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Dynatronics Announces Fiscal First Quarter Results
Date:11/11/2010

SALT LAKE CITY, Nov. 11, 2010 /PRNewswire-FirstCall/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced results for its fiscal first quarter ended September 30, 2010.

Sales for the quarter ended September 30, 2010 were $7,919,288, compared to $8,282,463 in the quarter ended September 30, 2009. Net income for the quarter ended September 30, 2010, was $17,012 ($.00 per common share), compared to $68,625 ($.01 per common share) for the same quarter in the prior fiscal year.

Reduced sales for the quarter of $363,175 were offset by lower SG&A expenses.  However, higher R&D costs contributed to lower overall profitability for the quarter ended September 30, 2010 compared to the same quarter of the prior year.  

"Investment in R&D was up $134,000 over the same period last year," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics.  "Plans to introduce redesigned products in the mid to latter part of calendar 2011 may drive higher R&D expenditures now, but we believe it will also drive higher sales of new products next year."

"Demand for higher priced capital products remains soft which contributed to lower overall sales this quarter.  However, our supplies business continues to be as strong as ever, and we have a large backlog of orders that we expect to exhaust in the next quarter," said Cullimore.

"The volume of business transitioning to the company's e-commerce portal has exceeded our expectations," reported Larry K. Beardall, executive vice-president of sales and marketing.  "Projections of a 10 percent conversion rate in the first four months were eclipsed as e-commerce orders achieved 20-25 percent of all orders four months after implementation.  We expect that this will ultimately allow further streamlining of operations and improved efficiencies."

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SOURCE Dynatronics Corporation
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