Full Press Release Details
| Contact: | Mark Murphy, Chief Executive Officer |
| (949) 769-3200 |
PRO-DEX, INC. ANNOUNCES FIRST QUARTER RESULTS
IRVINE, CA, November 9,
2010 - PRO-DEX, INC. (NasdaqCM: PDEX) today
announced financial results for its fiscal first quarter ended September 30,
Sales for the quarter
ended September 30, 2010 increased 3% to $5.8 million compared to $5.6 million for
the corresponding quarter in fiscal year 2009, resulting from growth across a
broad base of customers for medical and motion control products whose orders
had been negatively impacted by the relatively slower economic climate in 2009.
Operating income was
$405,000 for the quarter, a 71% improvement from $237,000 in the corresponding
the 2010 quarter was $342,000, or $0.10 per fully-diluted share, which
represents an 87% increase from net income of $183,000, or $0.06 per
fully-diluted share, in the corresponding 2009 quarter.
the quarter ended September 30, 2010 grew to $2.2 million, a 37% gross profit
margin, compared to gross profit of $1.9 million, a 33% gross profit margin,
for the year-ago period. These increases resulted from a larger percentage of
the Company s sales consisting of its more profitable medical and motion
the Company s President and Chief Executive Officer,
commented, Fiscal 2011 has gotten off to a
good start as we continued to perform well in all key areas. Sales
increased both in sequential quarters and year-over-year, we maintained our
gross margins at the improved levels achieved last year, and we held our
operating expenses in check, all resulting in income from operations, before
write-downs of intangible assets, for the sixth consecutive quarter.
During the quarter ended September 30,
2010, Pro-Dex generated an additional $381,000 of cash from operations, and had
a cash balance at the end of the quarter of $2.5 million.
Teleconference Information:
Investors and analysts
are invited to listen to a broadcast review of the
Company's fiscal 2011 first quarter financial results today at 4:30 p.m.
Eastern Time (1:30 p.m. Pacific Time) that may be accessed by visiting the
Company's website at www.pro-dex.com. The conference call may also be accessed at
www.InvestorCalendar.com. Investors and analysts who would like to participate in
the conference call may do so via telephone at (877) 407-8033, or at (201) 689-8033
if calling from outside the U.S.
For those who cannot access the live broadcast, a replay
will be available from two hours after the completion of the call until
midnight (Eastern Time) on November 23, 2010 by calling (877) 660-6853, or (201)
612-7415 if calling from outside the U.S., and then entering account number 296
and conference I.D. number 360260. An online archive of the broadcast
will be available on the Company's website www.pro-dex.com for a period of 365 days.
Pro-Dex, Inc., with operations in California, Oregon and
Nevada, specializes in bringing speed to market in the development and
manufacture of technology-based solutions that incorporate miniature rotary
drive systems, embedded motion control and fractional horsepower DC motors,
serving the medical, dental, semi-conductor, scientific research and aerospace
markets. 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.
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 disclosure concerning the operational and business concerns of the
Company set forth in the Company's filings with the Securities and Exchange
| PRO-DEX, INC. and SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (unaudited) | ||||
| September 30, 2010 | June 30, 2010 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 2,541,000 | $ | 3,794,000 |
| Accounts receivable, net of allowance for doubtful accounts | ||||
| of $13,000 at September 30, 2010 and $25,000 at June 30, 2010 | 2,732,000 | 2,682,000 | ||
| Other current receivables | 1,000 | 22,000 | ||
| Inventories | 3,850,000 | 3,228,000 | ||
| Prepaid expenses | 210,000 | 174,000 | ||
| Deferred income taxes | 209,000 | 209,000 | ||
| Total current assets | 9,543,000 | 10,109,000 | ||
| Property, plant, equipment and leasehold improvements, net | 3,927,000 | 4,092,000 | ||
