Precision Optics Corporation Inc. (POCI) reported QQ3 2024 total revenue of $5.24 million, roughly matching its prior-quarter peak and reiterating a stair-stepped recovery from Q1 2024. Management attributed the quarterly result to multiple new and follow-on production orders that leverage POCIs micro-optics and digital imaging capabilities, plus elevated engineering revenue. Gross margins improved to 35.4% (from 34.4% YoY and 30.1% in the prior quarter), driving a narrowed operating loss and a positive adjusted EBITDA of $52,000. The quarter highlighted organizational efficiency initiatives, including consolidating two digital imaging production groups into a single Massachusetts-based unit, which is expected to improve utilization and profitability as revenue growth accelerates. A marquee development is the record $9 million high-volume production order for a single-use endoscope assembly used in a cystoscopy system. Management framed this as a strategic inflection point that could yield meaningful future production revenue (approximately $2.2 million in fiscal 2025 and $4.6 million in fiscal 2026, with potential upside if system sales or procedure volumes accelerate). The company also noted traction in the aerospace/defense market, with follow-on orders totaling over $1.9 million already secured and an additional $1.25 million order from a major U.S. defense contractor. Across engineering and production, POCI’s pipeline is robust, with expected near-term transitions from engineering to production underpinning revenue growth into fiscal 2025 and beyond. Management emphasized the platform-design approach to monetize IP, aiming to retain ownership of core micro-optics IP while selectively licensing fields of use. While the near-term profitability remains pressured by fixed costs and mix, management guided that Q4 2024 could be flat to higher than Q3 2024 as production volumes scale. Overall, the QQ3 2024 results reflect a company transitioning from project-level engineering and bespoke components to mass-manufactured imaging systems with scalable, higher-value opportunities in both the medical device and defense/aerospace sectors.