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Dynatronics Announces First Quarter Financial Results
Date:11/14/2013

SALT LAKE CITY, Nov. 14, 2013 /PRNewswire/ -- Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal first quarter ended September 30, 2013.

Net sales in the quarter decreased 2.1% to $7,055,428, compared to $7,206,025 in the same period of the prior year. Net loss for the quarter was $107,784 ($.04 per common share), compared to $51,145 ($.02 per common share) for the prior year period.  The loss was primarily the result of lower sales of products manufactured by third parties, as well as approximately $49,000 in higher R&D costs this quarter associated with the company's new ThermoStim probe, a product expected to launch during the quarter ending December 31, 2013.  All per-share amounts reflect the company's one-for-five reverse stock split, effective December 19, 2012.

"While sales of manufactured capital products and supplies remained even or improved, reduced sales of distributed medical products and supplies, including exercise products, nutritional supplements and taping products, accounted for the decrease in sales for the quarter ended September 30, 2013, compared to the prior year period," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "The continued general economic weakness in our primary markets, combined with uncertainties surrounding the implementation of the Affordable Care Act, have dampened demand and contributed to lower sales numbers.

"To offset these challenges, management has undertaken a plan to significantly expand the company's distribution channels by adding new dealers and sales representatives," Cullimore continued, "To date, we have added more than 30 new sales representatives to our distribution channel. These new representatives are independent direct sales reps and sales reps at newly added independent dealers.
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