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Pro-Dex Q4 Earnings Rise Y/Y, Sales Surge on Customer Growth
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Pro-Dex, Inc. (PDEX - Free Report) delivered robust financial results for the fourth quarter of fiscal 2024, marked by growth in earnings per share and revenues. The company reported a quarterly net income of $1.6 million, translating to 46 cents per share, up from 42 cents per share in the same quarter last year.
This increase in earnings comes alongside a remarkable 41% surge in quarterly net sales, reaching $15 million compared to $10.6 million in the prior-year period. This growth was largely fueled by a $3.4 million increase in revenues from Pro-Dex’s largest customer, encompassing a mix of enhanced repair program revenues and new unit sales.
The financial health of Pro-Dex in the fiscal fourth quarter reflects a strategic enhancement in operational execution. The company managed to boost its sales and control operating expenses effectively, even as it faced challenges in maintaining gross margin levels. Management's commentary emphasized successful sales strategies and operational efficiencies. The net income figures, which showed only a slight increase despite higher operating income, were impacted by unrealized gains and losses on investments, highlighting the volatility in investment valuations that Pro-Dex is subject to.
Pro-Dex's quarter was characterized by substantial sales growth, albeit with a contraction in gross margin from 32% to 27%. The decline in gross margin reflects ongoing price pressures and a rise in indirect labor costs needed to support the company’s expansion.
Operating expenses remained stable at $1.7 million, closely mirroring the prior year's figures. A strategic reduction in general and administrative costs and a slight increase in engineering expenses indicate a shift toward sustaining engineering over billable project activities.
Operating income for the quarter rose by 46% year over year to $2.4 million, underscoring the effectiveness of Pro-Dex's operational adjustments and sales initiatives.
Balance Sheet Update (As of June 30, 2024)
Pro-Dex's cash and cash equivalents stood at $2.6 million, showing a decrease from $2.9 million at the end of the prior fiscal year.
Total assets marginally increased from $51.8 million to $52.5 million.
Notably, lease liability, net of current portion decreased from $1.6 million at the previous fiscal year-end to $1.2 million.
Shareholders' equity decreased from $31.6 million to $30.9 million.
Cash Flows
Pro-Dex generated $6.2 million of operating cash flows in fiscal 2024, which represents an increase compared to the $5.5 million generated in the prior year.
Fiscal 2024 Update
Annual net sales climbed 17% to $53.8 million, driven primarily by recurring increases in repair and new unit sales to the primary customer.
Despite the overall growth, the annual net income witnessed a substantial decline to $2.1 million, or 60 cents per share, down from $1.95 per share in the previous year. This stark contrast in net income year-over-year is largely attributable to a $4.1 million unrealized loss on marketable equity investments, underscoring the volatile nature of investment valuations, which overshadowed the operational income growth.
The year was also marked by a steady increase in research and development expenditures, reflecting the company's continued investment in technology and product development. This strategic focus is intended to solidify Pro-Dex’s competitive position in the medical device sector.
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Pro-Dex Q4 Earnings Rise Y/Y, Sales Surge on Customer Growth
Pro-Dex, Inc. (PDEX - Free Report) delivered robust financial results for the fourth quarter of fiscal 2024, marked by growth in earnings per share and revenues. The company reported a quarterly net income of $1.6 million, translating to 46 cents per share, up from 42 cents per share in the same quarter last year.
This increase in earnings comes alongside a remarkable 41% surge in quarterly net sales, reaching $15 million compared to $10.6 million in the prior-year period. This growth was largely fueled by a $3.4 million increase in revenues from Pro-Dex’s largest customer, encompassing a mix of enhanced repair program revenues and new unit sales.
The financial health of Pro-Dex in the fiscal fourth quarter reflects a strategic enhancement in operational execution. The company managed to boost its sales and control operating expenses effectively, even as it faced challenges in maintaining gross margin levels. Management's commentary emphasized successful sales strategies and operational efficiencies. The net income figures, which showed only a slight increase despite higher operating income, were impacted by unrealized gains and losses on investments, highlighting the volatility in investment valuations that Pro-Dex is subject to.
Pro-Dex, Inc. Price, Consensus and EPS Surprise
Pro-Dex, Inc. price-consensus-eps-surprise-chart | Pro-Dex, Inc. Quote
Quarterly Performance Overview
Pro-Dex's quarter was characterized by substantial sales growth, albeit with a contraction in gross margin from 32% to 27%. The decline in gross margin reflects ongoing price pressures and a rise in indirect labor costs needed to support the company’s expansion.
Operating expenses remained stable at $1.7 million, closely mirroring the prior year's figures. A strategic reduction in general and administrative costs and a slight increase in engineering expenses indicate a shift toward sustaining engineering over billable project activities.
Operating income for the quarter rose by 46% year over year to $2.4 million, underscoring the effectiveness of Pro-Dex's operational adjustments and sales initiatives.
Balance Sheet Update (As of June 30, 2024)
Pro-Dex's cash and cash equivalents stood at $2.6 million, showing a decrease from $2.9 million at the end of the prior fiscal year.
Total assets marginally increased from $51.8 million to $52.5 million.
Notably, lease liability, net of current portion decreased from $1.6 million at the previous fiscal year-end to $1.2 million.
Shareholders' equity decreased from $31.6 million to $30.9 million.
Cash Flows
Pro-Dex generated $6.2 million of operating cash flows in fiscal 2024, which represents an increase compared to the $5.5 million generated in the prior year.
Fiscal 2024 Update
Annual net sales climbed 17% to $53.8 million, driven primarily by recurring increases in repair and new unit sales to the primary customer.
Despite the overall growth, the annual net income witnessed a substantial decline to $2.1 million, or 60 cents per share, down from $1.95 per share in the previous year. This stark contrast in net income year-over-year is largely attributable to a $4.1 million unrealized loss on marketable equity investments, underscoring the volatile nature of investment valuations, which overshadowed the operational income growth.
The year was also marked by a steady increase in research and development expenditures, reflecting the company's continued investment in technology and product development. This strategic focus is intended to solidify Pro-Dex’s competitive position in the medical device sector.