Reported Q: Q4 2024 Rev YoY: +9.1% EPS YoY: -200.3% Move: -5.67%
Precision Optics
POCI
$5.32 -5.67%
Exchange NASDAQ Sector Healthcare Industry Medical Instruments Supplies
Q4 2024
Published: Oct 28, 2024

Company Status Snapshot

Fast view of the latest quarter outcome for POCI

Reported

Report Date

Oct 28, 2024

Quarter Q4 2024

Revenue

4.72M

YoY: +9.1%

EPS

-0.23

YoY: -200.3%

Market Move

-5.67%

Previous quarter: Q3 2024

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Earnings Highlights

  • Revenue of $4.72M up 9.1% year-over-year
  • EPS of $-0.23 decreased by 200.3% from previous year
  • Gross margin of 21.7%
  • Net income of -1.41M
  • ""These lower levels were driven by specific delays in a few key programs in the latter half of the fourth quarter. I will explain the causes... the customer relationships in each case remain strong and the market potential of each product is intact. So our long‑term outlook for these programs and overall business growth remains high."" - Joe Forkey
POCI
Company POCI

Executive Summary

Precision Optics Corporation Inc (POCI) delivered a mixed QQ4 2024 results profile dominated by ramp‑up challenges in several production programs, a material gross margin contraction, and a cautious but constructive near‑term outlook from management. Q4 revenue totaled $4.72 million, down from prior‑year levels for the quarter amid program delays, while the full‑year revenue reached $19.1 million. The quarterly gross margin compressed to 21.7% (vs 39.0% in the prior year Q4), driven by lower absorption of fixed costs on softer volumes and one‑time raw material carrying adjustments. The company’s product development pipeline remained the primary growth engine, posting a quarterly gross margin in the mid‑40s, with product development revenue reaching record levels (approximately $8.3 million for the year and up ~24% YoY). Management emphasized that almost all FY2024 revenue contributors are expected to carry into FY2025 with the notable exception of a ~$0.4 million program. A major near‑term catalyst is the $9 million single‑use endoscopic imaging assembly that transitioned from development to production and is now ramping to a projected $3.6 million in revenue for fiscal 2025. A second pillar of the turnaround is the platform product concept, aimed at delivering high‑margin, modular baselines to accelerate time‑to‑market for multiple customers, which should bolster gross margins in the longer run. Management also signaled a planned Q2 lift in revenue, with a target of reaching quarterly breakeven EBITDA around $5.5 million in revenue. The company raised liquidity via a $1.4 million registered direct offering after year‑end to support working capital and capacity expansion. Overall, the near‑term trajectory hinges on (i) resolving production ramp‑ups and yield issues, (ii) sacrosanct customer relationships supporting the 9M endoscope program, and (iii) a meaningful uplift in platform product adoption to improve margin structure as volumes scale. Investors should monitor (a) quarterly execution on the $9 million order, (b) the normalization of gross margins post ramp, (c) Ross Optical rebound in 2025, and (d) progress toward EBITDA breakeven at the ~5.5M revenue level.

Key Performance Indicators

Revenue
Increasing
4.72M
QoQ: -10.04% | YoY: 9.14%
Gross Profit
Decreasing
1.02M
21.72% margin
QoQ: -44.88% | YoY: -30.01%
Operating Income
Decreasing
-1.36M
QoQ: -424.64% | YoY: -234.66%
Net Income
Decreasing
-1.41M
QoQ: -345.07% | YoY: -203.85%
EPS
Decreasing
-0.23
QoQ: -340.61% | YoY: -200.26%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 4.19 -0.30 -20.2% View
Q2 2025 4.53 -0.15 -9.9% View
Q1 2025 4.20 -0.21 -13.0% View
Q4 2024 4.72 -0.23 +9.1% View
Q3 2024 5.24 -0.05 +3.9% View