Dynatronics Corp. (DYNT, Financial) filed Quarterly Report for the period ended 2011-12-31.
Dynatronics Corp. has a market cap of $11.2 million; its shares were traded at around $0.85 with a P/E ratio of 43.7 and P/S ratio of 0.3.
Selling, general and administrative (“SG&A”) expenses increased $52,123 to $2,686,401, or 32.5% of net sales, for the quarter ended December 31, 2011, from $2,634,278, or 32.1% of net sales, for the quarter ended December 31, 2010. SG&A expenses increased $246,473, to $5,381,268, or 33.1% of net sales, for the six months ended December 31, 2011, from $5,134,795, or 31.9% of net sales, for the six months ended December 31, 2010. The increase in SG&A expenses for the first six months of fiscal year 2012 reflects higher sales expenses associated with the development of the GPO business, together with improvements made to the Company s information systems and e-commerce website, and higher personnel costs. The principal components of these increased SG&A expenses for the quarter ended December 31, 2011 were as follows:
Research and development (“R&D”) expenses increased $56,342 to $412,861, or 5.0% of sales, in the quarter ended December 31, 2011, compared to $356,519, or 4.3% of sales in the quarter ended December 31, 2010. R&D expenses increased $62,893, to $769,208 for the six months ended December 31, 2011, from $706,315 for the six months ended December 31, 2010. We are developing a record number of new products that are expected to be introduced during the last six months of fiscal year 2012. These development efforts are directly responsible for the significant R&D expenses we are incurring. We anticipate that R&D expenses will return to more historical levels in coming quarters as we complete development of these new products. We believe that developing new products is a key element in our growth strategy. R&D costs are expensed as incurred.
Pre-tax income for the quarter ended December 31, 2011, totaled $72,179 compared to $113,040 for the quarter ended December 31, 2010. Pre-tax loss for the six months ended December 31, 2011, totaled $33,750 compared to pre-tax income of $142,777 for the six months ended December 31, 2010. The $40,861 reduction in income before taxes for the current quarter can be explained primarily by a $56,342 increase in R&D expense compared to the same quarter last year. For the six-month period ended December 31, 2011, R&D expenses accounted for $62,893 of the $176,527 reduction in income before taxes when compared to the six-month period ended December 31, 2010, with the balance of the difference being attributable to higher sales expense associated with our pursuit of GPO and national account business, higher sales commissions due to greater retail related sales, and increased depreciation and amortization expense related to higher investment levels in information systems.
Net income decreased to $46,334 ($.00 per share) for the quarter ended December 31, 2011, compared to $67,839 ($.01 per share) for the quarter ended December 31, 2010. Net loss totaled $21,926, or $.00 per share, for the six months ended December 31, 2011, compared to net income of $84,851, or $.01 per share, for the six months ended December 31, 2010. The decrease in earnings for the quarter and six months ended December 31, 2011, compared to the prior year periods was a result primarily of the higher selling, depreciation and R&D expenses discussed above. The increase in expenses was partially offset by higher sales, improved gross profit margins, and lower interest expense.
Read the The complete Report
Dynatronics Corp. has a market cap of $11.2 million; its shares were traded at around $0.85 with a P/E ratio of 43.7 and P/S ratio of 0.3.
Highlight of Business Operations:
Gross profit increased 1.4% to $3,212,958, or 38.8% of net sales, for the quarter ended December 31, 2011, compared to $3,169,441, or 38.7% of net sales, for the quarter ended December 31, 2010. Gross profit was $6,215,056, or 38.2% of net sales, for the six months ended December 31, 2011, compared to $6,121,274, or 38.0% of net sales, for the six months ended December 31, 2010. The increase in gross profit during the current quarter and six month periods reflects sales mix that involved a slightly higher percentage of sales through direct sales representatives rather than dealers. The sales through direct sales representatives are retail sales; sales to dealers are at wholesale pricing. Going forward, we expect improved sales of higher margin capital equipment along with increased retail level sales through our network of direct sales representatives will sustain current or higher gross profit margins as product sales to GPO members grow and as new products are introduced in coming months.Selling, general and administrative (“SG&A”) expenses increased $52,123 to $2,686,401, or 32.5% of net sales, for the quarter ended December 31, 2011, from $2,634,278, or 32.1% of net sales, for the quarter ended December 31, 2010. SG&A expenses increased $246,473, to $5,381,268, or 33.1% of net sales, for the six months ended December 31, 2011, from $5,134,795, or 31.9% of net sales, for the six months ended December 31, 2010. The increase in SG&A expenses for the first six months of fiscal year 2012 reflects higher sales expenses associated with the development of the GPO business, together with improvements made to the Company s information systems and e-commerce website, and higher personnel costs. The principal components of these increased SG&A expenses for the quarter ended December 31, 2011 were as follows:
Research and development (“R&D”) expenses increased $56,342 to $412,861, or 5.0% of sales, in the quarter ended December 31, 2011, compared to $356,519, or 4.3% of sales in the quarter ended December 31, 2010. R&D expenses increased $62,893, to $769,208 for the six months ended December 31, 2011, from $706,315 for the six months ended December 31, 2010. We are developing a record number of new products that are expected to be introduced during the last six months of fiscal year 2012. These development efforts are directly responsible for the significant R&D expenses we are incurring. We anticipate that R&D expenses will return to more historical levels in coming quarters as we complete development of these new products. We believe that developing new products is a key element in our growth strategy. R&D costs are expensed as incurred.
Pre-tax income for the quarter ended December 31, 2011, totaled $72,179 compared to $113,040 for the quarter ended December 31, 2010. Pre-tax loss for the six months ended December 31, 2011, totaled $33,750 compared to pre-tax income of $142,777 for the six months ended December 31, 2010. The $40,861 reduction in income before taxes for the current quarter can be explained primarily by a $56,342 increase in R&D expense compared to the same quarter last year. For the six-month period ended December 31, 2011, R&D expenses accounted for $62,893 of the $176,527 reduction in income before taxes when compared to the six-month period ended December 31, 2010, with the balance of the difference being attributable to higher sales expense associated with our pursuit of GPO and national account business, higher sales commissions due to greater retail related sales, and increased depreciation and amortization expense related to higher investment levels in information systems.
Net income decreased to $46,334 ($.00 per share) for the quarter ended December 31, 2011, compared to $67,839 ($.01 per share) for the quarter ended December 31, 2010. Net loss totaled $21,926, or $.00 per share, for the six months ended December 31, 2011, compared to net income of $84,851, or $.01 per share, for the six months ended December 31, 2010. The decrease in earnings for the quarter and six months ended December 31, 2011, compared to the prior year periods was a result primarily of the higher selling, depreciation and R&D expenses discussed above. The increase in expenses was partially offset by higher sales, improved gross profit margins, and lower interest expense.
Read the The complete Report
