IRVINE, CA, September 14, 2011 – PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal fourth
quarter and full-year ended June 30, 2011.
Sales for the quarter ended June 30, 2011 were $7.5 million, 31% higher
than sales of $5.7 million for the corresponding quarter in 2010, due primarily to increases in sales of the Company’s medical device products to its three largest customers. For the year ended June 30, 2011, sales were $27.1 million, 17%
higher than sales of $23.2 million for fiscal year 2010, resulting primarily from increases in sales of medical device products to the Company’s largest customer and from growth in sales of its motion control products.
Operating income was $1.1 million for the quarter, a 283% increase from operating income of $296,000 before impairment charges in the
corresponding 2010 period. For the year ended June 30, 2011, operating income increased 167% to $3.2 million from operating income of $1.2 million before impairment charges in fiscal year 2010.
Net income for the 2011 fourth quarter was $1.0 million, or $0.31 per diluted share, which represents a 498% improvement from net income
of $172,000, or $0.05 per diluted share, before impairment charges in the corresponding 2010 quarter. For the year ended June 30, 2011, net income was $2.6 million, or $0.80 per diluted share, a 111% improvement from net income of $1.2 million,
or $0.38 per diluted share, before impairment charges in fiscal year 2010.
Gross profit for the quarter ended June 30,
2011 increased to $3.1 million, a 41% gross profit margin, compared to gross profit of $2.2 million, a 38% gross profit margin, for the same year-ago period. For the fiscal year ended June 30, 2011, gross profit was $10.5 million, a 39% gross
profit margin, compared to gross profit and margin of $8.4 million and 36%, respectively, for fiscal year ended June 30, 2010. The increase in gross profit as a percentage of sales during both periods was due to a change in mix toward sales of
medical device and motion control products at relatively higher margins, and to cost reductions.
Mark Murphy, the
Company’s President and Chief Executive Officer, commented, “Fiscal 2011 was a notable year. Sales and profitability were significantly higher than the prior year, indicating the strength of our operating engine at a record high sales
level. In addition, we generated $2.9 million of operating cash, allowing us to further strengthen the balance sheet with $900,000 of increased cash and $1.7 million of reduced debt. We ended the year with $4.7 million in cash. Looking forward, we
anticipate a reduction in shipments to our largest customer, and our focus remains on managing our cost structure while we diversify our customer base. I am pleased to report that we have broadened and deepened our relationships with major medical
device companies, and have experienced increased
proposal activity. Our task now is to convert those opportunities into backlog. In the meantime, we will protect our balance sheet as we work toward our goal of systemically recreating this
year’s notable results on a new customer base.”
Investors and analysts are invited to listen to a broadcast review of the Company’s fiscal 2011 fourth quarter and full-year
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.
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 September 28, 2011 by calling
(877) 660-6853, or (201) 612-7415 if calling from outside the U.S., and then entering account number 286 and conference I.D. number 378851. 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.