EX-99.1 2 ex99x1.htm EXHIBIT 99.1

Exhibit 99.1

 

ProDexLogoAndTag_High Res

 

 

 

Contact: Richard L. Van Kirk, Chief Executive Officer

(949) 769-3200

For Immediate Release

 

PRO-DEX, INC. ANNOUNCES FISCAL 2025

FOURTH QUARTER AND FULL-YEAR RESULTS

IRVINE, CA, September 4, 2025 - PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2025 fourth quarter and full-year ended June 30, 2025.

 

Quarter Ended June 30, 2025

 

Net sales for the three months ended June 30, 2025 increased $2.5 million, or 16%, to $17.5 million from $15.0 million for the three months ended June 30, 2024, due primarily to increased revenue to our top three customers. Gross profit for the three months ended June 30, 2025 decreased $599,000, or 15%. Our gross margin decreased from 27% for the three months ended June 30, 2024, to 20% for the three months ended June 30, 2025, due to unfavorable product mix, and higher indirect manufacturing costs including the initial wave of tariff costs. During much of the fourth quarter we were shipping our largest customer their legacy product but, late in the fourth quarter, we resumed production and shipment of their next generation handpiece as they released their product hold and returned us to full production.

 

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended June 30, 2025, increased $409,000 to $2.1 million, compared to $1.7 million for the prior fiscal year’s corresponding quarter. We have increased selling expenses by $96,000, general and administrative expenses by $244,000 and engineering expenses by $69,000 for the quarter ended June 30, 2025, compared to the corresponding quarter in 2024. Increases relate primarily to increased personnel costs in each of these areas to support our continued growth.

 

Our operating income for the quarter ended June 30, 2025, decreased $1.0 million, or 43%, to $1.3 million compared to $2.3 million for the prior fiscal year’s corresponding quarter. The decrease reflects our decreased gross profit and higher operating expenses, as described above.

 

Net income for the quarter ended June 30, 2025, decreased by $391,000 to $1.2 million, or $0.36 per diluted share, compared to $1.6 million, or $0.46 per diluted share, in the corresponding quarter in 2024.

 

 

 
 

 

Year Ended June 30, 2025

 

Net sales for the fiscal year ended June 30, 2025 increased $12.8 million, or 24%, to $66.6 million from $53.8 million for the fiscal year ended June 30, 2024, due primarily to increases in revenue from our largest customer. Specifically, the increase relates to $12.0 million in sales of the next generation handpiece to that same customer.

 

Gross profit for the fiscal year ended June 30, 2025, increased $5.0 million, or 34%, to $19.5 million compared to $14.5 million for fiscal 2024. Our gross margin increased from 27% in fiscal 2024 to 29% in fiscal 2025, due to overall favorable product mix (notwithstanding the unfavorable product mix during the fourth quarter described above).

 

Operating expenses (which include selling, general and administrative, and research and development expenses) for the fiscal year ended June 30, 2025, increased $1.4 million or 20% to $8.8 million from $7.4 million in the prior fiscal year. The increase relates primarily to an increase in personnel costs in selling, and general and administrative expenses to support our continued growth. The increase in research and development expenses in fiscal 2025 is primarily related to an increase in internal product development projects compared to fiscal 2024.

 

Our operating income for the year ended June 30, 2025, increased $3.5 million, or 49%, to $10.7 million compared to $7.2 million for the prior fiscal year’s corresponding quarter. The increase reflects our increased sales and gross profit, as described above.

 

Net income for the fiscal year ended June 30, 2025, was $9.0 million, or $2.67 per diluted share, compared to $2.1 million, or $0.60 per diluted share, for fiscal 2024. Our net income for the year ended June 30, 2025, contains unrealized gains on our marketable equity investments of $1.5 million while our net income for the year ended June 30, 2024, contains unrealized losses on our marketable equity investments of $4.1 million. The difference in the growth rate of net income and operating income is primarily due to unrealized gains and losses of investments. All of our investments are recorded at estimated fair value, and the valuation can be highly volatile.

 

CEO Comments

 

“We are very pleased with our fiscal 2025 performance including increasing sales by 24% and an increase of $3.5 million in operating income.” said the Company’s President and Chief Executive Officer Richard L. (“Rick”) Van Kirk. “While this fiscal year included disruption in transitioning to our largest customer’s next generation handpiece, we continued to meet our customers’ requests by nimbly shifting assembly schedules to their requested mix of legacy and new product.” Mr. Van Kirk continued, “Additionally, we expect fiscal 2026 to continue our trend of revenue and operating income growth, especially as evidenced by our June 30th backlog in the amount of $50.4 million. We have also begun working with customers on sharing of tariff costs and are also excited about added depth in our management team and improvements being made to our manufacturing systems.”

 

 
 

 

About Pro-Dex, Inc.:

 

Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered, and electric multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. Pro-Dex also sells rotary air motors, however, these motors represent a de minimis portion of total revenue. Pro-Dex's products are found in hospitals and medical engineering labs around the world. For more information, visit the Company's website at www.pro-dex.com.

