Pro-Dex Inc. Reports Fiscal 1999 First-Quarter Operating Results.BOULDER Boulder, city, United States
Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo.--(BUSINESS WIRE)--Nov. 13, 1998--Kent Searl, chairman and chief executive officer of Pro-Dex Inc. (Nasdaq:PDEX), Friday announced operating results for the first quarter ended Sept. 30, 1998.
Revenues for the first quarter of fiscal 1999 were $4,571,000, compared with fiscal 1998 first-quarter revenues of $5,818,000. During the first quarter of fiscal 1999 the company incurred an operating loss operating loss
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. before unusual charges of $213,000, or $.02 loss per share, compared with net income of $352,000, or $.04 per share, from operations in the first quarter of fiscal 1998.
In addition, the company incurred an unusual charge related to the buyout Buyout
The purchase of a company or a controlling interest of a corporation's shares.
A leveraged buyout is accomplished with borrowed money or by issuing more stock. of two executive employment agreements in the amount of $839,000, or an additional $.06 loss per share. Incurring the unusual charge during the first quarter will contribute $.03 per share to fiscal 1999 annual earnings.
In addition, taking the unusual charge in the first quarter assists the company, which is currently in very active M&A activity in eliminating expenses that are not related to continuing operations continuing operations
Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the .
In reviewing operations, Searl stated: "The continued weakness in the semiconductor business had a significant impact on our revenues and profit at our OMS OMS - Opportunity Management System subsidiary in the first quarter and was the primary reason for realizing an operating loss. Operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. declined at that business unit by $681,000 for the quarter. We continue to incur R&D expenses that have resulted in new product development in both our high-tech and dental-related business which should bring positive results to the bottom line in early 1999."
Searl concluded: "We are very positive about the prospects for the months ahead as benefits from last year's major restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). activities take effect. Recent signs of improvement in the semiconductor industry along with major new product introductions scheduled for the next two quarters give us renewed optimism for the remainder of the year. We expect our previously announced engagement of the investment banking firm, Cleary/Gull, will also bring positive results to our M&A activities in the very near future."
Pro-Dex is a Colorado-based holding company with the following wholly owned subsidiaries Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. : Micro Motors Inc., located in Santa Ana Santa Ana, city, El Salvador
Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif., is the manufacturer of miniature pneumatic pneumatic /pneu·mat·ic/ (noo-mat´ik)
1. pertaining to air.
1. Of or relating to air or other gases.
2. (air) motors and handpieces used in dental, medical and industrial applications; Oregon Micro Systems Inc., located in Beaverton, Ore., manufactures motion control circuit boards; Biotrol International Inc., located in Louisville, Colo., is a manufacturer and marketer of a full line of infection control and preventive products specifically designed for the dental care provider; Challenge Products Inc. manufactures preventive care Preventive care is a set of measures taken in advance of symptoms to prevent illness or injury. This type of care is best exemplified by routine physical examinations and immunizations. The emphasis is on preventing illnesses before they occur. See also
Except for the historical information contained herein, the matters discussed in this release are forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties that could cause actual results to differ materially from those projected. These include the timely development and acceptance of new products, the impact of competitive products and pricing, and other risks detailed frequently in Pro-Dex's SEC reports, including the report on Form 10-KSB for the year ended June 30, 1998.
For further information about Pro-Dex, visit the company's Web site, http://www.PDEX.com. -0-
PRO-DEX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Quarter Ended Sept. 30, 1998 1997 Net sales $ 4,570,770 $ 5,817,919 Cost of sales (Includes rent paid to a director of $85,000 for 1998 and 1997) 2,072,511 2,254,531 Gross profits 2,498,259 3,563,388 Operating expenses: Selling 1,101,285 981,463 General and administrative 1,016,099 1,181,003 Research and development 343,366 352,095 Amortization 195,837 225,246 Unusual charges 838,833 -- Total operating expenses 3,495,420 2,739,807 Income (loss) from operations (997,161) 823,581 Other income (expense): Interest (expense) (211,674) (257,555) Other income, net 13,757 2,077 Total (197,917) (255,478) Income (loss) before income taxes (credits) (1,195,078) 568,103 Income taxes (credits) (477,647) 215,812 Net income (loss) $ (717,431) $ 352,291 Basic and diluted net earnings (loss) per common and common equivalent share $ (0.08) $ 0.04 Weighted average number of common and common equivalent shares outstanding 8,787,300 8,842,000