Precision Optics Corporation, Inc. (NASDAQ:POCI) Q4 2023 Earnings Call Transcript

But five, six, seven years ago, we were a very small company. So we were very focused on how we use our resources and, in particular, on sales and marketing. We only did active marketing to the medical device space because we felt that was the place that had the best opportunities for our very specific technologies. As you point out, there are a couple of programs that sort of fell in our lap. So there’s one in particular that I’ve talked about many times, we call it our longer-term or historic defense aerospace program that’s now turned into a couple of million dollars a year. They basically came to us, saw what we were doing, asked us if we would consider doing some work with them. They’re a great, big company whose name everyone will recognize.

And of course, we said we’d be happy to. But we were not proactively going out and looking at the defense aerospace market. More recently, as we’ve built up our sales and marketing team and we have some more resources, we’ve identified the defense aerospace market as one that we want to be looking at more deliberately. Now having said that, the program that we talked about, that went into production last year and now has gone through a redesign. And the other one that is just coming online is in the same space. Both of those really came to us again. Now the fact that there are two companies that came to us with fairly similar products is indicative of the fact that our technology can be used for particular segments of the defense aerospace market.

So our intent going forward is to spend more time proactively understanding the various segments of the defense aerospace market and using more, at this point, of our senior level sales and marketing team and of my time, frankly. Now that we have Wayne and Mahesh onboard and we have more bandwidth in the senior management group, my intent is to work with our VP, our SVP of Sales and Marketing and myself to really dig in and understand the different segments of the defense aerospace market in the places where our technology can be used and, to some extent, how we continue to push our technology forward so that it continues to be competitive for markets that we see significant opportunities in, one of those being defense aerospace. So I think the best way to say it is that our intent is to move forward in a more proactive way, in a more deliberate way, to hunt out those opportunities as opposed to simply waiting for those opportunities opportunistically to come to us, which is how we found the programs that we’re working on now.

Robert Blum: All right. Perfect. I think that’s helpful for everyone. One final question here, on the engineering side of the equation, I think as the previous questioner mentioned and you kind of mentioned in your prepared remarks, sort of a record quarter. I think it’s been building on sort of records here of late. Sort of talk about the outlook for that. You’ve been bringing in sort of new engineers. Are you able to keep up with sort of demand from the engineering side of the equation, sort of capacity? Just talk a little bit more about what you’re seeing out there, I’ll say, sort of your pipeline into your pipeline.

Joseph Forkey: Yes, sure. Thanks. So let me just back up a little bit and say we have been working on growing the technical capability of the engineering team at the company for the last three or four years for exactly the reason that we’ve talked about many times, which is that the engineering team is really the pump that drives the growth of the company. Because the programs come through the engineering team in order to go into production, we continue to push more programs into production, and that helps to grow revenue in the long run. Three or four years ago, we hired a really great top-notch Vice President of Engineering to take over management of the engineering team, and he’s done a spectacular job not only of managing the team pretty independently of my involvement but also in growing that engineering team and maturing that engineering team, I would say, because he came from a number of very large companies.