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(5,974,000)
(6,420,000)Total shareholders' equity
10,782,000
10,324,000Total liabilities and shareholders' equity
$15,315,000
$15,561,000PRO-DEX INC. and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(unaudited)For The Three Months Ended September 30,20112010Net sales
$6,030,000
$5,829,000Cost of sales
3,701,000
3,645,000Gross profit
2,329,000
2,184,000Operating expenses:Selling expenses
374,000
424,000General and administrative expenses
836,000
764,000Research and development costs
662,000
591,000Total operating expenses
1,872,000
1,779,000Income from operations
457,000
405,000Other income (expense):Interest expense, net
(10,000)
(57,000)Total other income (expense)
(10,000)
(57,000)Income before provision for income taxes
447,000
348,000Provision for income taxes
1,000
6,000Net income
$446,000
$342,000Net income per share:Basic
$0.14
$0.11Diluted
$0.14
$0.10Weighted average shares outstanding - basic
3,272,350
3,251,850Weighted average shares outstanding - diluted
3,280,045
3,263,366PRO-DEX, INC. and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited)For The Three Months Ended September 30,20112010Cash flows from operating activities: Net income
$446,000
$342,000 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
169,000
172,000Allowance for doubtful accounts
1,000
(12,000)Stock based compensation
12,000
4,000Deferred taxes
-
(18,000)Changes in:Accounts receivable
785,000
(18,000)Inventories
(338,000)
(621,000)Prepaid expenses
(119,000)
(36,000)Other assets
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