Precision Optics Reports First Quarter Fiscal Year 2025 Financial Results
Precision Optics (NASDAQ: POCI) reported Q1 FY2025 financial results with revenue of $4.2 million, slightly down from $4.3 million in Q1 FY2024. The company experienced decreased gross margins of 26.6% compared to 33.9% year-over-year, and reported a net loss of $1.3 million. Engineering revenue remained stable at $1.9 million, while production revenue slightly decreased to $2.3 million. Notable developments include accelerated production deliveries for a $9 million urological endoscope order and a new $340,000 production order for single-use ophthalmic endoscopes, with expectations of substantial revenue growth in Q2 FY2025.
Precision Optics (NASDAQ: POCI) ha riportato i risultati finanziari per il primo trimestre dell'esercizio 2025, con un fatturato di 4,2 milioni di dollari, leggermente in calo rispetto ai 4,3 milioni del primo trimestre del 2024. L'azienda ha registrato un margine lordo in diminuzione del 26,6% rispetto al 33,9% dell'anno precedente e ha riportato una perdita netta di 1,3 milioni di dollari. I ricavi ingegneristici sono rimasti stabili a 1,9 milioni di dollari, mentre i ricavi di produzione sono leggermente diminuiti a 2,3 milioni di dollari. Tra gli sviluppi significativi ci sono le consegne accelerate della produzione per un ordine di endoscopi urologici da 9 milioni di dollari e un nuovo ordine di produzione da 340.000 dollari per endoscopi oftalmici monouso, con aspettative di una crescita sostanziale dei ricavi nel secondo trimestre dell'esercizio 2025.
Precision Optics (NASDAQ: POCI) reportó los resultados financieros del primer trimestre del año fiscal 2025, con ingresos de 4,2 millones de dólares, ligeramente por debajo de los 4,3 millones en el primer trimestre del año fiscal 2024. La compañía experimentó márgenes brutos disminuidos del 26,6% en comparación con el 33,9% del año anterior, y reportó una pérdida neta de 1,3 millones de dólares. Los ingresos por ingeniería se mantuvieron estables en 1,9 millones de dólares, mientras que los ingresos por producción disminuyeron levemente a 2,3 millones de dólares. Entre los desarrollos notables se incluyen entregas de producción aceleradas para un pedido de endoscopios urológicos por 9 millones de dólares y un nuevo pedido de producción de 340,000 dólares para endoscopios oftálmicos de un solo uso, con expectativas de un crecimiento sustancial de ingresos en el segundo trimestre del año fiscal 2025.
Precision Optics (NASDAQ: POCI)는 2025 회계연도 1분기 재무 결과를 발표했으며, 매출은 420만 달러로, 2024 회계연도 1분기 430만 달러에서 약간 감소했습니다. 회사는 전년 대비 33.9%에서 26.6%로 감소된 총 마진을 경험했으며, 130만 달러의 순손실을 보고했습니다. 엔지니어링 매출은 190만 달러로 안정세를 보였고, 생산 매출은 230만 달러로 약간 감소했습니다. 주목할 만한 개발 사항으로는 900만 달러 이상의 비뇨기 내시경 주문에 대한 생산 납품 가속화와 34만 달러의 일회용 안과 내시경 생산 주문이 있으며, 2025 회계연도 2분기에 실질적인 매출 성장을 기대하고 있습니다.
Precision Optics (NASDAQ: POCI) a annoncé les résultats financiers du premier trimestre de l'exercice 2025, avec un chiffre d'affaires de 4,2 millions de dollars, légèrement en baisse par rapport à 4,3 millions de dollars au premier trimestre de l'exercice 2024. L'entreprise a enregistré des marges brutes en baisse de 26,6 % par rapport à 33,9 % d'une année à l'autre et a déclaré une perte nette de 1,3 million de dollars. Les revenus d'ingénierie sont restés stables à 1,9 million de dollars, tandis que les revenus de production ont légèrement baissé à 2,3 millions de dollars. Parmi les développements notables, on trouve des livraisons de production accélérées pour une commande d'endoscopes urologiques de 9 millions de dollars ainsi qu'un nouveau contrat de production de 340 000 dollars pour des endoscopes ophtalmiques à usage unique, avec des attentes de forte croissance des revenus au deuxième trimestre de l'exercice 2025.
