Core Viewpoint - Precision Optics Corporation is set to announce its second quarter fiscal year 2025 financial results on February 13, 2025, followed by a conference call to discuss these results [1][2]. Company Overview - Precision Optics Corporation, founded in 1982, specializes in advanced optical instruments for the medical and defense/aerospace industries, focusing on micro-optics and 3D imaging technologies [5]. - The company provides a range of services from product concept to mass manufacturing, leveraging in-house design, electronic imaging expertise, and regulatory capabilities [5]. - In healthcare, Precision Optics supports the development of enhanced imaging systems for minimally invasive surgeries and surgical robotic systems [5]. - The company also supplies optical products to top-tier medical device companies, including complex endocouplers and specialized endoscopes [5]. - In the defense/aerospace sector, Precision Optics applies its micro-optics technology to meet high-quality standards while optimizing size, weight, and power [5]. Conference Call Details - The conference call is scheduled for February 13, 2025, at 5:00 p.m. ET, with access available via phone and live webcast [3]. - Call-in numbers include (844) 735-3662 or (412) 317-5705, and the live webcast can be accessed at https://app.webinar.net/z0E94DknxQO [3]. - A replay of the call will be available for seven days, with specific numbers and access codes provided for teleconference and webcast replay [4].

Financial Data and Key Metrics Changes - For Q1 2025, revenue was $4.2 million, slightly down from $4.3 million in Q1 2024, aligning with previous expectations [44] - Gross margins decreased to 27% from 34% year-over-year, impacted by manufacturing pauses and resource allocation towards R&D [45] - The net loss for the quarter was $1.3 million, compared to a loss of $464,000 in the previous year [49] - Adjusted EBITDA was negative $1 million, worsening from negative $245,000 in the prior year [50] Business Line Data and Key Metrics Changes - The production segment is expected to grow significantly, driven by single-use endoscopes, with revenue projected to increase from $6.6 million last year to over $10 million this year [40] - Product development revenue is anticipated to remain flat in fiscal 2025 due to resource allocation towards a new platform solution [39] - The Ross Optical division is expected to have flat revenue year-over-year, with signs of market recovery anticipated for fiscal 2026 [43] Market Data and Key Metrics Changes - The company has received its first production order for a single-use ophthalmic product, expected to begin production in January 2025, marking a significant milestone [11][29] - The market for treatment of benign prostate hyperplasia is expected to continue robust growth, with the company estimating $3.6 million in deliveries for the current fiscal year [28] Company Strategy and Development Direction - The company remains focused on single-use endoscope technology as a key driver for long-term growth, with strong customer engagement confirming market positioning [10] - Strategic investments in partnerships and technology development are expected to lead to substantial revenue growth in the single-use segment [25] - The company plans to launch a new platform solution to reduce development risk and time to market for customers [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q2 and the remainder of the fiscal year, expecting significant revenue and profitability improvements as production issues have been resolved [9][56] - The company is confident in its long-term prospects due to strong customer retention and recurring revenue from single-use medical devices [54] Other Important Information - The cash balance at the end of Q1 2025 was $636,000, with a recent direct offering netting $1.2 million to support working capital [52] - The company is evaluating alternatives to support growth in manufacturing and attract engineering talent [53] Q&A Session Summary Question: What type of visibility will you have to orders against the initial $9 million order for next year? - The company expects about $3.6 million to be delivered in the current fiscal year, with indications of follow-on orders expected towards the middle or end of fiscal 2026 [60][61] Question: What sort of visibility do you have for the second program? - The initial order is a stocking order for $340,000, with follow-on orders expected to be around $1.5 million for the first year after launch [64][66] Question: Can you quantify further insights into timelines for advancement to production for single-use programs? - There are two programs moving forward, with one expected to enter production in the next 12 months and another in 12 to 24 months [70][74] Question: Are single-use programs larger than the $1 million minimum run rate you desire for advancement? - Typically, single-use programs will start above the $1 million range, with quantities of 10,000 units or higher [75][76] Question: Are there opportunities to regrow the engineering base? - The engineering team has been growing, and updates to facilities and tools are expected to support significant growth starting in fiscal 2026 [80][86] Question: Can you help understand the fixed versus variable expenses on COGS? - Lower revenues impact margins significantly due to relatively fixed costs, with variable costs primarily being materials and some labor [88] Question: Does management expect Intuitive Surgical to be a potential customer? - The company has a long-standing relationship with Intuitive Surgical and believes its technologies could have broad applications in the robotic endoscopy market [92][93]

Core Viewpoint - Precision Optics Corporation reported its first quarter fiscal year 2025 results, showing a slight decline in revenue and increased net loss compared to the same quarter last year, but anticipates significant revenue growth and improved adjusted EBITDA in the upcoming quarters [2][4]. Financial Performance - Revenue for Q1 2025 was $4.2 million, a decrease from $4.3 million in Q1 2024, aligning with prior expectations [2][4]. - Engineering revenue remained stable at $1.9 million, while production revenue decreased to $2.3 million from $2.4 million year-over-year [2]. - Gross margins fell to 26.6% from 33.9% in the same quarter of the previous year [2]. - The net loss for the quarter was $1.3 million, compared to a loss of $0.5 million in the same quarter last year [2][4]. - Adjusted EBITDA was $(1.0) million, worsening from $(0.2) million in the same quarter of the previous year [2]. Recent Developments - In October 2024, the company accelerated production deliveries for a $9 million order following FDA clearance for a urological endoscope, estimating $3.6 million in product deliveries for the fiscal year ending June 2025 [3]. - Precision Optics received a $340,000 initial production order from a global medical device company for a new single-use ophthalmic endoscope, with expectations for follow-on orders [3]. Management Commentary - CEO Joseph Forkey stated that the first quarter results met expectations and highlighted a rapid ramp-up in production revenue, with expectations for substantial growth and improved adjusted EBITDA in Q2 2025 [4]. - The anticipated revenue growth is driven by product development programs transitioning into production, particularly in single-use applications [4].