| Other assets | 61,000 | 78,000 | ||
| Total assets | $ | 13,531,000 | $ | 14,279,000 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | 1,606,000 | 1,279,000 | ||
| Accrued expenses | 2,195,000 | 1,947,000 | ||
| Income taxes payable | 48,000 | 79,000 | ||
| Current portion of bank term loan | 1,267,000 | 400,000 | ||
| Current portion of real estate loan | - | 35,000 | ||
| Total current liabilities | 5,116,000 | 3,740,000 | ||
| Long-term liabilities: | ||||
| Bank term loan | - | 967,000 | ||
| Real estate loan | - | 1,493,000 | ||
| Deferred income taxes | 191,000 | 209,000 | ||
| Deferred rent | 263,000 | 255,000 | ||
| Total long-term liabilities | 454,000 | 2,924,000 | ||
| Total liabilities | 5,570,000 | 6,664,000 | ||
| Commitments and contingencies | ||||
| Shareholders' equity: | ||||
| Common shares; no par value; 50,000,000 shares authorized; | ||||
| 3,251,850 shares issued and outstanding at September 30, 2010 | ||||
| and at June 30, 2010 | 16,679,000 | 16,675,000 | ||
| Accumulated deficit | (8,718,000) | (9,060,000) | ||
| Total shareholders' equity | 7,961,000 | 7,615,000 | ||
| Total liabilities and shareholders' equity | $ | 13,531,000 | $ | 14,279,000 |
| PRO-DEX INC. and SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
| For The Three Months Ended September 30, (unaudited) | ||||
| 2010 | 2009 | |||
| Net sales | $ | 5,829,000 | $ | 5,633,000 |
| Cost of sales | 3,645,000 | 3,759,000 | ||
| Gross profit | 2,184,000 | 1,874,000 | ||
| Operating expenses: | ||||
| Selling expenses | 424,000 | 289,000 | ||
| General and administrative expenses | 764,000 | 727,000 | ||
| Research and development costs | 591,000 | 621,000 | ||
| Total operating expenses | 1,779,000 | 1,637,000 | ||
| Income from operations | 405,000 | 237,000 | ||
| Other income (expense): | ||||
| Royalty income | - | 1,000 | ||
| Interest expense | (57,000) | (51,000) | ||
| Total other income (expense) | (57,000) | (50,000) | ||
| Income before provision for income taxes | 348,000 | 187,000 | ||
| Provision for income taxes | 6,000 | 4,000 | ||
| Net income | $ | 342,000 | $ | 183,000 |
| Net income per share: | ||||
| Basic | $ | 0.11 | $ | 0.06 |
| Diluted | $ | 0.10 | $ | 0.06 |
| Weighted average shares outstanding - basic | 3,251,850 | 3,222,890 | ||
| Weighted average shares outstanding - diluted | 3,263,366 | 3,225,146 |
| PRO-DEX, INC. and SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| For The Three Months Ended September 30, (unaudited) | ||||
| 2010 | 2009 | |||
| Cash flows from operating activities: | ||||
| Net income | $ | 342,000 | $ | 183,000 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation and amortization | 172,000 | 185,000 | ||
| Recovery of doubtful accounts | (12,000) | (6,000) | ||
| Stock based compensation | 4,000 | 35,000 | ||
| (Decrease) in deferred taxes | (18,000) | - | ||
| Changes in: | ||||
| Increase in accounts receivable | (18,000) | (343,000) | ||
| Increase in inventories | (621,000) | (167,000) | ||
| Increase in prepaid expenses | (36,000) | (29,000) | ||
| Decrease in other assets | 17,000 | - | ||
| Increase in accounts payable and accrued expenses | 582,000 | 547,000 | ||
| (Decrease) increase in income taxes payable | (31,000) | 4,000 | ||
| Net cash provided by operating activities | 381,000 | 409,000 | ||
| Cash flows from investing activities: | ||||
| Purchases of equipment and leasehold improvements | (6,000) | (47,000) | ||
| Net cash used in investing activities | (6,000) | (47,000) | ||
| Cash flows from financing activities: | ||||
| Principal payments on term loan | (100,000) | (100,000) | ||
| Principal payments on mortgage | (1,528,000) | (8,000) | ||
| Net cash used by financing activities | (1,628,000) | (108,000) | ||
| Net increase (decrease) in cash and cash equivalents | (1,253,000) | 254,000 | ||
| Cash and cash equivalents, beginning of period | 3,794,000 | 1,124,000 | ||
| Cash and cash equivalents, end of period | $ | 2,541,000 | $ | 1,378,000 |
| Supplemental Information | ||||
| Cash payments for interest | $ | 68,000 | $ | 52,000 |
| Cash payments for income taxes | $ | 55,000 | $ | - |