Full Press Release Details
| NEWS RELEASE | Page 1 of 4 |
| FOR IMMEDIATE RELEASE | February 10, 2006 |
OPTICS CORPORATION ANNOUNCES Q2 RESULTS -
INCREASE YTD 43% OVER LAST YEAR and Q2 26% OVER Q1
Precision Optics Corporation, Inc. (symbol: POCI) today announced operating
results on an unaudited basis for the second quarter of fiscal year 2006 ended
report of operations for the quarter ending September 30, 2005 we drew attention
to our developmental work of the past two years and highlighted our efforts
achieve the following:
in these areas as well as other new product releases began to show results
revenue during the latter half of the quarter ending September 30, 2005. We
pleased to report continued progress in the quarter ending December 31, 2005
also pleased to note, at the time of this filing, that the Company received
$515,000 in new sales orders in the first five weeks of Q3.
Quarter Operating Results
the quarter ended December 31, 2005, revenues were $529,195 compared to $397,522
for the same period last year, an increase of 33%. Revenues in the quarter
increased 26% from the preceding quarter ended September 30, 2005.
the quarter ended December 31, 2005, net loss was $636,392 or $0.09 per share,
an improvement of $184,487 from the net loss of $820,879 or $0.12 per share,
the same period last year. The weighted average common shares outstanding for
the quarters ended December 31, 2005 and 2004 was 7,008,212.
quarter ended December 31, 2005, cash and cash equivalents decreased by $722,866
compared to a decrease of $539,375 for the previous quarter ended September
2005. Cash receipts during the quarter ended September 30, 2005 included
$162,000 received from the sale of equipment previously used in the Company's
discontinued telecommunication business.
quarter ended December 31, 2005, research and development expenses were $269,159
up 21% from $223,069 a year earlier. The level of future quarterly R&D
expenses will ultimately depend on the Company's assessment of new product
opportunities and available cash resources.
Selling, general and administrative expenses decreased by approximately $21,000,
or 4.8% for the quarter ended December 31, 2005 compared to the same period
year. The achieved savings
actions the Company initiated in the quarters ending June 30, 2005 and September
30, 2005, reducing professional fees, changing the CFO role to part-time,
through reduced premiums from changing the Company's general insurance
Company has continued development of its new line of endoscopes based on unique,
patent pending Lenslock technology. Having completed the development cycle of
several products, and delivery of initial production orders, the Company is
currently holding discussions for significant unit volume orders with leading
companies in the endoscopy market.
Company is now manufacturing ultra-small lenses, prisms, and assemblies 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
Company has recently completed a partnership effort for the proprietary
development of a new class of night vision lenses including a new patent-pending
eyepiece lens. With prototypes completed, the product incorporating the
Company's new night vision lenses is currently being evaluated for need and use,
including field testing. The Company cannot control the timing of current
evaluations and cannot therefore predict when its developed prototypes in night
vision lenses might begin to generate revenue. Should the Company's customer
secure orders for its night vision system, the partnership agreement ensures
Company will either be contracted to manufacture the new lenses, or will receive
royalties on lenses manufactured elsewhere.
Company's cash balance at December 31, 2005 was $909,452 with an average
quarterly cash usage, over the preceding four quarters, of $746,000 per quarter.
The Company is actively seeking additional funds through equity or debt
financing. While there can be no assurance that such funds will be
available on satisfactory terms, or at all, the Company is currently engaged
discussions with a number of potential investors who have indicated an ability
to and potential interest in making an investment in the near term. If the
Company is unable to obtain additional funds within the next few months it
have to delay, scale back or eliminate some or all of its marketing, development
and production activities.
coming months the Company will continue to focus its efforts on marketing
products recently introduced or redesigned. Development costs, in several areas,
may be reduced as the Company promotes products showing more immediate potential
for significant revenue. The Company believes that these marketing activities,
if successful, will result in the continuation of its recent pattern 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.
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 extension of Lenslock
technology (patent pending) to its entire line of endoscopes, and new
instruments utilizing the Company's micro-precisionTM
technology (patent pending) for optical components, assemblies and endoscopes
under 1 mm. The Company continues to explore potential applications of
single-molecule technology and nanotechnology.
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 SIX MONTHS ENDED
| Three Months Ended December 31, | Six Months Ended December 31 | |||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||
| REVENUES | $ | 529,195 | $ | 397,522 | $ | 948,777 | $ | 661,332 | ||||
| COST OF GOODS SOLD | 487,123 | 572,940 | 1,008,623 | 928,955 | ||||||||
| Gross Profit / (Loss) | 42,072 | (175,418 | ) | (59,846 | ) | (267,623 | ) | |||||
| RESEARCH and DEVELOPMENT | 269,159 | 223,069 | 477,270 | 579,475 | ||||||||
| SELLING, GENERAL and | ||||||||||||
| ADMINISTRATIVE EXPENSES | 415,571 | 436,727 | 840,259 | 934,166 | ||||||||
| GAIN ON SALE OF ASSETS | - | - | (165,700 | ) | - | |||||||
| Total Operating Expenses | 684,730 | 659,796 | 1,151,829 | 1,513,641 | ||||||||
| Operating Loss | (642,658 | ) | (835,214 | ) | (1,211,675 | ) | (1,781,264 | ) | ||||
| INTEREST INCOME | 6,266 | 14,335 | 15,412 | 26,927 | ||||||||
| Net Loss | $ | (636,392 | ) | $ | (820,879 | ) | $ | (1,196,263 | ) | $ | (1,754,337 | ) |
| Basic and Diluted Loss Per Share | $ | (0.09 | ) | $ | (0.12 | ) | $ | (0.17 | ) | $ | (0.27 | ) |
| Weighted Average Common Shares Outstanding Basic and Diluted | 7,008,212 | 7,008,212 | 7,008,212 | 6,494,022 |
OPTICS CORPORATION, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
| CURRENT ASSETS | December 31, 2005 | June 30, 2005 |
| Cash and Cash Equivalents | $ 909,452 | $ 2,171,693 |
| Accounts Receivable, net | 312,490 | 177,031 |
| Inventories, net | 530,855 | 599,619 |
| Prepaid Expenses | 82,925 | 62,422 |
| Total Current Assets | 1,835,722 | 3,010,765 |
| PROPERTY AND EQUIPMENT | 4,182,791 | 4,231,975 |
| Less: Accumulated Depreciation | (4,110,472) | (4,092,202) |
| Net Property and Equipment | 72,319 | 139,773 |
| OTHER ASSETS | ||
| Total Other Assets | 228,044 | 218,067 |
| TOTAL ASSETS | $ 2,136,085 | $ 3,368,605 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | $ 482,753 | $ 519,010 |
| STOCKHOLDERS' EQUITY | ||
| Common Stock, $.01 par value- | ||
| Authorized -- 20,000,000 shares | ||
| Issued and Outstanding - 7,008,212 shares | ||
| at December 31, 2005 and at June 30, 2005 | 70,082 | 70,082 |
| Additional Paid-in Capital | 32,751,597 | 32,751,597 |
| Accumulated Deficit | ( 31,168,347 ) | ( 29,972,084 ) |
| Total Stockholders' Equity | 1,653,332 | 2,849,595 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,136,085 | $ 3,368,605 |
statements contained in this news release, including those related to the future
success of Company's newly released products and products under development, the
Company receiving orders for significant volumes that are currently under
discussion, and the need for and ongoing discussions regarding the Company
obtaining additional funding are made under "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and involve a number of risks