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Pro-Dex, Inc. Announces Fiscal Second Quarter And Six-Month Results
Date:1/10/2013

o move our company forward.  We believe that our continuing efforts to attract, quote on and win new business are showing results.  In the six months ended December 31, 2011, the first half of fiscal year 2012, we submitted five proposals to potential customers, and submitted eight proposals for the entire fiscal year.  So far in this current fiscal year we have already submitted eight proposals in the six months ended December 31, 2012 and have won one of them.  As important, the value of the current year proposals in both non-recurring engineering and production value materially exceed those from last year.  While we can offer no assurances that we will win any of the business upon which we have quoted, we know that we cannot win any business on which we do not quote.  We continue to win business from new customers as well as current customers, as shown in a 25% increase in sales of powered surgical instruments to customers other than our former largest customer compared to last year's corresponding quarter and six-months, and continue to build our backlog with a book to bill ratio of 1.5 for both the quarter and the six months ended December 31, 2012." 

"Our continuing efforts at cost reduction and improved manufacturing efficiencies led to our gross margin for the quarter ended December 31, 2012 increasing to 34% from 31% in last year's corresponding quarter in spite of a 25% reduction in sales volume and an unfavorable shift in product mix," said Mr. Berthelot.  "Our programs to reduce cost in every non-manufacturing department continue to bear fruit, as evidenced by the 10% reduction in operating costs for the quarter from last year.  It is important to point out that $42,000 of the general and administrative costs for the quarter are associated with the contested election of directors that we would not normally incur." 

Mr. Berthelot said, "With respect to product innovation and quality improve
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SOURCE Pro-Dex, Inc.
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