IRVINE, Calif., Sept. 14, 2011 /PRNewswire/ -- PRO-DEX, INC.
(NasdaqCM: PDEX) today announced financial results for its fiscal
fourth quarter and full-year ended June 30,
2011.
Sales for the quarter ended June 30,
2011 were $7.5 million, 31%
higher than sales of $5.7 million for
the corresponding quarter in 2010, due primarily to increases in
sales of the Company's medical device products to its three largest
customers. For the year ended June 30,
2011, sales were $27.1
million, 17% higher than sales of $23.2 million for fiscal year 2010, resulting
primarily from increases in sales of medical device products to the
Company's largest customer and from growth in sales of its motion
control products.
Operating income was $1.1 million
for the quarter, a 283% increase from operating income of
$296,000 before impairment charges in
the corresponding 2010 period. For the year ended
June 30, 2011, operating income
increased 167% to $3.2 million from
operating income of $1.2 million
before impairment charges in fiscal year 2010.
Net income for the 2011 fourth quarter was $1.0 million, or $0.31 per diluted share, which represents a 498%
improvement from net income of $172,000, or $0.05
per diluted share, before impairment charges in the corresponding
2010 quarter. For the year ended June
30, 2011, net income was $2.6
million, or $0.80 per diluted
share, a 111% improvement from net income of $1.2 million, or $0.38 per diluted share, before impairment
charges in fiscal year 2010.
Gross profit for the quarter ended June
30, 2011 increased to $3.1
million, a 41% gross profit margin, compared to gross profit
of $2.2 million, a 38% gross profit
margin, for the same year-ago period. For the fiscal year
ended June 30, 2011, gross profit was
$10.5 million, a 39% gross profit
margin, compared to gross profit and margin of $8.4 million and 36%, respectively, for fiscal
year ended June 30, 2010. The
increase in gross profit as a percentage of sales during both
periods was due to a change in mix toward sales of medical device
and motion control products at relatively higher margins, and to
cost reductions.
Mark Murphy, the Company's
President and Chief Executive Officer, commented, "Fiscal 2011 was
a notable year. Sales and profitability were significantly
higher than the prior year, indicating the strength of our
operating engine at a record high sales level. In addition,
we generated $2.9 million of
operating cash, allowing us to further strengthen the balance sheet
with $900,000 of increased cash and
$1.7 million of reduced debt. We
ended the year with $4.7 million in
cash. Looking forward, we anticipate a reduction in shipments
to our largest customer, and our focus remains on managing our cost
structure while we diversify our customer base. I am pleased to
report that we have broadened and deepened our relationships with
major medical device companies, and have experienced increased
proposal activity. Our task now is to convert those
opportunities into backlog. In the meantime, we will protect
our balance sheet as we work toward our goal of systemically
recreating this year's notable results on a new customer base."
Teleconference Information:
Investors and analysts are invited to listen to a broadcast
review of the Company's fiscal 2011 fourth quarter and full-year
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
www.pro-dex.com. The conference call may also be accessed at
www.InvestorCalendar.com. 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.
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 September
28, 2011 by calling (877) 660-6853, or (201) 612-7415 if
calling from outside the U.S., and then entering account number 286
and conference I.D. number 378851. An online archive of the
broadcast will be available on the Company's website
www.pro-dex.com for a period of 365 days.
Pro-Dex, Inc., with operations in California, Oregon and Nevada, specializes in bringing speed to
market in the development and manufacture of technology-based
solutions that incorporate powered surgical device drive systems,
embedded motion control and fractional horsepower DC motors,
serving the medical, dental, semi-conductor, scientific research
and aerospace markets. Pro-Dex's products are found in
hospitals, dental offices, medical engineering labs, commercial and
military aircraft, scientific research facilities and high tech
manufacturing operations 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.