Precision Optics (NASDAQ: POCI) hat die finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025 veröffentlicht, mit einem Umsatz von 4,2 Millionen Dollar, leicht zurückgegangen von 4,3 Millionen Dollar im ersten Quartal des Geschäftsjahres 2024. Das Unternehmen verzeichnete einen Rückgang der Bruttomargen von 26,6% im Vergleich zu 33,9% im Vorjahr und meldete einen Nettoverlust von 1,3 Millionen Dollar. Die Ingenieureinnahmen blieben mit 1,9 Millionen Dollar stabil, während die Produktionseinnahmen leicht auf 2,3 Millionen Dollar sanken. Zu den bemerkenswerten Entwicklungen gehören beschleunigte Produktionslieferungen für einen Auftrag über urologische Endoskope im Wert von 9 Millionen Dollar sowie einen neuen Produktionsauftrag über 340.000 Dollar für Einweg-Ophthalmoskope, mit der Erwartung eines erheblichen Umsatzwachstums im zweiten Quartal des Geschäftsjahres 2025.
- Secured new $340,000 production order for single-use ophthalmic endoscopes with expected follow-on orders
- Accelerated timeline for $9 million urological endoscope order with $3.6 million deliveries expected in FY2025
- Company projects substantial revenue growth and dramatic improvements in adjusted EBITDA for Q2 FY2025
- Revenue decreased to $4.2 million from $4.3 million year-over-year
- Gross margins declined to 26.6% from 33.9% year-over-year
- Net loss widened to $1.3 million from $0.5 million year-over-year
- Adjusted EBITDA decreased to -$1.0 million from -$0.2 million year-over-year
Insights
The Q1 FY2025 results reveal concerning trends with
- A
$9 million order for urological endoscopes with$3.6 million expected in FY2025 - New
$340,000 production order for ophthalmic endoscopes with potential for 2-3x follow-on orders - Management expects substantial revenue growth and EBITDA improvements starting Q2
The transition from development to production phase across multiple programs could drive margin expansion, though execution risks remain given recent profitability challenges.
The company's strategic focus on single-use endoscopes positions it well in a growing market segment. Two key developments validate this strategy:
- FDA 510(k) clearance for the urological endoscope assembly demonstrates regulatory success
- Contract win with a major medical device company for ophthalmic endoscopes indicates market acceptance
The shift from engineering to production revenue, particularly in single-use devices, could create a more predictable revenue stream. The pipeline includes additional single-use programs, suggesting potential for sustained growth in this category. However, manufacturing scale-up challenges need to be monitored given the recent margin compression.
Conference Call Scheduled for today, November 14, 2024, at 5:00pm ET.
GARDNER, Mass., Nov. 14, 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 first quarter fiscal year 2025 for the period ended September 30, 2024.
Q1 2025 Financial Highlights (3 Months Ended September 30, 2024):
- Revenue was
$4.2 million compared to$4.3 million in the same quarter of the previous fiscal year and in line with the expectations provided in September 2024. - Engineering revenue was
$1.9 million compared to$1.9 million in the same quarter of the previous fiscal year. - Production revenue was
$2.3 million compared to$2.4 million in the same quarter of the previous fiscal year. - Gross margins were
26.6% compared to33.9% in the same quarter of the previous year. - Net loss for the quarter was (
$1.3) million , compared to$(0.5) million in the same quarter of the previous year. - Adjusted EBITDA was
$(1.0) million for the quarter compared to$(0.2) million in the same quarter of the previous year.
Recent Additional Highlights:
- In October 2024, following FDA 510(k) clearance by its customer for a single-use urological endoscope imaging assembly, POC accelerated the timeline for production deliveries against a
$9 million order announced in May 2024. POC currently estimates approximately$3.6 million in product deliveries during its fiscal year ended June 2025. - Today, POC announced receipt of an initial
$340,000 production order from a large, global medical device company to provide initial stocking quantities of a new single-use ophthalmic endoscope. POC expects follow-on orders to support first year requirements after launch with delivery rates two to three times those of the initial stocking order.
Precision Optics' CEO, Joseph Forkey, commented, “The first quarter results that we released today were in line with the expectations we provided in September 2024. We are seeing a rapid ramp in production revenue commencing in the current quarter with expectations for substantial revenue growth and dramatic improvements in adjusted EBITDA for the second quarter ending December 31, 2024 and further improvements throughout this fiscal year.”
