Thank and today XXXX our you, year you to all for discuss thank third quarter results. Robert, joining call fiscal our financial
quarter X% am whole, made to the continued last of pleased same ago in On the for as we our a the began compared the the a progress programs revenue number XX during months. with with production year up I quarter ramped-up
driven have from all-time same at specifically up were Looking has for This new maturing a production year development in of as increase to programs This a and record the compared as production by is quarter sequentially. a in we markets. increases up revenue. the their of XX% production been our pipeline revenue, gain the X% ago traction moved number they programs existing well as production they as to
X really has this to we needed efficiency organic effectively, development it of forward. our from Mahesh kind able size and Mahesh company become management enhance has experience with in drive us formed combined executive as that suited operate to that filled which newly we continue our recent With team. overall the in POC ideally join role production a growth, volume, is Chief to to recruit increase resume, to really to with move impressive operational of we're acquisition I'm Lawande Operating speed, the Officer. integration clear acquisitions, helping pleased
profitability and have recognition and drive our consistency. our where company we level a optimize of indication reached an is the model need of to as Mahesh on that business Bringing we an stage inherent
initiated We along have quickly. Chief process the is process and a moving for recruitment Officer, also Financial that permanent
endoscopy enhanced XD long-term become model, critical products show optics, from our relationships great customers. the integral our this these success. a and Not and leverage deep signs apply imaging of the to technology micro our and early where digital to to customer technical design mass support only it market, new part also knowledge of where our way bring we to supplier products, through does the continues a to an creates business innovative capabilities manufacture, customer model we Our phase within all becomes
grow, So we grow with them. as they
is the to pipeline, line best of pleased which programs are driver however, growth top the therefore, indicator production ultimately of important, and quarter is Equally We another of have the long-term source production of is this growth. potential. the since size development revenue increasing with future our
about years' pipeline in product In as programs. our pretty has largest significant major dollars. development hundreds portfolio, it Our development and of we of ran as programs the is we ever large Whereas other now announced past, been. new continuously development thousands April, another in to program discussions customers in with much the our addition of are
phase transfer the recently backfill the that we phase, value These programs to so-called that the in is This from will now part is finalizing complete the product long-term design our currently or projects to allow large in recent are the us millions seeing due our transitioned on see announcements, chain. are and is capabilities production. expanded between beginning to can more development which that consistently a dollars. in product develop higher You that production programs of new
have we revenue of growth. expect The predict, gives This to but trend in continue optimism our next to we starts the production production of for overall great programs the phase us difficult XX is in them timing months. recent transfer X to these Today, starts with future. expected exact X
will attract and development and we customers. projects in support few share production to support on for core our that we the technologies develop be products the Recognizing the useful the will that customers next-generation engineering new with programs our during technology, third We that generally budget quarter continue over market. and to but we to cost position run perfect both this to made long-term drive did competitive in work future the and design customers, believe also a our do the overall with competency allows these build ultimately relationships us that revenue, is decision excess to had
The these cost overruns of that an of by underestimation absorbed we required that amount were the tasks be the during complete of would caused certain development work products. to
certainty having it the the new inefficiencies process compounded issues projects. on difficult quarter time same working third with how be by will in and POC experienced the sites invent required to were technologies, is products the While much to always predict multiple associated with we
over few been update integrate our working have quarters We we procedures our as the acquisitions. last to tools and recent
near-term priority have engineering Mahesh, The this completion customers. revenue totaled COO. $XXX,XXX Driving our could new to quarter, a is approximately process of we approximately $XXX,XXX cost equivalent for is clear the during charged in overruns improvement which third to
the revenue, these in quarter basis, of first profit the Excluding second the would gross on and revenue and similar quarter. agreement quarters third adjusted the of costs, impact EBITDA very our a with the second have looked licensing to excluding associated $XXX,XXX
in show line still we improvement, increase top opportunities are are on expect about bottom focused there growth. increase top while for year and We recognize the profitability. still we've revenue year. or we more calls, line the As to a both on line talked solid will further And XX% line previous this bottom
grown year, whose revenue In to by I but operating capabilities. As believe margins people, gross be years, demonstrate that a our in level within investment over and operational goal. capable we the improvements and recognize of company have a made we delivering this capacity of talented we to maturity we of more require multiples fiscal profitable this new consistently. supports existing, the a several additional our has last POC level need profitability in more
in all, been, to opportunity in strong profitability. it ongoing at development note and production the record growth fiscal with revenue a levels, with and place into great in positioned year for and are from finish interest pipeline move team a marketplace, a well fiscal an we All strong strong we ever updated the on revenue has believe as to XXXX as executive
was up about during spend large that and $X.X or from of increase our to this from many customers. $XXX,XXX smaller Production quarter is supplies for million, to an of $XX,XXX division the third second third few or X% half quarter We a major have about to quarter programs a minutes record contributing XX% quarterly specifics. the now some number ago. a dozen revenue Ross Optical orders production contributions from revenue. a plus sequential Again, like the I'd on currently production new year revenue a
