Dynatronics (NSDQ:DYNT) opened its fiscal year 2014 with widening its losses on the back of a drop in sales, and the company is hoping a scaling up of its sales team will help boost its distribution channels.
Dynatronics posted losses of $107,784, or -4¢ per share, on sales of $7.1 million for the 3 months ended Sept. 30. That’s a profit slide of 110.7% on a sales drop of 2.1% compared with the same period last year. The Salt Lake City, UT-based company attributed its doubled losses in part to a $49,000 boost in the company’s research & development, in addition to the drop in sales of 3rd-party products, according to the regulatory filing.
“While sales of manufactured capital products and supplies remained even or improved, reduced sales of distributed medical products and supplies, including exercise products, nutritional supplements and taping products, accounted for the decrease in sales for the quarter ended September 30, 2013, compared to the prior year period,” president Kelvyn Cullimore said in prepared remarks.
“The continued general economic weakness in our primary markets, combined with uncertainties surrounding the implementation of the Affordable Care Act, have dampened demand and contributed to lower sales numbers," he added. "To offset these challenges, management has undertaken a plan to significantly expand the company’s distribution channels by adding new dealers and sales representatives."
Dynatronics has already added more than 30 new sales reps, including direct sales and independent dealers, and the company hopes to add about 45 more.
The news sent DYNT shares up 2.96% on Nov. 14, the same day the news was reported. The stock closed at $3.39 on Friday, up 8.2% on the day.