Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $6.7 million for Q1 2026, a 46% increase compared to the same quarter a year ago [6][25] - Gross margins were 14.4%, up from 12.9% in the prior quarter but down from 26.6% in the same quarter last year [26] - The net loss for the quarter was $1.6 million, compared to a loss of $1.3 million in the year-ago quarter [27] Business Line Data and Key Metrics Changes - Production revenue was approximately $6 million, significantly up from $2.6 million in the year-ago quarter [25] - Aerospace program revenue reached $2.7 million, while the cystoscope program achieved $1.9 million [25] - Engineering revenue decreased to $656,000 from $1.6 million in the year-ago quarter [25] Market Data and Key Metrics Changes - The aerospace program revenue net of tariffs was $2.5 million, representing an 800% increase year-over-year [11] - The cystoscope program revenue was $1.5 million net of tariff reimbursements, an 180% increase year-over-year [13] - The Ross Optical Division saw a 10% revenue increase quarter-over-quarter, reaching over $1 million [16] Company Strategy and Development Direction - The company is focusing on expanding its presence in the defense and aerospace markets while maintaining its commitment to the medical device sector [33] - New product development programs are expected to ramp up, with two significant agreements recently signed [10][20] - The company anticipates fiscal year 2026 revenue to exceed $25 million, with a positive adjusted EBITDA of approximately $500,000 [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing higher top-line revenue and improving gross margins, indicating a transition to a new operational level [11][30] - The company expects significant increases in product development revenues in the upcoming quarters, driven by new orders and a recovering optical components market [26][19] - Management acknowledged challenges in ramping production but believes that improvements in infrastructure and processes will yield long-term benefits [9][30] Other Important Information - The company has made substantial progress in improving production efficiency and expects to see benefits from recent investments in infrastructure [15][30] - Cash at the end of September was approximately $1.4 million, with debt at $1.7 million [28] Q&A Session Summary Question: Is the company pivoting towards defense and aerospace applications? - Management clarified that while they are promoting themselves more in the defense aerospace marketplace, this is in addition to their medical device focus [33] Question: Can you discuss capacity utilization and revenue support? - Management indicated that facility updates are ongoing, and they expect to have sufficient capacity to double current production levels without significant additional costs [35] Question: Can you break out COGS in terms of labor versus materials versus overhead? - Management explained that different divisions have varying cost structures, with manufacturing having significant material costs and micro-optics being labor-intensive [39] Question: What is the cause for the delay in the legacy defense program reorder? - Management speculated that the delay might be related to government activities but confirmed they do not have definitive information [42] Question: What are the average lifespans of defense versus medical programs? - Management noted that medical devices typically last at least five years, while defense programs also tend to have long lifespans, often in the 5-10 year range [46][48]

Core Viewpoint - Precision Optics Corporation reported record quarterly revenue of $6.7 million for Q1 FY 2026, a 59% increase year-over-year, driven by multi-year agreements with aerospace and surgical robotics companies [4][5]. Financial Highlights - Revenue for Q1 FY 2026 was $6.7 million, up from $4.2 million in the same quarter of the previous fiscal year, representing a growth of approximately 59% [5]. - Production revenue reached $6.0 million, a 133% increase from $2.6 million in the same quarter of the previous fiscal year [5]. - Engineering revenue decreased to $0.7 million from $1.6 million, a decline of 59% [5]. - Gross margins were 14.2%, down from 26.6% in the same quarter of the previous fiscal year [5]. - The net loss for the quarter was $(1.6) million, compared to $(1.3) million in the same quarter of the previous fiscal year [5]. - Adjusted EBITDA was $(1.2) million for the quarter, compared to $(1.0) million in the same quarter of the previous fiscal year [5]. Recent Developments - The company accepted a $700,000 product development order for an advanced augmented reality system and a $678,000 agreement for a high-end borescope for jet engines [5]. - Increased production to meet demand from a top-tier aerospace company, generating $2.5 million in revenue from this customer [5]. - Introduced a second production line for single-use endoscope assemblies, resulting in $1.6 million in revenue from a leading surgical company [5]. Financial Guidance - The company projects FY 2026 revenue to exceed $25 million, indicating a 31% growth over FY 2025 revenue [5]. - Projected Adjusted EBITDA for FY 2026 is approximately $0.5 million, a significant improvement from $(3.7) million in FY 2025 [5].

