Robust Financial Performance in Q4
Pro-Dex, Inc. demonstrated strong financial results for the fourth quarter of fiscal 2024, with an increase in earnings per share and revenues. The company reported a quarterly net income of $1.6 million, translating to 46 cents per share, a growth from 42 cents per share in the previous year. This surge in earnings was complemented by a remarkable 41% increase in quarterly net sales, reaching $15 million compared to $10.6 million in the same quarter last year.
Operational Excellence Drives Growth
The financial success of Pro-Dex in the fiscal fourth quarter can be attributed to strategic operational enhancements. The company excelled in boosting sales and effectively managing operating expenses, despite facing challenges in gross margin levels. The management’s emphasis on successful sales strategies and operational efficiencies underscored Pro-Dex’s resilient performance.
Quarterly Performance Highlights
Pro-Dex experienced significant sales growth in the quarter, although there was a decline in gross margin from 32% to 27%. This reduction reflected ongoing price pressures and increased indirect labor costs necessary to support the company’s expansion. Operating expenses remained stable while operating income rose by 46% to $2.4 million year over year, showcasing the effectiveness of Pro-Dex’s operational adjustments and sales initiatives.
Balance Sheet and Cash Flow Update
As of June 30, 2024, Pro-Dex’s cash and cash equivalents decreased slightly to $2.6 million. Total assets showed a marginal increase to $52.5 million, with a decrease in the lease liability. Shareholders’ equity declined marginally from the previous fiscal year-end. In terms of cash flows, Pro-Dex generated $6.2 million in operating cash flows for fiscal 2024, representing growth compared to the previous year.
Fiscal 2024 Performance Overview
Annual net sales for fiscal 2024 rose by 17% to $53.8 million, mainly driven by increased repair and new unit sales to the primary customer. Despite the overall growth, annual net income decreased to $2.1 million, down from $1.95 per share in the prior year. This decline was primarily due to an unrealized loss on marketable equity investments. The year also saw a rise in research and development expenditures as Pro-Dex continues to invest in technology and product development.