8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

 1

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 14, 2012

DYNATRONICS CORPORATION

(Exact name of registrant as specified in its charter)

Utah	0-12697	87-0398434
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

7030 Park Centre Dr., Salt Lake City, Utah                                                                                      84121

(Address of principal executive offices)                                                                                          (Zip Code)

Registrant's telephone number, including area code: (801) 568-7000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02                 Results of Operations and Financial Condition.

On February 14, 2012, Dynatronics Corporation (the “Registrant”) issued a press release announcing its financial results for the fiscal second quarter ended December 31, 2011.  The Registrant also held a conference call by telephone to discuss the quarterly operating results.

A copy of the press release summarizing the results of operations is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.  The Registrant will also post the earnings press release on its corporate website at www.dynatronics.com.  

The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.  The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.  The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.

Item 9.01                 Financial Statements and Exhibits.

(d)      Exhibits

Exhibit 99.1                      Press release dated February 14, 2012

SIGNATURES

Pursuant to the requirements of The Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DYNATRONICS CORPORATION

By:  /s/ Kelvyn H. Cullimore, Jr.

Kelvyn H. Cullimore, Jr.

Chairman and President

Date:  February 14, 2012

EX-99.1

NEWS RELEASE

Contact:	Bob Cardon, Dynatronics Corporation
	800-874-6251 or 801-568-7000

Dynatronics Announces Second Quarter Results

Salt Lake City, Utah (February 14, 2012) – Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal second quarter and six months ended December 31, 2011.

Sales for the quarter ended December 31, 2011, increased one percent to $8,275,430, compared to $8,199,347 for the quarter ended December 31, 2010. Sales for the six months ended December 31, 2011, also increased one percent to $16,272,232, compared to $16,118,635 for the six months ended December 31, 2010.

Net income for the quarter ended December 31, 2011, was $46,334 ($.00 per common share), compared to net income of $67,839 ($.01 per common share) for the same quarter in the prior fiscal year. Net loss for the six-month period ended December 31, 2011, was $21,926 ($.00 per common share), compared to net income of $84,851 ($.01 per common share) for the same period in the prior fiscal year.

“With sales and gross profit margin both increasing, the $40,861 reduction in income before taxes for the current quarter can be accounted for by the $56,342 increase in R&D expense in the quarter, compared to the same quarter last year,” said Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. “As a result of our increased investment in R&D over the past two years, we expect to introduce a record number of new products this year, including several high-margin therapy devices as well as other specialty rehab equipment.”

“Once the products are introduced,” Cullimore continued, “R&D expenditures are expected to return to more traditional levels, triggering annual savings in the range of approximately $300,000 to $400,000. Most of the new products will be released in the first six months of calendar 2012 and we plan to make formal announcements as each of our new products and product lines are introduced to the market.”

In March 2011, Dynatronics began the process of introducing its own branded products to group purchasing organization (GPO) member facilities across the country. During fiscal year 2011, Dynatronics announced the signing of contracts with four GPOs: Premier, Inc., Amerinet, Inc., FirstChoice Cooperative and Champs Group Purchasing. These contracts became effective in March and June 2011. The company is in discussion with two other GPOs that contemplate issuing new contracts during 2012.

“The process of converting GPO members to the Dynatronics’ brand of product is taking longer than management originally anticipated,” stated Larry K. Beardall, executive vice president of sales and marketing. “However, it is expected to gain momentum over the next several quarters and management remains optimistic about the potential of increasing business with these large national accounts and GPOs.”

“We are firmly committed to investing in the future through the development of several new products and new sales opportunities with GPOs and national accounts,” added Cullimore. “We believe this strategy will begin to show positive outcomes in upcoming quarters.”

Dynatronics has scheduled a conference call for investors on Tuesday, February 14, 2012, at 1:30 p.m. ET. Those wishing to participate should call (800) 925-9065.

Following is a summary of the financial results as of December 31, 2011 and 2010, and for the three- and six-month periods then ended:

Summary Selected Financial Data

Statement of Operations Highlights

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2011			2010			2011			2010
Net sales	$	8,275,430		$	8,199,347		$	16,272,232		$	16,118,635
Cost of sales		5,062,472			5,029,906			10,057,176			9,997,361
Gross profit		3,212,958			3,169,441			6,215,056			6,121,274
SG&A expenses		2,686,401			2,634,278			5,381,268			5,134,795
R&D expenses		412,861			356,519			769,208			706,315
Other expenses, net		41,517			65,604			98,330			137,387
Net income (loss) before income tax provision		72,179			113,040			(33,750	)		142,777
Income tax benefit (provision)		(25,845	)		(45,201	)		11,824			(57,926	)
Net income (loss)	$	46,334		$	67,839		$	(21,926	)	$	84,851
Diluted net income (loss)
per common share	$	0.00		$	0.01		$	0.00		$	0.01

Balance Sheet Highlights
	December 31,		June 30,
	2011		2011
Cash	$	254,460	$	384,904
Accounts receivable		3,687,238		3,672,128
Inventories		5,833,425		5,647,815
Total current assets		10,607,816		10,432,811
Total assets		15,014,018		14,819,181
Accounts payable		2,245,149		2,127,163
Accrued expenses		447,768		379,336
Line of credit		2,943,242		2,583,937
Total current liabilities		6,495,469		5,880,080
Total liabilities		8,689,864		8,204,022
Total liabilities and equity		15,014,018		14,819,181

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 positive outcomes from GPO contracts. 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 including, but not limited to, the report onForm 10-K for the year ended June 30, 2011.