Pro-Dex Q4 Earnings Rise Y/Y, Sales Surge on Customer Growth

Core Insights - Pro-Dex, Inc. reported strong financial results for Q4 fiscal 2024, with net income of $1.6 million or 46 cents per share, an increase from 42 cents per share year-over-year [1][3] - Quarterly net sales surged by 41% to $15 million, up from $10.6 million in the same quarter last year, driven by a $3.4 million revenue increase from the largest customer [2][8] - The company faced challenges in maintaining gross margin levels, which contracted from 32% to 27%, attributed to price pressures and rising indirect labor costs [4][9] Quarterly Performance Overview - Operating expenses remained stable at $1.7 million, with a strategic reduction in general and administrative costs and a slight increase in engineering expenses [5] - Operating income rose by 46% year-over-year to $2.4 million, reflecting effective operational adjustments and sales initiatives [5] - The financial health of Pro-Dex indicates a strategic enhancement in operational execution, despite the impact of unrealized gains and losses on investments [3][9] Balance Sheet Update - As of June 30, 2024, Pro-Dex's cash and cash equivalents decreased to $2.6 million from $2.9 million at the end of the previous fiscal year [6] - Total assets increased slightly from $51.8 million to $52.5 million, while shareholders' equity decreased from $31.6 million to $30.9 million [6] Cash Flows - Pro-Dex generated $6.2 million in operating cash flows for fiscal 2024, an increase from $5.5 million in the prior year [7] Fiscal 2024 Update - Annual net sales increased by 17% to $53.8 million, primarily driven by recurring increases in repair and new unit sales to the primary customer [8] - Annual net income declined to $2.1 million or 60 cents per share, down from $1.95 per share in the previous year, largely due to a $4.1 million unrealized loss on marketable equity investments [9] - The year also saw a steady increase in research and development expenditures, reflecting the company's commitment to technology and product development [10]