The following is a summary of the Precision Optics Corporation, Inc. (POCI) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Precision Optics reported a Q2 revenue of $4.8 million, a decrease YoY, but a 12% increase from Q1.

• Production revenue was reported at $2.6 million, an increase of 6% over Q1 while Engineering revenue displayed a 33% increase YoY at $2.3 million.

• Gross margins dipped in Q2 resulting in an adjusted EBITDA loss, but the company is confident of recovery in the second half of FY 2024.

• Q2 2024 total revenue was 18% lower than Q2 2023's $5.9 million, with the gross margin shrinking to 30.1% from 44.2% YoY.

• Operating expenses spiked by about $125,000, and net loss for the quarter was $759,000, as compared to a net income of $508,000 in Q2 2023. The cash balance was close to $1 million as of the end of December 2023.

Business Progress:

• Precision Optics is planning for profitable EBITDA in the latter half of FY 2024 with increasing revenues and improved gross margins.

• Significant investment in sales, the addition of two new sales representatives, and a new working group have been initiated to explore the defense aerospace market.

• Given the strong engineering pipeline and growth segments in the device and defense industries, management remains optimistic for a strong annual close and significant future growth.

• A potential facility expansion and higher utilization are also being considered for gross margin and net earnings improvement.

• The company has made new hires, kickstarted a digital marketing strategy, and is upbeat about the ERP system for enhanced efficiency and scalability.

More details: Precision Optics IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.