Precision Optics Corp, Inc. (PEYE) designs and manufactures advanced optical instruments to cater to the medical and defense industries. The company’s business model is based on attracting new product engagements to generate initial revenue through engineering development work and later through long-term production.

On September 28, the company posted robust Q4 fiscal 2021 results. Let's look at PEYE’s recent financials and understand what has changed in its key risk factors that investors should know.

The company’s Q4 revenue increased 19% year-over-year to $2.67 million. The gross profit of the company jumped to $785,943 from $653,501 a year ago.

Net loss for the quarter, consisting of $419,678 in stock-based compensation, stood at $442,443. PEYE had incurred a net loss of $323,085 a year ago, which included stock-based compensation of $64,334. Net loss per share of the company widened to $0.03 from $0.02 a year ago. (See Precision Optics stock chart on TipRanks)

The CEO of Precision Optics, Joseph Forkey, said, “I am extremely pleased with the overall performance of Precision Optics in fiscal 2021, highlighted by record annual revenues and a product pipeline that is larger than at any point in the company’s history.

"We continued to focus on operational efficiencies, with operating expenses down 9% compared to fiscal 2020, culminating in an annual improvement to adjusted EBITDA of nearly $750,000. With a strong fiscal 2021 behind us, we look forward to building upon this momentum going forward.”

Now, let’s look at what’s changed in the company’s key risk factors.

According to the new Tipranks' Risk Factors tool, PEYE’s main risk category is Production, which accounts for 32% of the total 22 risks identified. On September 28, the company removed one key risk factor under the Finance & Corporate risk category.

This risk factor pertains to PEYE’s acquisition of Ross Optical Industries. The company notes that there is no assurance if PEYE will realize the opportunities from this acquisition or its management may get distracted from the integration of this acquisition.

By combining PEYE’s capabilities with the Ross Optical division the company believes there are avenues for expanded sales of each division's products and services across their combined customer base.

The success of this acquisition depends on PEYE’s ability to materialize the estimated opportunities from the integration of the two businesses.

The Production risk factor's sector average is at 11%, compared to PEYE’s 32%. Shares are up 68.6% over the past 12 months.

Related News:
Mastercard Unveils Buy Now, Pay Later Program
Navient Announces Plan to Exit Federal Student Loan Servicing Contract
Square, TikTok Launch Square x TikTok to Help Businesses

The post Taking Stock of Precision Optics’ Risk Factors appeared first on TipRanks Financial Blog.

----------------------------

By: Kailas Salunkhe
Title: Taking Stock of Precision Optics’ Risk Factors
Sourced From: blog.tipranks.com/taking-stock-of-precision-optics-risk-factors/
Published Date: Thu, 30 Sep 2021 11:03:38 +0000

Read More