On November 12, 2020 Precision Optics Corporation, Inc. (OTCQB: PEYE), a leading designer and manufacturer of advanced optical instruments for the medical and defense industries, reported that operating results on an unaudited basis for its first quarter fiscal year ended September 30, 2020 (Press release, Precision Optics, NOV 12, 2020, View Source [SID1234570840]).
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First quarter fiscal 2021 highlights:
Revenue for the quarter ended September 30, 2020 was $2.76 million compared to $2.51 million in the same quarter of the previous fiscal year, an increase of 10%; and up 23% sequentially compared to $2.24 million in the fourth quarter of the previous fiscal year.
Gross margins for the quarter ended September 30, 2020 of 35% compared to 39% in the same quarter of the prior year; and compared to 29% for the quarter ended June 30, 2020.
Net income of $763 during the quarter included $71,146 of stock-based compensation. This compared to a loss of $86,110 in the same quarter a year ago and loss of $323,085 in the fourth quarter of fiscal 2020.
The Company’s cash position remains strong with an ending balance for the first quarter of $900,510.
Precision Optics’ CEO, Joseph Forkey, commented, "I am pleased with the operating performance during the first quarter which included a return to revenue growth. Our revenues grew sequentially by 23%, and by 10% year over year, as we saw a recovery in shipments on orders that had been delayed due to issues surrounding COVID-19 over the past few quarters. This growth in revenue, coupled with sequential improvement in gross margins and continued efficient management of expenses, lead to slight net income profitability and positive adjusted EBITDA. Importantly, our balance sheet remained strong with more than $900,000 in cash."
Dr. Forkey concluded, "Our team continues to maintain a safe overall workplace for our employees while meeting the expectations and demands of our customers. Production disruptions resulting from COVID-19 related precautions created a slightly elevated backlog going into the quarter, which we have largely now delivered. Importantly, COVID-19 did not materially alter end-market programs and we are seeing the progression of numerous pipeline projects that have the ability to be significant contributors to revenue over the next few quarters and years. We are still not out of the woods as it relates to the near term impacts from COVID-19 as customers work through excess inventory and evaluate the velocity of sell through of their end products in the market. However, the increase we have seen in pipeline projects as well as requests for quotation gives me optimism. We continue to have confidence that our existing production programs will ultimately return to pre-pandemic levels and combined with new programs that are building today, we expect to have a larger base of revenue. Our business today is inherently growing nicely."
The following table summarizes the first quarter (unaudited) results for the periods ended September 30, 2020 and 2019:
Conference Call Details
The Company has scheduled a conference call to discuss the first quarter 2021 financial results for Thursday, November 12, 2020 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 Internet webcast, which is available at View Source
Replay: A teleconference replay of the call will be available until November 19, 2020 at (877) 344-7529 or (412) 317-0088, confirmation # 10149688. A webcast replay will be available at View Source