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Dynatronics Announces Year-End Financial Results

               Dynatronics Announces Year-End Financial Results

PR Newswire

SALT LAKE CITY, Sept. 30, 2013

SALT LAKE CITY, Sept. 30, 2013 /PRNewswire/ --Dynatronics Corporation
(NASDAQ: DYNT) today announced results for its fiscal year ended June 30,
2013.

Net sales in fiscal year 2013 decreased to $29,538,275, compared to
$31,664,181 in fiscal year 2012. Net loss for the year was $44,371 ($.02 per
common share), compared to a net loss of $23,535 ($.01 per common share) for
the prior fiscal year. (All per-share amounts reflect the company's
one-for-five reverse stock split, effective December 19, 2012.)

"The $2,125,906 decrease in sales for the year is characterized by sales
reductions evenly split between supplies and capital equipment distributed for
other manufacturers," stated Kelvyn H. Cullimore Jr., chairman and president
of Dynatronics. "Approximately 20 percent of the reduced sales are
attributable to a capital equipment manufacturer that changed its distribution
paradigm, negatively impacting our sales of their products. The reductions in
sales of distributed medical supplies during the year also include the impact
of a large customer that discontinued operations in early 2012.

"On a positive note, sales of our proprietary manufactured products actually
increased over the prior year," said Cullimore. "With significant gains in
sales of the new Dynatron SolarisPlus family of products. These gains offset
lower sales of some of our other proprietary products. Fiscal year 2013 saw
the culmination of years of increased R&D expenditures and strategic planning,
resulting in the introduction of a record number of innovative devices."

New products introduced over the past year include not only the SolarisPlus
line, but also the company's Tri-Wave Phototherapy Probe and Pad, Ultra 2 and
Ultra 3 treatment tables, and 25 Series line of electrotherapy and ultrasound
products. "But the innovation doesn't stop there," said Cullimore. "An
important new product – the Thermostim Probe – is scheduled for introduction
next quarter and will be one of our most innovative and revolutionary products
in our history."

The Dynatron ThermoStim Probe™ is a soft-tissue mobilization tool that also
allows a practitioner to deliver heat or cold therapy in combination with
electrical stimulation—all at the same time. An optional accessory to our new
SolarisPlus family of products, this revolutionary tool facilitates the
delivery of three different therapies in one treatment, significantly reducing
the time typically required to administer separate treatments.

"This groundbreaking probe is expected to generate significant demand – not
only for the probe, but also for the new SolarisPlus units, which serve as the
control consoles for the probe," reported Larry K. Beardall, executive vice
president of sales and marketing. "By leveraging proprietary technology, the
new ThermoStim Probe will be the catalyst to boost sales and attract new
distributors, beginning midway through fiscal year 2014."

The company expects that its large number of new product introductions will
open new doors of distribution, and has begun an aggressive expansion of its
distribution channels to capture greater market share.

During fiscal year 2013, Dynatronics reduced SG&A and R&D expenses by
$935,000, which offset the $856,600 reduction in gross profit for the year.
Management has identified an additional $500,000 in expense reductions for
fiscal year 2014.

"We believe the introduction of a record number of products this last year and
in the new fiscal year, together with the anticipated introduction of the
Thermostim Probe, plus our new strategy for expanding the distribution of
products, positions us well for a new growth phase," concluded Cullimore.

Dynatronics has scheduled a conference call for investors today, Monday,
September 30, 2013, at 3:30 p.m. ET. Those wishing to participate should call
(800) 633-8950.

The following is a summary of the financial results as of June 30, 2013 and
2012, and for the year then ended:

Summary Selected Financial Data

Statement of Operations Highlights
                                                2013         2012
Net sales                                     $ 29,538,275   31,664,181
Cost of sales                                   18,451,673   19,720,948
       Gross profit                             11,086,602   11,943,233
Selling, general, and administrative expenses   9,860,964    10,506,460
Research and development expenses               1,120,887    1,410,406
Total other expense                             235,876      216,608
       Loss before income tax benefit           (131,125)    (190,241)
Income tax benefit                              86,754       166,706
       Net loss                               $ (44,371)     (23,535)
       Diluted net loss per common share      $ (0.02)       (0.01)



Balance Sheet Highlights
                                             2013        2012
Cash and cash equivalents                  $ 302,050     278,263
Trade accounts receivable                    3,246,712   3,667,086
Inventories, net                             6,407,553   6,098,597
Total current assets                         10,879,449  10,654,158
Total assets                               $ 15,104,587  15,270,930
Line of credit                               3,496,390   3,497,597
Accounts payable                             2,751,894   2,413,201
Accrued expenses                             347,221     386,229
Accrued payroll and benefits expense         216,266     215,218
Total liabilities                            8,895,637   9,004,615
Total liabilities and stockholders' equity $ 15,104,587  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 introductions,
reductions in operating expense in future periods, and plans to expand
distribution. 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

Website: http://www.dynatronics.com
Contact: Bob Cardon, Dynatronics Corporation, 1-800-874-6251 or 1-801-568-7000