Feb. 4 /PRNewswire-FirstCall/ -- PRO-DEX, INC. (Nasdaq: PDEX) today announced its financial results for the fiscal second quarter 2010, the period ending
December 31, 2009.
Sales for the second quarter ended
December 31, 2009, increased 9% to
$5.7 million compared to
$5.2 million for the previous year's second quarter, due to continued increases in medical device sales. The higher medical device sales were substantially driven by the new arthroscopic surgical hand-piece that began shipping at the end of the first fiscal quarter. Net income for the second quarter was
$0.06 per share compared to a net income of
$0.01 per share for the previous year's second quarter.
Gross profit for the quarter ended
December 31, 2009, increased to
$2.0 million, a 35% gross profit margin, compared to gross profit of
$1.9 million or 37% gross profit margin in last year's second quarter. The profit increase was consistent with the increased sales; however the gross profit margin was reduced due to a lower margin mix of products.
Operating expenses for the second quarter (excluding the impairment charge discussed below) declined due to cost saving measures implemented last year. The cost savings measures were primarily structurally decreased labor expenses.
Included in this quarter's net income were two non-recurring events:
- A pre-tax impairment charge of approximately $140,000 for the remaining value of certain patents purchased in 2005. Strategic options to sell, license, or otherwise exploit this technology have not materialized and do not appear imminent.
- An income tax gain of approximately $489,000 created by reversing a portion of the income tax valuation allowance recorded in the third quarter of fiscal year 2009. In November 2009, a change in the tax law extended the allowable time period of net operating loss carry backs from two to five years. This enabled the Company to use the benefits and file for a refund for the 2004 and 2005 tax years.
These two non-recurring items created a net
per share profit in the quarter.
During the second quarter of fiscal year 2010, the Company continued to strengthen its balance sheet, generating an additional
of operating cash. In the first six months of fiscal year 2010, the Company generated
in operating cash, a significant improvement from the
in cash used in the first six months of fiscal year 2009. At
December 31, 2009
, the Company had cash and cash equivalents of
compared to cash and cash equivalents of
June 30, 2009
December 31, 2008
. The Company’s net debt (total debt less cash) was
December 31, 2009
, down from
June 30, 2009
and down from
December 31, 2008
, the Company’s President and Chief Executive Officer, commented, “We are pleased to report another quarter of solid sales, earnings and cash generation. Excluding both the negative impact of the patent write-off and the positive impact of the tax gain, the Company’s operating engine produced its third consecutive
per share quarter. And in an environment where cash is critical, it is encouraging to post another half-million dollar positive operating cash quarter. Stronger fiscal year 2010 sales, combined with our reduced cost structure, have allowed the Company to function more efficiently.”
Pro-Dex also announced today that Mr.
will be leaving the employment of the Company effective
February 5, 2010
. Mr. Johnson joined the Company in 2000 as the General Manager of the Micro Motors Division, served as CEO from 2002 to 2006, and as Executive Vice President and Chief Business Development Officer since 2006.
Commenting on this event, Mr. Murphy stated, “Patrick has made significant contributions to Pro-Dex during his 10 year career here. He led the reinvention of the Company in the early 2000’s, transforming Pro-Dex from a dental hand-piece company into a comprehensive medical device development and manufacturing player. His leadership has framed a large part of who we are today. Patrick will next be applying his leadership skills to a major humanitarian relief effort in
, heading up a project called WorldBed. On behalf of the Company, I want to thank Patrick and wish him all the best in his future endeavors.”
Investors and all others are invited to listen to a conference call discussing the second fiscal quarter 2010 results, today at
4:30 p.m. Eastern Time
. The call is scheduled to be broadcast live over the Internet and may be accessed by visiting the Company's website at
or directly at
, Chief Executive Officer and
, Chief Financial Officer, plan to host the call. If you would like to join the call, dial (877) 356-8625 U.S. and (706) 634-9779 International, conference I.D. 54190245. You may identify the call as the Pro-Dex Second Quarter Earnings Call. An online archive of the broadcast will be available within two hours of the completion of the call and will be accessible on the Company's website for 365 days. Additionally, a telephone replay will be available 2 hours after the call for 48 hours by dialing (800) 642-1687 U.S. or (706) 645-9291 for international callers, conference I.D. number 54190245.
Pro-Dex, Inc., with operations in
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.
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 disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.