Full Press Release Details
| Contact: | Mark Murphy, Chief Executive Officer | |
| (949) 769-3200 | ||
| Jeff Stanlis, Investor Relations | ||
| Hayden Communications, Inc. | ||
| (602) 476-1821 |
INC. ANNOUNCES FISCAL FOURTH QUARTER AND
increase 17% to $25.1 million for the full year 2008
completes relocation of corporate headquarters
recognizes one-time, move-related expenses
September 18, 2008 - PRO-DEX, INC. (NasdaqCM: PDEX) today
announced financial results for the full-year and fourth quarter ending June
net sales for the year increased 17% to $25.1 million compared to $21.6 million
for the year-ago period. Revenue for the year increased due to higher sales
medical customers. Revenue for the fourth quarter decreased 6% to $5.4 million
compared to $5.8 million
for the fourth quarter of fiscal 2007, primarily due to lower
sales to one of our major customers as they reduced their inventory of our
product to more appropriate levels.
Company reported net income for the full year of $317,000 or $0.03 per share
a basic and diluted basis (based on 9.7 and 9.9 million shares, respectively)
compared to net income of $506,000, or $0.05 per basic and fully diluted share
(based on 9.6 and 9.7 million shares, respectively) for the full-year 2007
period. Net loss for the fourth quarter was $412,000 or $(0.04) per share (based
on 9.8 million shares) compared to net income of $187,000 or $0.02 per share
a basic and diluted basis for the three months ended June 30, 2007 (based on
Murphy, the Company's President
and Chief Executive Officer, commented, "Fiscal 2008 was a transformative year
for Pro-Dex, a year during which we invested in our business development,
engineering, and quality functions, solidifying our ability to identify and
accelerate product development for our customers while significantly improving
our manufacturing quality.
Although the benefits of these efforts are not yet fully reflected in our
financial results, they do position Pro-Dex to achieve meaningful improvements
in our financial performance during fiscal 2009 and beyond. Our customers are
delighted with our work on the three active projects booked, and we have
recently quoted several new projects totaling $8 million in potential
incremental revenue growth. Our new facility in Irvine maximizes our front-end
efforts to land new business as well as our manufacturing capacity to deliver
it. The move is fully complete and we recognized $499,000 in one-time expenses
during the fourth quarter."
gross profit for the year was $8.2 million, or 33% gross profit margin compared
to gross profit of $7.4 million or 34% gross profit margin for the year-ago
period. Gross profit for the quarter ended June 30, 2008 was $1.5 million,
gross profit margin, compared to gross profit of $1.9 million or 32% gross
profit margin last year. Gross profit and margins in both the year and fourth
quarter were reduced by the move costs.
fiscal 2008 year, operating
expense increased 19% to $7.8 million from $6.5 million in the year-ago period,
percentage of sales, increased to 31% from 30% in the prior year. Fourth quarter
operating expenses increased by 51% to $2.2 million, compared to $1.5 million
the fourth quarter 2007 mainly
due to move-related costs and increased labor expenses.
Murphy continued, "As expected and previously communicated, the move to our new
facilities and the short-term adjustments by a large customer related to
inventory levels created a disappointing ending to what was otherwise a positive
year. The fourth quarter, however, does not diminish the progress we have made.
We increased our operating cash flow for the year, substantially increased
manufacturing capacity and significantly increased the front-end growth
activities of the business. We have executed well on the initiatives we set
forth and continue to see a bright future for Pro-Dex despite the short-term
delays. Accordingly, the Company is actively repurchasing its shares at the
maximum levels possible. Strategically, we are now securing a larger portion
the intellectual property created in our engineering efforts and increasingly
are including consumables (and the resulting recurring revenue to Pro-Dex)
our manufacturing agreements. We expect these long-term efforts, initiated
during fiscal 2008, to pay benefits by the end of fiscal 2009."
the June 30, 2008 quarter with cash and cash equivalents of $517,000 compared
cash and cash equivalents of $403,000 as of June 30, 2007. Total working capital
was $4.3 million as of June 30, 2008. There was $2.0 million borrowed under
terms of the Company's credit line compared to $300,000 at June 30, 2007 and
nothing borrowed against the Company's $2 million term commitment facility,
leaving the total eligible additional borrowing capacity as of June 30, 2008
$4.0 million. The Company generated $2.0 million in cash from operations for
full year compared to $1.5 million in the year ago period. Net debt (total
less cash) was $3.5 million at June 30, 2008, increased from $2.4 million at
June 30, 2007. Shareholders' equity increased 3.4% to $13.3 million from $12.9
million at June 30, 2007.
September, 2002 a stock repurchase plan was authorized and was reconfirmed
the Board of Directors in July, 2008. Under this plan, management is authorized
to repurchase up to 500,000 shares of its outstanding Common Stock on the open
market at a share price no greater than $1.25, subject to compliance with
applicable laws and regulations. From the inception of the plan in 2002 through
June 30, 2008, 75,700 shares of common stock were repurchased at an average
price of $0.58 per share. From July 1, 2008 through September 16, 2008, the
Company repurchased 35,500 aggregate shares at an average price of $0.95 per
share bringing the total common shares repurchased under this program to 111,200
shares at an average price of $0.69 per share.
and all others are invited to listen to a conference call discussing the fourth
fiscal quarter 2008 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.
Murphy, Chief Executive Officer and Jeff Ritchey, Chief Financial Officer,
to host the call. If you would like to join the call, dial 866-323-3543 U.S.
706-679-0672 International, conference I.D. 64211330. You may identify the
as the Pro-Dex Fourth Quarter Earnings Call. An online archive of the broadcast
will be available within one hour of the completion of the call and will be
accessible on the Company's website for 30 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.
operations in Irvine, California, Beaverton, Oregon and Carson City, Nevada,
provides a pathway to product solutions never 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