GARDNER, Mass. - Precision Optics Corporation, Inc. (NASDAQ:POCI), a specialist in advanced optical instruments for the medical and defense sectors, announced today a follow-on production order valued at approximately $1.25 million from a major U.S. defense contractor. The order is for a complex optical assembly that the company has been supplying since 2018, in response to the contractor's increasing demand.
The delivery of the order is expected to be split, with around half to be completed within the next six months and the rest scheduled over the subsequent six to twelve months. This latest order follows the completion of a 15-month production run for the same assembly, which allows Precision Optics to maintain production continuity and efficiency.
Dr. Joe Forkey, CEO of Precision Optics, expressed enthusiasm for the new order, indicating a strong ongoing relationship with the defense contractor and anticipating continuous orders in the future that would minimize production gaps experienced in the past.
Precision Optics is recognized for its micro-optics capabilities, producing components and assemblies essential for defense applications, including optical lenses as tiny as 0.37 mm. The company's expertise in micro-optics and U.S.-based manufacturing has positioned it as a vital partner in the defense supply chain, earning it recognition as the Small Business Subcontractor of the Year by the Federal Government for its quality and performance.
The company's focus on micro-optics technology aligns with the needs of aerospace and defense companies for applications requiring minimal size and weight. Dr. Forkey highlighted the company's progress in expanding this market segment and its potential as a growth driver.
Founded in 1982, Precision Optics Corporation has been utilizing its design, prototype, regulatory, and manufacturing capabilities to serve the healthcare and defense/aerospace industries. It provides a range of services from new product concepts to mass production, addressing the needs for advanced optical solutions in minimally invasive surgery and defense applications.
This announcement is based on a press release statement from Precision Optics Corporation.
InvestingPro Insights
Precision Optics Corporation, Inc. (NASDAQ:POCI) has announced a significant follow-on production order, which is a positive sign for the company's ongoing relationship with its defense contractor clientele. With a market capitalization of $33.38 million, the company operates within a specialized niche of the optics industry. According to the latest data, Precision Optics has a negative P/E ratio over the last twelve months, sitting at -15.45, which indicates the company is not currently profitable.
Despite the lack of profitability, the company's gross profit margin remains strong at 33.35%, suggesting that Precision Optics has been effective in managing production costs relative to its sales. However, revenue growth has seen a decline of -5.87% over the last twelve months as of Q2 2024, which could be an area of concern for investors. On a more positive note, the company's moderate level of debt, as highlighted in one of the InvestingPro Tips, might provide some financial flexibility as it navigates through its growth strategies.
For investors considering this stock, it is also important to note that Precision Optics does not pay a dividend, which might influence the investment decision for those seeking income-generating assets. For those seeking more insights, there are additional InvestingPro Tips available that could provide further guidance on the company's financial health and investment potential. Interested readers can find more tips by visiting the InvestingPro platform for Precision Optics at https://www.investing.com/pro/POCI. Moreover, users can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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