SALT LAKE CITY, Sept. 14 /PRNewswire-FirstCall/ -- Dynatronics Corporation today announced results for its fourth quarter and fiscal year ended June 30, 2007. Net income for the fourth quarter increased to $214,943 ($.02 per share), compared to $39,101 ($.00 per share) in the fourth quarter of the previous year. Sales for the quarter were $4,939,425, compared to $4,944,177 in the prior year period.
Sales for the year ended June 30, 2007 were $17,837,104, compared to $19,513,136 in the prior year. Net loss for the year was $85,042 ($.01 per share), compared to net income of $194,031 ($.02 per share) in the prior year.
“We’re pleased to see a significant turnaround in the fourth quarter of a challenging year,” stated Kelvyn H. Cullimore Jr., company chairman and president. “The strong profit generated in the quarter was largely a result of the introduction of the new Dynatron X5 Oscillation Therapy device during the month of June. In addition, higher Synergie sales and lower R&D expenses contributed to the increase in profits for the quarter.”
The X5 unit’s gross profit margin as a percent of sales is one of the highest of any of the therapy devices produced by Dynatronics.
“We’re encouraged by not only the market demand for the new X5 device, but also by the beneficial outcomes practitioners are achieving with this new modality,” said Larry K. Beardall, executive vice president of sales and marketing. “Patients suffering from post-surgical pain or pain due to injury report they are enjoying dramatic improvement from these treatments.”
On another front, Beardall reports that the recent acquisition of six of the company’s key distributors is generating benefits. “Because the dynamics of the physical medicine market are changing, we moved aggressively to position Dynatronics to compete more effectively within the changing marketplace,” he explained. “The vertical integration of these key distributors is providing Dynatronics with direct distribution of our products in 20 states. As a result of these acquisitions, we expect fiscal 2008 revenues to increase 80 percent over fiscal 2007, based on the historical performance of the acquired companies.”
“Our strategic plans to reposition the company to be more competitive, together with the new X5 product introduction, are showing great promise for the company’s financial future,” added Cullimore.
Dynatronics has scheduled a conference call for investors today, Friday, September 14, 2007, at 1 p.m. ET (11:00 a.m. MT). Those wishing to participate should call 800-839-9416 and use passcode 1383812.
A summary of the financial results for the fourth quarter and fiscal year ended June 30, 2007, follows:
Summary Selected Financial Data Income Statement Highlights Three Months Ended Twelve Months Ended June 30, June 30, 2007 2006 2007 2006 Net sales $4,939,425 $4,944,177 $17,837,104 $19,513,136 Cost of sales 2,761,875 3,103,688 10,925,316 12,221,375 Gross profit 2,177,550 1,840,489 6,911,789 7,291,761 SG&A expenses 1,603,167 1,355,064 5,541,860 5,239,462 R&D expenses 339,038 479,952 1,492,774 1,756,281 Other expense, net 18,808 48,445 148,397 86,797 Income (loss) before income taxes 216,536 (42,971) (271,243) 209,221 Income tax expense (benefit) 1,593 (82,072) (186,201) 15,190 Net income (loss) $ 214,943 $ 39,101 $ (85,042) $ 194,031 Net income (loss) per share(diluted) $ .02 $ .00 $ (.01) $ .02
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 http://www.dynatronics.com.
This press release contains forward-looking statements. Those statements include references to the company’s expectations and similar statements. 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, availability of third-party component parts and products, inventory risks due to shifts in market demand, changes in product mix, market demand for the company’s products 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-KSB for the year ended June 30, 2006, and its subsequent quarterly reports on Form 10-QSB.
Dynatronics Corporation
CONTACT: Bob Cardon of Dynatronics Corp, 1-800-874-6251, +1-801-568-7000
Web site: http://www.dynatronics.com/