Revenue Performance - Total revenues for the quarter ending September 30, 2025, were $6,680,823, an increase of 59.2% compared to $4,197,053 for the same period in the prior year [64]. - Revenue from Systems Manufacturing increased by 297.3% during the quarter, primarily due to significant increases in customer demand [65]. Profitability - Gross profit decreased to $946,358, with a gross margin of 14.2%, down from 26.6% in the same quarter of the previous year [67]. Expenses - R&D expenses decreased by $88,819 to $311,840, reflecting ongoing efforts in product improvements and new technology development [68]. - SG&A expenses increased by 13.6% to $2,229,773, primarily due to increased stock compensation and consulting expenses [69]. Cash Flow - Net cash provided by operating activities totaled $78,227, a significant improvement from $318,622 net cash used in the same period last year [71]. - Capital equipment expenditures during the quarter were $523,539, compared to $28,099 in the same period of the prior year [76]. Financial Commitments - Contractual cash commitments related to open purchase orders as of September 30, 2025, were approximately $7,402,000 [77]. - The company has no off-balance sheet arrangements that could materially affect its financial condition [78]. - The company may require external financing in the short term to meet working capital needs [70].

Core Insights - Precision Optics Corporation has received a product development order for a next-generation borescope system intended for inspecting jet engines from a major aerospace and defense company [1][3] - The new borescope will feature high-definition resolution exceeding 1080p and is designed to endure extreme conditions within advanced jet engines [2] - The initial development order is valued at $678,000, awarded after a thorough evaluation process against three other suppliers [3] Company Overview - Founded in 1982, Precision Optics specializes in advanced optical instruments for healthcare and defense/aerospace sectors, leveraging proprietary technologies in micro-optics and imaging [5] - The company provides comprehensive services from product concept to mass manufacturing, utilizing in-house design and fabrication capabilities [5] - Precision Optics has a history of supplying optical products to top-tier medical device companies, including complex endoscopes and endocouplers, and is expanding its offerings in defense/aerospace applications [5] Leadership Commentary - The CEO of Precision Optics expressed satisfaction with the awarded order, highlighting it as a validation of the company's capabilities in the defense and aerospace sectors [4] - The company’s success in securing the order is attributed to its proven track record and innovative solutions, which differentiate it in a competitive market [4]

Core Insights - Precision Optics Corporation has received a $723,000 product development order to create sub-assemblies for an advanced augmented reality (AR) system aimed at US Air Force fighter pilot training [4][1] - The AR system will enable pilots to conduct combat training in-flight without the need for secondary aircraft, thereby reducing costs and training-related risks [2][3] - The global aviation AR market, particularly in pilot training, is projected to grow at a compound annual growth rate (CAGR) exceeding 20% from 2023 to 2030, presenting a significant opportunity for Precision Optics [3] Company Overview - Precision Optics Corporation specializes in designing and manufacturing advanced optical instruments for the medical and defense/aerospace sectors, leveraging proprietary technologies in micro-optics and imaging [5][1] - The company has a history of providing optical solutions for medical device companies, focusing on enhanced imaging systems for minimally invasive surgeries and 3D endoscopy [5] - Precision Optics is positioned to meet the defense/aerospace industry's demand for compact optical systems that prioritize reduced size, weight, and power [3][5]

