Connect with us

Technology

Precision Optics Reports Second Quarter Fiscal Year 2024 Financial Results

Published

on

Conference Call Scheduled for today, February 14, 2024, at 5:00pm ET.

GARDNER, Mass., Feb. 14, 2024 /PRNewswire/ — Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense industries, announced operating results on an unaudited basis for its second quarter fiscal year 2024 for the period ended December 31, 2023.

Q2 2024 Financial Highlights (3 Months Ended December 31, 2023):

Revenue decreased 18% to $4.8 million, compared to $5.9 million in the same quarter of the previous fiscal year, but up 12% from the most recent sequential quarter. The year ago second quarter included a one-time sale of $600,000 of technology rights relating to a single-use medical device developed for a customer.Engineering revenue increased 33% to $2.3 million compared to $1.7 million in the same quarter of the previous fiscal year, and up 19% from the most recent sequential quarter.Production revenue was $2.6 million compared to $3.6 million in the same quarter of the previous fiscal year, and $2.4 million in the most recent sequential quarter.Gross margins were 30.1% compared to 44.2% in the same quarter of the previous year. Removing the impact of the technology rights revenue, gross margins a year ago would have been 37.8%.Net loss for the quarter was ($758,802), compared to a net income of $508,668 in the same quarter of the previous year. Adjusted EBITDA was ($269,034) for the quarter compared to $866,450 in the same quarter of the previous year. 

Recent Additional Highlights:

In November 2023, the Company announced the receipt of initial purchase orders towards a $1.4 million total program development project to develop a highly complex imaging sub-assembly for a next generation ophthalmoscope for one of the world’s largest technology-focused medical device companies.In December 2023, the Company announced the signing of a production and technology license agreement with a leading surgical robotics company to supply a single-use endoscope assembly used in their cystoscopy robotic surgery system.

Precision Optics’ CEO, Joseph Forkey, commented, “The Company’s results for Q2 were generally in-line with our expectations and consistent with what we have communicated previously.  While revenue was lower compared to last year due to timing differences between reorders for ongoing production, the exit of certain mature customer programs and the introduction of new customer programs, we have begun to see the rebound we expected with two new programs moving to production in the quarter and another restarting after a pandemic-related hold.  These programs contributed to a 6% quarter-over-quarter increase in production revenue, which, combined with record engineering revenue led to a 12% increase in total revenue compared to the first quarter.  Margins for the second quarter were lower than the first quarter, due to a differing sales mix, lower than normal production yields on certain programs starting or re-starting production as well as other one-time charges.  We believe these margin issues are transient and will be substantially resolved in the second half of the year, with gross margins returning to historical levels.

Dr. Forkey continued, “The growth we expect in the second half of fiscal 2024 is supported by the strength of our engineering pipeline, a leading indicator of future production volumes.  Engineering revenue was $2.3 million during the second quarter – a new quarterly record, up 33% year-over-year, and up 19% sequentially. We anticipate volumes from production orders coming on-line to lift our overall revenue to new quarterly record run-rates in this fiscal year.  Precision Optics’ core competencies — micro-optics, digital imaging, 3D endoscopy, and single-use medical devices — uniquely position us at the center of market segments that are significantly outpacing the growth of the broader medical device and defense / aerospace industries, providing us with an ongoing opportunity to significantly grow into the future. I look forward to an exciting second half of fiscal 2024.”

The following table summarizes the second quarter and fiscal year to date (unaudited) results for the periods ended December 31, 2023, and 2022:

Three Months

Six Months

Ended December 31,

Ended December 31,

2023

2022

2023

2022

Revenues

$4,824,289

$5,886,961

$9,145,544

$10,972,262

Gross Profit

1,450,976

2,599,472

2,914,587

4,238,913

Stock Compensation Expenses

382,431

108,746

491,177

319,776

Other

1,772,707

1,919,661

3,532,865

3,449,874

Total Operating Expenses

2,155,138

2,028,407

4,024,042

3,769,650

Operating Income (Loss)

(704,162)

571,065

(1,109,455)

469,263

Net Income (Loss)

(758,802)

(508,668)

(1,223,217)

349,944

Income (Loss) per Share

Basic

$          (0.13)

$          (0.09)

$          (0.20)

$               0.06

Fully Diluted

$          (0.13)

$          (0.09)

$          (0.20)

$               0.06

Weighted Average Common Shares Outstanding

Basic

6,066,572

5,638,302

6,066,545

5,638,302

Fully Diluted

6,066,572

5,935,911

6,066,545

5,937,471

Note: The Common Shares in this table reflect shares on a post reverse split basis for all periods presented.