Financial Performance - Total revenues for the quarter ending September 30, 2024, were $4,197,053, a decrease of $124,202 or 2.9% compared to $4,321,255 for the same period in the prior year[62]. - Revenue from Engineering Design Services decreased by 2.6% to $1,851,371, while revenue from Optical Components increased by 9.3% to $2,080,188[62][63]. - Revenue from Finished Products and Assemblies decreased by 48.6% to $265,494, primarily due to a manufacturing pause for a defense/aerospace customer[64]. - Gross profit decreased to $1,117,330, with a gross margin of 26.6%, down from 33.9% in the prior year[65]. Expenses - Research and Development (R&D) expenses increased by $187,901 to $400,659, reflecting investments in product improvements and new technologies[66]. - Selling, General and Administrative (SG&A) expenses rose by 18.6% to $1,963,612, driven by increased recruitment and consulting costs[67]. Cash Flow and Financing - Net cash used in operating activities for the three months ending September 30, 2024, totaled $318,622, including a net loss of $1,311,247[70]. - The company raised a net of $1,204,542 through the issuance of new shares in a registered direct common stock offering during the quarter[73][76]. - Contractual cash commitments related to open purchase orders as of September 30, 2024, amounted to approximately $4,549,000[78]. Strategic Focus - The company is focusing on developing new optical products and services, particularly in Microprecision optics and single-use endoscopes, which are expected to grow at two to three times the rate of the overall minimally invasive surgical market[56]. Regulatory Classification - The company is classified as a smaller reporting company under Rule 12b-2 of the Exchange Act[80]. - The company has elected scaled disclosure reporting obligations, thus not required to provide certain market risk information[80].

GARDNER, Mass., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (Nasdaq: POCI) (the "Company"), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, today announced that it has scheduled a conference call to discuss the Company’s first quarter fiscal year 2025 financial results on Thursday, November 14, 2024, at 5:00pm ET. The Company intends to release its financial results and to file its 10-Q after the close of the mark ...

GARDNER, Mass., Sept. 30, 2024 (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 fourth quarter and fiscal year ended June 30, 2024. FY 2024 Financial Highlights (Year Ended June 30, 2024): Revenue was $19.1 million compared to $21.0 million in the previous fiscal year. Revenue of $19.1 million, exceeded the high ...

Revenue Performance - Total revenues for the fiscal year ended June 30, 2024, were $19,104,350, a decrease of $1,940,117, or 9.2%, compared to $21,044,467 for the prior year[106] - Revenue from Engineering Design Services increased by 23.7% to $8,323,433, driven by increasing demand and expansion of engineering capacity[107] - Revenue from Optical Components decreased by 20.3% to $8,384,140, attributed to reduced industry demand and lower order volumes[107] - Revenue from Finished Products and Assemblies decreased by 36.8% to $2,396,777, primarily due to timing differences in customer program transitions[108] Profitability - Gross profit decreased to $5,797,777, with a gross margin of 30.3%, down from 36.8% in the prior year[109] Expenses - R&D expenses decreased to $981,781, reflecting a focus on product improvements and new technology development[110] - SG&A expenses increased by 2.2% to $7,540,329, primarily due to higher salaries, travel, and marketing expenses[112] Cash Position - Cash and cash equivalents decreased to $405,278 at June 30, 2024, from $2,925,852 at June 30, 2023, a decrease of $2,520,574[113] Financing Activities - The company entered into securities purchase agreements resulting in gross proceeds of approximately $1.4 million[116] - Contractual cash commitments related to open purchase orders as of June 30, 2024, are approximately $6,250,000[116]

GARDNER, Mass., Sept. 24, 2024 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (Nasdaq: POCI) (the "Company"), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, today announced that it has scheduled a conference call to discuss the Company's fourth quarter and fiscal year 2024 financial results on Monday, September 30, 2024, at 5:00pm ET. The Company intends to release its financial results and to file its 10-K after the close of the ...

Dublin, Sept. 16, 2024 (GLOBE NEWSWIRE) -- The "Ophthalmic Lens and Precision Optics Manufacturing Machines - Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering. The global market for Ophthalmic Lens and Precision Optics Manufacturing Machines was valued at an estimated US$500.8 Million in 2023 and is projected to reach US$596.3 Million by 2030, growing at a CAGR of 2.5% from 2023 to 2030. This comprehensive report provides an in-depth analysis of market trends, dri ...

GARDNER, Mass., July 08, 2024 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense industries, today announced the appointment of Clay Schwabe, as the Company's Vice President of Sales and Marketing. "We are extremely excited to welcome Clay Schwabe to the executive team at Precision Optics," stated Dr. Joe Forkey, CEO of Precision Optics. "Clay's entrepreneurial mindset and experience developin ...