from endoscope from which program we have customer X cardiac for our and order over our program the drivers POC during historic major years; program, with in one received defense key historic activities legacy The our with spinal quarter we long-time new our one fibrillation defense/aerospace atrial and acquisition. for a CardioFocus; Lighthouse significant other follow-on XX production December; program a worked for products, our were
Our defense/aerospace program about orders X we that have quarter the tail the is past This $XXX,XXX. against revenue third delivered production contributed newer year. of during end of the over
talked we fiscal in the the This with expect working production quarter, but of last customer fourth this up it ramp we we about during back first quarter, redesign. to impact will As currently redesign on are XXXX. next-generation a half
profitable with this date a customer. and this look are program future forward of to the long We overall development to pleased with
the production full pandemic the order through program million order for in believe and $XXX,XXX pandemic in up since received rate started the we work to Our order defense prior be this through quarter, per follow-on this with as during and date. quarter that range approximately delivered million we've has against as recovered. against program a In this that In December, third $X.X swing announced now this dramatically order product. $X.X slowed we will deliveries anticipated we the we we down a the largest orders. It's ramp to to
company executed successfully application. also a million for surgery medical order a We large from spinal device $X.X against our
with product We this a have associated temporary quarter we to delivers market. restocking customer the the will expect while revenue order, after slowdown fourth which
this in up the customer and XX for ramp than more future. with to worked have expect years We production fully again
phase into of through of QX management. various and Production changes referred fiscal programs based that on transfer online, will timing product inventory and I pause currently design just flow we between as to programs for we handful will of programs we that going success the the our such and reasons, can in market. expect production QX new and slow will produce see XXXX. launch or or Concurrently, programs a ebb come
ophthalmic Specifically, hiatus year. program for during is we went as are the one otoscopy the an expecting laparoscope a per which single-use this quarter, on of order was well associated program, expect of approximately the production a robotic production January in in device There new for surgery, last a reinitiation $X.X announced million, received production the which already we level product but scanning beyond which as This quarter. endoscope, the third of to for quarter $X.X initial this no contracts pandemic. million ophthalmic the for fourth we micro steady ramp we revenue in with and to
and year. that to production programs, new and over enter customer quarter expect timing of will in top coming expect we fiscal total production may or whole, revenue quarterly the temporarily expectations On those on Based strong XX% next levels and our anticipate goal slow X line remain as XXXX. growth online, we those steady including exceed the we growth we of fiscal the for
and which been engineering from Have the this was cost our our customers. $XXX,XXX revenue million, recent billed third down sales it instead is $XXX,XXX for sequential the billing on third from primary for quarters. we the work, down have agreed the $X.X levels last right reason The to of quarter engineering for cost during the which programs we in with line certain Our quarter year's overruns about second to would absorb quarter. this in was
it's meet because despite quarter. from be group our running that important up a a in engineering third existing our at is inquiries doing. high our new And out understand in There team appears at this capacity looking what rate development pullback utilization to point to revenue no to the I is constant we and what continually inflow of the ways in to slowdown fact, engineering customers. ramp is are in
both entered number our developing jointly us into years. for and agreement we This As for for agreement discussed providing with Precision benefits. was few have new quarter, last unique in a single-use many ophthalmic we Optics customer licensing royalty the technology customer our the been product of a last we and ways, with
a transfer As out validated. third-party agreed of and the you facility for own we future, facility, are may, POC may producing agreed-upon production pay if is have moved our in an product return, royalties in point when a the have us that we recall, initially at some the their Gardner In production designed and time period fixtures using to or customer and and they to facility. tools of
in and know-how royalty for only a are, We and IP in for production being the the paid process. the design but product not effect, IP also the
maintain products. ownership and technologies these of leeway to on other technologies have we Importantly, broad these and control use
this the was execution $XXX,XXX recognized of of we payment quarter. This second fiscal of upon part agreement, As during payment a received as agreement. revenue the onetime
it This During recognized this approximately production first other the ones potential This third program begin phase of single-use $XXX,XXX estimate transfer program. growing development is serves per market, that a as program we the this at future we customers is which to to in quarter, one production, template in expect in of is or not a QX because fiscal for independent of XXXX. to for XX% into important now, single-use is only we launch engaging way which the revenue, of with rate also QX XX% agreement from royalties of paves the is it year. and
It technical and the also the due we Precision of product. the the this million capabilities a we on combined making order with urology can single-use order great Optics twice demonstrates attract we our follow-on have week, for size programs Imaging. quick is a This order the was program. development announced both progress example are to Last original of Lighthouse follow-on we and of $X.X our development breadth approximately expanded
requirements particularly we multiple have few within when and that as it our endoscope a position unique provide program, ophthalmology made ourselves and programs optics to great rapidly have capabilities across strides competitive micro micro this comes Between imaging, single-use urology cut growing market disciplines. customer our that in to we presently engineering single-use the digital leaders design players has for which
the a point, great It get to still to come, advancements has in this be technological believe taken a this space. we us some to yet time leader that advancements will to there to I make but are position in and be
revenue approximately $X.X $X.X third comment financial of a quarter ago, increase on me highlights an a of in the of some the was $X.X the was $X.X Revenue same X%. third to while was which now year for engineering quarter. Let quarter million million, record million, the compares Production approximately revenue million.
