Full Press Release Details
| Contact: Richard L. Van Kirk, Chief Executive Officer | ||
| (949) 769-3200 |
PRO-DEX, INC. ANNOUNCES FISCAL 2026 SECOND QUARTER
AND SIX-MONTH RESULTS
CA, January 29, 2026 - PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its
fiscal 2026 second quarter ended December 31, 2025. The Company also filed its Quarterly Report on Form 10-Q for the second quarter
of fiscal year 2026 with the Securities and Exchange Commission today.
Quarter Ended December 31, 2025
sales for the three months ended December 31, 2025, increased $1.9 million, or 11%, to $18.7 million from $16.8 million for the three
months ended December 31, 2024, primarily due to an increase in shipments in the amount of $7.3
million of our largest customer's next generation orthopedic handpiece offset by a decrease of $4.8 million of their legacy handpiece
as well as a decrease in repair revenue of $1.7 million similarly generated from our largest customer. We also shipped $1.3 million more
of our CMF drivers and batteries to various distributors during the three months ended December 31, 2025 as compared to the corresponding
period of the prior fiscal year.
profit for the three months ended December 31, 2025, increased $671,000, or 13%, to $5.7 million from $5.1 million for the same period
in fiscal 2025. Gross margin increased by 1 percentage point to 31% for the three months ended December 31, 2025, compared to 30% for
the corresponding period of the prior fiscal year. The improvement in gross margin is primarily due to increased sales and favorable product
Operating expenses (which include
selling, general and administrative, and research and development expenses) for the quarter ended December 31, 2025, increased $104,000,
or 4%, to $2.5 million compared to $2.4 million in the prior fiscal year's corresponding quarter, reflecting increases in selling,
general and administrative expenses mostly due to higher personnel related expenses offset by lower research and development expenditures.
Operating income for the quarter
ended December 31, 2025, increased $567,000, or 21%, to $3.3 million compared to $2.7 million for the prior fiscal year's corresponding
quarter. The increase is attributable to higher sales and improved gross margins.
Net income for the quarter ended
December 31, 2025, was $2.2 million or $0.66 per diluted share, compared to $2.0 million, or $0.61 per diluted share, for the corresponding
quarter in fiscal 2025.
Six Months Ended December 31, 2025
sales for the six months ended December 31, 2025, increased $5.5 million, or 17%, to $37.2 million from $31.7 million for the six
months ended December 31, 2024, due primarily to $11.9
million in shipments of the newest generation handpiece we sell our largest customer offset by a decrease of $5.0 million of their legacy
handpiece and $3.0 million in decreased repair revenue from their legacy handpiece. We also shipped $1.9 million more of our CMF drivers
and batteries to various distributors during the six months ended December 31, 2025, compared to the corresponding period of the prior
profit for the six months ended December 31, 2025, increased $889,000, or 9%, compared to the same period in fiscal 2025 due to increased
sales. Our gross margin decreased by 2 percentage points to 30% for the six months ended December 31, 2025, compared to 32% for the corresponding
period of the prior fiscal year mostly as a result of a less favorable product mix.
Operating expenses (which include
selling, general and administrative, and research and development expenses) for the six months ended December 31, 2025, increased $226,000,
or 5%, to $4.7 million compared to $4.5 million in the prior fiscal year's corresponding period. The increase is related to increased
selling, general and administrative expenses mostly due to higher personnel-related expenses offset by a decrease in research and development
Operating income for six months
ended December 31, 2025, increased $663,000, or 12%, to $6.4 million compared to $5.7 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
Net income for the six months
ended December 31, 2025, was $6.9 million or $2.07 per diluted share, compared to net income of $4.5 million or $1.33 per diluted share
for the six months ended December 31, 2024. Our net income for the six months ended December 31, 2025, contains a $6.8 million realized
gain offset by the reversal of $3.2 million in unrealized gains recorded in the first quarter of fiscal 2026 related to our investment
in Monogram Technologies, Inc. which was acquired by Zimmer Biomet Holdings, Inc. during our second fiscal quarter.
"We 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. "Additionally, as we previously announced, our three-year contract extension with our largest customer provides
the foundation for our continued future growth for the next three years and beyond." Mr. Van Kirk continued, "We expect to
complete an acquisition of a local machine shop which is also a current significant supplier of ours in the near term and, while it may
not be immediately accretive to our earnings, it will secure additional capacity and manufacturing technology as we continue to grow."