(tables follow)
|
PRO-DEX,
INC. and SUBSIDIARIES
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
June 30,
2011
|
June 30,
2010
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
and cash equivalents
|
$
4,689,000
|
$
3,794,000
|
|
|
Accounts receivable, net of allowance for doubtful
accounts
|
|
|
|
|
of
$7,000 in 2011 and $25,000 in 2010
|
3,128,000
|
2,682,000
|
|
|
Other
current receivables
|
12,000
|
22,000
|
|
|
Inventories
|
3,703,000
|
3,228,000
|
|
|
Prepaid
expenses
|
145,000
|
174,000
|
|
|
Deferred income taxes
|
163,000
|
209,000
|
|
|
Total current assets
|
11,840,000
|
10,109,000
|
|
|
|
|
|
|
Property, plant, equipment and
leasehold improvements, net
|
3,661,000
|
4,092,000
|
|
|
Other assets
|
60,000
|
78,000
|
|
|
Total assets
|
$ 15,561,000
|
$ 14,279,000
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
1,207,000
|
$
1,279,000
|
|
|
Accrued
expenses
|
2,379,000
|
1,947,000
|
|
|
Income taxes
payable
|
78,000
|
79,000
|
|
|
Current Portion of
bank term loan
|
357,000
|
400,000
|
|
|
Current portion of
real estate loan
|
-
|
35,000
|
|
|
Total
current liabilities
|
4,021,000
|
3,740,000
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Bank term
loan
|
774,000
|
967,000
|
|
|
Real estate
loan
|
-
|
1,493,000
|
|
|
Deferred income
taxes
|
163,000
|
209,000
|
|
|
Deferred
rent
|
279,000
|
255,000
|
|
|
Total
non-current liabilities
|
1,216,000
|
2,924,000
|
|
|
|
|
|
|
Total liabilities
|
5,237,000
|
6,664,000
|
|
|
Commitments and
contingencies
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Common shares; no
par value; 50,000,000 shares authorized;
|
|
|
|
|
3,272,350 shares issued and outstanding June 30,
2011
|
|
|
|
|
3,251,850 shares issued and outstanding June 30,
2010
|
16,744,000
|
16,675,000
|
|
|
Accumulated
deficit
|
(6,420,000)
|
(9,060,000)
|
|
|
|
|
|
|
Total
shareholders’ equity
|
10,324,000
|
7,615,000
|
|
|
|
|
|
|
Total liabilities
and shareholders’ equity
|
$ 15,561,000
|
$ 14,279,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRO-DEX,
INC. and SUBSIDIARIES
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
For The
Years Ended June 30,
|
|
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
Net sales
|
$ 27,109,000
|
$ 23,211,000
|
|
|
|
|
|
|
|
|
Cost of sales
|
16,573,000
|
14,847,000
|
|
|
|
Gross profit
|
10,536,000
|
8,364,000
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Selling
expenses
|
1,600,000
|
1,382,000
|
|
|
|
General and
administrative expenses
|
3,276,000
|
3,288,000
|
|
|
|
Impairment of
goodwill
|
-
|
2,997,000
|
|
|
|
Impairment of
patent
|
-
|
140,000
|
|
|
|
Impairment of
property value
|
-
|
1,307,000
|
|
|
|
Research and
development costs
|
2,416,000
|
2,480,000
|
|
|
|
Total operating
expenses
|
7,292,000
|
11,594,000
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
3,244,000
|
(3,230,000)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Royalty
income
|
-
|
44,000
|
|
|
|
Interest expense,
net
|
(148,000)
|
(202,000)
|
|
|
|
Total other income
(expense)
|
(148,000)
|
(158,000)
|
|
|
|
|
|
|
|
|
Income (loss) before provision
for income taxes
|
3,096,000
|
(3,388,000)
|
|
|
|
|
|
|
|
|
Provision (benefit) for income
taxes
|
456,000
|
(420,000)
|
|
|
|
Net income (loss)
|
$
2,640,000
|
$
(2,968,000)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
Basic
|
$
0.81
|
$
(0.92)
|
|
|
|
Diluted
|
$
0.80
|
$
(0.92)
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
3,264,936
|
3,232,850
|
|
|
|
Weighted average shares
outstanding - diluted
|
3,287,415
|
3,232,850
|
|
|
|
|
|
|
|
|
|
PRO-DEX,
INC. and SUBSIDIARIES
|
|
|
RECONCILIATION of NON-GAAP
