ProDex Inc. (PDEX, Financial) filed Quarterly Report for the period ended 2012-03-31.
Pro-dex Inc -co has a market cap of $7.4 million; its shares were traded at around $2.04 with a P/E ratio of 3.7 and P/S ratio of 0.3.
Net sales for the nine months ended March 31, 2012 decreased $3.7 million, or 21%, to $13.6 million from $17.3 million for the nine months ended March 31, 2011. Contributing to this decrease was (a) a reduction, amounting to $2.7 million, in sales of our medical device products to our largest customer, offset by an increase, amounting to $940,000, in sales of medical device products to our second largest customer, (b) a net decrease, amounting to $1.3 million, in sales to four other medical device product customers, due primarily to those customers discontinuance of products that our manufacturing had supported, and (c) a decrease, amounting to $364,000, in sales of our industrial products.
Gross profit for the nine months ended March 31, 2012 decreased $2.7 million, or 37%, compared to the corresponding period in 2011, which resulted primarily from (a) $1.5 million attributable to the sales volume decreases discussed above, (b) $810,000 resulting from related product mix changes and (c) $147,000 attributable to higher warranty expenses, due to an increase in the estimated per-unit warranty repair costs during the nine months ended March 31, 2012 relative to the corresponding period in 2011. Gross profit as a percentage of sales was 34% for the nine months ended March 31, 2012, compared to 42% for the nine months ended March 31, 2011. Of this eight percentage point decrease, the aforementioned product mix changes and increased warranty expenses were attributable for reductions of six points and two points, respectively.
Net cash provided by operating activities during the nine months ended March 31, 2012, amounted to $621,000. Our operations, excluding the balance sheet changes discussed below, provided cash amounting to $241,000 after adjustment for non-cash items. Sources of cash arose from a reduction of accounts receivable amounting to $817,000, due primarily to the lower sales volume experienced during the 2012 period, relative to the corresponding period in 2011, and a decrease in inventories of $644,000, almost all of which was due to the sale of our Astromec business as more fully described in Note 6 of Notes to Condensed Consolidated Financial Statements included elsewhere in this report. Partially offsetting these cash sources were uses of cash in increasing prepaid expenses by $48,000, due primarily to the annual renewal of our commercial insurance policies, increasing income taxes receivable by $486,000 due to the ability to carry back tax-basis net operating losses to generate refunds of taxes from prior years, and reducing accounts payable and accrued liabilities by $555,000, due primarily to reduced activities in the 2012 period, relative to the corresponding period in 2011, and the payment in the first quarter of fiscal 2012 of employee bonuses based on the attainment of pre-determined goals related to fiscal 2011, net of the accrual of $339,000 for costs related to the resignation of our former CEO (see Note 12 of Notes to Condensed Consolidated Financial Statements provided elsewhere in this report).
During the nine months ended March 31, 2011, net cash provided by operating activities amounted to $1.8 million. Our operations, after adjustment for non-cash items and excluding balance sheet changes discussed below, provided cash amounting to $2.1 million. Additional sources of cash arose from increases in accounts payable and accrued liabilities, amounting to $166,000 and due primarily to high ordering activity relative to sales volumes and accruals for employee bonuses related to fiscal 2011 results, and in income taxes payable, amounting to $158,000 and related to profitable fiscal 2011 results. Uses of cash arose from increases in accounts receivable of $415,000 and inventories of $188,000, both increases due primarily to the high sales volumes during the 2011 period, and in prepaid expenses of $56,000, due primarily to the annual renewal of our commercial insurance policies.
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Pro-dex Inc -co has a market cap of $7.4 million; its shares were traded at around $2.04 with a P/E ratio of 3.7 and P/S ratio of 0.3.
Highlight of Business Operations:
Gross profit for the three months ended March 31, 2012 decreased $1.6 million or 57% from the corresponding period in 2011, resulting primarily from (a) $956,000 attributable to the sales volume decreases discussed above, (b) $338,000 resulting from related product mix changes, and (c) $300,000 resulting from reduced manufacturing efficiencies associated with the lower sales volume. Gross profit as a percentage of sales decreased to 27% for the three months ended March 31, 2012, compared to 41% for the three months ended March 31, 2011. Of this 14 percentage point decrease, seven percentage points arose from the aforementioned product mix changes, and six percentage points arose from the aforementioned reduction in manufacturing efficiencies.Net sales for the nine months ended March 31, 2012 decreased $3.7 million, or 21%, to $13.6 million from $17.3 million for the nine months ended March 31, 2011. Contributing to this decrease was (a) a reduction, amounting to $2.7 million, in sales of our medical device products to our largest customer, offset by an increase, amounting to $940,000, in sales of medical device products to our second largest customer, (b) a net decrease, amounting to $1.3 million, in sales to four other medical device product customers, due primarily to those customers discontinuance of products that our manufacturing had supported, and (c) a decrease, amounting to $364,000, in sales of our industrial products.
Gross profit for the nine months ended March 31, 2012 decreased $2.7 million, or 37%, compared to the corresponding period in 2011, which resulted primarily from (a) $1.5 million attributable to the sales volume decreases discussed above, (b) $810,000 resulting from related product mix changes and (c) $147,000 attributable to higher warranty expenses, due to an increase in the estimated per-unit warranty repair costs during the nine months ended March 31, 2012 relative to the corresponding period in 2011. Gross profit as a percentage of sales was 34% for the nine months ended March 31, 2012, compared to 42% for the nine months ended March 31, 2011. Of this eight percentage point decrease, the aforementioned product mix changes and increased warranty expenses were attributable for reductions of six points and two points, respectively.
Net cash provided by operating activities during the nine months ended March 31, 2012, amounted to $621,000. Our operations, excluding the balance sheet changes discussed below, provided cash amounting to $241,000 after adjustment for non-cash items. Sources of cash arose from a reduction of accounts receivable amounting to $817,000, due primarily to the lower sales volume experienced during the 2012 period, relative to the corresponding period in 2011, and a decrease in inventories of $644,000, almost all of which was due to the sale of our Astromec business as more fully described in Note 6 of Notes to Condensed Consolidated Financial Statements included elsewhere in this report. Partially offsetting these cash sources were uses of cash in increasing prepaid expenses by $48,000, due primarily to the annual renewal of our commercial insurance policies, increasing income taxes receivable by $486,000 due to the ability to carry back tax-basis net operating losses to generate refunds of taxes from prior years, and reducing accounts payable and accrued liabilities by $555,000, due primarily to reduced activities in the 2012 period, relative to the corresponding period in 2011, and the payment in the first quarter of fiscal 2012 of employee bonuses based on the attainment of pre-determined goals related to fiscal 2011, net of the accrual of $339,000 for costs related to the resignation of our former CEO (see Note 12 of Notes to Condensed Consolidated Financial Statements provided elsewhere in this report).
During the nine months ended March 31, 2011, net cash provided by operating activities amounted to $1.8 million. Our operations, after adjustment for non-cash items and excluding balance sheet changes discussed below, provided cash amounting to $2.1 million. Additional sources of cash arose from increases in accounts payable and accrued liabilities, amounting to $166,000 and due primarily to high ordering activity relative to sales volumes and accruals for employee bonuses related to fiscal 2011 results, and in income taxes payable, amounting to $158,000 and related to profitable fiscal 2011 results. Uses of cash arose from increases in accounts receivable of $415,000 and inventories of $188,000, both increases due primarily to the high sales volumes during the 2011 period, and in prepaid expenses of $56,000, due primarily to the annual renewal of our commercial insurance policies.
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