Full Press Release Details
Contact: Mark Murphy, Chief Executive
INC. ANNOUNCES FISCAL FIRST QUARTER 2010 PROFIT,
ON BUSINESS DEVELOPMENT ACTIVITIES,
RENEWAL OF BANKING AGREEMENT
Company reports first quarter sales of
and earnings per share of $0.02 per
CA, October 29, 2009 - PRO-DEX, INC. (NasdaqCM: PDEX) today announced its financial results for the fiscal first quarter ending September 30, 2009. In addition, Pro-Dex
announced that its existing credit agreement with Wells Fargo has been renewed,
a new marketing director has been hired, a product development agreement was
signed with a new customer, and initial shipments have been made of a newly
the first quarter ended September 30, 2009 remained stable at $5.6 million
compared to $5.7 million for the
previous year's first quarter, as increases in medical device and motor
shipments compensated for continued sluggish motion control
sales. Net income for the fourth quarter was $183,000 or $0.02
per share compared to a net loss of $118,000 or ($0.01) per share for the
previous year's first quarter.
Murphy, the Company's President
and Chief Executive Officer, commented, "In looking at the comparison quarters,
we can see the effect of
our tuning efforts last year. In the first quarter of fiscal year
2009, we shipped $5.7 million and lost $0.01 per share, and in this first
quarter of fiscal year 2010, we shipped $5.6 million and made $0.02 per
share. In addition to these P&L improvements, we shipped the
first 50 units of a new arthroscopic surgical hand-piece during fiscal Q1
2010. We currently have purchase orders in our backlog totaling $1.4
million for this product with scheduled ship dates through July,
Commenting further on the Company's top
line, Mr. Murphy continued, "We're beginning to see some signs of improvement in
our motion control business as those sales have climbed back to nearly half of
the sales levels we experienced during each of the five quarters ending December
31, 2008. Our total company backlog is currently at $9.3 million, up
from $8.1 million at September 30, 2009. We are also pleased to
announce the signing of a new development agreement. The product is
for small joint surgery and will include a consumable element that Pro-Dex will
provide in addition to the base capital equipment. The initial
Purchase Order is for $150,000, and our annual sales of the related disposables
could increase significantly if the product is successful, although there can be
no assurance of the product's design success or acceptance by the customer or
the market-place. The development and regulatory testing schedule, assuming
successful design and customer acceptance, targets us making initial shipments
in the first quarter of next fiscal year.
profit for the quarter ended September 30, 2009 increased to $1.9 million, a 33%
gross profit margin, compared to gross profit of $1.8 million or 31% gross
profit margin in last year's first quarter.
Operating expenses for the first quarter decreased by 14% to $1.6 million, compared to $1.9 million in the first quarter 2009. The continued
decrease in spending was attributable to structurally lower costs, primarily
decreased labor expenses and more efficient marketing spending, resulting from
our FY2009 cost-reduction efforts.
Murphy continued, "This quarter's gross profit margin is an accomplishment in
light of our lower motion control sales mix, which typically enhances our
margins. Increased product reliability is a major contributor to our
improved medical device margins. In light of the current economic
environment, we are encouraged by a second consecutive quarter of profit and
cash generation. To ensure that we identify every possible
opportunity for growth, we have hired a new Director of Marketing who joins us
with substantial experience in strategic marketing and top line
growth. We look forward to benefitting from this newly created
During the first quarter of fiscal year
2010, we continued to strengthen our balance sheet, generating an additional
$409,000 of operating cash, improving our trailing 12 months operating cash from
$1.7 million to $2.6 million. At September 30, 2009, we had cash and cash equivalents of
$1,378,000 compared to cash and cash
equivalents of $1,124,000 as of June 30, 2009. There continued to be nothing borrowed under the terms of the
credit line. The Company's net debt (total debt less cash) was
$1.8 million at September 30, 2009, down from $2.2 million at June 30, 2009 and down from $4.1 million at
On October 27, 2009, we renewed our financing
agreement with Wells Fargo through November 1, 2010. Except for the
introduction of a 1.5% unused line fee, the terms and conditions of the
agreement remain the same, with the current $1.6 million tenant improvement term
loan continuing to amortize over four years and up to $1 million available on
our revolving line of credit.
and all others are invited to listen to a conference call discussing the first
fiscal quarter 2010 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=63527. 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. 38163047. You may identify the call as
the Pro-Dex First 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 power and
control products used in medical, aerospace, military, research and industrial
applications. Experience in multi-axis motion control, fractional
horsepower motors and rotary drive systems allows us to develop products that
require high precision in harsh environments. Pro-Dex's
products are found in hospitals, dental offices, medical engineering labs,
commercial and military aircraft, scientific research facilities and high tech
manufacturing operations around the world. For more information,
visit the Company's website at www.pro-dex.com
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