Full Press Release Details
| Contact: | Patrick Johnson, President & CEO (714) 241-4411 | |
| Matthew Hayden, Investor Relations | ||
| For Immediate Release | Hayden Communications, Inc. | |
| (858) 704-5065 |
PRO-DEX, INC. PROVIDES PRELIMINARY FISCAL 2005
Continue Momentum; Company Expects to Meet Earnings Target of $0.18 Per Share
SANTA ANA, CA, July 7, 2005 - PRO-DEX, INC. (NASDAQ: PDEX) a developer
and manufacturer of embedded motion control and miniature rotary drive systems, serving the
medical, dental, factory automation, and scientific research markets, today announced that based on preliminary results for the
year ended June 30, 2005, the Company expects to report quarterly sales of $4.4
million, an increase of 34.8 percent compared to the prior quarter and an
increase of 19 percent compared to the $3.7 million reported during the fourth
quarter of last fiscal year Earnings for the fourth quarter are expected to
be $0.07 to $0.08 per share compared to $0.05 per share for the year ago
period. For the fiscal year, the Company is expected to report revenues of $13.9
million, slightly lower than the $14.5 million the Company projected during the
last earnings release.
Patrick Johnson, President and CEO of Pro-Dex,
commented, "While we are pleased with our margin enhancement and believe this
improved profitability is evidence of the Company's operating leverage, the
quarter was impacted by a significant ramp-up in manufacturing, customer-driven
delays of certain orders, and a short-term operating malfunction at one of our
most specialized machining centers. Nevertheless, we shipped $2.3 million in
aggregate during the month of June and a result of this increased momentum, we
expect to meet the low end of our full-year earnings per share guidance of
The Company expects to report gross margins for
the year-end of approximately 52 to 53 percent, a substantial improvement from
the 47.9 percent reported at the end of fiscal year 2004. The Company also completed
the quarter with $7.9 million in backlog compared to $5.1 million at the
end of last fiscal year, an increase of 55 percent. Of this total backlog, $3.8
million is booked to ship in the first quarter. Pro-Dex ended the quarter with nine
active product development projects, five of which are customer funded, representing
an estimated $6.5 million in first year revenue, compared to eight projects and
$4.0 million last year. Further strengthening its balance sheet, the Company
expects to end the year with $2.6 million in cash and remains debt free with $2.0
million available on its existing credit line.
Addressing the prospects for the new fiscal year, Mr. Johnson continued,
"Our strong June performance and solid backlog position provides optimism that
the first quarter will closely resemble the fourth quarter, and with a record
number of products in our development portfolio, we believe all indicators
point toward further revenue growth and operating improvements during fiscal
2006. We look forward to discussing the year's accomplishments in more detail
during our conference call in early September, when we will provide sales and
earnings guidance for fiscal year 2006."
with operations in Santa Ana, California and Beaverton, Oregon, specializes in
bringing speed to market in the development and manufacture
of technology-based solutions that incorporate embedded motion control and
miniature rotary drive systems, serving the medical, dental, factory
automation, and scientific research markets. Pro-Dex's products are found in
hospitals, dental offices, medical engineering labs, 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
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