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GARDNER, Mass. - Precision Optics Corporation, Inc. (NASDAQ: POCI), a company specializing in advanced optical instruments for the medical and defense sectors, has initiated a registered direct offering. The company, currently valued at $31.25 million in market capitalization, has entered into securities purchase agreements with certain institutional and accredited investors for the sale of 1,272,500 shares of common stock at $4.00 per share, totaling approximately $5.1 million in gross proceeds. According to InvestingPro data, the company operates with a moderate debt level and maintains a gross profit margin of 27.14%.
The net proceeds, after deducting offering expenses, are expected to be around $5.0 million. Precision Optics plans to allocate the funds to repay some of its debts, expand facilities to accommodate anticipated growth, and for general working capital purposes. The offering is led by existing stockholders and is scheduled to close on or about February 21, 2025, contingent upon customary closing conditions. InvestingPro analysis indicates the company is currently not profitable, with revenue of $18.68 million in the last twelve months.
This financial move is facilitated under an effective shelf registration statement previously filed with and declared effective by the U.S. Securities and Exchange Commission (SEC) on June 14, 2024. Details of the offering will be outlined in a prospectus supplement to be filed with the SEC.
Precision Optics was established in 1982 and prides itself on its micro-optics and digital imaging technologies, which serve the healthcare and defense/aerospace industries. The company’s capabilities range from conceptual design to mass manufacturing, including the production of complex optical instruments for minimally invasive surgery and 3D endoscopy systems, which are increasingly used in surgical robotics. For deeper insights into POCI’s financial health and growth potential, access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
The information in this article is based on a press release statement from Precision Optics Corporation. The forward-looking statements in the press release reflect the company’s expectations and are subject to risks and uncertainties that could cause actual results to differ materially. These statements should not be regarded as guarantees of future performance.
In other recent news, Precision Optics Corporation reported a revenue decline for the second quarter of fiscal year 2025, with figures dropping to $4.5 million from $4.8 million in the same quarter last year. The company’s gross margins also decreased to 24% from 30% year-over-year, and it recorded a net loss of $910,000 compared to a $704,000 loss in the previous year. Despite these setbacks, Precision Optics saw a 42% sequential increase in manufacturing revenue from Q1 to Q2, driven by strong demand from its largest customers. The company remains optimistic about future growth, forecasting a Q4 revenue of approximately $6 million and expecting to achieve positive quarterly adjusted EBITDA.
Additionally, Precision Optics launched the Uniti Imaging Platform, designed to accelerate time-to-market for new products, which received positive feedback at major industry conferences. The company has also been expanding its operational capabilities, including increasing cleanroom space and workforce, to meet growing demand. Precision Optics’ strategic focus on CMOS-based endoscope systems positions it well to benefit from the rising trend of single-use endoscopes in the medical field. The company is managing significant backlogs in its production programs, particularly in defense and aerospace, and is taking steps to increase capacity to meet this demand.
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