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Dynatronics Announces Fiscal Second Quarter Results
Date:2/14/2011

SALT LAKE CITY, Feb. 14, 2011 /PRNewswire/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced results for its fiscal second quarter ended December 31, 2010.

Sales for the quarter ended December 31, 2010, were $8,199,347, compared to $8,501,437 for the quarter ended December 31, 2009. Sales for the six months ended December 31, 2010, were $16,118,635, compared to $16,783,900 for the similar period of the prior year.

Net income for the quarter ended December 31, 2010, was $67,839 ($.01 per common share), compared to $188,299 ($.01 per common share) for the same quarter in the prior fiscal year. Net income for the six months ended December 31, 2010, was $84,851 ($.01 per common share), compared to $256,923 ($.02 per common share) for the same period in the prior fiscal year.

"Higher R&D expenses of $149,637 for the quarter and $283,465 for the six month period were a primary reason for reporting lower profits this year over last year.  In addition, slower demand for capital equipment due to lingering recessionary pressures also contributed," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "However, our R&D pipeline is as strong as ever with several new products under development. New products have always been the lifeblood of our business."

The company recently announced the signing of major contracts with two group purchasing organizations ("GPOs"): Premier and Amerinet. Together, these GPOs represent tens of thousands of clinics and hospitals around the nation, spending an estimated $50 million on physical medicine products annually.

"We believe these landmark agreements will be a game-changer for Dynatronics," said Larry K. Beardall, executive vice-president of sales and marketing. "Obtaining contracts with GPOs is something we have been working on for nearly three years. While it will take time to conver
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