| -- THREE MONTHS -- | --TWELVE MONTHS-- | ||||||||||||
| 2005 | 2004 | 2005 | 2004 | ||||||||||
| REVENUES | $ | 362,215 | $ | 292,620 | $ | 1,349,819 | $ | 1,472,008 | |||||
| COST OF GOODS SOLD | 699,399 | 547,936 | 1,997,586 | 2,062,902 | |||||||||
| Gross Profit (Loss) | ( 337,184 | ) | (255,316 | ) | ( 647,767 | ) | (590,894 | ) | |||||
| RESEARCH and DEVELOPMENT | 233,194 | 338,651 | 1,143,412 | 1,319,345 | |||||||||
| SELLING, GENERAL and ADMINISTRATIVE EXPENSES | 463,882 | 418,433 | 1,857,332 | 1,738,757 | |||||||||
| PROVISION FOR IMPAIRMENT AND RESTRUCTURING | 89,512 | - | 89,512 | 52,208 | |||||||||
| Total Operating Expenses | 786,588 | 757,084 | 3,090,256 | 3,110,310 | |||||||||
| Operating Loss | (1,123,772 | ) | (1,012,400 | ) | (3,738,023 | ) | (3,701,204 | ) | |||||
| INTEREST INCOME | 10,576 | 1,787 | 50,574 | 18,089 | |||||||||
| INTEREST EXPENSE | - | - | - | (49 | ) | ||||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | $ | (1,113,196 | ) | $ | (1,010,613 | ) | $ | (3,687,449 | ) | $ | (3,683,164 | ) | |
| PROVISION FOR INCOME TAXES | 912 | 912 | 912 | 912 | |||||||||
| NET LOSS | $ | ( 1,114,108 | ) | $ | (1,011,525 | ) | $ | (3,688,361 | ) | $ | _(_3,684,076 | ) | |
| Basic and Diluted Loss Per Share | $ | (0.16 | ) | $ | (0.58 | ) | $ | ( 0.55 | ) | $ | (2.10 | ) | |
| Weighted Average Common Shares Outstanding | 7,008,212 | 1,752,053 | 6,749,003 | 1,752,053 |
OPTICS CORPORATION, INC. AND SUBSIDIARIES
| ASSETS | |||||||
| June 30, 2005 | June 30, 2004 | ||||||
| CURRENT ASSETS | |||||||
| Cash and Cash Equivalents | $ | 2,171,693 | $ | 343,260 | |||
| Accounts Receivable, Net | 177,031 | 80,195 | |||||
| Inventories | 599,619 | 917,998 | |||||
| Prepaid Expenses | 62,422 | 80,646 | |||||
| Deferred Financing Costs | - | 171,885 | |||||
| Total Current Assets | 3,010,765 | 1,593,984 | |||||
| PROPERTY AND EQUIPMENT | 4,231,975 | 4,199,835 | |||||
| Less: Accumulated Depreciation | (4,092,202 | ) | (3,920,593 | ) | |||
| Net Property and Equipment | 139,773 | 279,242 | |||||
| OTHER ASSETS | 218,067 | 224,088 | |||||
| TOTAL ASSETS | $ | 3,368,605 | $ | 2,097,314 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| TOTAL CURRENT LIABILITIES | $ | 519,010 | $ | 593,342 | |||
| STOCKHOLDERS' EQUITY | |||||||
| Common Stock, $.01 par value- | |||||||
| Authorized -- 20,000,000 shares | |||||||
| Issued and Outstanding - 7,008,212 shares | |||||||
| at June 30, 2005 and 1,752,053 at | |||||||
| June 30, 2004 | 70,082 | 17,521 | |||||
| Additional Paid-in Capital | 32,751,598 | 27,770,175 | |||||
| Accumulated Deficit | ( 29,972,085 | ) | (26,283,724 | ) | |||
| Total Stockholders' Equity | 2,849,595 | 1,503,972 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' | |||||||
| EQUITY | $ | 3,368,605 | $ | 2,097,314 |
statements contained in this news release, including those related to the
Company's products under development and revenue estimates, are made under "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995
involve a number of risks and uncertainties that could materially affect future
results. These risks and uncertainties, many of which are not within the
Company's control, include, but are not limited to, the uncertainty and timing
of the successful development of the Company's new products; the risks
associated with reliance on a few key customers; the Company's ability to regain
and maintain compliance with requirements for continued listing on the NASDAQ
SmallCap Market; the Company's ability to attract and retain personnel with the
necessary scientific and technical skills, the timing and completion of
significant orders; the timing and amount of the Company's research and
development expenditures; the timing and level of market acceptance of
customers' products for which the Company supplies components; performance of
the Company's vendors; the ability of the Company to control costs associated
with performance under fixed price contracts; and the continued availability
the Company of essential supplies, materials and services; and the other risk
factors and cautionary statements listed from time to time in the Company's