Full Press Release Details
Contact: Richard L. Van Kirk, Chief Executive
PRO-DEX, INC. ANNOUNCES FISCAL 2026 FIRST
30, 2025 - PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2026 first quarter ended September 30, 2025.
The Company also filed its Quarterly Report on Form 10-Q for the first quarter of fiscal year 2026 with the Securities and Exchange Commission
Quarter Ended September 30, 2025
sales for the three months ended September 30, 2025, increased $3.6 million, or 24%, to $18.5 million from $14.9 million for the three months
ended September 30, 2024. The increase is driven primarily by a $4.4 million increase in revenue related to the resumption of the
next-generation handpiece we sell to that customer, offset by a $1.3 million decrease in repairs of the legacy handpiece
we sell to that customer. During the fourth quarter of fiscal 2025, at the customer's request, we resumed production and
shipment of the customer's next generation handpiece. Because certain of the sub-assemblies included in the handpiece
take several weeks of internal machining, the process to resume shipments at the requested levels has taken several months. By
September 2025, our shipments reached the recurring level that the customer has requested.
profit for the three months ended September 30, 2025, increased $217,000, or 4%, compared to the year-ago period. Gross margin decreased
by 6 percentage points to 29% during the three months ended September 30, 2025, compared to 35% during the corresponding year-ago period,
due primarily as a result of higher costs, including tariffs, which have not been fully passed on to our customers.
Operating expenses (which
include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2025, increased
$121,000, or 6%, to $2.3 million compared to $2.1 million for the prior fiscal year's corresponding quarter. The increase relates
primarily to increased general and administrative expenses relating to higher personnel costs specifically related to human resources,
information technology and facilities.
Our operating income for the
quarter ended September 30, 2025, increased $96,000, or 3%, to $3.1 million compared to $3.0 million for the prior fiscal year's
corresponding quarter. The increase reflects our increased sales, as described above.
Net income for the quarter
ended September 30, 2025, increased to $4.7 million, or $1.40 per diluted share, compared to net income of $2.5 million, or $0.75 per
diluted share, for the quarter ended September 30, 2024. Our net income for the quarter ended September 30, 2025, contains unrealized
gains on our marketable equity investments of $3.3 million while our net income for the quarter ended September 30, 2024, includes unrealized
gains on investments of $433,000. All of our investments are recorded at estimated fair value, and the period-to-period valuation can
be highly volatile. Specifically, our investment in Monogram Technologies, Inc. was valued at the cash price we received in October 2025,
upon its acquisition by Zimmer Biomet Holdings, Inc. We received $4.04 per share for each of the common shares we owned of Monogram, for
a total of $8.9 million in cash proceeds.
Van Kirk, the Company's President and Chief Executive Officer, commented, "We are pleased with our first quarter results and
excited to have resumed shipment of our largest customer's next generation handpiece at the recurring levels we expect to deliver
in our second fiscal quarter and beyond." Mr. Van Kirk concluded, "We are also pleased with the recent cash infusion generated
from our investment in Monogram and are thoughtfully considering how to best utilize it for our continued growth and strategic objectives."
About Pro-Dex, Inc.:
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 that appeal to our customers, primarily medical device distributors. Pro-Dex also sells compact pneumatic
air motors for a variety of industrial applications. 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.
Statements 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 risk
factors and other disclosures 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)
| September 30, 2025 | June 30, 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 514 | $ | 419 | ||||
| Investments | 10,038 | 6,740 | ||||||
| Accounts receivable, net of allowance for credit losses of $ 2 and $ 0 at September 30, 2025 and at June 30, 2025, respectively | 18,234 | 16,433 | ||||||
| Deferred costs | 32 | 24 | ||||||
| Inventory | 21,564 | 22,213 | ||||||
| Income taxes receivable | 106 | 1,056 | ||||||
| Prepaid expenses and other current assets | 235 | 410 | ||||||
| Total current assets | 50,723 | 47,295 | ||||||
| Land and building, net | 6,038 | 6,061 | ||||||
| Equipment and leasehold improvements, net | 4,969 | 5,153 | ||||||
| Right-of-use asset, net | 941 | 1,050 | ||||||
| Intangibles, net | 19 | 26 | ||||||
| Deferred income taxes | 1,415 | 1,415 | ||||||
| Investments | 149 | 148 | ||||||
| Other assets | 44 | 44 | ||||||
| Total assets | $ | 64,298 | $ | 61,192 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 3,965 | $ | 4,614 | ||||
| Accrued liabilities | 4,127 | 3,479 | ||||||
| Income taxes payable | 776 | 186 | ||||||
| Deferred revenue | 122 | 202 | ||||||
| Notes payable | 4,612 | 6,148 | ||||||
| Total current liabilities | 13,602 | 14,629 | ||||||
| Lease liability, net of current portion | 555 | 685 | ||||||
| Notes payable, net of current portion | 8,628 | 9,246 | ||||||
| Total non-current liabilities | 9,183 | 9,931 | ||||||
| Total liabilities | 22,785 | 24,560 | ||||||
| Shareholders' Equity: | ||||||||
| Common stock; no par value; 50,000,000 shares authorized; 3,262,004 and 3,261,043 shares issued and outstanding at September 30, 2025 and June 30, 2025, respectively | 905 | 704 | ||||||
| Retained earnings | 40,608 | 35,928 | ||||||
| Total shareholders' equity | 41,513 | 36,632 | ||||||
| Total liabilities and shareholders' equity | $ | 64,298 | $ | 61,192 |
PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
| Three Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Net sales | $ | 18,530 | $ | 14,892 | ||||
| Cost of sales | 13,163 | 9,742 | ||||||
| Gross profit | 5,367 | 5,150 | ||||||
| Operating expenses: | ||||||||
| Selling expenses | 73 | 48 | ||||||
| General and administrative expenses | 1,417 | 1,246 | ||||||
| Research and development costs | 768 | 843 | ||||||
| Total operating expenses | 2,258 | 2,137 | ||||||
| Operating income | 3,109 | 3,013 | ||||||
| Other income (expense): | ||||||||
| Interest and dividend income | 14 | 25 | ||||||
| Unrealized gain on investments | 3,299 | 433 | ||||||
| Interest expense | (200 | ) | (152 | ) | ||||
| Total other income | 3,113 | 306 | ||||||
| Income before income taxes | 6,222 | 3,319 | ||||||
| Provision for income taxes | 1,542 | 853 | ||||||
| Net income | $ | 4,680 | $ | 2,466 | ||||
| Basic and diluted net income per share: | ||||||||
| Basic net income per share | $ | 1.43 | $ | 0.76 | ||||
| Diluted net income per share | $ | 1.40 | $ | 0.75 | ||||
| Weighted-average common shares outstanding: | ||||||||
| Basic | 3,261,753 | 3,259,742 | ||||||
| Diluted | 3,338,805 | 3,292,142 | ||||||
| Common shares outstanding | 3,262,004 | 3,297,510 |