Navigation Links
Pro-Dex, Inc. Announces Fiscal 2014 First Quarter Results

IRVINE, Calif., Nov. 13, 2013 /PRNewswire/ -- PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2014 first quarter ended September 30, 2013.


Sales for the quarter ended September 30, 2013 decreased 26% to $2.6 million from $3.5 million for the corresponding quarter in 2012.  This decrease was due primarily to a deferral in the timing of product orders from the Company's current largest powered surgical instrument customer, partially offset by increases in surgical instrument sales to other customers, and to a decrease in motion control product sales. 

Gross profit for the quarter ended September 30, 2013 decreased to $945,000, compared to gross profit of $1.2 million for the year-ago period, primarily as a result of the sales volume decrease between periods, partially offset by a decrease in product warranty costs. Gross profit as a percentage of sales was 37% for the quarter ended September 30, 2013, as compared to 36% for the corresponding quarter in 2012, resulting primarily from improvements in production efficiency.Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2013 decreased 28% to $924,000 from $1.3 million in the prior year's corresponding quarter, reflecting the effects of the Company's cost reduction program.

Income from continuing operations for the quarter ended September 30, 2013 was $18,000, compared to a loss from continuing operations of $59,000 in the corresponding quarter in 2012.  Net income for the quarter ended September 30, 2013 was $212,000, or $0.06 per diluted share, compared to a net loss of $17,000, or $0.01 per diluted share, for the corresponding quarter in 2012.  The 2013 quarter reflects a $167,000 gain from the previously announced sale in July 2013 of the Company's facility in Carson City, Nevada, that had housed the Company's former Astromec fractional horsepower motor business, which the Company accounts for as a discontinued operation. 

CEO CommentsHarold A. ("Hal") Hurwitz, the Company's President and Chief Executive Officer, commented, "It is good to report profitable operating results again.  Certainly, one quarter does not create, nor imply, a trend.  Even so, the operating results for the quarter ended September 30, 2013 reflect the long, painful, and now rewarding process of right-sizing our cost footprint to our current revenue base."

"Without question, achieving the goal of a rebuilt revenue base is still ahead of us, and we maintain our focus on that goal.  During the quarter ended September 30, 2013, we continued to make significant progress on engineering projects, with a goal to deliver to our customers in late fiscal 2014 or early fiscal 2015 a next-generation platform for powered surgical instruments in which we will retain significant intellectual property rights. In addition, we have several active proposals in the hands of existing and prospective customers for similar such projects."

"Also during the quarter, we continued engineering work in collaboration with an existing customer on a contract manufacturing project related to a new surgical system, the development phase of which is also expected to culminate in the late fiscal 2014 or early fiscal 2015 time frame." 

"Fiscal 2014 marks the first year in which the full effect of our cost reduction efforts of the past year will be reflected in our results.  This said, our efforts in cost reduction and control are not yet complete.  Nonetheless, year-over-year stability of gross margins despite lower sales volumes, together with year-over-year decreases of 66% in selling expenses, 25% in general and administrative expenses, and 8% in research and development expenses, we believe clearly demonstrate how far we have come."

Teleconference Information:Investors and analysts are invited to listen to a broadcast review of the Company's fiscal 2014 first quarter financial results today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) that may be accessed by visiting the Company's website at  The conference call may also be accessed at Investors and analysts who would like to participate in the conference call may do so via telephone at (877) 407-8033, or at (201) 689-8033 if calling from outside the U.S. or Canada.

For those who cannot access the live broadcast, a replay will be available approximately two hours after the completion of the call until midnight (Eastern Time) on November 28, 2013 by calling (877) 660-6853, or (201) 612-7415 if calling from outside the U.S. or Canada, and then entering conference I.D. number 13572779.  An online archive of the broadcast will be available on the Company's website for a period of 365 days.

