Executive Summary
Precision Optics Corporation Inc (PEYE) reported QQ3 2024 results with modest topline growth but ongoing profitability challenges. Revenue for the quarter stood at $5.24 million, up 3.85% year-over-year and 4.35% quarter-over-quarter, while gross profit rose to $1.86 million and gross marginheld a solid 35.45%. Despite the revenue strength, the company posted an operating loss of $0.259 million and a net loss of $0.317 million, resulting in an EPS of −0.0522. EBITDA was negative at −$0.206 million, signaling limited operating leverage given fixed cost structure and ongoing R&D/SG&A investments. Cash burn persisted, with net cash provided by operating activities of −$0.214 million and free cash flow of −$0.325 million for QQ3 2024. The balance sheet remains liquidity-constrained and heavily weighted by goodwill, with cash of $0.93 million and total assets of $18.27 million; total liabilities were $7.01 million and net debt stood at approximately $2.09 million. The company’s current ratio of 1.64 and quick ratio of 1.05 indicate marginal liquidity headroom, but working capital dynamics show continued pressure from accounts receivable and other working capital items. Management commentary for the quarter is not contained in the provided transcript data; as a result, the executive summary cannot incorporate specific call-driven guidance or quotes.
Key Performance Indicators
QoQ: -229.84% | YoY:9.86%
QoQ: -208.88% | YoY:16.35%
Key Insights
Revenue: $5.24M, YoY +3.85%, QoQ +4.35% | Gross Profit: $1.859M, Gross Margin 35.45%, YoY +7.06%, QoQ +5.66% | Operating Income: −$0.259M, Margin −4.93%, YoY +47.59%, QoQ +57.93% (both still negative) | EBITDA: −$0.206M, Margin −3.93% | Net Income: −$0.317M, Margin −6.05%, YoY +9.86%, QoQ −229.84% | EPS (Diluted): −0.0522 | Cash Flow: Operating cash flow −$0.214M; Capex −$0.111M; Free cash flow −$0.325M | Balance Sheet: Cash $0.925M; Total Assets $18.27M; Total Liabilities ...
Financial Highlights
Revenue: $5.24M, YoY +3.85%, QoQ +4.35% | Gross Profit: $1.859M, Gross Margin 35.45%, YoY +7.06%, QoQ +5.66% | Operating Income: −$0.259M, Margin −4.93%, YoY +47.59%, QoQ +57.93% (both still negative) | EBITDA: −$0.206M, Margin −3.93% | Net Income: −$0.317M, Margin −6.05%, YoY +9.86%, QoQ −229.84% | EPS (Diluted): −0.0522 | Cash Flow: Operating cash flow −$0.214M; Capex −$0.111M; Free cash flow −$0.325M | Balance Sheet: Cash $0.925M; Total Assets $18.27M; Total Liabilities $7.01M; Net Debt $2.09M; Equity $11.26M | Liquidity: Current ratio 1.64; Quick ratio 1.05; Cash ratio 0.18 | Valuation (as reported): P/S 6.62; P/B 3.08; P/E negative; P/FCF negative | Efficiency: DSO 72.5 days; DIO 80.6 days; DPO 45.1 days; CCC ~153 days
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.24M |
3.85% |
4.35% |
| Gross Profit |
1.86M |
7.06% |
5.66% |
| Operating Income |
-258.53K |
47.59% |
57.93% |
| Net Income |
-317.06K |
9.86% |
-229.84% |
| EPS |
-0.05 |
16.35% |
-208.88% |
Key Financial Ratios
operatingProfitMargin
-4.93%
operatingCashFlowPerShare
$-0.04
freeCashFlowPerShare
$-0.05
priceEarningsRatio
-27.37
Management Commentary
No earnings call transcript was provided in the data set; unable to extract management quotes or themes from a QQ3 2024 call. When transcripts are available, highlights typically cover strategy execution, product pipeline progress (e.g., endoscopes, micro lenses, 3D imaging), operating leverage initiatives, and demand signals in the US and EU markets.
Forward Guidance
There is no formal forward guidance included in the QQ3 2024 data. Given the current quarterly losses and modest revenue growth, the near-term outlook hinges on margin expansion, cost discipline, and improving working capital efficiency. Investors should monitor: (1) any management-provided targets for SG&A normalization and R&D pacing, (2) progression in high-margin imaging components and custom optics, (3) whether receivables and inventory days improve, and (4) any strategic initiatives (partnerships, pricing, or product line optimization) that could lift EBITDA and free cash flow.