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]