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. Additionally, we provide
engineering, quality, and regulatory consulting services to our customers. Pro-Dex, Inc. also sells rotary air motors to a wide range
of industries; however, these air motors comprise a de minimis portion of our business. 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, as well as management's expectations, beliefs,
plans, estimates, or projections relating to the future, including, without limitation, statements concerning future growth and the anticipated
acquisition referenced above, 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)
| December 31, 2025 | June 30, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,953 | $ | 419 | ||||
| Investments | 864 | 6,740 | ||||||
| Accounts receivable, net of allowance for expected credit losses of $19 and $0 at December 31, 2025 and at June 30, 2025, respectively | 17,883 | 16,433 | ||||||
| Deferred costs | 174 | 24 | ||||||
| Inventory | 21,710 | 22,213 | ||||||
| Income tax receivable | 266 | 1,056 | ||||||
| Prepaid expenses and other current assets | 336 | 410 | ||||||
| Total current assets | 49,186 | 47,295 | ||||||
| Land and building, net | 6,015 | 6,061 | ||||||
| Equipment and leasehold improvements, net | 4,757 | 5,153 | ||||||
| Right-of-use asset, net | 830 | 1,050 | ||||||
| Intangibles, net | 12 | 26 | ||||||
| Deferred income taxes, net | 1,277 | 1,415 | ||||||
| Investments | 135 | 148 | ||||||
| Other assets | 44 | 44 | ||||||
| Total assets | $ | 62,256 | $ | 61,192 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,111 | $ | 4,614 | ||||
| Accrued liabilities | 4,258 | 3,479 | ||||||
| Income taxes payable | 1,200 | 186 | ||||||
| Deferred revenue | 163 | 202 | ||||||
| Notes payable | 2,469 | 6,148 | ||||||
| Total current liabilities | 12,201 | 14,629 | ||||||
| Lease liability, net of current portion | 419 | 685 | ||||||
| Notes payable, net of current portion | 8,005 | 9,246 | ||||||
| Total non-current liabilities | 8,424 | 9,931 | ||||||
| Total liabilities | 20,625 | 24,560 | ||||||
| Shareholders' equity: | ||||||||
| Common stock; no par value; 50,000,000 shares authorized; 3,209,732 and 3,261,043 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively | - | 704 | ||||||
| Retained earnings | 41,631 | 35,928 | ||||||
| Total shareholders' equity | 41,631 | 36,632 | ||||||
| Total liabilities and shareholders' equity | $ | 62,256 | $ | 61,192 |
PRO-DEX, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 18,663 | $ | 16,793 | $ | 37,194 | $ | 31,686 | ||||||||
| Cost of sales | 12,920 | 11,721 | 26,083 | 21,464 | ||||||||||||
| Gross profit | 5,743 | 5,072 | 11,111 | 10,222 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expenses | 1,750 | 1,438 | 3,241 | 2,733 | ||||||||||||
| Research and development costs | 734 | 942 | 1,502 | 1,784 | ||||||||||||
| Total operating expenses | 2,484 | 2,380 | 4,743 | 4,517 | ||||||||||||
| Operating income | 3,259 | 2,692 | 6,368 | 5,705 | ||||||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest expense | (141 | ) | (204 | ) | (341 | ) | (357 | ) | ||||||||
| Gain (loss) on marketable equity investments, net | (250 | ) | 77 | 3,049 | 510 | |||||||||||
| Interest and other income | 60 | 21 | 74 | 46 | ||||||||||||
| Total other income (expense) | (331 | ) | (106 | ) | 2,782 | 199 | ||||||||||
| Income before income taxes | 2,928 | 2,586 | 9,150 | 5,904 | ||||||||||||
| Provision for income taxes | 741 | 546 | 2,283 | 1,398 | ||||||||||||
| Net income | $ | 2,187 | $ | 2,040 | $ | 6,867 | $ | 4,506 | ||||||||
| Basic and diluted net income per share: | ||||||||||||||||
| Basic net income per share | $ | 0.67 | $ | 0.63 | $ | 2.11 | $ | 1.36 | ||||||||
| Diluted net income per share | $ | 0.66 | $ | 0.61 | $ | 2.07 | $ | 1.33 | ||||||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 3,249,260 | 3,261,145 | 3,255,507 | 3,314,207 | ||||||||||||
| Diluted | 3,304,042 | 3,337,337 | 3,317,777 | 3,378,862 | ||||||||||||
| Common shares outstanding | 3,209,732 | 3,260,390 | 3,209,732 | 3,260,390 |