Precision Optics Corporation, Inc. (NASDAQ: POCI)

Precision Optics Corporation, Inc. has been a developer and manufacturer of advanced optical instruments since 1982. The company focuses on two primary markets medical devices and advanced defense aerospace products. It leverages proprietary optical and imaging technology custom design expertise and manufacturing capabilities to produce endoscopes endocouplers digital imaging endoscopes and Microprecision lenses. These products serve minimally invasive surgical procedures and support satellite communication systems in the defense sector.

Revenue is generated through the sale of products and provision of engineering services. The company offers systems manufacturing where it assembles components and systems for medical device and aerospace customers. It provides engineering and product development that designs devices and creates manufacturing processes for higher volume production. Through its Ross Optical division it supplies custom optical components and assemblies sourced from a global network and finished with in house thin film coatings. The micro optics laboratory contributes specialized research and prototyping capabilities that support the other business areas.

The company operates through the following segments Systems Manufacturing Engineering and Product Development Ross Optical and Micro Optics Laboratory.

• Systems Manufacturing assembles and manufactures components and systems for both medical device and aerospace customers who outsource these services based on the companys ability to handle high complexity components specific optical technologies micro optical assemblies and other advanced manufacturing challenges.

• Engineering and Product Development assesses specific customer product needs designs devices to solve those needs and creates manufacturing processes that enable higher volume production of devices and assemblies which are then executed by the manufacturing operations group.

• Ross Optical supplies custom optical components and assemblies for military and defense medical and various industrial applications sourcing optics through a worldwide network and providing thin film coatings and assembly services using its in house coating department.

• Micro Optics Laboratory conducts research and development on advanced optical technologies including Microprecision lenses and micro medical cameras supporting the design and prototyping of new products for the medical device and defense aerospace markets.

Precision Optics Corporation, Inc. holds a niche position in the optical instrument market where it competes against larger domestic and foreign manufacturers that have greater resources. The company believes it succeeds through product quality competitive pricing reliable delivery and innovation that meets customer specifications. Its Microprecision optics micro medical cameras digital imaging and illumination technologies provide a distinct edge in minimally invasive surgical devices. The Ross Optical division adds advantage by offering rapid design for manufacturability feedback access to hard to find optics and the ability to apply thin film coatings and assemble complex mechano optical systems.

The company serves a diverse customer base that includes established medical device companies primarily in the United States as well as emerging medical device firms. It also supplies defense aerospace contractors and various industrial users that require custom optical components and assemblies. While specific customer names are not disclosed the firm notes that a small number of accounts represent a significant portion of its revenue.