Full Press Release Details
| Contact: | Mark Murphy, Chief Executive Officer |
| (949) 769-3200 |
INC. ANNOUNCES FISCAL 2009
QUARTER AND FULL-YEAR RESULTS
sales increase 4% from prior year's Q4 to $5.6 million.
earnings improve to $0.02 per share.
IRVINE, CA, September 17, 2009
- PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for the
fiscal fourth quarter and full-year ending June 30, 2009.
the fourth quarter ended June 30, 2009 increased 4% to $5.6 million compared to
$5.4 million reported for the fourth quarter of fiscal 2008, as increases in
medical device and motor shipments outpaced continued sluggish motion control
sales. Net income for the fourth quarter was $202,000 or $0.02 per
share (based on 9.7 million shares) compared to net loss of $412,000 or ($0.04)
per share for the three months ended June 30, 2008.
the year ended June 30, 2009 decreased 16% to $21.1 million compared to $25.1
million in fiscal year 2008. The majority of the decrease was seen in
medical products, as 2008 sales were unusually high due to a major customer, who
built inventory in fiscal 2008, consumed it in fiscal 2009. The
motion control business also reported lower sales as the economic slowdown
adversely affected the end market for the capital equipment that use our motion
control products. Motor sales remained flat year over
year. A net loss was reported for the full fiscal year 2009 of
$2,845,000 or $0.29 per share compared to net income of $317,000, or $0.03 per
share for the full-year 2008 period.
Murphy, the Company's President and Chief Executive Officer, commented, "Fiscal
2009 was a difficult year for Pro-Dex, like many other
businesses. From FY2005 through FY2008, we grew consistently every
year, delivering a 22% cumulative annual growth rate. This trend was
starkly interrupted in FY2009 by a 16% top line decrease, the first decrease we
had experienced in 4 years. We reacted immediately and definitively
in our commitment to the fundamentals of profitability and cash-generation,
resizing the company to match our revenue levels. While the year's
results were sealed in Q3 with nearly $3 million of non-cash patent and deferred
tax asset write-offs, we see the Q4 operating results as
encouraging. We believe our largest medical customers have completed
their inventory reductions and are now receiving product at rates that are more
closely aligned with historical levels, helping to offset the continued softness
in our motion control business. Comparing fiscal 2009 Q4 to Q3, we
improved the top line by 22% (from $4.6 million to $5.6 million) and earnings
per share from a loss of $0.31 ($0.27 from write-offs and $0.04 operationally)
to earnings of $0.02. While it's too early to declare sustainable
improvement, we have a $9.6 million backlog and look forward to the anticipated
release of a new product."
profit for the quarter ended June 30, 2009 increased to $1.9 million, a 35%
gross profit margin, compared to gross profit of $1.5 million or 27% gross
profit margin in last year's fourth quarter as a result of higher sales levels
and the absence of the prior year's fourth quarter headquarters relocation costs
of $225,000. Gross profit for the full 2009 fiscal year was
$6.7 million, a 32% gross profit margin compared to gross profit of $8.2 million
or 33% gross profit margin for the year-ago period. For the full
year, margins were adversely impacted by lower volumes of our more profitable
expenses for the fourth quarter decreased by 27% to $1.7 million, compared to
$2.2 million in the fourth quarter 2008. While the 2008 fourth
quarter operating expenses included move-related costs of $274,000, the
remainder of the decrease in spending was attributable to structurally lower
costs, primarily decreased labor expenses, resulting from our FY2009
cost-reduction efforts. For the full fiscal 2009 year, operating expenses,
including the non-cash $997,000 intangible write-off, increased by $487,000 (6%)
to $8.2 million from $7.7 million in fiscal 2008.
Murphy continued, "We have taken the necessary steps to adapt from our previous
rapid growth to our current reality. This economy has severely tested the
business models of many companies. Pro-Dex remains strong because our
model is based on repeating sales of customized, high-value
products. We grow fastest when new products are being developed and
when such development requires accelerated timeframes. Neither has
been the case this past fiscal year. It is now time to look
forward. We are committed to identifying new products that we can
assist our customers in bringing to market over the coming months and
years. In the meantime, our cost structure has been better aligned
with our current revenue base."
During both the fourth quarter and the
entire fiscal year 2009, we continued to strengthen the balance sheet. In Q4, we
generated an additional $878,000 of operating cash. For all of fiscal
2009, we generated $1.7 million in cash from operations compared to $2.0 million
in the year-ago period. At June 30, 2009, we had cash and cash
equivalents of $1,124,000 compared to cash and cash equivalents of $517,000 as
of June 30, 2008. There was nothing borrowed under the terms of the Company's
revolving credit line compared to $2,000,000 outstanding under that line at June
30, 2008. The Company's net debt (total debt less cash) was $2.2
million at June 30, 2009, down from $3.5 million at June 30, 2008.
and all others are invited to listen to a conference call discussing the fourth
fiscal quarter and year end 2009 results, today at 4:30 p.m. Eastern Time. The
call is scheduled to be broadcast live over the Internet and may be accessed by
visiting the Company's website at http://www.pro-dex.com
or directly at http://www.videonewswire.com/event.asp?id=62029. Mark Murphy,
Chief Executive Officer and Jeff Ritchey, Chief Financial Officer, plan to host
the call. If you would like to join the call, dial (877) 356-8625 U.S. and (706)
634-9779 International, conference I.D. 30139877. You may identify the call as
the Pro-Dex Fourth Quarter Earnings Call. An online archive of the broadcast
will be available within two hours of the completion of the call and will be
accessible on the Company's website for 365 days. Additionally, a telephone
replay will be available 2 hours after the call for 48 hours by dialing (800)
642-1687 U.S. or (706) 645-9291 for international callers, conference I.D.
Inc., with operations in Irvine, California, Beaverton, Oregon and Carson City,
Nevada, provides a pathway to product solutions rarely envisioned by
customers. A unique blend of creativity and systemic discipline enables us
to develop and manufacture innovative designs that powerfully complete a
customer's strategic product offering. Pro-Dex leverages extraordinary
human collaboration and superior technical capability to power and control
products used in medical, aerospace, military, research and industrial