8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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 1, 2010

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 1, 2010, the registrant issued a press release announcing its financial results for the second first quarter ended December 31, 2009.  The registrant also held a conference call to discuss the quarterly operating results.  A copy of the press release and 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 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 1, 2010

2

 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 1, 2010

3

EX-99.1

NEWS RELEASE

Contact:       Bob Cardon, Dynatronics Corp.

800-874-6251 or 801-568-7000

Dynatronics Net Income Triples in Second Quarter

Salt Lake City, Utah (February 1, 2010) – Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal second quarter ended December 31, 2009.

Net income for the fiscal second quarter increased 245% to $188,299 ($.01 per share), compared to $54,598 ($.00 per share) for the comparable quarter in the prior year. Net income for the six-month period ended December 31, 2009 increased to $256,923 ($.02 per share), compared to a net loss of $84,353 ($.01 per share) for the comparable prior year period.

Sales for the quarter were $8,501,437 compared to $8,718,893 for the second quarter of the prior fiscal year.  For the six-month period ended December 31, 2009, sales were $16,783,900, compared to $16,715,042 for the same period in the prior fiscal year.

 “The significant increase in profitability reflects building momentum from the strategies we have implemented over the last two years,” stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. “Increased demand for our advanced-technology medical devices together with lower operating costs during the quarter fueled the rise in net income.”

Over the past two years, Dynatronics has implemented a number of important strategies to reduce costs, improve operating efficiencies and reposition the Company in an evolving market place.  “It is invigorating to be reaping the benefits of the strategies we implemented to improve our operating results,” added Cullimore.  “The execution of our strategy to build and strengthen channels of distribution has been augmented by unexpected consolidations within our industry that have further aided in advancing our strategic plans.  Adding an improving economy further strengthens the expectation that our momentum will continue.”

The company’s strategic market initiatives were recently illustrated by the announcement of new preferred vendor arrangements with over 2,000 clinics associated with Preferred Therapy Providers and WorkWell Systems. “More and more chains of clinics are realizing the significant benefits Dynatronics offers,” said Larry K. Beardall, executive vice president of sales and marketing. “Despite the challenging economic times, we are moving forward aggressively to grow our business and gain market share.”

Dynatronics has scheduled a conference call for investors on Monday, February 1, 2010, at 1:30 p.m. ET. Those wishing to participate should call 800-861-4084 and use passcode 9921511.

A summary of the financial results for the three and six months ended December 31, 2009, follows:

Summary Selected Financial Data

Statement of Operations Highlights

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2009		2008		2009		2008
Net sales	$	8,501,437	$	8,718,893	$	16,783,900	$	16,715,042
Cost of sales		5,174,060		5,405,338		10,277,181		10,205,845
Gross profit		3,327,377		3,313,555		6,506,719		6,509,197
SG&A expenses		2,699,357		2,827,427		5,411,726		5,804,074
R&D expenses		206,882		265,718		422,850		527,747
Other expense, net		110,936		130,493		220,167		278,288
Net income (loss) before income taxes		310,202		89,917		451,976		(100,912	)
Income tax provision (benefit)		121,903		35,319		195,053		(16,559	)
Net income (loss)	$	188,299	$	54,598	$	256,923	$	(84,353	)
Net income (loss) per diluted share	$	.01	$	0.00	$	.02	$	(.01	)

Balance Sheet Highlights

	December 31,		June 30,
	2009		2009
Cash	$	362,763	$	141,714
Accounts receivable		4,449,808		4,739,727
Inventories		5,971,500		6,199,251
Total current assets		11,652,780		12,003,068
Total assets		16,504,384		17,087,289
Accounts payable		1,517,461		1,795,520
Accrued expenses		454,503		446,327
Line of credit		4,338,752		4,602,651
Total current liabilities		7,102,435		7,785,881
Total liabilities		9,814,911		10,667,540
Total liabilities and equity	$	16,504,384	$	17,087,289

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 growth in the company’s business and market share gains. 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 on Form 10-K for the year ended June 30, 2009.