Conference Call Details
Date and Time: Wednesday, February 14, 2024, at 5:00pm 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/5l19x2DzRKG.

Replay: A teleconference replay of the call will be available until February 21, 2024, at (877) 344-7529 or (412) 317-0088, replay access code 9304851. A webcast replay will be available at https://app.webinar.net/5l19x2DzRKG.  

About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics and  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 Lighthouse Imaging division’s electronic imaging expertise and its Ross Optical division’s high volume world-wide sourcing, inspecting and production resources, the Company designs and manufactures next-generation product solutions to meet 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, including single-use medical devices, 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 with 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). Adjusted EBITDA also excludes from Net Income (Loss) the effect of stock-based compensation, restructuring and other acquisition-related items.

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. Forward-looking statements include, but are not limited to, statements that express the Company’s intentions, beliefs, expectations, strategies, predictions or any other statements related to the Company’s future activities or future events or conditions. These statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by the Company’s management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous risk factors. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement, except as required by law.

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
poci@lythampartners.com

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

December 31,

June 30,

2023

2023

ASSETS

Current Assets:

Cash and cash equivalents

$

987,044

$

2,925,852

Accounts receivable, net of allowance for doubtful accounts of $731,256
     at December 31, 2023 and $606,715 at June 30, 2023

3,511,544

3,907,407

Inventories

3,099,986

2,776,216

Prepaid expenses

234,121

249,681

Total current assets

7,832,695

9,859,156

Fixed Assets:

Machinery and equipment

3,253,746

3,227,481

Leasehold improvements

832,305

825,752

Furniture and fixtures

362,287

242,865

Total fixed assets

4,448,338

4,296,098

Less—Accumulated depreciation and amortization

3,966,839

3,862,578

Net fixed assets

481,499

433,520

Operating lease right-to-use asset

275,329

358,437

Patents, net

283,643

265,111

Goodwill

8,824,210

8,824,210

TOTAL ASSETS

$

17,697,376

$

19,740,434

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Current portion of capital lease obligation

$

44,519

$

43,209

Current maturities of long-term debt

513,259

513,259

Accounts payable

1,675,742

2,432,264

Customer advances

1,158,242

1,174,690

Accrued compensation and other

747,793

927,521

Operating lease liability

173,503

168,677

Total current liabilities

4,313,058

5,259,620

Capital lease obligation, net of current portion

45,890

68,482

Long-term debt, net of current maturities and debt issuance costs

1,919,350

2,175,980

Operating lease liability, net of current portion

101,826

189,760

Stockholders’ Equity:

Common stock, $0.01 par value: 50,000,000 shares authorized; issued and
     outstanding – 6,067,518 shares at December 31, 2023 and 6,066,518 at June 30, 2023

60,675

60,665

Additional paid-in capital

60,718,801

60,224,934

Accumulated deficit

(49,462,224)

(48,239,007)

Total stockholders’ equity

11,317,252

12,046,592

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

17,697,376

$

19,740,434

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED

DECEMBER 31, 2023 AND 2022

(UNAUDITED)

Three Months
Ended December 31,

Six Months
Ended December 31,

2023

2022

2023

2022

Revenues

$

4,824,289

$

5,886,961

$

9,145,544

$

10,972,262

Cost of Goods Sold

3,373,313

3,287,489

6,230,957

6,733,349

Gross Profit

1,450,976

2,599,472

2,914,587

4,238,913

Research and Development Expenses

221,728

155,264

434,486

365,891

Selling, General and Administrative
Expenses

1,933,410

1,873,143

3,589,556

3,403,759

–

Total Operating Expenses

2,155,138

2,028,407

4,024,042

3,769,650

Operating Income (Loss)

