Precision Optics Reports Third Quarter Fiscal Year 2025 Financial Results
GARDNER, Mass., May 15, 2025 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (NASDAQ:POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, announced operating results on an unaudited basis for its third quarter fiscal year 2025 for the period ended March 31, 2025.
Q3 2025 Financial Highlights (3 Months Ended March 31, 2025):
- Revenue was $4.2 million compared to $5.2 million in the same quarter of the previous fiscal year and compared to $4.5 million in the most recent sequential quarter.
- Production revenue was $3.3 million compared to $3.0 million in the same quarter of the previous fiscal year and compared to $3.3 million in the most recent sequential quarter.
- Engineering revenue was $0.9 million compared to $2.3 million in the same quarter of the previous fiscal year and compared to $1.2 million in the most recent sequential quarter.
- Gross margins were 10.0% compared to 35.5% in the same quarter of the previous year and compared to 23.6% in the most recent sequential quarter.
- Net loss for the quarter was ($2.1) million, compared to $(0.3) million in the same quarter of the previous year, and compared to $(1.0) million in the most recent sequential quarter.
- Adjusted EBITDA was $(1.3) million for the quarter compared to $0.1 million in the same quarter of the previous year and compared to $(0.6) million in the most recent sequential quarter.
Recent Additional Highlights:
- Launched the Unity Imaging Platform. The platform is comprised of a CMOS endoscopic system with customization options based on existing or newly designed sub-components. This groundbreaking modular optical platform is expected to transform the development and production of endoscopic imaging devices by significantly reducing costs, time to market, and project risks.
- Entered into a Main Purchase Agreement which will govern the Company's ongoing work with a top tier aerospace company including minimum purchase commitments of nearly $4 million per year through calendar year ending 2026.
- Appointed former Chief Marketing Officer of IBM Software, Cloud, Data and AI businesses, Buell Duncan, and former Chief Financial Officer of LeMaitre Vascular, Inc, Joseph P. "JJ" Pellegrino, Jr. to the Company's Board of Directors.
- Closed on a $5.1 million common stock offering to, in part, expand the Company's facilities to support expected growth.
"We achieved significant milestones this quarter leading to a record production backlog, backed by the execution of a Main Purchase Agreement with a top tier aerospace company. Under the terms of the agreement, our customer has agreed to minimum annual purchase order commitments of nearly $4 million for both 2025 and 2026. This order commitment, and our backlog for this product of over $6 million dollars, provides us with current ample demand for our growing production schedule," commented Precision Optics' CEO, Joseph Forkey.
"During the quarter, we experienced low initial yields on our single-use cystoscope production line, forcing us to temporarily pause production. We utilized significant internal resources to get the situation corrected. Unfortunately, our gross margins suffered materially as a result. We successfully restarted the production line in February with improved yields and have now doubled our pre-shutdown throughput. The relationship with our customer remains strong. To meet this customer's challenging demand schedule, we are adding significantly to our production capacity. Our large aerospace production program is also growing rapidly, and we have concurrently started production for two programs transitioning from product development."
"We have implemented a series of initiatives to drive growth, including the launch of our Unity Platform. Improved production results and the advancement of new programs are expected to result in a positive fourth quarter, including sequential revenue growth and break-even or better adjusted EBITDA," Forkey concluded.
The following table summarizes the third quarter and year-to-date (unaudited) results for the periods ended March 31, 2025, and 2024:
| Three Months | Nine Months | |||||||||||||
| Ended March 31 | Ended March 31 | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Revenues | $4,185,968 | $5,242,579 | $12,909,928 | $14,388,123 | ||||||||||
| Gross Profit | 417,975 | 1,858,737 | 2,605,247 | 4,773,324 | ||||||||||
| Stock Compensation Expenses | 714,662 | 258,214 | 1,172,233 | 749,391 | ||||||||||
| Other | 1,741,598 | 1,859,050 | 5,628,261 | 5,391,915 | ||||||||||
| Total Operating Expenses | 2,456,261 | 2,177,264 | 6,800,494 | 6,141,306 | ||||||||||
| Operating Income (Loss) | (2,038,286) | (258,527) | (4,195,247) | (1,367,982) | ||||||||||
| Net Income (Loss) | (2,096,762) | (317,055) | (4,377,689) | (1,540,272) | ||||||||||
| Income (Loss) per Share | ||||||||||||||
| Basic & Fully Diluted | $(0.30) | $(0.05) | $(0.67) | $(0.25) | ||||||||||
| Weighted Average Common Shares Outstanding | ||||||||||||||
| Basic & Fully Diluted | 6,917,281 | 6,068,419 | 6,491,687 | 6,067,165 | ||||||||||
Conference Call Details
Date and Time: Thursday, May 15, 2025, at 5:00 p.m. ET.
Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or
(412) 317-5705.
Live Webcast Information: Interested parties can access the conference call via a live webcast, which is available at https://app.webinar.net/XMqWYwq1mQa.
Replay: A teleconference replay of the call will be available for seven days, at (877) 344-7529 or (412) 317-0088, replay access code 9425811. A webcast replay will be available at https://app.webinar.net/XMqWYwq1mQa.
