Full Press Release Details
| NEWS RELEASE | |
| FOR IMMEDIATE RELEASE | Tuesday, May 15, 2007 |
OPTICS CORPORATION ANNOUNCES
Precision Optics Corporation, Inc. (OTC Bulletin Board: POCI.OB), (the
"Company") today announced operating results on an unaudited basis for the third
quarter of fiscal year 2007 ended March 31, 2007.
Quarter Operating Results
quarter ended March 31, 2007, revenues were $467,199 compared to $646,077 for
the quarter ended March 31, 2006, a decrease of 28%. The decrease was primarily
the result of lower sales of the Company's traditional medical products which
was due, in part, to start-up efforts associated with the initial production
shipment of an advanced surgical visualization system for a significant new
customer. Small initial shipments were made to the new customer in the third
quarter of fiscal year 2007, with the balance of the order expected to be
delivered over the next 2 fiscal quarters.
quarter ended March 31, 2007, net loss was $843,911, or $0.04 per share, an
increase of $361,738 from the net loss of $482,173 or $0.07 per share, for
quarter ended March 31, 2006. The increase is primarily a result of start-up
efforts associated with the initial production of an advanced surgical
visualization system, lower sales volumes of the Company's traditional products,
a non-cash charge of $42,789 related to stock-based compensation expense
following the adoption of Statement of Financial Accounting Standards No. 123
revised (SFAS No. 123(R)) on July 1, 2006, along with increased R&D
expenses, sales and marketing activities and higher professional fees. The
weighted average common shares outstanding for the quarters ended March 31,
and 2006 were 22,124,879 and 7,008,212, respectively.
Flow and Expenditures -
quarter ended March 31, 2007, cash and cash equivalents increased by $1,558,869
compared to a decrease of $416,437 for the same period last year. The increase
in cash and cash equivalents was due primarily from the receipt of net proceeds
of $2,391,676 from a private placement of the Company's common stock and
warrants in February 2007, offset by cash used in operating
quarter ended March 31, 2007, research and development expenses were $323,410,
increasing $103,736 from the quarter ended March 31, 2006. These expenses
include a shift from previous activities aimed at the development of new
technologies to applications of these technologies for customer-driven product
development. The level of future quarterly R&D expenses will ultimately
depend on the Company's assessment of new product opportunities and available
general and administrative expenses increased by $195,411, or 50%, for the
quarter ended March 31, 2007 compared to the quarter ended March 31, 2006.
increase was primarily a result of a non-cash charge of $42,789 related to
stock-based compensation expense following the adoption of SFAS No. 123(R)
July 1, 2006, along with enhanced sales and marketing activities focused on
increasing sales of recently developed products and higher professional fees.
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. The Company believes that the recent
introduction of several new products, along with new and ongoing customer
relationships, will generate additional revenues, which are required in order
for the Company to achieve profitability. In
coming months the Company will continue to focus its efforts on marketing
products recently introduced or redesigned. The Company believes that these
marketing activities, if successful, may result in the overall growth of sales.
Optics Corporation, a leading developer and manufacturer of advanced optical
instruments since 1982, designs and produces high-quality medical instruments,
optical thin film coatings, 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. The Company continues to advance
products through technical innovation, including development of: the next
generation (patent pending) of 3-D endoscopes; the extension of Lenslock
technology (patent pending) to its entire line of endoscopes; instrumentation
utilizing the Company's micro-precision lens technology (patent pending) for
optical components; assemblies and endoscopes under 1 mm. Precision Optics
Corporation is registered to ISO 9001:2000, ISO 13485:2003, and CMDCAS Quality
Standards, 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 is www.poci.com.
