Pro-Dex Records Q2 Sales Gains, Curbs Losses Over Last Fiscal Year

Pro-Dex Inc. reported second-quarter results for the period ended Dec. 31.

Net sales for the period increased $152,000, or 6 percent, to $2.8 million from $2.6 million in the same quarter of the previous fiscal year, due primarily to increases in medical device revenues, according to officials with the Irvine, Calif.-based company. Gross profit increased $147,000, or 27 percent, to $696,000 from $549,000 for the same period.

Contributing to the increase was a rise in sales volume and a decrease in the accrual for “anticipated losses from the development services portion of certain contracts,” which decreased by $103,000 compared to the corresponding period of the prior fiscal year.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter increased 18 percent to $1.1 million from $925,000 in the prior year’s corresponding quarter, reflecting the company’s investment in its newly launched engineering services division.

Loss from continuing operations decreased by $136,000 to $202,000, compared to a loss from continuing operations of $338,000 in the corresponding quarter in 2013. Net loss for the quarter was $192,000, or 5 cents per share, compared to a net loss of $338,000, or 10 cents per share, for the same quarter in FY14.

Net sales for the six months ended Dec. 31 increased $193,000, or 4 percent, to $5.4 million from $5.2 million for the six months ended Dec. 31, 2013, due primarily to increases in medical device revenues, which were partially offset by a decrease in dental product revenues, Pro-Dex officials reported.
Gross profit for the first half of the year remained stable at $1.5 million, consistent with the same period in 2013.

Operating expenses increased 14 percent to $2.1 million from $1.8 million in the prior year’s corresponding period, reflecting primarily the effects of the investment in the engineering services division as well as research and development costs incurred to launch in-house battery manufacturing and increases in legal expenses associated with acquisitions and other non-routine transactions.

Loss from continuing operations for the six months was $383,000, compared to a loss from continuing operations of $320,000 for the corresponding period in 2013. Net loss for the six months was $362,000, or 9 cents per share, compared to a net loss of $126,000, or 4 cents per share, for the corresponding period in 2013.

Pro-Dex’s brass has decided to stop hosting earnings conference calls for the “foreseeable future,” according to a recent news release.

“We are a small public company and our current focus is on improvement of our financial performance, which includes developing new revenue streams, improving and cultivating our valued customer relationships, and responding to new opportunities quickly,” officials noted. “We will continue to provide timely earnings releases and other press announcements to keep you apprised of our activities and progress.”

Pro-Dex, with operations in California, Michigan 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.