Core Viewpoint - Precision Optics Corporation is set to announce its first quarter fiscal year 2026 financial results on November 13, 2025, followed by a conference call to discuss these results [1][2]. Group 1: Conference Call Details - The conference call is scheduled for Thursday, November 13, 2025, at 5:00 p.m. ET [3]. - Interested parties can join the call by dialing (844) 735-3662 or (412) 317-5705, and a live webcast will be available at https://app.webinar.net/3PyMqXG06ZY [3]. - A replay of the call will be accessible for seven days at (877) 344-7529 or (412) 317-0088, with the replay access code 7772062 [4]. Group 2: Company Overview - Precision Optics Corporation, founded in 1982, specializes in advanced optical instruments for the medical and defense/aerospace industries [5]. - The company focuses on proprietary micro-optics, 3D imaging, and digital imaging technologies, providing services from product concept to mass manufacture [5]. - In healthcare, Precision Optics supports the demand for enhanced imaging systems for minimally invasive surgeries and 3D endoscopy systems [5]. - The company has a long history of supplying optical products, including complex endocouplers and specialized endoscopes, to top-tier medical device companies [5]. - In the defense/aerospace sector, Precision Optics applies its micro-optics expertise to meet high-quality standards and optimize size, weight, and power [5].

Group 1 - The article does not provide any specific content related to a company or industry, as it appears to be a technical issue regarding browser settings and ad-blockers [1]

Summary of Precision Optics Corporation Conference Call Company Overview - **Company Name**: Precision Optics Corporation - **Ticker Symbol**: POCI - **Industry**: Medical Devices and Defense Aerospace - **Core Technology**: Focus on optics, particularly in micro optics, 3D imaging, and digital imaging [3][10][14] Key Financial Highlights - **Fiscal Year 2025 Revenue**: Reported total revenue of $6,200,000, with guidance for fiscal year 2026 set at $25,000,000, indicating a growth of over 30% [9][42] - **Backlog**: Record backlog of nearly $18,000,000, providing better visibility into future revenue [41] - **Gross Margin**: Expected recovery to 30% from a low of 18% due to startup challenges and increased production demands [42][43] Business Model and Strategy - **Product Development and Manufacturing**: The company engages in product development on a time and materials basis while retaining ownership of intellectual property (IP) [5][6] - **Focus on Single-Use Endoscopes**: The introduction of single-use endoscopes is a key driver for revenue growth, addressing safety concerns and operational efficiency in hospitals [19][20] - **Expansion into Defense Aerospace**: The company is beginning to explore opportunities in the defense aerospace market, leveraging its micro optics technology [21][37] Core Technologies 1. **Micro Optics**: Development of extremely small optics, including lenses and prisms, with applications in medical devices [11][12] 2. **3D Imaging**: Capabilities expanded to include ultra-high precision imaging for robotic surgical systems and augmented reality applications [12][13] 3. **Digital Imaging**: Utilization of CMOS sensors for medical endoscopes, improving image quality and reducing costs [14][18] Market Applications - **Medical Device Market**: Focus on minimally invasive surgeries, with products in various disciplines such as urology, cardiology, and otoscopy [15][16][17] - **Defense Aerospace Market**: Targeting applications that require smaller size, weight, and power (SWAP) for optical imaging and communication devices [22] Recent Developments - **Facility Updates**: Recent moves to consolidate and update facilities to support growth, including relocating headquarters closer to engineering talent [39][40] - **Unity Platform**: Introduction of a modular design approach to accelerate time to market and reduce development costs [25][26] Future Outlook - **Growth Expectations**: Anticipation of significant growth in manufacturing revenue and recovery in product development revenue as new programs enter production [10][36] - **Investment in R&D**: Continued investment in research and development to maintain competitive advantage and explore new market opportunities [37][41] Conclusion - Precision Optics Corporation is positioned for substantial growth driven by its innovative technologies in the medical device and defense aerospace sectors, with a strong focus on single-use products and a robust backlog supporting future revenue increases [41][42][45]

