IRVINE, Calif., Feb. 6, 2012 /PRNewswire/ -- PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal second quarter and six months ended December 31, 2011.
As a result of decreases in sales of the Company's medical device products to its largest customer, anticipated and previously disclosed by the Company, sales for the quarter ended December 31, 2011 decreased 20% to $4.9 million from $6.2 million for the corresponding quarter in 2010. Similarly, for the six months ended December 31, 2011, sales decreased 9% to $10.9 million from $12.0 million for the corresponding period in 2010.
Operating loss was $282,000 for the quarter, compared to operating income of $571,000 in the corresponding 2010 period. For the six months ended December 31, 2011, operating income was $176,000, as compared to $977,000 for the corresponding six-month period in 2010.
Net loss for the 2011 quarter was $292,000, or $0.09 per fully-diluted share, as compared to net income of $401,000, or $0.12 per fully-diluted share, in the corresponding 2010 quarter. For the six months ended December 31, 2011, net income was $154,000, or $0.05 per fully-diluted share, as compared to net income of $743,000, or $0.23 per fully diluted share for the corresponding period in 2010.
Gross profit for the quarter ended December 31, 2011 was $1.4 million, a 29% gross profit margin, compared to gross profit of $2.4 million, a 39% gross profit margin, for the year-ago period. For the six months ended December 31, 2011, gross profit was $3.7 million, a 34% gross profit margin, compared to gross profit and margin of $4.6 million and 38%, respectively, for the corresponding six-month period in 2010. These decreases resulted primarily from the year-over-year decrease in sales, higher warranty expenses due to an increase in the estimated per-unit cost to repair units that may be returned within the warranty period, and, with respect to the three-month period ended December 31, 2011, reduced manufacturing efficiencies commensurate with the lower sales volume.
Mark Murphy, the Company's President and Chief Executive Officer, commented, "During the first half of fiscal 2012, we experienced the decreases in sales to our largest customer we had anticipated, which significantly impacted our gross margins. Midway through our fiscal second quarter, we initiated a headcount reduction, allowing us to enhance manufacturing efficiencies while continuing to meet demand for our products. We will maintain close management of our cost structure as we continue to vigorously pursue new revenue opportunities."
Investors and analysts are invited to listen to a broadcast review of the Company's fiscal 2012 second quarter 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. or Canada.
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 February 20, 2012 by calling (877) 660-6853, or (201) 612-7415 if calling from outside the U.S. or Canada, and then entering account number 286 and conference I.D. number 387491. 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.