Pro-Dex(US:PDEX)2024-09-05 20:05Financial Performance - Net sales for Q4 2024 increased by $4.4 million, or 41%, to $15.0 million compared to $10.6 million in Q4 2023, driven primarily by a $3.4 million revenue increase from the largest customer[2] - Gross profit for Q4 2024 rose by $729,000, or 22%, but gross margin decreased from 32% in Q4 2023 to 27% in Q4 2024 due to price pressures and increased indirect labor costs[2] - Operating income for Q4 2024 increased by $742,000, or 46%, to $2.4 million compared to $1.6 million in Q4 2023[4] - Net income for Q4 2024 was $1.6 million, or $0.46 per diluted share, a slight increase from $1.5 million, or $0.42 per diluted share, in Q4 2023[4] - For the fiscal year 2024, net sales increased by $7.8 million, or 17%, to $53.8 million from $46.0 million in fiscal 2023, primarily due to revenue increases from the largest customer[5] - Gross profit for the fiscal year 2024 increased by $1.8 million, or 14%, to $14.5 million compared to $12.7 million in fiscal 2023[5] - Net income for the fiscal year 2024 was $2.1 million, or $0.60 per diluted share, down from $7.1 million, or $1.95 per diluted share, in fiscal 2023, impacted by unrealized losses on marketable equity investments of $4.1 million[7] - Net income for the year ended June 30, 2024, was $2,127,000, a decrease of 70% compared to $7,074,000 in 2023[11] Operating Expenses and Investments - Operating expenses for the fiscal year 2024 rose by 6% to $7.4 million from $7.0 million in the prior fiscal year, mainly due to increased research and development costs[6] - Depreciation and amortization increased to $1,160,000 from $857,000, reflecting a rise of 35%[11] - The company made an investment of $1,250,000 in Monogram during the year[11] Cash Flow and Financial Position - Net cash provided by operating activities was $6,199,000, up from $5,462,000, indicating an increase of 13.5%[11] - Net cash used in investing activities was $2,233,000, compared to $885,000 in the previous year, representing a significant increase of 152%[11] - Net cash used in financing activities totaled $4,271,000, an increase from $2,490,000, marking a rise of 71.7%[11] - Cash and cash equivalents at the end of the year were $2,631,000, down from $2,936,000, reflecting a decrease of 10.4%[11] - Accounts receivable decreased by $3,935,000, compared to an increase of $5,432,000 in the previous year[11] - Inventory increased by $898,000, contrasting with a decrease of $3,489,000 in the prior year[11] - Principal payments on notes payable were $4,816,000, down from $6,093,000, indicating a decrease of 21%[11] Strategic Focus - The company hired a new Director of Operations in Q1 fiscal 2025 to support growth, indicating a focus on operational efficiency and expansion[8] - The company continues to focus on developing new products and technologies, particularly in the orthopedic market, leveraging patented software and proprietary solutions[8]