OPTICS CORPORATION, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
THE THREE AND NINE MONTHS ENDED
| Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| REVENUES | $ | 467,199 | $ | 646,077 | $ | 1,365,636 | $ | 1,576,459 | |||||
| COST OF GOODS SOLD | 419,849 | 527,027 | 1,119,749 | 1,364,054 | |||||||||
| Gross Profit | 47,350 | 119,050 | 245,887 | 212,405 | |||||||||
| RESEARCH and DEVELOPMENT EXPENSES ,net | 323,410 | 219,674 | 966,887 | 853,672 | |||||||||
| SELLING, GENERAL and ADMINISTRATIVE EXPENSES | 581,222 | 385,811 | 1,610,238 | 1,222,543 | |||||||||
| GAIN ON SALE OF FIXED ASSETS | - | - | - | (165,700 | ) | ||||||||
| Total Operating Expenses | 904,632 | 605,485 | 2,577,125 | 1,910,515 | |||||||||
| Operating Loss | (857,282 | ) | (486,435 | ) | (2,331,238 | ) | (1,698,110 | ) | |||||
| INTEREST INCOME | 13,371 | 4,262 | 35,965 | 19,672 | |||||||||
| Net Loss | $ | (843,911 | ) | $ | (482,173 | ) | $ | (2,295,273 | ) | $ | (1,678,438 | ) | |
| Basic and Diluted Loss Per Share | $ | (0.04 | ) | $ | (0.07 | ) | $ | (0.13 | ) | $ | (0.24 | ) | |
| Weighted Average Common Shares Outstanding - Basic and Diluted | 22,124,879 | 7,008,212 | 17,680,434 | 7,008,212 |
OPTICS CORPORATION, INC. AND SUBSIDIARIES
| ASSETS | |||||||
| March 31, 2007 | June 30, 2006 | ||||||
| CURRENT ASSETS | |||||||
| Cash and Cash Equivalents | $ | 2,111,159 | $ | 2,030,428 | |||
| Accounts Receivable, net | 207,647 | 381,097 | |||||
| Inventories, net | 996,991 | 445,802 | |||||
| Prepaid Expenses | 80,601 | 45,912 | |||||
| Total Current Assets | 3,396,398 | 2,903,239 | |||||
| PROPERTY AND EQUIPMENT | |||||||
| Machinery and Equipment | 3,552,820 | 3,513,736 | |||||
| Leasehold Improvements | 553,596 | 553,596 | |||||
| Furniture and Fixtures | 138,842 | 93,545 | |||||
| Vehicles | 42,343 | 42,343 | |||||
| 4,287,601 | 4,203,220 | ||||||
| Less: Accumulated Depreciation | (4,131,457 | ) | (4,127,287 | ) | |||
| Net Property and Equipment | 156,144 | 75,933 | |||||
| OTHER ASSETS | |||||||
| Cash surrender value of life insurance policies | 4,438 | 13,246 | |||||
| Patents, net | 273,890 | 236,115 | |||||
| Total Other Assets | 278,328 | 249,361 | |||||
| TOTAL ASSETS | $ | 3,830,870 | $ | 3,228,533 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| TOTAL CURRENT LIABILITIES | 957,982 | 588,636 | |||||
| STOCKHOLDERS' EQUITY | |||||||
| Common Stock, $.01 par value- | |||||||
| Authorized -- 50,000,000 shares | |||||||
| Issued and Outstanding -25,458,212 shares | |||||||
| at March 31, 2007 and 15,458,212 shares | |||||||
| at June 30, 2006 | 254,582 | 154,582 | |||||
| Additional Paid-in Capital | 37,158,136 | 34,729,873 | |||||
| Accumulated Deficit | (34,539,830 | ) | (32,244,558 | ) | |||
| Total Stockholders' Equity | 2,872,888 | 2,639,897 | |||||
| TOTAL LIABILITIES AND | |||||||
| STOCKHOLDERS' EQUITY | $ | 3,830,870 | $ | 3,228,533 |
statements contained in this news release, including those related to the future
success of Company's newly released products and products under development are
made under "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995 and 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; decisions by customers to place orders for the Company's products; the
risks associated with reliance on a few key customers; 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; the continued
availability to the Company of essential supplies, materials and services;
the other risk factors and cautionary statements listed from time to time in
Company's periodic reports filed with the Securities and Exchange Commission,
including but not limited to, the Company's Annual Report on Form 10-KSB for
year ended June 30, 2006.