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Pro-Dex Inc. Message Board

  • vmsk19580 vmsk19580 Mar 11, 2010 7:51 AM Flag

    Results 10Q2

    I missed the results published 04.02 completely and I've got the impression that a lot of people missed them too.
    Shame on us because they are really good:
    1.Turnover is increasing
    2.Expenses are decreasing
    3.Cash Flow remains very strong.

    I have always some trouble to understand the tax expenses of most accounts of US companies I invest in. It seems so erratic and changes constantly. But PDEX did profit just now.

    I prefer to look at the income from operations and they were outstanding. The impairment charge has no cash implication and is a one time charge, so we should really be looking at a pretax profit from operations of 272.000$, which is excellent IMO.
    The positive cashflow also reduces the debt with less interest expense.
    I think we had a really good quarter and look forward to the next one.

    I could even start - cautiously - to buy some more shares to bring my average cost down.........

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    • but as we see in 10Q

      "The design and production of these products is technologically challenging, as such devices are exposed to extremely harsh surgical and sterilization conditions. A different large customer of the Company pursued a similar course of action several years ago and ultimately canceled its in-sourcing project, continuing its purchases from Pro-Dex. The Customer currently pursuing this course has indicated a high commitment to proceeding cautiously. Accordingly, the actual occurrence of, and certainly the specific timing of any transition is very difficult to estimate."

      Even it becomes real,"If the customer ultimately significantly reduces its purchases from Pro-Dex, the reduced cash flows from this customer could be offset by cost reductions as well as increases in purchases from new and existing customers."

      there are couple big expos in the near future

    • I think you maybe missing the essential point here. PDEX has announced that it's largest customer for medical appliances has decided to produce the product under their own roof come Sept. or so. Another customer has changed their mind about marketing a product produced for them by PDEX which would have produced 3 million in sales. That company had to pay a $250,000 penalty to PDEX for their decision and that money will be in net revs. for the coming qtr. which I figure to be around 2/3 cents a share but sadly it is a one time item. So it isn't qtr. 2 that we are concerned about, it is the future of this company and it's ability to "make it" in this competitive field. Recent volume is interesting and I am hoping we may have some new business coming our way.

4.58+0.17(+3.85%)Sep 30 3:59 PMEDT