(704,162)

571,065

(1,109,455)

469,263

Interest Expense

(54,640)

(62,397)

(113,762)

(119,319)

Net Income (Loss)

$

(758,802)

$

508,668

$

(1,223,217)

$

349,944

Loss Per Share:

Basic

(0.13)

$

0.09

(0.20)

$

0.06

Fully Diluted

$

(0.13)

$

0.09

$

(0.20)

$

0.06

Weighted Average Common Shares
Outstanding:

Basic

6,066,572

5,638,302

6,066,545

5,638,302

Fully Diluted

6,066,572

5,935,911

6,066,545

5,937,471

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED

DECEMBER 31, 2023 AND 2022

(UNAUDITED)

Six Months
Ended December 31,

2023

2022

Cash Flows from Operating Activities:

Net Income (Loss)

$

(1,223,217)

$

349,944

Adjustments to reconcile net loss to net cash used in by operating activities –

Depreciation and amortization

104,261

104,750

Stock-based compensation expense

491,177

319,776

Non-cash interest expense

8,752

16,966

Changes in operating assets and liabilities –

Accounts receivable, net

395,863

(1,368,650)

Inventories, net

(323,770)

232,963

Prepaid expenses

15,560

271

Accounts payable

(756,522)

216,060

Customer advances

(16,448)

(110,132)

Accrued compensation and other

(188,480)

255,162

Net cash (used in) provided by operating activities

(1,492,824)

17,110

Cash Flows from Investing Activities:

Purchases of fixed assets

(152,240)

(13,583)

Additional patent costs

(18,532)

(24,054)

Net cash used in investing activities

(170,772)

(37,637)

Cash Flows from Financing Activities:

Payments of capital lease obligations

(21,282)

(20,049)

Payments of long-term debt

(256,630)

(183,855)

Gross proceeds from the exercise of stock options

2,700

–

Net cash used in financing activities

(275,212)

(203,904)

–

Net (decrease) increase in cash and cash equivalents

(1,938,808)

(224,431)

Cash and cash equivalents, beginning of period

2,925,852

605,749

Cash and cash equivalents, end of period

$

987,044

$

381,318

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

Three Months

Six Months

Ended December 31,

Ended December 31,

2023

2022

2023

2022

Net Income (loss) (GAAP)

$

(758,802)

$

508,668

$

(1,223,217.00)

$

349,944

Stock based compensation

382,431

244,786

491,177.00

319,776

Depreciation and Amortization

52,697

52,667

104,261.00

105,078

Interest expense

54,640

60,329

113,762.00

117,251

Adjusted EBITDA (non-GAAP)

$

(269,034)

$

866,450

$

(514,017)

$

892,049

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/precision-optics-reports-second-quarter-fiscal-year-2024-financial-results-302062206.html

SOURCE Precision Optics Corporation

Continue Reading

Technology

Seatrium and Karpowership Sign Contract for a Series of Whale Class Powership Conversion and Integration Projects

Published

on

By

SINGAPORE, Oct. 23, 2026 /PRNewswire/ — Seatrium Limited and its strategic partner, floating power leader Karpowership, have strengthened their longstanding collaboration with the award of a contract for the development, major conversion and integration of Karpowership’s third-generation hydrogen-ready Whale Class Powerships, reinforcing both companies’ commitment to delivering reliable, flexible and sustainable energy solutions to meet growing global electricity demand.

Under the contract, Seatrium will undertake the major conversion work and integration of five Whale Class Powerships. Seatrium’s scope of work encompasses equipment integration, mechanical completion and pre-commissioning works. Engineering activities are currently underway – both parties are working closely to advance the project’s execution phase progressively, with the first vessel in the series targeted for arrival in Seatrium Tuas Boulevard Yard in December 2027.

