SALT LAKE CITY, March 3, 2011 /PRNewswire/ -- Dynatronics Corporation (Nasdaq: DYNT) announces the signing of a contract with FirstChoice Cooperative, a group purchasing organization (GPO) headquartered in Tyler, Texas. FirstChoice has a network of more than 20,000 members nationwide. The three-year agreement with FirstChoice is effective March 1, 2011.
This represents the third GPO contract signed in the past two months with the three GPO's representing cumulatively 140,000 members.
"The addition of these three GPO contracts provides an opportunity for significant incremental business to the company over the next twelve months and beyond," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "We are anxious to begin working with these potential new customers and introducing them to the Dynatronics brand of products."
GPOs represent the single largest share of purchasing power of the physical medicine market.
"These GPO members now have access to Dynatronics' premier line of equipment and supplies," said Larry K. Beardall, executive vice president of business development, sales and marketing. "Based on the current interest level, we believe the conversion rate of GPO clinics to our brand will be better than originally anticipated."
"Opportunities for growth at Dynatronics have never been greater," added Cullimore. "Breaking into the GPO market has been a major accomplishment that we expect will enable us to increase our market share significantly. We anticipate that this and other important developments at the company will also have a positive impact on shareholder value, particularly in conjunction with our recently announced $1 million stock buy-back program."
Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets. More information regarding Dynatronics is available at www.dynatronics.com.
This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements such as the statement regarding several million dollars in new business over the next year and expectations for future growth from GPO contracts. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the company's products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the company's products, availability of financing at cost effective rates, and the risk factors listed from time to time in the company's SEC reports including, but not limited to, the report on Form 10-K for the year ended June 30, 2010.
SOURCE Dynatronics Corporation