About Pro-Dex, Inc.:Pro-Dex, Inc., with operations in California and Oregon, specializes in the design, development and manufacture of powered rotary drive surgical and dental instruments used primarily in the orthopedic, spine, maxocranial facial and dental markets.  Its OMS division designs and manufactures embedded motion control systems serving the medical, dental, semi-conductor and scientific research markets. Pro-Dex's products are found in hospitals, dental offices, medical engineering labs, scientific research facilities and high tech manufacturing operations around the world. For more information, visit the Company's website at

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.

(tables follow)

(unaudited)September 30, 2013June 30, 2013ASSETSCurrent assets:Cash$


1,680,000Accounts receivable, net of allowance for doubtful accounts of $27,000 at September 30, 2013 and $24,000 at June 30, 20131,361,0001,339,000Unbilled receivables398,000244,000Other current receivables15,00032,000Inventories3,973,0003,834,000Prepaid expenses139,000157,000Income taxes receivable1,0002,000Deferred income taxes60,00059,000Total current assets7,776,0007, 347,000Investments654,000370,000Equipment and leasehold improvements, net1,926,0002,065,000Real estate held for sale—733,000Intangibles17,000—Other assets80,00080,000Total assets$


10,595,000LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable$


844,000Accrued expenses1,147,0001,276,000Deferred revenue212,000141,000Income taxes payable47,00048,000Capital lease obligations6,0005,000Total current liabilities1,894,0002,314,000Non-current liabilities:Deferred income taxes60,00059,000Deferred rent261,000270,000Capital lease obligations14,00015,000Total non-current liabilities335,000344,000Total liabilities2,229,0002,658,000Commitments and contingenciesShareholders' equity:Common shares; no par value; 50,000,000 shares authorized; 3,343,988 shares issued and outstanding at September 30, 2013 and June 30, 201317,031,00017,012,000Accumulated other comprehensive income61,0005,000Accumulated deficit(8,868,000)(9,080,000)Total shareholders' equity8,224,0007,937,000Total liabilities and shareholders' equity$



(unaudited)For the Three Months Ended September 30,20132012Net sales$


3,461,000Cost of sales1,610,0002,225,000Gross profit945,0001,236,000Operating expenses:Selling expenses92,000274,000General and administrative expenses457,000608,000Research and development costs375,000406,000Total operating expenses924,0001,288,000Income (loss) from continuing operations before items below21,000(52,000)Other expense:Interest expense(2,000)(6,000)Total other expense(2,000)(6,000)Income (loss) from continuing operations before provision for income taxes19,000(58,000)Provision for income taxes1,0001,000Income (loss) from continuing operations18,000(59,000)Income from discontinued operations, net of provision for income taxes of nil in 2013 and $47,000 in 2012194,00042,000Net income (loss)$


(17,000)Other comprehensive income, net of taxUnrealized gain from marketable equity investments56,000—Total other comprehensive income56,000—Comprehensive income (loss)$


(17,000)Per share data:Income (loss) from continuing operationsBasic$




(0.02)Income from discontinued operationsBasic$




0.01Net income (loss)Basic$




(0.01)Weighted average shares outstanding - basic3,344,6973,279,578Weighted average shares outstanding - diluted3,353,4473,279,578 

(unaudited)For the Three Months Ended September 30,20132012Cash flows from operating activities:Net income (loss)$


(17,000)Adjustments to reconcile net income ( loss) to net cash (used in) operating activities:Depreciation and amortization132,000151,000Gain on sale of real estate held for sale(167,000)—Allowance for doubtful accounts3,000(6,000)Share-based compensation20,00030,000Changes in:Accounts receivable and other current receivables(9,000)(212,000)Unbilled receivables(154,000)—Inventories(139,000)(691,000)Prepaid expenses18,00020,000Accounts payable, accrued expenses and deferred rent(500,000)511,000Deferred revenue71,000—Income taxes receivable and payable1,00042,000Net cash used in operating activities(512,000)(172,000)Cash flows from investing activities:Purchase of investments(228,000)—Purchases of equipment—(41,000)Proceeds from sale of real estate held for sale900,000—Proceeds from sale of equipment6,000—Increase in intangibles(17,000)—Net cash provided by (used in) investing activities661,000(41,000)Cash flows from financing activities:Principal payments on bank term loan—(774,000)Net cash used in financing activities—(774,000)Net increase (decrease) in cash149,000(987,000)Cash, beginning of period1,680,0004,112,000Cash, end of period$


