"Obviously, we are not satisfied with the direction and magnitude of our fiscal 2013 loss from continuing operations and cash used in operations. While proxy contest and severance costs, aggregating $560,000, constituted 30% of the loss and 44% of the cash usage, the point remains that our goal is to restore Pro-Dex to profitability and positive cash flow from operations. Accomplishing this goal is neither easy nor assured. Nonetheless, the examples of rebuilding the revenue base and right-sizing our cost footprint discussed herein are evidence of our best efforts to accomplish this goal in the context of our new operating structure."
Board Chairman Comments"To begin, we want to thank the Pro-Dex team for their hard work and engagement. Tough circumstances required Hal and the new board to make difficult decisions after assuming leadership earlier this year. It wasn't easy."
"As is obvious from the fiscal 2013 financial results, making a commitment to properly size the Pro-Dex staff resulted in an unavoidable drain on cash, given the change in control agreements former leadership created that will expire in July 2014. We hope that reducing the fixed cost embedded in the former, top-heavy staff structure will result in greater profitability in future quarters."
"Notably, we are seeing evidence that reducing over-staffing allows the Company's talented and motivated team members to maximize their capabilities. As they have stepped up, we are hearing evidence that Pro-Dex is running more smoothly and efficiently with fewer people."
"Hal and Rick Van Kirk, the Company's Chief Operating Officer, are leading an important cultural shift toward thoughtful frugality. In
|SOURCE Pro-Dex, Inc.|
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