“Anticipated sequential revenue growth will be driven by a number of product development programs transitioning into production or ramping from recent production levels. We continue to see acceleration of single-use applications. We now have two programs beginning production this year and additional single-use programs in our product development pipeline.”
“We are at an inflection point leading to a high growth production business, building off of the investments we’ve made over many years to advance our single-use product solutions. This is an exciting time for Precision Optics,” Dr. Forkey concluded.
The following table summarizes the first quarter (unaudited) results for the periods ended September 30, 2024, and 2023:
| Three Months | |||||||
| Ended September 30 | |||||||
| 2024 | 2023 | ||||||
| Revenues | $ | 4,197,053 | $ | 4,321,255 | |||
| Gross Profit | 1,117,330 | 1,463,611 | |||||
| Stock Compensation Expenses | 149,364 | 108,746 | |||||
| Other | 2,214,907 | 1,760,158 | |||||
| Total Operating Expenses | 2,364,271 | 1,868,904 | |||||
| Operating Income (Loss) | (1,246,941 | ) | (405,293 | ) | |||
| Net Income (Loss) | (1,311,247 | ) | (464,415 | ) | |||
| Income (Loss) per Share | |||||||
| Basic & Fully Diluted | $ | (0.21 | ) | $ | (0.08 | ) | |
| Weighted Average Common Shares Outstanding | |||||||
| Basic & Fully Diluted | 6,216,630 | 6,066,518 | |||||
Conference Call Details
Date and Time: Thursday, November 14, 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/rOVEypeYAoR.
Replay: A teleconference replay of the call will be available until November 21, 2024, at (877) 344-7529 or (412) 317-0088, replay access code 7879688. A webcast replay will be available at https://app.webinar.net/rOVEypeYAoR.
About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics and 3D 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 for 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 AND DEPRECIATION, AMORTIZATION AND INTEREST EXPENSE.
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. Forward-looking statements in this press release include, without limitation, future levels of expected product deliveries and projections related to future EBITDA goals. 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, including those risks discussed in the Company's annual report on Form 10-K and in other documents that we file from time to time with the SEC. 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. CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| September 30, | June 30, | |||||||
| 2024 | 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 635,572 | $ | 405,278 | ||||
| Accounts receivable, net of allowance for doubtful accounts of | 3,123,595 | 3,545,491 | ||||||
| Inventories | 3,460,621 | 2,868,100 | ||||||
| Prepaid expenses | 288,475 | 299,364 | ||||||
| Total current assets | 7,508,263 | 7,118,233 | ||||||
| Fixed Assets: | ||||||||
| Machinery and equipment | 3,346,694 | 3,341,194 | ||||||
| Leasehold improvements | 819,954 | 810,914 | ||||||
| Furniture and fixtures | 426,234 | 416,425 | ||||||
| 4,592,882 | 4,568,533 | |||||||
| Less—accumulated depreciation and amortization | 4,123,250 | 4,074,960 | ||||||
| Net fixed assets | 469,632 | 493,573 | ||||||
| Operating lease right-to-use asset | 146,247 | 189,999 | ||||||
| Patents, net | 290,309 | 286,559 | ||||||
| Goodwill | 8,824,210 | 8,824,210 | ||||||
| Total other assets | 9,260,766 | 9,300,768 | ||||||
| TOTAL ASSETS | $ | 17,238,661 | $ | 16,912,574 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Revolving line of credit | $ | 500,000 | $ | 1,000,000 | ||||
| Current portion of capital lease obligation | 38,886 | 41,113 | ||||||
| Current maturities of long-term debt | 285,901 | 276,928 | ||||||
| Accounts payable | 2,143,351 | 1,397,313 | ||||||
| Contract liabilities | 1,106,546 | 1,172,350 | ||||||