Powerships are floating power plants equipped with hydrogen-ready multi-fuel generation systems and integrated onboard substations that connect directly to national electricity grids. Leveraging Karpowership’s plug-and-play design, they can begin generating electricity in as little as 30 days. The next-generation Whale Class offers Karpowership’s highest capacity, engineered to deploy up to 600 MW of immediate, grid-ready power using an ultra-efficient footprint optimised for seamless, continuous fuel supply.

By combining advanced power generation technologies with maritime engineering excellence, these vessels will enhance energy security while providing the flexibility to support diverse market requirements.

Mr Alvin Gan, Executive Vice President, Repairs and Upgrades, Seatrium, said, “This significant milestone marks Seatrium’s first major conversion work and integration of Karpowership’s Whale Class Powerships. We are proud to support Karpowership’s drive to pioneer innovative floating power solutions and the next phase of its fleet development, bringing our capabilities in complex vessel integration and offshore engineering to the project. We thank Karpowership for the continued trust and look forward to advancing cutting-edge floating solutions that bolster energy resilience worldwide.”

Building on a strategic relationship established in 2018, Seatrium and Karpowership share an ambition to deepen their partnership and shape the next generation of energy infrastructure, strengthening energy resilience in Singapore and worldwide.

Mr Gokhan Kocak, Chief Technical Operations Officer, Karpowership, said, “Karpowership has transformed global power generation with its innovative Powership model, delivering fast-track and dependable electricity solutions to millions worldwide. The next-generation Whale Class Powerships demonstrate our continued commitment to innovation, operational excellence and energy security. We are pleased to build on our strong partnership with Seatrium, whose proven expertise in complex vessel integration make them an ideal partner.”

The contract marks the next step following an earlier Letter of Intent (LOI) signed in August 2025, solidifying the long-term partnership between the two companies. The LOI had provided for three FSRU conversions and the potential integration of up to six new-generation Powerships. Since 2018, Seatrium has successfully delivered seven FSRU conversion projects to Karpowership, with the eighth and ninth FSRU conversion projects secured this year.

View original content to download multimedia:https://www.prnewswire.com/news-releases/seatrium-and-karpowership-sign-contract-for-a-series-of-whale-class-powership-conversion-and-integration-projects-302917514.html

SOURCE Karpowership

Continue Reading

Technology

Scage Future Announces Effective Date for ADS Ratio Change

Published

on

By

NANJING, China, Oct. 22, 2026 /PRNewswire/ — Scage Future (“Scage Future” or the “Company”) (Nasdaq: SCAG), a provider of new energy and zero-emission heavy-duty commercial vehicles and e-fuel solutions, today announced the effective date and new CUSIP number for the previously announced change in the ratio of its American Depositary Shares (“ADSs”) to its ordinary shares (the “ADS Ratio”), from the current ADS Ratio of one (1) ADS to one (1) ordinary share to a new ADS Ratio of one (1) ADS to fifteen (15) ordinary shares (the “ADS Ratio Change”). The ADS Ratio Change will be effective on October 27, 2026 (the “Effective Date”).

For Scage Future’s ADS holders, the change in the ADS Ratio will have the same effect as a one-for-fifteen reverse ADS split. On the Effective Date, holders of ADSs will be entitled to receive one (1) new ADS for every fifteen (15) existing ADSs then held, and the exchange will occur automatically, with the then-held ADSs being cancelled and new ADSs being issued by Citibank, N.A., as the depositary bank for the Company’s ADS program (the “Depositary Bank”). Holders of ADSs will not be required to take any action in connection with the ADS Ratio Change.

No fractional new ADSs will be issued in connection with the change in the ADS Ratio. Instead, fractional entitlements to new ADSs will be aggregated and sold by the Depositary Bank, and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses) will be distributed to the applicable ADS holders by the Depositary Bank.

The change in the ADS Ratio will have no impact on Scage Future’s underlying ordinary shares, and no ordinary shares will be issued or cancelled in connection with the change in the ADS Ratio. Scage Future’s ADSs will continue to be traded on the Nasdaq Global Market under the symbol “SCAG.” In connection with the ADS Ratio Change, the CUSIP number for the ADSs will change from 80590A105 to a new CUSIP number of 80590A204, effective as of the Effective Date.

