Dynatronics Corporation CEO Interview: Kelvyn H. Cullimore Jr.

• On 4:51 pm EDT, Tuesday September 22, 2009

67 WALL STREET, New York - September 22, 2009 - The Wall Street Transcript has just published its Medical Devices Report offering a timely review of the sector to serious investors and industry executives. This 41 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Developments in the Industry -- New Devices -- Negative Price Pressure -- Inject Mix -- Hospital Capital Spending Behavior -- Growth -- Rate of Growth Reliability -- Execution of Management -- Clinical Trials -- The Next Big Thing -- Innovation -- Acquisition -- Loss -- Major Turnarounds -- Productive Work Force -- Medication Adherence -- Undervaluation -- Improvement in Earnings -- Price Sensitivity -- Weakening Dollar -- Winning Market Share -- Significant Share Gains -- Profitability -- Regulatory Standard -- Opportunities -- Licensing Opportunities -- Collective Experience -- Drug Approvals -- Growth in Revenue -- Measuring Success -- Profit Margins

Companies include: Medtronic (MDT); Boston Scientific (BSX); Greatbatch (GB); Vascular Solutions (VASC); AngioDynamics (ANGO); St. Jude Medical (STJ); Edwards Lifesciences (EW); Stryker (SYK); Zimmer Holdings (ZMH); Abbott Laboratories (ABT); Johnson and Johnson (JNJ); Baxter International (BAX); Thoratec (THOR); HeartWare (HTWR); Hill-Rom Holdings (HRC); Accuray (ARAY); Smith and Nephew (SN.L); Wright Medical (WMGI); NuVasive (NUVA); TranS1 (TSON); Becton, Dickinson (BDX); C.R. Bard (BCR); Covidien (COV); CareFusion (CFN);Edwards Lifesciences (EW); Zimmer (ZMH); Nanosphere (NSPH)

In the following brief excerpt from the 41 page report, Kelvyn H. Cullimore Jr., President and CEO of Dynatronics, discusses the outlook for the sector and for investors.

TWST: Would you give me a brief history of your company and what your focus is on now?

Mr. Cullimore: Dynatronics is a manufacturer of medical devices primarily for physical therapy and also a distributor of devices and products for physical therapy. We've been in operation for 30 years. Right now, in the last two years, we've been undergoing some major transformations. We acquired our best distributors and are building a direct sales force. We are focused on becoming one of the significant players in this market.

TWST: What is your business model now and how has it changed recently?

Mr. Cullimore: The biggest factor right now is that a year ago we reported almost a $10 million loss, related almost entirely to the acquisition of distributors. This year we've improved from a $10 million loss a year ago to what we expect to be a profit for the fiscal year ended June 30, 2009. That's a pretty major turnaround.

TWST: How have you done that?

Mr. Cullimore: That's all been done in the face of a very stiff economic headwind. Right now the economy is, as everyone knows, quite bad and what we've been able to do is maintain our sales and at the same time significantly reduce expenses and improve margins slightly. So part of our business - supplies and catalog sales - is growing, while part of it - the capital equipment side - is declining a little bit during this bad economic time. But overall we're gaining market share.

TWST: Do you expect that you'll be able to meet that obligation by the end of the month?

Mr. Cullimore: Our hope springs eternal. We actually have until October 9. The SEC and NASDAQ have extended that deadline three times as you point out. We're hopeful that maybe something similar will be done again, or in the meantime some of the good news that we've been achieving takes hold and we'll start to see a little more support for the stock.

TWST: What about your company's funding during the recession?

Mr. Cullimore: We've been able to improve our position. We have adequate funding right now for what we're doing. We've been able to maintain a strong working capital position. We have a line of credit that we've been able to reduce by 25% in the last year, and so we have an ample capital base to work from.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 41 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

For Information on subscribing to The Wall Street Transcript, please call 800/246-7673

Buzz up!