Core Viewpoint - Precision Optics Corporation will participate in the Lytham Partners Fall 2025 Investor Conference, hosting a webcast presentation and one-on-one meetings with investors on September 30, 2025 [1][2][3]. Company Overview - Precision Optics Corporation, founded in 1982, is a vertically integrated optics company focused on advanced optical instruments for the medical and defense/aerospace industries [4]. - The company leverages proprietary micro-optics, 3D imaging, and digital imaging technologies to provide services from product concept to mass manufacture [4]. - Precision Optics supports next-generation medical device companies by providing enhanced imaging systems for minimally invasive surgery and 3D endoscopy systems [4]. - The company has a long history of supplying optical products, including complex endocouplers and specialized endoscopes, to top-tier medical device companies [4]. - In the defense/aerospace sector, Precision Optics applies its technical proficiency in micro-optics to meet high-quality standards while optimizing size, weight, and power [4].

Financial Data and Key Metrics Changes - The company reported a record quarterly revenue of $6.2 million for Q4 of fiscal 2025, compared to $4.2 million in the previous quarter and $4.7 million in Q4 of fiscal 2024, leading to an annualized run rate of approximately $25 million [5][23] - Gross margins for Q4 were 13%, up from 10% in the prior quarter but down from 22% in the same quarter last year, with annual gross margins at 18% compared to 30% in the prior year [25][28] - The company expects fiscal 2026 revenue to reach approximately $25 million, an increase of over 30% from $19 million in fiscal 2025, with gross margins projected to improve to around 30% [21][25] Business Line Data and Key Metrics Changes - Production revenue for Q4 was $5.1 million, up from $3.3 million in the previous quarter and $2.8 million in the year-ago quarter, while engineering revenue was $1.1 million, down from $1.9 million year-over-year [23] - The systems manufacturing business is expected to grow at least 75% in fiscal 2026, driven by the expansion of two major production programs [14][21] - Revenue from the micro-optics lab is projected to decline from $2.1 million in fiscal 2025 to $1.3 million in fiscal 2026 due to timing of a large defense customer reorder [24] Market Data and Key Metrics Changes - The company has seen a significant increase in production demand from its aerospace and surgical robotics customers, with a backlog for the aerospace program reaching nearly $9 million [10][24] - The transition of two major programs from development to production has provided increased visibility and confidence in future revenue growth [6][7] Company Strategy and Development Direction - The company is focusing on expanding its production capabilities and has invested in new facilities to support growth, including a move to a new headquarters in Littleton, Massachusetts [7][8] - The management is optimistic about the future, citing a strong backlog and the potential for substantial growth as production programs expand [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges with gross margins in Q3 and Q4 of fiscal 2025 but expressed confidence in recovery and improvement in fiscal 2026 [15][21] - The company is taking steps to address production yield issues and has renegotiated pricing with customers to improve profitability [12][13] Other Important Information - The company has hired new manufacturing and quality engineers to strengthen its operations team and improve manufacturing efficiency [19][20] - The company expects to recover positive adjusted EBITDA in the range of half a million dollars for fiscal 2026 [21] Q&A Session Summary Question: Guidance on revenue for 2026 - Management acknowledged being conservative in their guidance, noting a decline in revenue from the micro-optics lab but expecting higher margin production revenue to replace lower margin tooling and fixturing revenue [35][37] Question: Medical program pricing adjustments - Management explained that they have negotiated higher costs with their medical program customer to cover initial production difficulties, with a plan to ramp down prices as issues are resolved [40][41] Question: Tariff reimbursements - Management confirmed they are in verbal agreements for tariff reimbursements and are finalizing documentation [42][43] Question: Engineering resources and project pipeline - Management indicated that engineering resources will be progressively filled throughout 2026, with multiple programs lined up for production [49][50] Question: Challenges with the second single-use program - Management reported that the second single-use program is progressing well, learning from challenges faced in the cystoscope program, and expects a smoother ramp-up [62]