GARDNER, Mass. – Precision Optics Corporation, Inc. (NASDAQ:POCI), known for designing and manufacturing advanced optical instruments, has received a $340,000 order for a new single-use ophthalmic endoscope from a major global medical device company. The production is set to begin in January 2025 and will stretch over five months to stockpile inventory for a product launch anticipated around June 2025.
This initial order follows a five-year collaborative product development phase and is expected to lead to larger follow-on orders to meet first-year market demand. According to Dr. Joe Forkey, CEO of Precision Optics, the new endoscope is poised to replace the client's decade-old reusable system, offering enhanced image quality and the convenience of single-use.
The announcement comes on the heels of an earlier $9 million order for single-use cystoscope imaging assemblies from another customer, marking significant progress in the company's strategic growth plan. These orders signify a shift toward single-use endoscopy, a sector where Precision Optics has been focusing its technological development and expertise.
Dr. Forkey expressed confidence in the company's fiscal year 2025 performance, citing these production orders as key revenue drivers. He also highlighted the potential for further growth, with multiple single-use programs in the pipeline and positive market response to their offerings.
Founded in 1982, Precision Optics has been serving the healthcare and defense/aerospace industries with innovative micro-optics and 3D imaging technologies. The company's comprehensive capabilities extend from concept development to mass production, catering to the evolving needs of minimally invasive surgery and surgical robotics.
This press release includes forward-looking statements, and it should be noted that actual results may differ from these projections. The information in this article is based on a press release statement from Precision Optics Corporation.
In other recent news, Precision Optics Corporation has announced its involvement in a partnership that has led to the development of an FDA-cleared, AI-powered surgical platform. The company's technology, specifically its single-use endoscope imaging assembly, is an integral part of this new robotic system designed to treat Benign Prostate Hyperplasia. This partnership has already resulted in a $9 million order, with deliveries of the endoscope imaging assembly already underway.
Precision Optics Corporation also recently reported its fiscal year 2024 financial results, with a revenue of $19.1 million. Despite operational challenges, including a revenue loss from discontinued programs and a decline in the Ross Optical division, the company exceeded its pre-announced expectations. A record production order of $9 million and a 24% year-over-year growth in product development revenue were also noted.
Looking ahead, Precision Optics Corporation anticipates a strong start to fiscal year 2025. The company projects Q1 revenue between $4.2 million and $4.4 million, with the aforementioned $9 million production order expected to contribute $3.6 million in revenue. Despite a decrease in gross margins and a reported net loss for fiscal 2024, Precision Optics Corporation is leveraging its intellectual property to enhance product offerings, aiming to improve gross margins while maintaining customizability for clients. These recent developments underscore the company's strategic positioning for growth in the upcoming fiscal year.
InvestingPro Insights
Precision Optics Corporation's recent $340,000 order for a new single-use ophthalmic endoscope aligns with its strategic focus on single-use endoscopy, a move that could potentially boost its financial performance. According to InvestingPro data, POCI's market capitalization stands at $31.46 million, reflecting its position as a small-cap player in the medical devices sector.
Despite the company's optimistic outlook for fiscal year 2025, it's worth noting that POCI is currently not profitable over the last twelve months, as indicated by one of the InvestingPro Tips. This context makes the recent order and potential follow-on orders even more crucial for the company's financial health.
Interestingly, POCI has shown a strong return over the last month, with a 16.56% price total return. This recent market performance could be indicative of investor confidence in the company's strategic direction and growth potential in the single-use endoscopy market.
Another InvestingPro Tip reveals that POCI operates with a moderate level of debt, which could provide the company with financial flexibility as it ramps up production for its new orders. This balance sheet strength may be particularly important as the company invests in inventory for the anticipated product launch in June 2025.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide a deeper understanding of POCI's financial position and growth prospects.
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