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Precision Optics lost $368K through nine months

May 16, 2018
Photo | Courtesy
Photo | Courtesy
Precision Optics, which manufactures optical equipment for the defense and medical fields, has been making all their components in Gardner since 1982.

Gardner medical device manufacturer Precision Optics is reporting a somewhat off fiscal year with a fiscal 2018 loss of $368,000 through nine months.

The company's earnings report, released Tuesday, includes a 25-percent decrease in revenues in the third quarter compared to last year and a 6-percent increase in revenues for the year.

So far this fiscal year, the company has lost $368,382. In the third quarter, Precision Optics lost $279,271.

CEO Joseph Forkey in a statement said the third-quarter revenue decreased to $736,000 is a result of a reduction of engineering services revenues. Production revenues, however, were up 9 percent.

Forkey said the reduction in revenue was partly due to timing of revenue recognition tied to specific phases of long-term projects.

The company's net loss and operating expenses included $88,750 of bad debt expenses because of a slow-paying customer for engineering services. Issues with that customer contributed to the revenue dip in engineering services, Forkey said.

The company is looking to get back in the black with several upcoming projects, including $2 million in orders from two medical device companies now shipping.

Also recently beginning are shipments of a highly-complex optical assembly, used in a defense application, that has been in development for the last two years.

"We believe that the success of these three projects in moving from development into production, combined with an ongoing robust engineering pipeline will result in increased revenues and improved financial performance in coming quarters," Forkey said.