Pro-Dex Inc (PDEX) Reports 8% Increase in Q1 Fiscal 2024 Net Sales, Despite Net Loss of $615,000
Pro-Dex Inc (NASDAQ:PDEX) reported an 8% increase in net sales for Q1 Fiscal 2024, amounting to $11.9 million.
Gross profit for the quarter increased by 24% compared to the same period last year, with gross margin increasing by 4 percentage points to 31%.
Operating expenses decreased by $181,000 from the corresponding year-ago period.
The company reported a net loss of $615,000 for the quarter, primarily due to unrealized losses on investments.
Pro-Dex Inc (NASDAQ:PDEX) released its earnings report for the first quarter of fiscal year 2024 on November 2, 2023. The company reported an 8% increase in net sales, amounting to $11.9 million, up from $11.1 million for the same period in the previous year. This increase was primarily driven by a $1.8 million increase in repairs of the surgical handpiece sold to their largest customer.
Financial Highlights
Gross profit for the quarter increased by $702,000, or 24%, compared to the year-ago period. The gross margin also increased by 4 percentage points to 31%, primarily due to the prior year cost of sales including approximately $450,000 in repair costs to upgrade the handpiece sold to their largest customer at no additional costs.
Operating expenses, which include selling, general and administrative, and research and development expenses, decreased by $181,000 from the corresponding year-ago period. This decrease resulted from decreased research and development expenses as the company had fewer expenses related to internal development projects in the first quarter of fiscal 2024 compared to the corresponding period of the prior fiscal year.
However, the company reported a net loss of $615,000 for the quarter, compared to a net income of $1.2 million for the same period in the previous year. This net loss includes a non-operating expense of $2.7 million for the quarter, consisting primarily of unrealized losses on investments of $2.6 million.
CEO Commentary
Richard L. (Rick) Van Kirk, the Companys President and Chief Executive Officer, commented, We are pleased with our first quarter results and excited to share that sales for the first quarter ended September 30, 2023, includes approximately $1.1 million related to the launch of a new product in our Thoracic driver product line. Mr. Van Kirk concluded, We are confident that with our assembly and repairs operations fully transitioned to the Franklin facility we are poised for continued long-term growth.
Balance Sheet Summary
As of September 30, 2023, Pro-Dex Inc (NASDAQ:PDEX) reported total assets of $49.6 million, a decrease from $51.8 million as of June 30, 2023. The company's total liabilities also decreased to $18.4 million from $20.2 million over the same period. The company's total shareholders' equity stood at $31.2 million as of September 30, 2023, down from $31.6 million as of June 30, 2023.
Despite the reported net loss for the quarter, the company's financial position remains strong, with an increase in net sales and gross profit, and a decrease in operating expenses. The company's focus on reducing costs and increasing sales, particularly with the launch of a new product, indicates a positive outlook for future growth.
Explore the complete 8-K earnings release (here) from Pro-Dex Inc for further details.
This article first appeared on GuruFocus.
