IRVINE, CA / ACCESSWIRE / February 2, 2023 / PRO-DEX, INC. (NasdaqCM:PDEX) today announced financial results for its fiscal 2023 second quarter ended December 31, 2022. The Company also filed its Quarterly Report on Form 10-Q for the second quarter of fiscal year 2023 with the Securities and Exchange Commission today.
Quarter Ended December 31, 2022
Net sales for the three months ended December 31, 2022 increased $1.1 million, or 11%, to $11.3 million from $10.2 million for the three months ended December 31, 2021, due primarily to sales of the orthopedic surgical handpiece that we sell to our largest customer coupled with increased repair revenue of that same handpiece.
Gross profit for the three months ended December 31, 2022 decreased $781,000, or 23%, to $2.6 million from $3.4 million for the same period in fiscal 2022, due to continuing price increases for components, especially chips for our printed circuit board assemblies, as well higher repair costs for the surgical handpiece that we sell to our largest customer. As previously disclosed, beginning in fiscal 2023 and continuing through the end of the second quarter of fiscal 2023, we began implementing a customer upgrade request for our largest customer. We have proceeded in good faith to upgrade all units returned for repair to the newest release of the handpiece while we continue to negotiate with this customer to obtain additional compensation for these more costly upgraded repairs.
Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended December 31, 2022 decreased $316,000, or 18%, to $1.5 million compared to $1.8 million in the prior fiscal year's corresponding quarter, reflecting in part the higher number of billable engineering projects in the current fiscal quarter compared to the same period in the prior fiscal year and reduced general and administrative expenses mostly due to declining non-cash stock compensation expense.
Net income for the quarter ended December 31, 2022 was $879,000, or $0.24 per diluted share, compared to $925,000, or $0.25 per diluted share, for the corresponding quarter in fiscal 2022.
Six Months Ended December 31, 2022
Net sales for the six months ended December 31, 2022 increased $2.2 million, or 11%, to $22.4 million from $20.2 million for the six months ended December 31, 2021, due primarily to increased repair revenue from the orthopedic surgical handpiece that we sell to our largest customer and increased non-recurring engineering and proto-type revenue.
Gross profitfor the six months ended December 31, 2022decreased $1.3 million, or 18%, compared to the same period in fiscal 2022 due to the increased costs incurred in the repairs of the surgical handpiece we sell to our largest customer as described above, continuing component price increases, and higher cost structures in our machine shop, assembly, materials, and quality departments.
Operating expenses (which include selling, general and administrative, and research and development expenses) for the six months ended December 31, 2022 decreased $420,000, or 11%, to $3.5 million compared to $3.9 million in the prior fiscal year's corresponding period.
Net income for the six months ended December 31, 2022 and 2021 remained flat at $2.0 million, or $0.53 per diluted share.
Richard L. ('Rick') Van Kirk, the Company's President and Chief Executive Officer, commented, 'We are pleased with our second quarter and year-to-date results especially considering the challenging environment facing businesses today.' Mr. Van Kirk continued, 'We are excited to begin operations in the Franklin facility this fiscal quarter and we remain positive that the building will allow for our continued expected growth.'
About Pro-Dex, Inc.:
Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. Pro-Dex, Inc. also sells rotary air motors to a wide range of industries. Pro-Dex's products are found in hospitals and medical engineering labs 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 (including, but not limited to, the anticipated commencement of operations in the Franklin facility and expected future growth), 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.
PRO-DEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
PRO-DEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Richard L. Van Kirk, Chief Executive Officer
SOURCE: Pro-Dex, Inc.
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