Pro-Dex, Inc. Announces Fiscal 2012 First Quarter Results

IRVINE, Calif., Nov. 9, 2011 /PRNewswire/ -- PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal first quarter ended September 30, 2011.

(Logo:  http://photos.prnewswire.com/prnh/20111025/LA93174LOGO-c)

Sales for the quarter ended September 30, 2011 were $6.0 million, 3% higher than sales of $5.8 million for the corresponding quarter in 2010, due primarily to increases in sales of the Company's medical device products and fractional horsepower motors.  

Operating income was $457,000 for the quarter, a 13% increase from operating income of $405,000 in the corresponding 2010 period.  

Net income for the quarter was $446,000, or $0.14 per diluted share, which represents a 30% improvement from net income of $342,000, or $0.10 per diluted share in the corresponding 2010 quarter.    

Gross profit for the quarter ended September 30, 2011 increased to $2.3 million, a 38% gross profit margin, compared to gross profit of $2.2 million, a 37% gross profit margin, for the same year-ago period.    

Mark Murphy, the Company's President and Chief Executive Officer, commented, "We were pleased with our operating results this quarter.  Medical device sales remained strong as increased year-over-year sales to our second-largest customer more than offset decreased year-over-year sales to our largest customer.  In addition, we were happy to see an increase in sales of our fractional horsepower motors.  While these results are pleasing, our focus remains on the diversification of our revenue base.  In the process, we continue to control expenses and strengthen our balance sheet, as we generated $349,000 of operating cash during the quarter."  

Teleconference Information:

Investors and analysts are invited to listen to a broadcast review of the Company's fiscal 2012 first quarter financial results today at 9:30 a.m. Eastern Time (6:30 a.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 November 22, 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 382391.  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

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)





September 30, 2011

June 30, 2011

ASSETS



Current assets:



     Cash and cash equivalents

$4,907,000

$4,689,000

     Accounts receivable, net of allowance for doubtful accounts



    of $8,000 at September 30, 2011 and $7,000 at June 30, 2011

2,330,000

3,128,000

     Other receivables

24,000

12,000

     Inventories

4,041,000

3,703,000

     Prepaid expenses

264,000

145,000

     Deferred income taxes

162,000

163,000

        Total current assets

11,728,000

11,840,000




Property, plant, equipment and leasehold improvements, net

3,534,000

3,661,000

Other assets

53,000

60,000

Total assets

$15,315,000

$15,561,000

LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities:



    Accounts payable

$1,163,000

$1,207,000

    Accrued expenses

1,804,000

2,379,000

    Income taxes payable

80,000

78,000

    Current portion of bank term loan

357,000

357,000

       Total current liabilities

3,404,000

4,021,000




Non-current liabilities:



   Bank term loan

685,000

774,000

   Deferred income taxes

162,000

163,000

   Deferred rent

282,000

279,000

       Total non-current liabilities

1,129,000

1,216,000




Total liabilities

4,533,000

5,237,000

Commitments and contingencies



Shareholders' equity:



    Common shares; no par value; 50,000,000 shares authorized;



        3,272,350 shares issued and outstanding at September 30, 2011


        and at June 30, 2011

16,756,000

16,744,000

    Accumulated deficit

(5,974,000)

(6,420,000)

     Total shareholders' equity

10,782,000

10,324,000

    Total liabilities and shareholders' equity

$15,315,000

$15,561,000






PRO-DEX INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)


For The Three Months Ended

September 30,


2011

2010

Net sales

$6,030,000

$5,829,000

Cost of sales

3,701,000

3,645,000

Gross profit

2,329,000

2,184,000




Operating expenses:



Selling expenses

374,000

424,000

General and administrative expenses

836,000

764,000

Research and development costs

662,000

591,000

Total operating expenses

1,872,000

1,779,000




Income from operations

457,000

405,000




Other income (expense):



Interest expense, net

(10,000)

(57,000)

Total other income (expense)

(10,000)

(57,000)




Income before provision for income taxes

447,000

348,000




Provision for income taxes

1,000

6,000

Net income

$446,000

$342,000




Net income per share:



Basic

$0.14

$0.11

Diluted

$0.14

$0.10




Weighted average shares outstanding - basic

3,272,350

3,251,850

Weighted average shares outstanding - diluted

3,280,045

3,263,366



PRO-DEX, INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


For The Three Months Ended

September 30,


2011

2010

Cash flows from operating activities:



Net income

$446,000

$342,000

Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization

169,000

172,000

Allowance for doubtful accounts

1,000

(12,000)

Stock based compensation

12,000

4,000

Deferred taxes

-

(18,000)

Changes in:



Accounts receivable

785,000

(18,000)

Inventories

(338,000)

(621,000)

Prepaid expenses

(119,000)

(36,000)

Other assets

8,000

17,000

Accounts payable and accrued expenses

(616,000)

582,000

Income taxes payable

1,000

(31,000)

Net cash provided by operating activities

349,000

381,000




Cash flows from investing activities:



Purchases of equipment and leasehold improvements

(42,000)

(6,000)




Net cash used in investing activities

(42,000)

(6,000)




Cash flows from financing activities:



Principal payments on term loan

(89,000)

(100,000)

Principal payments on mortgage

-

(1,528,000)




Net cash used by financing activities

(89,000)

(1,628,000)




Net increase (decrease) in cash and cash equivalents

218,000

(1,253,000)

Cash and cash equivalents, beginning of period

4,689,000

3,794,000




Cash and cash equivalents, end of period

$4,907,000

$2,541,000




Supplemental Information

Cash payments for interest

$11,000

$68,000




Cash payments for income taxes

-

$55,000






SOURCE Pro-Dex, Inc.



RELATED LINKS
http://www.pro-dex.com

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