Pro-Dex, Inc. Announces Fiscal 2015 Fourth Quarter And Full-Year Results

IRVINE, Calif., Sept. 17, 2015 /PRNewswire/ -- PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2015 fourth quarter and full-year ended June 30, 2015.

Quarter Ended June 30,  2015

Net sales for the three months ended June 30, 2015 increased $860,000, or 27%, to $4.1 million from $3.2 million for the three months ended June 30, 2014, due primarily to the completion of one of two development projects in the craniomaxillofacial ("CMF") surgical segment generating revenues of approximately $700,000. Gross profit for the three months ended June 30, 2015 increased $203,000, or 22%, to $1.1 million from $931,000 for the same period in 2014.  Contributing to this increase were the increase in sales volume, described above, as well as over-absorbed fixed manufacturing costs due to higher manufacturing volume in the current year versus the prior year.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended June 30, 2015 increased 12% to $1.1 million from $954,000 million in the prior year's corresponding quarter, reflecting primarily our increase in selling expenses related to our engineering services division.

Income from continuing operations for the quarter ended June 30, 2015 increased by $63,000 to $73,000, compared to $10,000 in the corresponding quarter in 2014.  Net income for the quarter ended June 30, 2015 was $73,000, or $0.02 per share, compared to net income of $22,000, or $0.01 per share, for the corresponding quarter in 2014.

Year Ended June 30, 2015

Net sales for the year ended June 30, 2015 increased $2.6 million, or 24%, to $13.3 million from $10.8 million for the year ended June 30, 2014, due primarily to increases in medical device revenues. Specifically, our two largest customers accounted for increases of $1.7 million in revenue during the current fiscal year. Additionally, as noted above, we completed development and began production of one of two CMF surgical drivers during the fourth quarter of fiscal 2015. 

Gross profit for the year ended June 30, 2015 increased $738,000, or 25%, to $3.7 million compared to $3.0 million for the same period in 2014.

Operating expenses (which include selling, general and administrative, and research and development expenses) for the year ended June 30, 2015 increased 22% to $4.6 million from $3.8 million in the prior fiscal year, reflecting primarily costs incurred related to our engineering services division, launched earlier this year, higher legal and professional fees related to our business acquisitions and investments, employee matters and compliance costs as well as increased research and development costs as we prepare to launch our in-house battery production.

Loss from continuing operations for the year ended June 30, 2015 was $402,000, compared to a loss from continuing operations of $651,000 for fiscal 2014.  Net loss for the year ended June 30, 2015 was $365,000, or $0.09 per share, compared to a net loss of $488,000, or $0.14 per share, for fiscal 2014. 

During the year ended June 30, 2015, the Company used $775,000 of cash in operating activities, compared to the use of $329,000 of cash used in operating activities in fiscal 2014.  The increase in cash used in operating activities is primarily due to an increase in inventory related to our increased back log.  At June 30, 2015, we had a backlog of $10.6 million compared with a backlog of $2.8 million at June 30, 2014. The increase in backlog at the end of the current fiscal year is primarily due to orders for the two CMF products we developed, or are developing, as well additional orders for a customer's unique surgical handpiece designed to be used in orthopedic surgery applications which began production in the third quarter of fiscal 2015.  The increase in inventory of $1.7 million is partially offset by related increases in accounts payable, accrued expenses and deferred rent in the amount of $1.2 million, primarily for inventory purchases. 

CEO Comments

Richard L ("Rick") Van Kirk, the Company's President and Chief Executive Officer, commented, "We are pleased with our fourth quarter operating results and look forward to releasing our next development project into production.  We are also encouraged by our current backlog, though due to lead times and the timing of product launches we will begin seeing the full benefit of that backlog in our second quarter.  In addition to growing our core medical device business, we will continue to look for additional ways to grow our business and ensure future profitability."

About Pro-Dex, Inc.:

Pro-Dex, Inc., with operations in California 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. 

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