Pro-Dex(US:PDEX)2022-05-05 20:01Sales Performance - Medical device product sales decreased by $4.1 million, or 39%, for the three months ended March 31, 2022, compared to the same period in the prior fiscal year [100]. - Total net sales for the three months ended March 31, 2022, were $9.265 million, down from $11.739 million in the same period of 2021 [99]. - Revenue from orthopedic medical devices was $3.233 million, representing 50% of total medical device sales for the three months ended March 31, 2022 [100]. - The proportion of medical device products in total sales was 70% for the three months ended March 31, 2022, down from 91% in the same period of 2021 [99]. - Sales of compact pneumatic air motors increased by $113,000, or 54%, for the three months ended March 31, 2022, compared to the same period in the prior fiscal year [101]. - Dental products and components sales increased by $179,000, or 746%, and $250,000, or 255%, for the three and nine months ended March 31, 2022, respectively, compared to the prior fiscal year [102]. - Repair revenue rose by $858,000, or 106%, and $284,000, or 7%, for the three and nine months ended March 31, 2022, respectively, due to increased repairs of orthopedic handpieces [103]. Financial Outlook - The company anticipates continued revenue growth, although it may not be consistent, with periods of incremental growth expected [95]. - As of March 31, 2022, the company had a backlog of approximately $21.2 million, with $7.9 million scheduled for delivery in the fourth quarter of fiscal 2022 [104]. Cost and Expenses - Total cost of sales for the three months ended March 31, 2022, decreased by $947,000, or 13%, compared to the prior fiscal year, driven by a 21% decrease in revenue [106]. - Gross profit decreased by approximately $1.5 million, or 35%, for the three months ended March 31, 2022, consistent with the overall decrease in revenue [107]. - Operating expenses for the three months ended March 31, 2022, decreased by $697,000, or 28%, compared to the corresponding period of the prior fiscal year [110]. - Research and development costs for the three months ended March 31, 2022, decreased by $446,000, primarily due to increased spending on billable development projects [112]. - The company has a product roadmap to develop future products, with research and development costs representing between 36% and 49% of total operating expenses [113]. Cash Flow and Liquidity - Cash and cash equivalents increased by $1.0 million to $4.8 million as of March 31, 2022, compared to $3.7 million at June 30, 2021 [122]. - Net cash provided by operating activities was $4.4 million for the nine months ended March 31, 2022, primarily due to net income of $2.4 million and a decrease in accounts receivable of $2.3 million [124]. - Net cash used in investing activities was $1.6 million for the nine months ended March 31, 2022, primarily for equipment purchases of $1.3 million related to the Franklin Property [126]. - Net cash used in financing activities totaled $1.8 million for the nine months ended March 31, 2022, primarily due to the repurchase of 52,718 shares of common stock for $1.3 million [128]. - Working capital as of March 31, 2022, was $20.4 million, indicating sufficient funds to meet cash requirements for at least the next 12 months [130]. - The company may liquidate investments or borrow against a $2.0 million Revolving Loan to enhance liquidity [130]. - The company experienced negative operating cash flow in the past due to long-lead time materials procurement [131]. Investment Activities - The Investment Committee approved investments totaling $2.9 million in marketable public equity securities as of March 31, 2022 [132].