 

Statements herein concerning the Company's plans, growth and strategies may include “forward-looking statements” within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance (including, but not limited to, prospects for future growth and ability to share tariff costs with customers) as well as management's expectations, beliefs, plans, estimates, or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business risks of the Company set forth in the Company's filings with the Securities and Exchange Commission.

 

(tables follow)

 

 

 
 

PRO-DEX, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

         
   June 30, 
   2025   2024 
ASSETS        
Current assets          
Cash and cash equivalents   $419   $2,631 
Investments    6,740    4,217 
Accounts receivable    16,433    13,887 
Deferred costs    24    262 
Inventory   22,213    15,269 
Income taxes receivable    1,056     
Prepaid expenses    410    345 
Total current assets   47,295    36,611 
Land and building, net    6,061    6,155 
Equipment and improvements, net    5,153    5,024 
Right of use asset, net    1,050    1,473 
Intangibles, net    26    54 
Deferred income taxes, net    1,415    1,555 
Investments    148    1,563 
Other assets    44    42 
Total assets  $61,192   $52,477 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $4,614   $4,513 
Accrued liabilities    3,479    3,359 
Income taxes payable    186    632 
Deferred revenue    202    14 
Notes payable    6,148    4,374 
Total current liabilities    14,629    12,892 
Non-current liabilities:          
Lease liability, net of current portion    685    1,182 
Notes payable, net of current portion    9,246    7,536 
Total non-current liabilities    9,931    8,718 
Total liabilities    24,560    21,610 
           
Commitments and Contingencies (Note 10):          
           
Shareholders’ equity:          
Common stock, no par value, 50,000,000 shares authorized; 3,261,043 and 3,363,412 shares issued and outstanding at June 30, 2025 and 2024, respectively    704    3,917 
Retained earnings    35,928    26,950 
Total shareholders’ equity    36,632    30,867 
Total liabilities and shareholders’ equity   $61,192   $52,477 

 

 

 

 
 

 

PRO-DEX, INC. AND SUBSIDIARY

CONSOLIDATED INCOME STATEMENTS

(In thousands, except per share data)

 

 

   Three Months Ended
June 30,
(Unaudited)
   Years Ended
June 30,
 
   2025   2024   2025   2024 
                 
Net sales   $17,494   $15,025   $66,593   $53,844 
Cost of sales    14,004    10,936    47,083    39,293 
Gross profit    3,490    4,089    19,510    14,551 
                     
Operating expenses:                    
Selling expenses   133    37    344    117 
General and administrative expenses    1,108    864    4,841    4,072 
Research and development costs    905    836    3,636    3,189 
Total operating expenses    2,146    1,737    8,821    7,378 
                     
Operating income    1,344    2,352    10,689    7,173 
Interest expense    (226)   (150)   (829)   (558)
Unrealized gain (loss) on investments    460    (340)   1,521    (4,125)
Gain on sale of investments            595     
Interest and dividend income    21    68    82    144 
                     
Income before income taxes    1,599    1,930    12,058    2,634 
Income tax expense    403    343    3,080    507 
Net income   $1,196   $1,587   $8,978   $2,127 
                     
Basic & Diluted income per share:                    
Basic net income per share  $0.37   $0.47   $2.73   $0.61 
                     
Diluted net income per share   $0.36   $0.46   $2.67   $0.60 
                     
Weighted average shares outstanding:                    
       Basic    3,261,043    3,400,767    3,287,844    3,498,807 
       Diluted    3,350,449    3,473,167    3,361,207    3,571,207 

 

 

 
 

PRO-DEX, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

   Years Ended June 30, 
   2025   2024 
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income   $8.978   $2,127 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Depreciation and amortization    1,239    1,160 
Unrealized (gain) loss on marketable equity investments    (1,521)   4,125 
Gain on sale of investments    (595)    
Non-cash lease recovery    (33)   (17)
Amortization of loan fees, net    9    12 
Share-based compensation    555    605 
Deferred income taxes    140    (1,563)
Changes in operating assets and liabilities:          
Accounts receivable    (2,546)   (3,935)
Deferred costs    238    232 
Inventory    (6,944)   898 
Prepaid expenses and other assets    (67)   (49)
Accounts payable and accrued expenses    179    2,436 
Deferred revenue    188    14 
Income taxes    (1,502)   179 
Net cash provided by (used in) operating activities    (1,682)   6,224 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchases of equipment and improvements    (1,246)   (983)
Proceeds from sale of investments    1,907     
Investment in Monogram    (899)   (1,250)
Net cash used in investing activities    (238)   (2,233)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Principal payments on notes payable    (11,528)   (4,841)
Borrowing from Minnesota Bank & Trust,    15,003    4,000 
Repurchases of common stock    (3,504)   (3,505)
Payments of employee taxes on net issuance of common stock    (305)    
Proceeds from exercise of stock options and ESPP contributions    42    50 
Net cash used in financing activities    (292)   (4,296)
           
Net increase (decrease) in cash and cash equivalents    (2,212)   (305)
Cash and cash equivalents, beginning of year    2,631    2,936 
Cash and cash equivalents, end of year   $419   $2,631