Dynatronics Announces First Quarter Results
SALT LAKE CITY, Nov. 14, 2012
SALT LAKE CITY, Nov. 14, 2012 /PRNewswire/ -- Dynatronics Corporation (NASDAQ:
DYNT) today announced results for its fiscal first quarter ended September 30,
Net loss for the quarter ended June 30, 2012, improved to $51,145 ($.00 per
common share), compared to net loss of $68,259 ($.01 per common share) for the
same quarter in the prior fiscal year. Sales for the fiscal first quarter
ended September 30, 2012, declined 9.9 percent to $7,206,025, compared to
$7,996,802 for the quarter ended September 30, 2011.
"A backlog of orders for our new SolarisPlus product line and other products
dampened first quarter results," said Kelvyn H. Cullimore Jr., chairman and
president of Dynatronics. "This was compounded by reduced sales of capital
exercise products, motorized treatment tables and certain other products,
together with continued weakness in the economy.
"On a positive note," Cullimore continued, "during the reporting quarter, we
were successful in reducing SG&A and R&D costs by approximately $325,800. This
allowed us to reduce the first quarter loss compared to last year despite the
weakness in sales."
Company management has developed a strategic plan to build on the popularity
of the new SolarisPlus product line and overcome the current challenging
economic trends. This plan calls for (1) an expansion of Dynatronics'
distribution channels to penetrate a broader segment of the market, and (2)
the introduction of a record number of new products this fiscal year to boost
interest in the company's most profitable capital equipment products.
"The new products that are currently under development will allow us to expand
distribution and help us capture greater market share in the physical medicine
market," Cullimore added. "The development of the new products is made
possible by the technology platform we built over the past two years of
intense R&D effort. As a result, the new products can be developed quickly and
with minimal additional R&D expenditures."
In a separate matter, Dynatronics announced the approval of its new GSA
contract with the United States government. "This contract allows us to sell
therapy equipment and medical supplies to the United States government,
including its Veterans Affairs medical facilities and armed forces," reported
Larry K. Beardall, executive vice president of sales and marketing. "Initial
orders from governmental facilities have been encouraging and we believe this
segment of our business will flourish."
"Our strategy of introducing new products, combined with our distribution
channel expansion and continued effort to scale costs and overhead to current
sales levels, is designed to enable Dynatronics to grow and improve its
financial performance," Cullimore concluded.
Dynatronics has scheduled a conference call for investors on Wednesday,
November 14, 2012, at 4:30 p.m. ET. Those wishing to participate should call
The following is a summary of the financial results as of September 30, 2012
and 2011, and for the three-month period then ended:
Summary Selected Financial Data
Statement of Operations Highlights
Three Months Ended
Net sales $ 7,206,025 $ 7,996,802
Cost of sales 4,495,177 4,994,704
Gross profit 2,710,848 3,002,098
SG&A expenses 2,459,104 2,694,867
R&D expenses 266,268 356,347
Other expenses, net 59,085 56,812
Net loss before income tax benefit (73,609) (105,928)
Income tax benefit 22,464 37,669
Net loss $ (51,145) $ (68,259)
Diluted net loss per common share $ (0.00) $ (0.01)
Balance Sheet Highlights
September 30, June 30,
Cash $ 285,639 $ 278,263
Accounts receivable 3,704,913 3,667,086
Inventories 6,090,591 6,098,597
Total current assets 10,714,797 10,654,158
Total assets 15,238,039 15,270,930
Accounts payable 2,351,542 2,413,201
Accrued expenses 249,818 386,229
Line of credit 3,673,334 3,497,597
Total current liabilities 7,183,712 7,088,300
Total liabilities 8,998,057 9,004,615
Total liabilities and equity 15,238,039 15,270,930
Dynatronics manufactures, markets and distributes advanced-technology medical
devices, orthopedic soft goods and supplies, treatment tables and
rehabilitation equipment for the physical therapy, sports medicine,
chiropractic, podiatry, plastic surgery, dermatology and other related
medical, cosmetic and aesthetic markets. More information regarding
Dynatronics is available at www.dynatronics.com.
This press release contains forward-looking statements. Those statements
include references to the company's expectations and similar statements such
as the statement regarding expectations for future new product line
introductions and growth. Actual results may vary from the views expressed in
the forward-looking statements contained in this release. The development and
sale of the company's products are subject to a number of risks and
uncertainties, including, but not limited to, changes in the regulatory
environment, competitive factors, inventory risks due to shifts in market
demand, market demand for the company's products, availability of financing at
cost-effective rates, and the risk factors listed from time to time in the
company's SEC reports.
SOURCE Dynatronics Corporation
Contact: Bob Cardon, Dynatronics Corporation, 1-800-874-6251, 1-801-568-7000
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