Full Press Release Details
OPTICS CORPORATION ANNOUNCES FOURTH QUARTER AND
END RESULTS WITH HIGHEST REVENUES IN SIX YEARS
| NEWS RELEASE | |
| FOR IMMEDIATE RELEASE | Monday, October 1, 2007 |
Precision Optics Corporation, Inc. (OTC Bulletin Board: POCI.OB), ("Precision
Optics") today announced operating results for the fourth quarter and fiscal
year ended June 30, 2007.
Quarter Operating Results
the quarter ended June 30, 2007, revenues were $1,111,833 compared to $573,105
for the same period last year, an increase of 94%. This represents the highest
quarterly revenue in six years. The revenue increase from the prior year was
principally to shipment of an advanced surgical visualization system for a
significant new customer.
the quarter ended June 30, 2007, net loss was $594,556, or $0.02 per share,
compared to $594,035, or $0.04 per share, for the same period last year. The
weighted average common shares outstanding for the quarters ended June 30,
and June 30, 2006 were 25,458,212 and 14,049,879, respectively.
Year 2007 Operating Results
the year ended June 30, 2007, revenues were $2,477,469 compared to $2,149,564
for the same period last year, an increase of 15.3%. This represents the highest
annual revenue in six years. The revenue increase was due principally to
shipment of an advanced surgical visualization system for a significant new
customer, along with the introduction of a number of new products.
year ended June 30, 2007 net loss was $2,889,829, or $0.15 per share, an
increase of $617,356 compared to the net loss of $2,272,473, or $0.26 per share,
for the year ended June 30, 2006. The increase is primarily a result of start-up
efforts, associated with the initial production of an advanced surgical
visualization system, a non-cash charge of $190,926 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 years
ended June 30, 2007 and June 30, 2006 were 19,624,879 and 8,768,629,
Flow and Expenditures - For
year ended June 30, 2007, cash and cash equivalents decreased by $1,190,249
compared to a decrease of $141,265 for the same period last year. The
decrease in cash and cash equivalents was due primarily from $3,334,918 of
being used in operating activities, which was offset by the receipt of net
proceeds of $2,376,216 from a private placement of the Company's common stock
and warrants in February 2007.
profit for fiscal year 2007 reflected a positive change of $225,180, compared
fiscal year 2006. Gross profit as a percentage of revenues increased from 12%
fiscal year 2006 to 19% in fiscal year 2007. The favorable change in gross
profit was due primarily to increased sales volume as a result of the
introduction of a new advanced surgical visualization system for a significant
new customer in fiscal year 2007 compared to fiscal year 2006.
and development expenses increased by $206,273, or 19%, during fiscal year
compared to the previous year. This increase was due primarily to development
and start-up costs associated with the initial
of an advanced surgical visualization system. Research and development expenses
were net of reimbursement of related costs of $101,309 and $135,129 during
fiscal years 2007 and 2006, respectively.
general and administrative expenses increased by $645,938 or 44%, during fiscal
year 2007 compared to the previous year. The increase was primarily a result
a non-cash charge of $164,831 related to stock-based compensation expense
following the adoption of SFAS No. 123(R) on July 1, 2006, along with enhanced
sales and marketing activities focused on increasing sales of recently developed
products and higher professional fees. The previous year expense was also lower,
and therefore had an impact on this year's increase, as it included the effect
of a gain on the one-time sale of fixed assets of $165,700 in the first quarter
of fiscal year 2006.
the current financial condition of the Company and the expectation of future
continued quarterly operating losses during fiscal 2008, management is currently
investigating and evaluating alternatives for raising additional capital through
private and public equity offerings that can be completed sometime during the
first half of fiscal 2008.
year 2007 yearly and fourth quarter revenues were the highest in 6 years. This
was due in large part to shipments of the advanced surgical visualization system
discussed below, the design of which relies heavily on the Company's world class
medical optics technologies, specifically in the area of advanced optical
endoscopic instrumentation. The Company expects its recent pattern of
quarter-to-quarter revenue fluctuations to continue, due to the introductory
stage of many of the Company's products currently under development and the
uncertain timing of orders from customers and their size in relation to total
revenues. The Company continues to move forward with new products and technical
innovations, in particular, a new generation of endoscopes that incorporate
pending), new components and instruments utilizing the Company's new
technology (patent pending) for optical components and endoscopes under 1 mm,
new custom medical products, new night vision lenses and new thin film
past few years new product and technology development has undergone significant
changes in shifting the emphasis of R&D efforts from the development of
underlying technologies to market exploitation in the applications of these
technologies. These have already been realized to some degree in a number of
areas. Over the past two to three years these developments have produced
revenues from new micro- precision lens products and new Lenslock
endoscopes. Recent initiatives in the area of micro-precision lenses address
specific customer opportunities in different medical specialty applications.
endoscope technologies we continue new product offerings in our Lenslock
line. Since December 2005, over 250 ENT endoscopes with diameter of 2.7 mm
incorporate Lenslock technology have been shipped. The Company is currently
launching its 4 mm Lenslock sinuscope, is finalizing prototypes of its 5 mm
Lenslock laproscope, and is actively pursuing development of its 4 mm Lenslock
wide field arthroscope. All of these Lenslock endoscopes are expected to be in
production in the near future. The Company believes that LenslockTM
technology has advantages over competitive products due to ease of manufacture
and repair, superior image quality, significant cost effectiveness and quality
of repair and that further incorporating this into its endoscope product line
will lead to increased sales.
fiscal year 2007, the Company began shipments of an advanced surgical
visualization system to a significant new customer. These shipments are pursuant
to production orders totaling over $1 million. Shipments of the advanced