As a result of the change in the ADS Ratio, the ADS trading price is expected to increase proportionally, although the Company can give no assurance that the ADS trading price after the change in the ADS Ratio will be equal to or greater than fifteen times the ADS trading price before the change.

About Scage Future

Scage Future is a leading zero-emission technology provider in China, dedicated to decarbonizing global commercial transportation through its portfolio of advanced heavy-duty NEV trucks and innovative e-fuel systems. Through strategic partnerships with top-tier vehicle manufacturers and a strong quality control framework, the Company delivers intelligent, high-performance NEVs addressing the transport needs across logistics, mining and port operations. The Company has a proven track record in the design, production, and testing of next-generation heavy-duty NEVs, including the Dragon II plug-in hybrid dump truck, Galaxy II plug-in hybrid truck, and autonomous tractor trailer.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the completion of the ADS Ratio Change on the Effective Date, the anticipated effects of the ADS Ratio Change on the trading price of the Company’s ADSs, and the Company’s expectations regarding the treatment of fractional ADS entitlements and the exchange of existing ADSs for new ADSs. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “assesses,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequently occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

Scage Future
Investor Relations
Emily Wang
Head of Investor Relations
Email: scageIR@scagefd.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/scage-future-announces-effective-date-for-ads-ratio-change-302917128.html

SOURCE Scage Future

Continue Reading

Technology

Hanwha Power Receives ABS Approval in Principle for 1,700 TEU Battery-Powered Containership Design

Published

on

By

Fully electric propulsion design featuring approximately 151 MWh of energy storage strengthens capabilities in zero-carbon maritime transportIntegrated solution combines electric propulsion, and containerized battery energy storage systemsExpanded eco-friendly marine propulsion portfolio lays the groundwork for entry into the next-generation zero-carbon vessel market

SEOUL, South Korea, Oct. 23, 2026 /PRNewswire/ — Hanwha Power announced that it had received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its design of a 1,700 TEU battery-powered containership.

The certificate presentation ceremony took place on October 22, local time, at the MHE (Maritime Hybrid, Electric & Hydrogen Fuel Cells) Conference & Exhibition 2026 in Bergen, Norway. Jong-kyu Hwang, Vice President, Technology Solutions at Hanwha Power, attended the ceremony alongside senior representatives from ABS. The event runs from October 21 to 23 at the Scandic Hotel Bergen City.

The newly approved design concept features a fully electric container vessel powered by a large-scale 151 MWh Energy Storage System (ESS). Electrical energy stored in containerized battery units serves as the vessel’s primary propulsion source, enabling operation without direct carbon emissions through the use of port charging infrastructure.

The use of containerized batteries, which can be handled and stowed like standard cargo containers, enhances space efficiency, maximizes cargo capacity, and optimizes overall vessel performance. This approach also supports flexible battery replacement and scalable operation, offering a practical pathway for the decarbonization of short-sea and regional container transport.

The AiP strengthens Hanwha Power’s capabilities in fully electric vessel design using large-scale battery energy storage and expands its portfolio of marine propulsion solutions. The company plans to build on this achievement to pursue opportunities in the next-generation zero-carbon maritime transport market.

Alongside the approval, Hanwha Power has also completed the basic design of a 1,000 TEU battery-powered container vessel. Building on its expertise in vessel design across multiple ship classes, the company aims to develop a comprehensive lineup of electric-propulsion vessels tailored to a wide range of operating conditions and customer needs.

“This AiP from ABS marks an important step in extending Hanwha Power’s marine technology capabilities to fully electric vessels powered by large-scale battery systems,” said Jong-kyu Hwang, Vice President, Technology Solutions at Hanwha Power. “We will address the needs of the next-generation zero-carbon maritime transport market with integrated solutions that combine electric propulsion and containerized battery system technologies.”

View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/hanwha-power-receives-abs-approval-in-principle-for-1-700-teu-battery-powered-containership-design-302917556.html

Continue Reading

Trending