Mon, Sep 30, 8:16 PM (281 days ago)
Precision Optics Corporation reported a revenue decline of 9.2% for the fiscal year ended June 30, 2024, totaling $19.1 million, down from $21.0 million in 2023. This decrease was primarily due to a significant drop in sales of optical components and finished products, partially offset by a 23.7% increase in engineering design services revenue. Net loss surged to $2.95 million, or $0.49 per share, compared to a $0.14 million loss in the prior year. Operating expenses rose slightly, while gross margin decreased to 30.3% from 36.8% due to changes in product mix and underutilization of fixed costs. The company’s cash position deteriorated, ending with $405,278, down from $2.9 million the previous year, largely due to operational losses and increased inventory. Looking ahead, the company is focusing on transitioning engineering projects to production and addressing inventory valuation issues. Strategic amendments to loan agreements have provided temporary relief regarding debt covenants. Key risks include reliance on a limited customer base and potential supply chain disruptions. Overall, the company aims to leverage its technological capabilities in micro medical cameras and 3D endoscopes to drive future growth.