Pro-Dex, Inc. Announces Fiscal Second Quarter 2010 Results
IRVINE, Calif., 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 $580,000 or $0.06 per share compared to a net income of $81,000 or $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.
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