| Accrued compensation and other | 1,115,135 | 840,662 | ||||||
| Operating lease liability | 146,247 | 178,450 | ||||||
| Total current liabilities | 5,336,066 | 4,906,816 | ||||||
| Capital lease obligation, net of current portion | 18,384 | 27,369 | ||||||
| Long-term debt, net of current maturities and debt issuance costs | 1,746,764 | 1,899,052 | ||||||
| Operating lease liability, net of current portion | - | 11,549 | ||||||
| Total liabilities | 7,101,214 | 6,844,786 | ||||||
| Stockholders’ Equity: | ||||||||
| Common stock, | 63,502 | 60,739 | ||||||
| Additional paid-in capital | 62,575,576 | 61,197,433 | ||||||
| Accumulated deficit | (52,501,631 | ) | (51,190,384 | ) | ||||
| Total stockholders’ equity | 10,137,447 | 10,067,788 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 17,238,661 | $ | 16,912,574 | ||||
| PRECISION OPTICS CORPORATION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED) | ||||||||
| Three Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Revenues | $ | 4,197,053 | $ | 4,321,255 | ||||
| Cost of Goods Sold | 3,079,723 | 2,857,644 | ||||||
| Gross Profit | 1,117,330 | 1,463,611 | ||||||
| Research and Development Expenses | 400,659 | 212,758 | ||||||
| Selling, General and Administrative Expenses | 1,963,612 | 1,656,146 | ||||||
| Total Operating Expenses | 2,364,271 | 1,868,904 | ||||||
| Operating Loss | (1,246,941 | ) | (405,293 | ) | ||||
| Interest Expense | (64,306 | ) | (59,122 | ) | ||||
| Net Loss | $ | (1,311,247 | ) | $ | (464,415 | ) | ||
| Loss Per Share: | ||||||||
| Basic & Fully Diluted | $ | (0.21 | ) | $ | (0.08 | ) | ||
| Weighted Average Common Shares Outstanding: | ||||||||
| Basic & Fully Diluted | 6,216,630 | 6,066,518 | ||||||
| PRECISION OPTICS CORPORATION, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED) | ||||||||||||||||||||
| Three Month Period Ended September 30, 2024 | ||||||||||||||||||||
| Number of Shares | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
| Balance, July 1, 2024 | 6,073,939 | $ | 60,739 | $ | 61,197,433 | $ | (51,190,384 | ) | $ | 10,067,788 | ||||||||||
| Issuance of common stock in registered direct offering | 265,868 | 2,659 | 1,201,883 | 1,204,542 | ||||||||||||||||
| Proceeds from exercise of stock option | 10,363 | 104 | 26,896 | 27,000 | ||||||||||||||||
| Stock-based compensation | – | – | 149,364 | – | 149,364 | |||||||||||||||
| Net loss | – | – | – | (1,311,247 | ) | (1,311,247 | ) | |||||||||||||
| Balance, September 30, 2024 | 6,350,170 | $ | 63,502 | $ | 62,575,576 | $ | (52,501,631 | ) | $ | 10,137,447 | ||||||||||
| Three Month Period Ended September 30, 2023 | ||||||||||||||||||||
| Number of Shares | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||
| Balance, July 1, 2023 | 6,066,518 | $ | 60,665 | $ | 60,224,934 | $ | (48,239,007 | ) | $ | 12,046,592 | ||||||||||
| Stock-based compensation | – | – | 108,746 | 108,746 | ||||||||||||||||
| Net loss | – | – | – | (464,415 | ) | (464,415 | ) | |||||||||||||
| Balance, September 30, 2023 | 6,066,518 | $ | 60,665 | $ | 60,333,680 | $ | (48,703,422 | ) | $ | 11,690,923 | ||||||||||
| PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES | |||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||
| ADJUSTED EBITDA | |||||||||
| Three Months | |||||||||
| September 30, | |||||||||
| 2024 | 2023 | ||||||||
| Net Income (loss) (GAAP) | $ | (1,311,247 | ) | $ | (464,415 | ) | |||
| Stock based compensation | 149,364 | 108,746 | |||||||
| Depreciation and amortization | 48,290 | 51,564 | |||||||
| State Income Taxes | - | - | |||||||
| Interest expense | 64,306 | 59,122 | |||||||
| Adjusted EBITDA (non-GAAP) | $ | (1,049,287 | ) | $ | (244,983 | ) | |||
FAQ
What was Precision Optics (POCI) revenue for Q1 FY2025?
What new orders did POCI receive in Q1 FY2025?
What was POCI's net loss in Q1 FY2025?
How did POCI's gross margins change in Q1 FY2025?
