Full Press Release Details
Contact: Richard L. Van Kirk,
Chief Executive Officer
PRO-DEX, INC. ANNOUNCES FISCAL 2025 THIRD QUARTER
AND NINE-MONTH RESULTS
CA, May 1, 2025 - PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2025 third quarter ended
March 31, 2025. The Company also filed its Quarterly Report on Form 10-Q for the third quarter of fiscal year 2025 with the Securities
and Exchange Commission today.
Quarter Ended March 31,
Net sales for the three months
ended March 31, 2025, increased $3.1 million, or 22%, to $17.4 million from $14.3 million for the three months ended March 31, 2024, primarily
due to the shipment of $6.2 million of our largest customer's next generation orthopedic handpiece, offset by a $4.4 million decrease
in their legacy product, as well as an increase in repair revenue of $0.7 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 during the
first quarter of this fiscal year and began production shipments in the second quarter of this fiscal year.
Gross profit for the three months
ended March 31, 2025, increased $1.8 million, or 45%, to $5.8 million from $4.0 million for the same period in fiscal 2024. While the
gross profit increase is consistent with our increase in net sales, its percentage increase is comparatively higher than the percentage
increase in net sales primarily due to favorable product mix.
Operating expenses (which include
selling, general and administrative, and research and development expenses) for the quarter ended March 31, 2025, increased $369,000,
or 21%, compared to the same period in fiscal 2024 due to increases in research and development, general and administrative and selling
expenses, primarily related to increased personnel related expenses.
Our operating income for the quarter
ended March 31, 2025, increased $1.4 million, or 65%, to $3.6 million compared to $2.2 million for the prior fiscal year's corresponding
quarter. The increase reflects our increased sales and gross profit, as described above.
Net income for the quarter ended
March 31, 2025, was $3.3 million, or $0.98 per diluted share, compared to $655,000, or $0.19 per diluted share, for the corresponding
quarter in fiscal 2024. Our net income for the three months ended March 31, 2025, contains unrealized gains on our marketable equity investments
of $550,000 while our net income for the three months ended March 31, 2024, contains unrealized losses on our marketable equity investments
of $1.2 million. All of our investments are recorded at estimated fair value, and the valuation can be highly volatile. Additionally,
during the quarter ended March 31, 2025 we sold some of our marketable equity investments and recorded a realized gain in the amount of
$595,000. We had no sales of marketable equity investments during the quarter ended March 31, 2024.
Net sales for the nine months
ended March 31, 2025, increased $10.3 million, or 27%, to $49.1 million from $38.8 million for the nine months ended March 31, 2024 due
primarily to $10.9 million in shipments of the newest generation handpiece we sell our largest customer.
Gross profit for the nine months
ended March 31, 2025, increased $5.6 million, or 53%, compared to the same period in fiscal 2024. While the gross profit increase is consistent
with our increase in net sales, its percentage increase is comparatively higher than the percentage increase in net sales primarily due
to favorable product mix.
Operating expenses (which include
selling, general and administrative, and research and development expenses) for the nine months ended March 31, 2025, increased 18% to
$6.7 million from $5.6 million in the prior fiscal year's corresponding period, due primarily to an overall increase in personnel
costs and legal fees.
Our operating income for the nine
months ended March 31, 2025, increased $4.5 million, or 94%, to $9.3 million compared to $4.8 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.
Net income for the nine months
ended March 31, 2025, was $7.8 million, or $2.31 per diluted share, compared to $540,000, or $0.15 per diluted share, for the corresponding
period in fiscal 2024. Our net income for the nine months ended March 31, 2025, contains unrealized gains on our marketable equity investments
of $1.1 million and our net income for the nine months ended March 31, 2024, contains unrealized losses on our marketable equity investments
of $3.8 million. All of our investments are recorded at estimated fair value, and the valuation can be highly volatile.
"We are pleased with our performance including
increasing sales and operating income," said the Company's President and Chief Executive Officer, Richard L. ("Rick")
Van Kirk. "We are tracking toward another record fiscal year from a revenue perspective, and I continue to be grateful to the entire
Pro-Dex team for their contributions, resilience, and teamwork."
About Pro-Dex, 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 also manufactures
and 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.
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, (including, but not limited to, expected
fiscal year revenue), 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.
PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
| March 31, 2025 | June 30, 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 4,473 | $ | 2,631 | ||||
| Investments | 5,417 | 4,217 | ||||||
| Accounts receivable, net of allowance for expected credit losses of $ 0 at March 31, 2025 and at June 30, 2024, respectively | 15,861 | 13,887 | ||||||
| Deferred costs | 141 | 262 | ||||||
| Inventory | 23,432 | 15,269 | ||||||
| Prepaid expenses and other current assets | 619 | 345 | ||||||
| Total current assets | 49,943 | 36,611 | ||||||
| Land and building, net | 6,085 | 6,155 | ||||||
| Equipment and leasehold improvements, net | 5,344 | 5,024 | ||||||
| Right of use asset, net | 1,158 | 1,473 | ||||||
| Intangibles, net | 33 | 54 | ||||||
| Deferred income taxes, net | 1,555 | 1,555 | ||||||
| Investments | 111 | 1,563 | ||||||
| Other assets | 44 | 42 | ||||||
| Total assets | $ | 64,273 | $ | 52,477 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 5,962 | $ | 4,513 | ||||
| Accrued expenses | 3,542 | 3,359 | ||||||
| Deferred revenue | - | 14 | ||||||
| Income taxes payable | 385 | 632 | ||||||
| Note payable | 8,428 | 4,374 | ||||||
| Total current liabilities | 18,317 | 12,892 | ||||||
| Lease liability, net of current portion | 813 | 1,182 | ||||||
| Notes payable, net of current portion | 9,861 | 7,536 | ||||||
| Total non-current liabilities | 10,674 | 8,718 | ||||||
| Total liabilities | 28,991 | 21,610 | ||||||
| Shareholders' equity: | ||||||||
| Common shares; no par value; 50,000,000 shares authorized; 3,261,043 and 3,363,412 shares issued and outstanding at March 31, 2025 and June 30, 2024, respectively | 551 | 3,917 | ||||||
| Retained earnings | 34,731 | 26,950 | ||||||
| Total shareholders' equity | 35,282 | 30,867 | ||||||
| Total liabilities and shareholders' equity | $ | 64,273 | $ | 52,477 |
PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 17,414 | $ | 14,293 | $ | 49,099 | $ | 38,819 | ||||||||
| Cost of sales | 11,616 | 10,291 | 33,080 | 28,357 | ||||||||||||
| Gross profit | 5,798 | 4,002 | 16,019 | 10,462 | ||||||||||||
| Operating expenses: Selling expenses | 113 | 17 | 211 | 79 | ||||||||||||
| General and administrative expenses | 1,098 | 1,012 | 3,732 | 3,208 | ||||||||||||
| Research and development costs | 947 | 760 | 2,731 | 2,353 | ||||||||||||
| Total operating expenses | 2,158 | 1,789 | 6,674 | 5,640 | ||||||||||||
| Operating income | 3,640 | 2,213 | 9,345 | 4,822 | ||||||||||||
| Interest expense | (246 | ) | (138 | ) | (602 | ) | (409 | ) | ||||||||
| Unrealized gain (loss) on marketable equity investments | 550 | (1,192 | ) | 1,060 | (3,785 | ) | ||||||||||
| Interest and other income | 15 | 30 | 61 | 76 | ||||||||||||
| Gain on sale of investments | 595 | - | 595 | - | ||||||||||||
| Income before income taxes | 4,554 | 913 | 10,459 | 704 | ||||||||||||
| Income tax expense | 1,279 | 258 | 2,678 | 164 | ||||||||||||
| Net income | $ | 3,275 | $ | 655 | $ | 7,781 | $ | 540 | ||||||||
| Basic net income per share: | ||||||||||||||||
| Net income | $ | 1.00 | $ | 0.19 | $ | 2.36 | $ | 0.15 | ||||||||
| Diluted net income per share: | ||||||||||||||||
| Net income | $ | 0.98 | $ | 0.19 | $ | 2.31 | $ | 0.15 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 3,261,043 | 3,451,423 | 3,296,744 | 3,531,249 | ||||||||||||
| Diluted | 3,337,312 | 3,523,823 | 3,366,099 | 3,603,649 | ||||||||||||
| Common shares outstanding | 3,261,043 | 3,451,423 | 3,261,043 | 3,451,423 |