Full Press Release Details
Richard L. Van Kirk, Chief Executive Officer
INC. ANNOUNCES FISCAL 2025 SECOND QUARTER
CA, January 30, 2025 - PRO-DEX, INC. (NasdaqCM: PDEX) today
announced financial results for its fiscal 2025 second quarter ended December 31, 2024. The Company also filed its Quarterly Report
on Form 10-Q for the second quarter of fiscal year 2025 with the Securities and Exchange Commission today.
Ended December 31, 2024
sales for the three months ended December 31, 2024, increased $4.2 million, or 33%, to $16.8 million from $12.6 million for the three
months ended December 31, 2023,
primarily due to the shipment of $3.1 million of our largest customer's next generation orthopedic handpiece as well as an increase
in repair revenue of $1.6 million similarly generated from our largest customer. As previously disclosed, we supported our largest customer's
limited market release quantities of their next generation end effector last fiscal quarter and this quarter we began production shipments.
We anticipate that the third and fourth quarters will reflect increases in revenue compared to the corresponding periods of the prior
year due to the continued production shipments of this next generation handpiece.
profit for the three months ended December 31, 2024, increased $2.3 million, or 81%, to $5.1 million from $2.8 million for the same period
in fiscal 2024. Gross margin increased by 8 percentage points to 30% for the three months ended December 31, 2024, compared to 22% for
the corresponding period of the prior fiscal year. The improvement in gross margin is primarily due to increased sales and favorable
expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended December 31,
2024, increased $355,000, or 18%, to $2.4 million compared to $2.0 million in the prior fiscal year's corresponding quarter, reflecting
increases in both research and development costs as well as general and administrative expenses mostly due to higher personnel related
income for the quarter ended December 31, 2024, increased $1.9 million, or 247%, to $2.7 million compared to $777,000 for the prior fiscal
year's corresponding quarter. The increase is attributable to higher sales and improved gross margins.
income for the quarter ended December 31, 2024, was $2.0 million or $0.61 per diluted share, compared to $500,000, or $0.14 per diluted
share, for the corresponding quarter in fiscal 2024.
Months Ended December 31, 2024
sales for the six months ended December 31, 2024, increased $7.2 million, or 29%, to $31.7 million from $24.5 million for the six
ended December 31, 2023, due primarily to $4.7 million in shipments of the newest generation handpiece we sell our largest customer as
well as $2.7 million in increased repair revenue from the orthopedic surgical handpiece that we sell to our largest customer.
profit for the six months ended December 31, 2024, increased $3.8 million, or 58%, compared to the same period in fiscal 2024 due to
increased sales and favorable product mix. Our gross margin increased by 6 percentage points to 32% for the six months ended December
31, 2024, compared to 26% for the corresponding period of the prior fiscal year.
expenses (which include selling, general and administrative, and research and development expenses) for the six months ended December
31, 2024, increased $666,000, or 17%, to $4.5 million compared to $3.9 million in the prior fiscal year's corresponding period.
The increase is related to increased research and development costs and general and administrative expenses mostly due to higher personnel
income for six months ended December 31, 2024, increased $3.1 million, or 119%, to $5.7 million compared to $2.6 million for the corresponding
period of the prior fiscal year. The increase in operating income is attributable to higher sales and gross profit offset by the higher
operating expenses described above.
income for the six months ended December 31, 2024, was $4.5 million or $1.33 per diluted share, compared to a net loss of $115,000, or
$0.03 per diluted share for the six months ended December 31, 2023. Our net income for the six months ended December 31, 2024, contains
unrealized gains on our marketable equity investments of $510,000 and our net loss for the six months ended December 31, 2023, contained
unrealized losses on our marketable equity investments of $2.6 million. All of our investments are recorded at estimated fair value,
and the valuation can be highly volatile.
are pleased with our second quarter and year-to-date results." said Richard L. ("Rick") Van Kirk, the Company's
President and Chief Executive Officer. "We are ramping up our staff to meet the commitments of our increased backlog." Mr.
Van Kirk continued, "We are excited about our continued sales growth and looking forward to the challenges ahead."
Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers
and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting
software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. Pro-Dex, Inc. also sells
rotary air motors to a wide range of industries. Pro-Dex's products are found in hospitals and medical engineering labs 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 Commission.
