GARDNER, Mass. - Precision Optics Corporation, Inc. (NASDAQ:POCI), a key player in the design and manufacture of advanced optical instruments, has secured a $9 million order from a prominent surgical company for single-use endoscope assemblies. These assemblies are integral to the client's cystoscopy surgery system and leverage Precision Optics' specialized micro-optics and digital imaging technologies.
This order, the largest in the company's history, underscores the growing market potential for single-use medical devices. Scheduled production deliveries are set to commence in July 2024 and will span several quarters. During its fiscal year ending in June 2025, Precision Optics anticipates delivering products worth approximately $2.2 million, followed by $4.6 million in fiscal 2026, with the balance to be delivered in the first half of fiscal 2027.
Precision Optics has already been engaged in engineering work for this customer, producing units for testing and regulatory approval. An additional order valued at $0.5 million for specialty engineering work is expected within the next six months, bringing the total value of orders to roughly $9.5 million.
Dr. Joe Forkey, CEO of Precision Optics, highlighted the significance of the order, noting that it validates the company's capabilities and the importance of single-use devices in the medical device market. He also expressed optimism about potential revenue growth following the delivery of this initial order, based on the client's continued success and expected expansion.
The company plans to manufacture all ordered units in-house, with the client retaining the option to shift production to other facilities in return for multi-year royalties paid to Precision Optics.
The medical device sector, particularly the single-use endoscope segment, is experiencing rapid growth. This trend is driven by the healthcare industry's preference for single-use devices to enhance patient safety and hospital efficiency. Precision Optics' expertise in single-use endoscope design and manufacturing, combined with its strategic production and technology licensing approach, positions the company to capitalize on this expanding market.
Precision Optics Corporation, established in 1982, has been at the forefront of providing micro-optics and 3D imaging solutions to the healthcare and defense/aerospace industries. The company's comprehensive services range from concept development to mass production, supporting the increasing demand for advanced and compact imaging systems for minimally invasive surgery.
This news is based on a press release statement from Precision Optics Corporation.
InvestingPro Insights
Precision Optics Corporation, Inc. (NASDAQ:POCI) has demonstrated its potential in the burgeoning single-use medical device market with its landmark $9 million order. As investors evaluate the company's financial health and future prospects, certain metrics and InvestingPro Tips can provide deeper insight into Precision Optics' current standing.
InvestingPro Data reveals a moderate market capitalization of $34.69 million, indicating a relatively small player within the industry that may have room for growth. The company's P/E Ratio stands at -20.06, reflecting its current lack of profitability as of the last twelve months. This is further supported by an adjusted P/E Ratio for the same period at -16.01, which, while still negative, suggests a slight improvement in earnings expectations. Additionally, despite a challenging revenue growth rate of -5.87% over the last twelve months as of Q2 2024, Precision Optics has maintained a gross profit margin of 33.35%, showcasing its capability to retain a significant portion of revenue as gross profit.
InvestingPro Tips highlight that Precision Optics operates with a moderate level of debt, which could be a strategic advantage in managing financial flexibility. However, the company has not been profitable over the last twelve months, which is an important consideration for investors. Furthermore, it does not pay a dividend to shareholders, a common trait among companies focused on reinvesting earnings into growth opportunities.
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