About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics, 3D imaging and digital imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Ross Optical division's high volume world-wide sourcing, inspecting and production resources, the Company is able to design and manufacture next-generation product solutions to the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.
Non-GAAP Financial Measures
Precision Optics has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the Unites States of America ("non-GAAP"). The non-GAAP financial measure is Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). In addition to the aforementioned items, Adjusted EBITDA also excludes from Net Income (Loss) the effect of stock-based compensation.
This non-GAAP financial measure assists Precision Optics management in comparing its operating performance over time because certain items may obscure the underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete acquisition or restructuring plans that are fundamentally different from the ongoing productivity of the Company. Precision Optics management also believes that presenting this measure allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measure presented above to GAAP results has been provided in the financial tables included with this press release.
About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of the Company in light of their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on the Company as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting the Company will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the demand for the Company's products, global supply chains and economic activity in general and other risks and uncertainties identified in the Company's filings with the SEC. Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.
Company Contact:
PRECISION OPTICS CORPORATION
22 East Broadway
Gardner, Massachusetts 01440-3338
Telephone: 978-630-1800
Investor Contact:
LYTHAM PARTNERS, LLC
Robert Blum
Telephone: 602-889-9700
[email protected]
| PRECISION OPTICS CORPORATION, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| March 31, | June 30, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 2,547,873 | $ | 405,278 | ||||
| Accounts receivable, net of allowance for credit losses of $66,833 at March 31, 2025 and $118,872 at June 30, 2024 | 3,425,053 | 3,545,491 | ||||||
| Inventories, net | 3,671,401 | 2,868,100 | ||||||
| Prepaid expenses | 326,524 | 299,364 | ||||||
| Total current assets | 9,970,851 | 7,118,233 | ||||||
| Fixed Assets: | ||||||||
| Machinery and equipment | 3,408,480 | 3,341,194 | ||||||
| Leasehold improvements | 823,191 | 810,914 | ||||||
| Furniture and fixtures | 517,847 | 416,425 | ||||||
| 4,749,518 | 4,568,533 | |||||||
| Less—accumulated depreciation and amortization | 4,215,649 | 4,074,960 | ||||||
| Net fixed assets | 533,869 | 493,573 | ||||||
| Operating lease right-to-use asset | 57,088 | 189,999 | ||||||
| Patents, net | 236,256 | 286,559 | ||||||
| Goodwill | 8,824,210 | 8,824,210 | ||||||
| Total other assets | 9,117,554 | 9,300,768 | ||||||
| TOTAL ASSETS | $ | 19,622,274 | $ | 16,912,574 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Revolving line of credit | $ | – | $ | 1,000,000 | ||||
| Current portion of capital lease obligation | 36,225 | 41,113 | ||||||
| Current maturities of long-term debt | 576,405 | 276,928 | ||||||
| Accounts payable | 1,873,572 | 1,397,313 | ||||||
| Contract liabilities | 1,665,551 | 1,172,350 | ||||||
| Accrued compensation and other | 800,371 | 840,662 | ||||||
| Current portion of operating lease liability | 57,088 | 178,450 | ||||||
| Total current liabilities | 5,009,212 | 4,906,816 | ||||||
| Capital lease obligation, net of current portion | – | 27,369 | ||||||
| Long-term debt, net of current maturities and debt issuance costs | 1,435,345 | 1,899,052 | ||||||
| Operating lease liability, net of current portion | – | 11,549 | ||||||
| Total liabilities | 6,444,557 | 6,844,786 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 7,666,247 shares at March 31, 2025 and 6,073,939 at June 30, 2024 | 76,662 | 60,739 | ||||||
| Additional paid-in capital | 68,669,128 | 61,197,433 | ||||||
| Accumulated deficit | (55,568,073 | ) | (51,190,384 | ) | ||||
| Total stockholders' equity | 13,177,717 | 10,067,788 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 19,622,274 | $ | 16,912,574 | ||||
| PRECISION OPTICS CORPORATION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024 (UNAUDITED) | ||||||||||||||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | $ | 4,185,968 | $ | 5,242,579 | $ | 12,909,928 | $ | 14,388,123 | ||||||||
| Cost of Goods Sold | 3,767,993 | 3,383,842 | 10,304,681 | 9,614,799 | ||||||||||||