CONSOLIDATED BALANCE SHEETS
thousands, except share amounts)
| December 31, 2024 | June 30, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 66 | $ | 2,631 | ||||
| Investments | 4,671 | 4,217 | ||||||
| Accounts receivable, net of allowance for expected credit losses of $27 and $0 at December 31, 2024 and at June 30, 2024, respectively | 18,467 | 13,887 | ||||||
| Deferred costs | 152 | 262 | ||||||
| Inventory | 19,611 | 15,269 | ||||||
| Prepaid expenses and other current assets | 1,333 | 345 | ||||||
| Total current assets | 44,300 | 36,611 | ||||||
| Land and building, net | 6,108 | 6,155 | ||||||
| Equipment and leasehold improvements, net | 5,443 | 5,024 | ||||||
| Right-of-use asset, net | 1,265 | 1,473 | ||||||
| Intangibles, net | 40 | 54 | ||||||
| Deferred income taxes, net | 1,555 | 1,555 | ||||||
| Investments | 1,619 | 1,563 | ||||||
| Other assets | 44 | 42 | ||||||
| Total assets | $ | 60,374 | $ | 52,477 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,689 | $ | 4,513 | ||||
| Accrued liabilities | 5,234 | 3,359 | ||||||
| Income taxes payable | 303 | 632 | ||||||
| Deferred revenue | - | 14 | ||||||
| Notes payable | 5,913 | 4,374 | ||||||
| Total current liabilities | 17,139 | 12,892 | ||||||
| Lease liability, net of current portion | 939 | 1,182 | ||||||
| Notes payable, net of current portion | 10,474 | 7,536 | ||||||
| Total non-current liabilities | 11,413 | 8,718 | ||||||
| Total liabilities | 28,552 | 21,610 | ||||||
| Shareholders' equity: | ||||||||
| Common stock; no par value; 50,000,000 shares authorized; 3,260,390 and 3,363,412 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively | 366 | 3,917 | ||||||
| Retained earnings | 31,456 | 26,950 | ||||||
| Total shareholders' equity | 31,822 | 30,867 | ||||||
| Total liabilities and shareholders' equity | $ | 60,374 | $ | 52,477 |
CONSOLIDATED STATEMENTS OF OPERATIONS
thousands, except share and per share amounts)
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 16,793 | $ | 12,588 | $ | 31,686 | $ | 24,526 | ||||||||
| Cost of sales | 11,721 | 9,786 | 21,464 | 18,066 | ||||||||||||
| Gross profit | 5,072 | 2,802 | 10,222 | 6,460 | ||||||||||||
| Operating expenses: Selling expenses | 49 | 37 | 98 | 63 | ||||||||||||
| General and administrative expenses | 1,389 | 1,200 | 2,635 | 2,195 | ||||||||||||
| Research and development costs | 942 | 788 | 1,784 | 1,593 | ||||||||||||
| Total operating expenses | 2,380 | 2,025 | 4,517 | 3,851 | ||||||||||||
| Operating income | 2,692 | 777 | 5,705 | 2,609 | ||||||||||||
| Interest expense | (204 | ) | (139 | ) | (357 | ) | (271 | ) | ||||||||
| Unrealized gain (loss) on marketable equity investments | 77 | (40 | ) | 510 | (2,593 | ) | ||||||||||
| Interest and other income | 21 | 22 | 46 | 46 | ||||||||||||
| Income (loss) before income taxes | 2,586 | 620 | 5,904 | (209 | ) | |||||||||||
| Income tax benefit (expense) | (546 | ) | (120 | ) | (1,398 | ) | 94 | |||||||||
| Net income (loss) | $ | 2,040 | $ | 500 | $ | 4,506 | $ | (115 | ) | |||||||
| Basic net income (loss) per share: | ||||||||||||||||
| Net income (loss) per share | $ | 0.63 | $ | 0.14 | $ | 1.36 | $ | (0.03 | ) | |||||||
| Diluted net income (loss) per share: | ||||||||||||||||
| Net income (loss) per share | $ | 0.61 | $ | 0.14 | $ | 1.33 | $ | (0.03 | ) | |||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 3,261,145 | 3,546,901 | 3,314,207 | 3,546,819 | ||||||||||||
| Diluted | 3,337,337 | 3,611,701 | 3,378,862 | 3,546,819 | ||||||||||||
| Common shares outstanding | 3,260,390 | 3,541,045 | 3,260,390 | 3,541,045 |