Financial News
PRO-DEX, INC. Announces Fiscal 2025 First Quarter Results
IRVINE, CA / ACCESSWIRE / October 31, 2024 / PRO-DEX, INC. (NASDAQ:PDEX) today announced financial results for its fiscal 2025 first quarter ended September 30, 2024. The Company also filed its Quarterly Report on Form 10-Q for the first quarter of fiscal year 2025 with the Securities and Exchange Commission today.
Quarter Ended September 30, 2024
Net sales for the three months ended September 30, 2024, increased $3.0 million, or 25%, to $14.9 million from $11.9 million for the three months ended September 30, 2023. The increase is driven primarily by $1.1 million in increased repairs of the surgical handpiece we sell to our largest customer as well as the shipment of that customer's next generation handpiece to satisfy its limited market release.
Gross profit for the threemonths ended September 30, 2024, increased $1.5 million, or 41%, compared to the year-ago period. Gross margin increased by 4 percentage points to 35% during the three months ended September 30, 2024, compared to 31% during the corresponding year-ago period, due primarily to a favorable product mix.
Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2024, increased $312,000, or 17%, to $2.1 million compared to $1.8 million for the corresponding quarter in 2023. The increase relates primarily to increased general and administrative expenses relating to higher personnel costs and higher bonus accruals.
Our operating income for the quarter ended September 30, 2024, increased $1.2 million or 64%, to $3.0 million compared to $1.8 million for the prior fiscal year's corresponding quarter. The increase reflects our increased sales and gross profit, as described above.
Net income for the quarter ended September 30, 2024, increased to $2.5 million, or $0.75 per diluted share, compared to net loss of $615,000, or $0.17 per diluted share, for the quarter ended September 30, 2023. Our net income for the quarter ended September 30, 2024, contains unrealized gains on our marketable equity investments of $433,000 while our net loss for the quarter ended September 30, 2023, includes unrealized losses on investments of $2.6 million. All of our investments are recorded at estimated fair value, and the period-to-period valuation can be highly volatile.
CEO Comments
Richard L. ("Rick") Van Kirk, the Company's President and Chief Executive Officer, commented, "We are pleased with our first quarter results and excited to have facilitated the initial shipment of the next generation handpiece to our largest customer." Mr. Van Kirk concluded, "We expect to ship production volumes of the new handpiece during the second half of this fiscal year."
About Pro-Dex, Inc.:
Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions that appeal to our customers, primarily medical device distributors. Pro-Dex also sells compact pneumatic air motors for a variety of industrial applications. Pro-Dex's products are found in hospitals and medical engineering labs around the world. For more information, visit the Company's website at www.pro-dex.com.
Statements herein concerning the Company's plans, growth, and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments, and future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the risk factors and other disclosures concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.
(tables follow)
PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share amounts)
|
|
September 30, |
|
|
June 30,
2024
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
3,081 |
|
|
$ |
2,631 |
|
Investments |
|
|
4,738 |
|
|
|
4,217 |
|
Accounts receivable, net of allowance for credit losses of $3 and $0 at September 30, 2024 and at June 30, 2024, respectively |
|
|
13,456 |
|
|
|
13,887 |
|
Deferred costs |
|
|
211 |
|
|
|
262 |
|
Inventory |
|
|
16,604 |
|
|
|
15,269 |
|
Prepaid expenses and other current assets |
|
|
412 |
|
|
|
345 |
|
Total current assets |
|
|
38,502 |
|
|
|
36,611 |
|
Land and building, net |
|
|
6,132 |
|
|
|
6,155 |
|
Equipment and leasehold improvements, net |
|
|
5,183 |
|
|
|
5,024 |
|
Right-of-use asset, net |
|
|
1,370 |
|
|
|
1,473 |
|
Intangibles, net |
|
|
47 |
|
|
|
54 |
|
Deferred income taxes |
|
|
1,555 |
|
|
|
1,555 |
|
Investments |
|
|
1,475 |
|
|
|
1,563 |
|
Other assets |
|
|
44 |
|
|
|
42 |
|
Total assets |
|
$ |
54,308 |
|
|
$ |
52,477 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,442 |
|
|
$ |
4,513 |
|
Accrued liabilities |
|
|
4,019 |
|
|
|
3,359 |
|
Income taxes payable |
|
|
423 |
|
|
|
632 |
|
Deferred revenue |
|
|
- |
|
|
|
14 |
|
Notes payable |
|
|
2,401 |
|
|
|
4,374 |
|
Total current liabilities |
|
|
11,285 |
|
|
|
12,892 |
|
Lease liability, net of current portion |
|
|
1,063 |
|
|
|
1,182 |
|
Notes payable, net of current portion |
|
|
11,083 |
|
|
|
7,536 |
|
Total non-current liabilities |
|
|
12,146 |
|
|
|
8,718 |
|
Total liabilities |
|
|
23,431 |
|
|
|
21,610 |
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
Common stock; no par value; 50,000,000 shares authorized; 3,297,510 and 3,363,412 shares issued and outstanding at September 30, 2024 and June 30, 2024, respectively |
|
|
1,461 |
|
|
|
3,917 |
|
Retained earnings |
|
|
29,416 |
|
|
|
26,950 |
|
Total shareholders' equity |
|
|
30,877 |
|
|
|
30,867 |
|
Total liabilities and shareholders' equity |
|
$ |
54,308 |
|
|
$ |
52,477 |
|
PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
|
|
Three Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net sales |
|
$ |
14,892 |
|
|
$ |
11,938 |
|
Cost of sales |
|
|
9,742 |
|
|
|
8,280 |
|
Gross profit |
|
|
5,150 |
|
|
|
3,658 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling expenses |
|
|
48 |
|
|
|
25 |
|
General and administrative expenses |
|
|
1,246 |
|
|
|
995 |
|
Research and development costs |
|
|
843 |
|
|
|
805 |
|
Total operating expenses |
|
|
2,137 |
|
|
|
1,825 |
|
Operating income |
|
|
3,013 |
|
|
|
1,833 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest and dividend income |
|
|
25 |
|
|
|
24 |
|
Unrealized gain (loss) on investments |
|
|
433 |
|
|
|
(2,553 |
) |
Interest expense |
|
|
(152 |
) |
|
|
(133 |
) |
Total other income (loss) |
|
|
306 |
|
|
|
(2,662 |
) |
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
3,319 |
|
|
|
(829 |
) |
Provision for income taxes |
|
|
853 |
|
|
|
(214 |
) |
Net income (loss) |
|
$ |
2,466 |
|
|
$ |
(615 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net income per share: |
|
|
|
|
|
|
|
|
Basic net income (loss) per share |
|
$ |
0.76 |
|
|
$ |
(0.17 |
) |
Diluted net income (loss) per share |
|
$ |
0.75 |
|
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
3,259,742 |
|
|
|
3,546,737 |
|
Diluted |
|
|
3,292,142 |
|
|
|
3,546,737 |
|
Common shares outstanding |
|
|
3,297,510 |
|
|
|
3,547,330 |
|
SOURCE: PRO-DEX, INC.
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