Pro-Dex, Inc. Announces Fiscal 2016 Second Quarter And Six-Month Results

IRVINE, Calif., Feb. 11, 2016 /PRNewswire/ -- PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2016 second quarter ended December 31, 2015. The Company also filed its Quarterly Report on Form 10-Q for the second quarter of fiscal year 2016 with the Securities and Exchange Commission today.

Quarter Ended December 31, 2015

Net sales for the three months ended December 31, 2015 increased $2.6 million, or 95%, to $5.4 million from $2.8 million for the three months ended December 31, 2014, due primarily to increases in medical device revenues as well as an additional medical device product launch during the quarter. Gross profit for the three months ended December 31, 2015 increased $843,000, or 121%, to $1.5 million from $696,000 for the same period in fiscal 2015.  Contributing to this increase were the increase in sales volume, described above, and improved absorption of our fixed manufacturing overhead as compared to the corresponding quarter in fiscal 2015.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended December 31, 2015 increased $54,000 or 5% to $1.1 million compared to the prior fiscal year's corresponding quarter, reflecting primarily increased selling expenses.

Income from continuing operations for the quarter ended December 31, 2015 increased by $593,000 to $391,000, compared to a loss from continuing operations of $202,000 in the corresponding quarter in fiscal 2015.  Net income for the quarter ended December 31, 2015 was $391,000, or $0.09 per share, compared to a net loss of $192,000, or $0.05 per share, for the corresponding quarter in fiscal 2015.

Six Months Ended December 31, 2015

Net sales for the six months ended December 31, 2015 increased $4.1 million, or 77%, to $9.5 million from $5.4 million for the six months ended December 31, 2014, due primarily to increases in medical device revenues, which represents approximately 70% of our revenue for the six months ended December 31, 2015.

Gross profit for the six months ended December 31, 2015 increased $1.1 million, or 70% compared to the same period in fiscal 2015.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the six months ended December 31, 2015 increased 10% to $2.3 million from $2.1 million in the prior fiscal year's corresponding period, reflecting primarily increased selling expenses associated with our Fineline Molds division, a business we acquired in the third quarter of fiscal 2015, and increased general and administrative expenses mostly related to our investment in real property located in Ramsey, Minnesota as well as increased research and development personnel costs to assist with our growing portfolio of medical drivers.

Income from continuing operations for the six months ended December 31, 2015 was $265,000, compared to a loss from continuing operations of $383,000 for the corresponding period in fiscal 2015.  Net income for the six months ended December 31, 2015 was $265,000, or $0.06 per share, compared to a net loss of $248,000, or $0.09 per share, for the corresponding period in fiscal 2015. 

CEO Comments

Richard L. ("Rick") Van Kirk, the Company's President and Chief Executive Officer, commented, "We are extremely pleased with our second quarter results as our turnaround continues and gains momentum.  I commend the entire Pro-Dex team for their success in making timely shipments to our key customers and completing the design of another important surgical driver which marks the third completed product development project in the last nine months. In addition, we remain excited about our strong backlog as well as new opportunities in our core medical device business as we look to grow the company further."

"While we are excited to have announced a return to profitability, and appreciate the patience of our shareholders while we have made numerous changes, we believe strongly in continuous improvement.  To that end we anticipate making appropriate and measured investments to continue to strengthen our team and operations."

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, factory automation, semi-conductor and scientific research markets. Its Fineline Molds division manufactures plastic injection molding for a variety of industries. Pro-Dex's products are found in hospitals, dental offices, medical engineering labs, scientific research facilities and high tech manufacturing operations around the world.  

Pro-Dex also provides quality and regulatory consulting services, as well as engineering consulting and placement services through its Engineering Services Division.  For more information, visit the Company's website at www.pro-dex.com.

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.

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SOURCE Pro-Dex, Inc.

Related Links

http://www.pro-dex.com