same XX.X% for compared Our to XX.X% last gross third quarter margin the year. was quarter in the
approximately As about effect costs we of XX% revenue with during target quarter, margin. approximately have the gross the about, the impact of would impacted been talked overruns, engineering absorbed of margins lost our we of the the Without in by $XXX,XXX third gross line associated these gross XX% X%. margin with
cash $X.X the the quarter of million $X.X this Operating year's of year and a basis, compared excluding million in $X.X million amortization the approximately in to previous and were On expenses and as million to second approximately well million the year. the quarter compensation, approximately in $X.X quarter in depreciation last expenses third third compared were stock-based quarter in million second $X.X quarter. operating $X.X as third sequential
sales mainly increases The to year-over-year as from as to as is with uplisting increase increased has marketing and corporate pandemic due the costs NASDAQ. market recovered our associated expenses well the in
continue while particularly our investments, relatively We to in sales stable and to keep continue operating to still business. the marketing, making targeted expenses grow
noncash the in a along during quarter the net $XXX,XXX absorption is loss last year. loss Again, engineering third to expenses. cost biggest of Net third the here was delta $XXX,XXX stock-based quarter the compensation compared with of
longer along is the $XXX,XXX. to of for our This with to sellers of reflects also negotiated production earn-out incentive potential development while taken pickup earn-out the modification year related desire the that to targets. we income whereby anticipated.
maximum modification to Lighthouse from our of Lighthouse push onetime to second to to have modification a reduce programs programs the get the the with we other in quarter, many than third recognizing through agreement $XXX,XXX, earn-out these production During Lighthouse Imaging, This maintain $XXX,XXX of had of a
the was time than taking optimistic was new will progress many large Lighthouse forecasted. of devices. to to acquisition The originally longer by that difficulty predicting programs production, the brought they but takes into transaction, take account medical in develop part remain the are the into earn-out it in in included structure We clearly
subset combined the It's important purpose able a optical the technical to the not both the market a X to better compete reiterate which create main segment is that to here electronic is acquisition medical that the to with particularly book but the to of requires teams acquire expertise, was combine single-use of a marketplace, the business and market. customers in device that of specific company of technical in
on the there competed no successful, has continue for goal that and have As calls, acquisition to we independently. companies attract doubt I previous that new is completely the mentioned business been of this of could neither
compensation, expense, the to income $X,XXX a again, which EBITDA, expenses, Once cost interest QX other largely delta absorption. quarter Adjusted depreciation, for and engineering is for acquisition positive third was excludes $XXX,XXX compared the the year ago. amortization, stock-based
balance the to Our of quarter year the as June. down at discussed receivable the we up second quarter. receivables overdue couple fiscal relative thousand the of the of end of flat the Accounts all were compared of have quarter although and not last last from collecting which start we the successful was about in the the of to end been was over a third cash quarter $XXX,XXX, second end hundred dollars slightly some,
we the aggressively growth the capital in to manage as We accommodate will company's needs. working continue cash
or overall of projects production slow QX stop we come expect of higher run revenue and or quarter to fiscal to projects fourth new the down XXXX online. we some to steady but rate compared be look slightly our As as beyond,
impact QX, the the discussed. more QX cost we absent expect like to We overruns of look
Overall, expect revenue this exceed growth year. for solid fiscal target our XX% we to of
the As into total margins. new we increase operating to to model programs aggressively into development, coming we business program and we on have based grow look fiscal traction to revenue while continue our improving XXXX, expect
capacity We and delivery will take continue market. invest see sales of we to in to the advantage in opportunities
I continued any I'd for you support of now happy Optics, all to Precision thank take be your and questions.
