IRVINE, CA / ACCESSWIRE / November 7, 2019 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced financial results for its fiscal 2020 first quarter ended September 30, 2019.
Net sales for the three months ended September 30, 2019, increased $324,000, or 5%, to $7.2 million from $6.9 million for the three months ended September 30, 2018. The increase is driven by increased sales to our largest customer, primarily increased repair revenue.
Gross profit for the three months ended September 30, 2019, remained fairly flat, increasing $53,000, or 2%, to $2.8 million, compared to $2.7 million for the year-ago period. Gross margin decreased by 1 percentage point to 38% during the three months ended September 30, 2019, compared to 39% during the corresponding year-ago period.
Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2019 increased $290,000 from the corresponding year-ago period. We are increasing these expenditures in an effort to release new products and garner new customer relationships.
Net income for the quarter ended September 30, 2019, was $1.1 million, or $0.27 per diluted share, compared to $1.3 million or $0.31 per diluted share, for the quarter ended September 30, 2018.
Richard L. ('Rick') Van Kirk, the Company's President and Chief Executive Officer, commented, 'We are pleased with our first quarter results, which include another record-breaking sales level in excess of $7 million. We continue to reinvest our profits in both research and development and business development to continue to grow our core medical device business. Finally,' concluded Mr. Van Kirk, 'we have experienced delays in our planned product launches as we modify our thoracic driver to meet our customer's specific needs.'
Costs incurred related to customer contracts are included in costs of sales and deferred costs and are not included in research and development costs.
The completion of our thoracic driver is currently a priority for our engineering team. The costs in the table above represent our costs related to our Pro-Dex branded driver, which is substantially complete. As we previously discussed, in early fiscal 2019 we entered a development contract with a current significant customer to private-label this driver for their unique specifications. We have had technical delays related to performance of this driver with a specific customer attachment. We currently believe we will launch this product in the third quarter of this fiscal year and have delayed the anticipated launch of most other products to focus on the completion of this thoracic driver.
About Pro-Dex, Inc.:
Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions that appeal to our customers, primarily medical device distributors. Pro-Dex also sells compact pneumatic air motors for a variety of industrial applications. Pro-Dex's products are found in hospitals and medical engineering labs around the world. 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.