3,125,000Supplemental InformationCash payments for interest$


9,000Cash payments for income taxes$



SOURCE Pro-Dex, Inc.
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Pro-Dex, Inc. Appoints Michael J. Berthelot Chief Executive Officer
2. Pro-Dex, Inc. Announces Fiscal 2012 Third Quarter Financial Results Conference Call and Webcast
3. Pro-Dex, Inc. Announces Fiscal Third Quarter and Nine Month Results
4. Pro-Dex, Inc. Announces Update Conference Call and Webcast
5. Pro-Dex, Inc. Announces Fiscal 2012 Fourth Quarter and Full-Year Financial Results Conference Call and Webcast
6. Pro-Dex, Inc. Announces Fiscal 2012 Fourth Quarter And Full-Year Results
7. Pro-Dex, Inc. Announces Fiscal 2013 First Quarter Results
8. Pro-Dex, Inc. Announces Fiscal Second Quarter And Six-Month Results
9. Pro-Dex, Inc. And AO Partners Group Jointly Announce Voting Results
10. Pro-Dex, Inc. Appoints Harold A. Hurwitz Chief Executive Officer
11. Pro-Dex, Inc. Appoints Richard Van Kirk Chief Operating Officer
Post Your Comments:
(Date:3/29/2017)... 29, 2017 Research and Markets has ... 2014 - 2025" report to their offering. ... The global ... million by 2025. Increasing geriatric population prone to orthopedic diseases ... navigation systems over the forecast period. Osteoarthritis and osteoporosis are ...
(Date:3/29/2017)... , Mar 29, 2017  Providence Medical Technology, ... the addition of two industry veterans to the ... joined the company to lead Global Marketing, and ... Together, Mr. Lynch and Mr. Scott have over ... Mr. Lynch joins the company with over ...
(Date:3/29/2017)...  The leader in accelerated orthodontics, OrthoAccel ® ... , Manal Ibrahim , Kenji Ojima , ... the featured microlecture presenters at the AcceleDent ® ... (AAO) Annual Session, April 21-25, 2017. Orthodontists and their ... at 11:20 a.m. On the opening morning of AAO ...
Breaking Medicine Technology:
(Date:3/30/2017)... ... 2017 , ... This morning, more than 275 medical doctors, ... for an independent Vaccine Safety Commission. Five of the signers of the letter, ... a press conference at 9:00 AM Friday, March 31 at the National ...
(Date:3/29/2017)... Georgia (PRWEB) , ... March 29, 2017 , ... Full ... Therilus, founder of Pet Protect Law that assists dog owners in creating ... assist new owners in taking the natural next step to protect their new companion. ...
(Date:3/29/2017)... ... 30, 2017 , ... Sports Brand EXOUS Bodygear announced today a special sale ... for the remaining days of March, the price will be only $19.97. The EXOUS ... of just $10 (regular retail price $19.97). , The special promotional prices are to ...
(Date:3/29/2017)... ... 29, 2017 , ... Patients interested in receiving quick and ... Jamie Cameron, with or without a referral. The FASTBRACES system is valued for ... each patient’s case, treatment with the FASTBRACES system could be completed in 120 ...
(Date:3/29/2017)... ... , ... Curio Wellness , a premium medical cannabis brand and trusted ... management team with prominent executives from both inside and outside the cannabis industry. ... Ted Dumbauld , who has more than twenty years of business leadership and investment ...
Breaking Medicine News(10 mins):