| Gross Profit | 417,975 | 1,858,737 | 2,605,247 | 4,773,324 | ||||||||||||
| Research and Development Expenses | 211,242 | 192,773 | 929,648 | 627,259 | ||||||||||||
| Selling, General and Administrative Expenses | 2,245,018 | 1,924,491 | 5,870,846 | 5,514,047 | ||||||||||||
| Total Operating Expenses | 2,456,260 | 2,117,264 | 6,800,494 | 6,141,306 | ||||||||||||
| Operating Income (Loss) | (2,038,285 | ) | (258,527 | ) | (4,195,247 | ) | (1,367,982 | ) | ||||||||
| Interest Expense | (58,476 | ) | (58,528 | ) | (182,442 | ) | (172,290 | ) | ||||||||
| Net Income (Loss) | $ | (2,096,761 | ) | $ | (317,055 | ) | $ | (4,377,689 | ) | $ | (1,540,272 | ) | ||||
| Income (Loss) Per Share: | ||||||||||||||||
| Basic and Fully Diluted | $ | (0.30 | ) | $ | (0.05 | ) | $ | (0.67 | ) | $ | (0.25 | ) | ||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic and Fully Diluted | 6,917,281 | 6,068,419 | 6,491,687 | 6,067,165 | ||||||||||||
| PRECISION OPTICS CORPORATION, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE NINE MONTHS ENDED MARCH 31, 2025 AND 2024 (UNAUDITED) | ||||||||||||||||||||
| Nine Month Period Ended March 31, 2025 | ||||||||||||||||||||
| Number of Shares | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||
| Balance, July 1, 2024 | 6,073,939 | $ | 60,739 | $ | 61,197,433 | $ | (51,190,384 | ) | $ | 10,067,788 | ||||||||||
| Issuance of common stock in registered direct offering | 265,868 | 2,659 | 1,201,883 | – | 1,204,542 | |||||||||||||||
| Proceeds from exercise of stock option | 10,363 | 104 | 26,896 | – | 27,000 | |||||||||||||||
| Stock-based compensation | – | – | 149,364 | – | 149,364 | |||||||||||||||
| Net loss | – | – | – | (1,311,247 | ) | (1,311,247 | ) | |||||||||||||
| Balance, September 30, 2024 | 6,350,170 | 63,502 | 62,575,576 | (52,501,631 | ) | 10,137,447 | ||||||||||||||
| Stock-based compensation | – | – | 278,206 | – | 278,206 | |||||||||||||||
| Issuance of common stock for consulting services | 5,364 | 53 | 29,947 | – | 30,000 | |||||||||||||||
| Net loss | – | – | – | (969,681 | ) | (969,681 | ) | |||||||||||||
| Balance, December 31, 2024 | 6,355,534 | 63,555 | 62,883,729 | (53,471,312 | ) | 9,475,972 | ||||||||||||||
| Issuance of common stock in registered direct offering | 1,272,500 | 12,725 | 5,052,869 | – | 5,065,594 | |||||||||||||||
| Proceeds from exercise of stock option | 13,162 | 132 | 18,118 | – | 18,250 | |||||||||||||||
| Stock-based compensation | – | – | 592,964 | – | 592,964 | |||||||||||||||
| Issuance of common stock for consulting services and employees | 25,051 | 250 | 121,448 | – | 121,698 | |||||||||||||||
| Net loss | – | – | – | (2,096,761 | ) | (2,096,761 | ) | |||||||||||||
| Balance, March 31, 2025 | 7,666,247 | $ | 76,662 | $ | 68,669,128 | $ | (55,568,073 | ) | $ | 13,177,717 | ||||||||||
| Nine Month Period Ended March 31, 2024 | ||||||||||||||||||||
| Number of Shares | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||
| Balance, July 1, 2023 | 6,066,518 | $ | 60,665 | $ | 60,224,934 | $ | (48,239,007 | ) | $ | 12,046,592 | ||||||||||
| Stock-based compensation | – | – | 108,746 | – | 108,746 | |||||||||||||||
| Net loss | – | – | – | (464,415 | ) | (464,415 | ) | |||||||||||||
| Balance, September 30, 2023 | 6,066,518 | 60,665 | 60,333,680 | (48,703,422 | ) | 11,690,923 | ||||||||||||||
| Stock-based compensation | – | – | 382,431 | – | 382,431 | |||||||||||||||
| Proceeds from the exercise of stock options | 1,000 | 10 | 2,690 | – | 2,700 | |||||||||||||||
| Net loss | – | – | – | (758,802 | ) | (758,802 | ) | |||||||||||||
| Balance, December 31, 2023 | 6,067,518 | 60,675 | 60,718,801 | (49,462,224 | ) | 11,317,252 | ||||||||||||||
| Stock-based compensation | – | – | 258,214 | – | 258,214 | |||||||||||||||
| Proceeds from the exercise of stock options | 1,000 | 10 | 2,690 | – | 2,700 | |||||||||||||||
| Net loss | – | – | – | (317,055 | ) | (317,055 | ) | |||||||||||||
| Balance, March 31, 2024 | 6,068,518 | $ | 60,685 | $ | 60,979,705 | $ | (49,779,279 | ) | $ | 11,261,111 | ||||||||||
| PRECISION OPTICS CORPORATION, INC. | |||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
| ADJUSTED EBITDA | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Net Income (loss) (GAAP) | $ | (2,096,761 | ) | $ | (317,055 | ) | $ | (4,377,689 | ) | $ | (1,540,272 | ) | |||||||
| Stock based compensation | 714,662 | 258,214 | 1,172,232 | 749,391 | |||||||||||||||
| Depreciation and amortization | 62,358 | 52,325 | 159,844 | 156,586 | |||||||||||||||
| Interest expense | 58,476 | 58,528 | 182,442 | 172,290 | |||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | (1,261,265 | ) | $ | 52,012 | $ | (2,863,171 | ) | $ | (462,005 | ) | ||||||||
