Full Press Release Details
| Contact: | Mark Murphy, Chief Executive Officer | |
| (949) 769-3200 |
Panel Grants Pro-Dex's Request for Continued Listing
receives update on major customer's product development plans, extending the
estimated time for potential transition and resulting in the receipt of large
IRVINE, California, April 7,
2010 -- Pro-Dex, Inc. (NASDAQ: PDEX) (the "Company") announced today
that the Company recently appeared before a NASDAQ Listing Qualifications Panel
(the "Panel") and was notified on March 24, 2010 that the Panel
has granted the Company's request for continued listing on The NASDAQ Capital
Market subject to the condition that, on or before July 12, 2010, the Company
evidence a closing bid price of $1 or more for a minimum of ten consecutive
trading days. Mark Murphy, the Company's CEO commented that "We are
pleased with NASDAQ's grant of this extension. While we cannot
guarantee that the stock price will increase beyond the $1 threshold, it does
provide the Company with additional time to release results for another quarter
as well and any new developments which may emerge."
The Company also announced today that it
has updated information regarding one of its largest customers (the "Customer")
who previously notified us that it was is in the process of developing, and
planned to eventually manufacture its own surgical hand pieces which are
functionally comparable to the two products currently provided by the
Company. The Customer has not provided firm transition dates or
volumes due to the inherent uncertainty in the design, testing, and
qualification process. The Customer previously advised us that it
expected to maintain its current level of purchases at least through August of
2010 for one product, and at least through December of 2010 for the second
product. The Company received purchase orders from this customer for
production of the first product for quantities that would support the Customer's
historical consumption rates through the fourth quarter of fiscal year
2011. Because the Customer intends to build inventory, it has
requested to take delivery of all of these hand pieces by the end of October
2010. Regarding the second product, the customer's planning was
extended by six months through at least June 2011 and the Company received a
purchase order for normal deliveries through February 2011, with a follow-on
P.O. for the balance expected toward the end of this calendar
year. These purchase orders totaled $4.2 million and increased the
Company's backlog to a record high backlog of $13.2 million as of March 31,
2010. Additionally, the Customer indicated it intends to continue
purchasing some portion of these products from the Company for up to three years
to support existing customers with additional and replacement units of
the same type and in specific geographic markets where regulatory registration
requires an extended period of time. Mr. Murphy commented that
"We very much appreciate our customer's transparency with us regarding their
plans. There remains significant uncertainty in their potential
transition dates and they are keeping us well informed of their needs and
status, placing hard P.O.'s that evidence both."
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Inc., with operations in Irvine, California, Beaverton, Oregon and Carson City,
Nevada, specializes in bringing speed to market in the development and
manufacture of technology-based solutions that incorporate miniature rotary
drive systems, embedded motion control and fractional horsepower DC motors,
serving the medical, dental, semi-conductor, scientific research and aerospace
markets. Pro-Dex's products are found in hospitals, dental offices, medical
engineering labs, commercial and military aircraft, scientific research
facilities and high tech manufacturing operations around the world.
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