SALT LAKE CITY, March 31 /PRNewswire-FirstCall/ -- Dynatronics Corporation today announced that NASDAQ has filed a third grace period extension with the SEC, giving the company until approximately September 27, 2009, to comply with NASDAQ's $1 per share minimum bid rule.
"We are pleased that NASDAQ has again extended the timeframe for compliance," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "This will allow us time to announce our year-end results, which are expected to show significant improvement over the prior year."
Dynatronics recently reported a profit for the quarter ended December 31, 2008, showing substantially improved results for that period. The company also announced it had retained Vici Capital to assist in seeking ways to improve revenues and minimize expenses. Partly as a result of that process, the company has taken steps to reduce annual expenses by approximately $1,000,000. Additional savings are expected to be achieved in subsequent months from this effort.
"In the quarter ending June 30, 2009, we plan to introduce a new, high-margin product to the physical medicine market," Cullimore added. "The combination of new products, reduced expenses and improved revenues is expected to lead to significantly improved operating results and generate sustainable earnings improvements for the company."
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 for future events. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this press release include the statements concerning anticipated improvements for the quarter ending June 30, 2009, the anticipated impact of the introduction of a new product in the quarter ending June 30, 2009, the expectation that changes implemented with the assistance of Vici Capital will reduce operating expenses by approximately $1,000,000, the expectation that additional savings are expected to be achieved in the coming months, and the statement that these developments are expected to lead to significantly improved operating results and generate sustainable earnings improvements for the company. 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, 2008.
CONTACT: Bob Cardon of Dynatronics Corp., 1-800-874-6251, or
+1-801-568-7000
Web site: http://www.dynatronics.com/
