Dynatronics Corp. (DYNT, Financial) filed Quarterly Report for the period ended 2012-09-30.
Dynatronics Corporation has a market cap of $6.2 million; its shares were traded at around $0.49 with and P/S ratio of 0.2.
Gross profit decreased approximately $290,000 or about 9.7% to $2,710,848, or 37.6% of net sales, for the quarter ended September 30, 2012, compared to $3,002,098, or 37.5% of net sales, for the quarter ended September 30, 2011. The decrease in gross profit during the current quarter reflects the decrease in total sales discussed above. Looking ahead, we expect to generate improved sales of higher margin capital equipment, including our new SolarisPlus products now on the market, as well as from the introduction of other new products currently under development.
Selling, general and administrative (“SG&A”) expenses decreased $235,763 to $2,459,104, or 34.1% of net sales, for the quarter ended September 30, 2012, from $2,694,867, or 33.7% of net sales, for the quarter ended September 30, 2011. The decrease in SG&A expenses for the quarter reflects lower sales expenses and lower personnel costs. The following factors impacted SG&A expenses for the three months ended September 30, 2012, as compared to the same period in 2011:
Research and development (“R&D”) expenses decreased $90,079 to $266,268, or 3.7% of sales, in the quarter ended September 30, 2012, compared to $356,347, or 4.5% of sales in the quarter ended September 30, 2011. In August 2012, we introduced the SolarisPlus product line, the first of several new product introductions anticipated to be made in fiscal year 2013. The new products that are currently under development will allow us to expand distribution into a broader segment of our industry and help us capture greater market share in the physical medicine market. We believe that developing new products is a key element in our growth strategy. In future periods we expect our R&D costs will decrease to more historical levels. We expense R&D costs as they are incurred.
Pre-tax loss for the quarter ended September 30, 2012, totaled $73,609 compared to a pre-tax loss of $105,928 for the quarter ended September 30, 2011. Despite the reduction in sales and gross profits, the Company was able to reduce its loss before income tax provision for the current quarter compared to the same quarter last year as a result of lower selling, labor, and R&D expenses. Lower sales and gross profits in the quarter ended September 30, 2012 resulted from a backlog of orders, lower sales of capital exercise products, metal tables and certain other products, and the weakness in the U.S. economy generally and the healthcare industry specifically. As noted above, steps have been taken to reduce expenses at an annualized amount of approximately $750,000 by reducing labor and overhead costs and improving operating efficiencies.
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Dynatronics Corporation has a market cap of $6.2 million; its shares were traded at around $0.49 with and P/S ratio of 0.2.
Highlight of Business Operations:
Net sales decreased $790,777 or approximately 9.9% to $7,206,025 for the quarter ended September 30, 2012, compared to net sales of $7,996,802 for the quarter ended September 30, 2011. The decrease in sales is attributable primarily to three factors. First, we were not able to fill all of the orders we received for our new SolarisPlus units and other capital products during September 2012. Second, we experienced lower sales of capital exercise products, metal tables and certain other products. Third, we believe that the renewed softness of the U.S. economy and uncertainty surrounding healthcare reform in the United States has had the effect of limiting expansion and improvements in our market sector. The Company expects the new SolarisPlus line, along with additional new products being introduced this fiscal year will help strengthen sales going forward.Gross profit decreased approximately $290,000 or about 9.7% to $2,710,848, or 37.6% of net sales, for the quarter ended September 30, 2012, compared to $3,002,098, or 37.5% of net sales, for the quarter ended September 30, 2011. The decrease in gross profit during the current quarter reflects the decrease in total sales discussed above. Looking ahead, we expect to generate improved sales of higher margin capital equipment, including our new SolarisPlus products now on the market, as well as from the introduction of other new products currently under development.
Selling, general and administrative (“SG&A”) expenses decreased $235,763 to $2,459,104, or 34.1% of net sales, for the quarter ended September 30, 2012, from $2,694,867, or 33.7% of net sales, for the quarter ended September 30, 2011. The decrease in SG&A expenses for the quarter reflects lower sales expenses and lower personnel costs. The following factors impacted SG&A expenses for the three months ended September 30, 2012, as compared to the same period in 2011:
Research and development (“R&D”) expenses decreased $90,079 to $266,268, or 3.7% of sales, in the quarter ended September 30, 2012, compared to $356,347, or 4.5% of sales in the quarter ended September 30, 2011. In August 2012, we introduced the SolarisPlus product line, the first of several new product introductions anticipated to be made in fiscal year 2013. The new products that are currently under development will allow us to expand distribution into a broader segment of our industry and help us capture greater market share in the physical medicine market. We believe that developing new products is a key element in our growth strategy. In future periods we expect our R&D costs will decrease to more historical levels. We expense R&D costs as they are incurred.
Pre-tax loss for the quarter ended September 30, 2012, totaled $73,609 compared to a pre-tax loss of $105,928 for the quarter ended September 30, 2011. Despite the reduction in sales and gross profits, the Company was able to reduce its loss before income tax provision for the current quarter compared to the same quarter last year as a result of lower selling, labor, and R&D expenses. Lower sales and gross profits in the quarter ended September 30, 2012 resulted from a backlog of orders, lower sales of capital exercise products, metal tables and certain other products, and the weakness in the U.S. economy generally and the healthcare industry specifically. As noted above, steps have been taken to reduce expenses at an annualized amount of approximately $750,000 by reducing labor and overhead costs and improving operating efficiencies.
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