02 Oct 2019
Significantly improved sales enhanced by income from acquisition of Ross Optical, which grew customer base and defense sector capabilities.Precision Optics Corp., a Cost Mesa, CA-based manufacturer of advanced optical instruments for the medical and defense industries, has announced its operating results for its fourth quarter and fiscal year, which ended ended June 30, 2019.
Revenue for the quarter was $2.4 million compared to $1.5 million in the same quarter of the previous fiscal year, an increase of 63%, driven primarily by an increase in production revenue for medical devices that incorporate the company’s Microprecision technology, as well as one month of contribution from the newly-acquired Ross Optical – which added $656,000 to Precision’s revenue during June 2019.
Production revenue was $912,000 in the quarter, an increase of 18% compared to $770,000 in the same quarter of the previous fiscal year. Gross margins of 36% in the quarter continued to improve sequentially for the second consecutive quarter, the company added. A net loss of $109,000 during the quarter included $128,000 of business acquisition expenses and $117,000 of stock-based compensation.
Fiscal year 2019 highlights
Revenue for the fiscal year was $6.8 million compared to $4.0 million in the previous fiscal year, representing an increase of 69%. Production revenue during the fiscal year increased 140% to $3.7 million compared to $1.5 million in the previous fiscal year.
Excluding the one-month contribution from Ross Optical, the fiscal year revenue was $6.1 million, an increase of 52% compared to the previous fiscal year. Pro forma financial results show a combined organization (Precision Optics and Ross Optical) with $10.5 million in sales and gross margin of approximately 36%.
CEO, Joseph Forkey, commented, “Our financial results from the fourth quarter and from fiscal year 2019 overall, demonstrate the success of our business model. By utilizing our proprietary optical technology to develop and manufacture state-of-the art custom medical imaging products, we enable the world’s leading medical device companies to bring next generation, minimally invasive devices and 3D surgical robotic systems to market.
“The transition of a number of these Precision Optics enabled projects to commercialization by our customers has driven a 140% increase in production revenues during fiscal 2019. Based on order visibility on currently commercialized products, as well as expected near-term commercialization of products currently in our pipeline, we believe fiscal 2020 should be another strong year for Precision Optics.”
Dr. Forkey continued, “Fiscal 2019 was a milestone year for us also because of the acquisition of Ross Optical Industries. We completed this acquisition – the first ever for Precision Optics - on July 1st. One of the benefits of the acquisition is that it expands our readily accessible customer base, particularly in the defense industry, where we believe there are opportunities for use of our Microprecision micro optics and imaging systems.
“The acquisition also extends our product offering to include a wider range of lens and optical system sizes, drives economies of scale within our organization, and allows the combined company to leverage our technical proficiency in offering end-to-end solutions to the expansive Ross Optical customer base. We look forward to the many opportunities we believe are available to drive further growth and efficiencies in 2020 and beyond.”