RESULTS to GAAP RESULTS
|
|
|
|
|
|
For the Year
Ended
June 30, 2010
|
For the
Three
Months Ended
June 30, 2010
|
|
|
Income
(Loss) From Operations
|
|
|
|
|
|
|
Income from operations before
impairment charges
|
$
1,214,000
|
$
296,000
|
|
|
Impairment charges
to:
|
|
|
|
|
Goodwill
|
2,997,000
|
2,997,000
|
|
|
Patent
|
140,000
|
-
|
|
|
Property
|
1,307,000
|
1,307,000
|
|
|
|
|
|
|
(Loss) from
operations
|
$
(3,230,000)
|
$ (4,008,000)
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
|
|
|
|
|
Income from operations before
impairment charges
|
$
1,214,000
|
$
296,000
|
|
|
Other (expense), net
|
(158,000)
|
(49,000)
|
|
|
Income before provision
(benefit) for income taxes
|
1,056,000
|
247,000
|
|
|
Provision (benefit) for income
taxes
|
(193,000)
|
75,000
|
|
|
|
|
|
|
Net income before impairment
charges
|
$
1,249,000
|
$
172,000
|
|
|
|
|
|
|
Impairment charges
to:
|
|
|
|
|
Goodwill
|
2,997,000
|
2,997,000
|
|
|
Patent
|
140,000
|
-
|
|
|
Property
|
1,307,000
|
1,307,000
|
|
|
Total impairment
charges
|
4,444,000
|
4,304,000
|
|
|
|
|
|
|
Effect of impairment charges on
provision for income taxes
|
(227,000)
|
(227,000)
|
|
|
|
|
|
|
Net (loss)
|
$
(2,968,000)
|
$ (3,905,000)
|
|
|
|
|
|
|
Net Income
(Loss) Per Diluted Share Information
|
|
|
|
|
|
|
Net income per diluted share
before impairment charges
|
$
0.38
|
$
0.05
|
|
|
Net loss per diluted
share
|
$
(0.92)
|
$
(1.20)
|
|
|
|
|
|
|
Weighted average diluted shares
outstanding
|
|
|
|
|
Used for net income per
diluted share before impairment charges
|
3,252,959
|
3,272,805
|
|
|
Dilutive equivalent shares
excluded from net loss per diluted share calculation
|
10,109
|
21,567
|
|
|
Used for net loss per
diluted share
|
3,242,850
|
3,251,238
|
|
|
|
|
|
|
|
|
|
|
|
PRO-DEX,
INC. and SUBSIDIARIES
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
For The
Years Ended June 30,
|
|
|
2011
|
2010
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
Net income (loss)
|
$ 2,640,000
|
$ (2,968,000)
|
|
|
Adjustments to reconcile net
income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
697,000
|
726,000
|
|
|
Impairment
expense
|
-
|
4,444,000
|
|
|
(Decrease) in allowance
for doubtful accounts
|
(18,000)
|
(27,000)
|
|
|
Stock based
compensation
|
43,000
|
101,000
|
|
|
Deferred taxes
|
-
|
(91,000)
|
|
|
Changes in:
|
|
|
|
|
Accounts
receivable
|
(418,000)
|
(146,000)
|
|
|
Inventories
|
(475,000)
|
137,000
|
|
|
Prepaid
expenses
|
29,000
|
(57,000)
|
|
|
Other assets
|
18,000
|
9,000
|
|
|
Accounts payable and
accrued expenses
|
383,000
|
1,086,000
|
|
|
Income taxes
payable
|
(1,000)
|
26,000
|
|
|
Net cash provided by operating
activities
|
2,898,000
|
3,240,000
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
Purchase of equipment and
leasehold improvements
|
(265,000)
|
(137,000)
|
|
|
|
|
|
|
Net cash used in investing
activities
|
(265,000)
|
(137,000)
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
Principal payments on bank
loan
|
(236,000)
|
(400,000)
|
|
|
Principal payments on real
estate loan
|
(1,528,000)
|
(33,000)
|
|
|
Proceeds from exercise of
stock options
|
26,000
|
-
|
|
|
|
|
|
|
Net cash used in financing
activities
|
(1,738,000)
|
(433,000)
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
895,000
|
2,670,000
|
|
|
Cash and cash equivalents,
beginning of year
|
3,794,000
|
1,124,000
|
|
|
|
|
|
|
Cash and cash equivalents, end
of year
|
$ 4,689,000
|
$
3,794,000
|
|
|
|
|
|
|
Supplemental
Information
|
|
|
Cash paid for
interest
|
$
148,000
|
$
204,000
|
|
|
Cash paid for income
taxes
|
$
456,000
|
$
154,000
|
|
|
|
|
|
|
|
|
SOURCE Pro-Dex, Inc.