Earnings Summary for Precision Optics Corporation - Q4 and Fiscal Year Ended June 30, 2024
Precision Optics Corporation, Inc. (NASDAQ: POCI) reported its unaudited financial results for the fourth quarter and fiscal year ended June 30, 2024.
Key Financial Metrics
| Financial Metric | FY 2024 | FY 2023 | Q4 FY 2024 | Q4 FY 2023 |
|---|---|---|---|---|
| Revenue | $19.1 million | $21.0 million | $4.7 million | $5.0 million |
| Net Loss | ($3.0 million) | ($0.1 million) | ($1.4 million) | ($0.1 million) |
| Gross Margin | 30.3% | 36.8% | 21.7% | 35.0% |
| Adjusted EBITDA | ($1.6 million) | $0.5 million | ($1.1 million) | ($0.4 million) |
Precision Optics experienced a decrease in total revenue and gross margins year-over-year, impacted by the reduction in production revenue. However, engineering revenue reached record levels, reflecting a strong performance in product development initiatives.
Revenue Breakdown by Segment
| Segment | FY 2024 Revenue | Q4 FY 2024 Revenue | Q4 FY 2023 Revenue |
|---|---|---|---|
| Production | $10.8 million | $2.8 million | $3.6 million |
| Engineering | $8.3 million | $1.9 million | $1.4 million |
The engineering segment showed a substantial increase both for the fiscal year and quarterly terms, driven by product development. Production revenue, however, saw a decline due to the end of a few key programs.
Key Developments
- Announced a $9 million production order for a single-use cystoscopy surgery program in May 2024.
- Closed a $1.4 million registered direct offering of common stock in August 2024, including participation from directors and officers.
Management Commentary
CEO Joseph Forkey stated that the company successfully managed the expected revenue shortfall from the end of significant programs. The record levels of engineering revenue supported the transition of various programs from development to production. Forkey emphasized ongoing growth and anticipated improvements starting in the second quarter of fiscal 2025.
Forward Guidance
Precision Optics expects the first quarter of fiscal 2025 revenue to range between $4.2 million and $4.4 million, projecting overall double-digit growth for the fiscal year. They anticipate resolving start-up challenges in key production programs and bolstering their production capacities.
Stock Price Movement
Following the earnings release, Precision Optics' stock experienced a decrease of approximately -2.8%.
This report highlights the company's strategic initiatives and challenges while underscoring its efforts to drive growth through engineering and production expansions.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
