EX-99.1 2 ex99x1.htm PRESS RELEASE

 

Exhibit 99.1

  

 

Contact:  Richard L. Van Kirk, Chief Executive Officer
  (949) 769-3200

 

For Immediate Release

 

PRO-DEX, INC. ANNOUNCES FISCAL 2026 SECOND QUARTER

AND SIX-MONTH RESULTS

 

IRVINE, CA, January 29, 2026 - PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2026 second quarter ended December 31, 2025. The Company also filed its Quarterly Report on Form 10-Q for the second quarter of fiscal year 2026 with the Securities and Exchange Commission today.

 

Quarter Ended December 31, 2025

 

Net sales for the three months ended December 31, 2025, increased $1.9 million, or 11%, to $18.7 million from $16.8 million for the three months ended December 31, 2024, primarily due to an increase in shipments in the amount of $7.3 million of our largest customer’s next generation orthopedic handpiece offset by a decrease of $4.8 million of their legacy handpiece as well as a decrease in repair revenue of $1.7 million similarly generated from our largest customer. We also shipped $1.3 million more of our CMF drivers and batteries to various distributors during the three months ended December 31, 2025 as compared to the corresponding period of the prior fiscal year.

 

Gross profit for the three months ended December 31, 2025, increased $671,000, or 13%, to $5.7 million from $5.1 million for the same period in fiscal 2025. Gross margin increased by 1 percentage point to 31% for the three months ended December 31, 2025, compared to 30% for the corresponding period of the prior fiscal year. The improvement in gross margin is primarily due to increased sales and favorable product mix.

 

Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended December 31, 2025, increased $104,000, or 4%, to $2.5 million compared to $2.4 million in the prior fiscal year’s corresponding quarter, reflecting increases in selling, general and administrative expenses mostly due to higher personnel related expenses offset by lower research and development expenditures.

 

Operating income for the quarter ended December 31, 2025, increased $567,000, or 21%, to $3.3 million compared to $2.7 million for the prior fiscal year’s corresponding quarter. The increase is attributable to higher sales and improved gross margins.

 

Net income for the quarter ended December 31, 2025, was $2.2 million or $0.66 per diluted share, compared to $2.0 million, or $0.61 per diluted share, for the corresponding quarter in fiscal 2025.

 

Six Months Ended December 31, 2025

 

Net sales for the six months ended December 31, 2025, increased $5.5 million, or 17%, to $37.2 million from $31.7 million for the six months ended December 31, 2024, due primarily to $11.9 million in shipments of the newest generation handpiece we sell our largest customer offset by a decrease of $5.0 million of their legacy handpiece and $3.0 million in decreased repair revenue from their legacy handpiece. We also shipped $1.9 million more of our CMF drivers and batteries to various distributors during the six months ended December 31, 2025, compared to the corresponding period of the prior fiscal year.

 

Gross profit for the six months ended December 31, 2025, increased $889,000, or 9%, compared to the same period in fiscal 2025 due to increased sales. Our gross margin decreased by 2 percentage points to 30% for the six months ended December 31, 2025, compared to 32% for the corresponding period of the prior fiscal year mostly as a result of a less favorable product mix.

 

Operating expenses (which include selling, general and administrative, and research and development expenses) for the six months ended December 31, 2025, increased $226,000, or 5%, to $4.7 million compared to $4.5 million in the prior fiscal year’s corresponding period. The increase is related to increased selling, general and administrative expenses mostly due to higher personnel-related expenses offset by a decrease in research and development costs.

 

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Operating income for six months ended December 31, 2025, increased $663,000, or 12%, to $6.4 million compared to $5.7 million for the corresponding period of the prior fiscal year. The increase in operating income is attributable to higher sales and gross profit offset by the higher operating expenses described above.

 

Net income for the six months ended December 31, 2025, was $6.9 million or $2.07 per diluted share, compared to net income of $4.5 million or $1.33 per diluted share for the six months ended December 31, 2024. Our net income for the six months ended December 31, 2025, contains a $6.8 million realized gain offset by the reversal of $3.2 million in unrealized gains recorded in the first quarter of fiscal 2026 related to our investment in Monogram Technologies, Inc. which was acquired by Zimmer Biomet Holdings, Inc. during our second fiscal quarter.

 

CEO Comments

 

“We are pleased with our second quarter and year-to-date results.” said Richard L. (“Rick”) Van Kirk, the Company’s President and Chief Executive Officer. “Additionally, as we previously announced, our three-year contract extension with our largest customer provides the foundation for our continued future growth for the next three years and beyond.” Mr. Van Kirk continued, “We expect to complete an acquisition of a local machine shop which is also a current significant supplier of ours in the near term and, while it may not be immediately accretive to our earnings, it will secure additional capacity and manufacturing technology as we continue to grow.”

  

About Pro-Dex, Inc.:

 

Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. Additionally, we provide engineering, quality, and regulatory consulting services to our customers. Pro-Dex, Inc. also sells rotary air motors to a wide range of industries; however, these air motors comprise a de minimis portion of our business. Pro-Dex's products are found in hospitals and medical engineering labs around the world. For more information, visit the Company's website at www.pro-dex.com.

 

Statements herein concerning the Company's plans, growth, and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments, and future performance, as well as management's expectations, beliefs, plans, estimates, or projections relating to the future, including, without limitation, statements concerning future growth and the anticipated acquisition referenced above, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.

 

(tables follow)

 

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PRO-DEX, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share amounts)

 

   December 31,
2025
   June 30,
2025
 
ASSETS          
Current assets:          
Cash and cash equivalents   $7,953   $419 
Investments    864    6,740 
Accounts receivable, net of allowance for expected credit losses of $19 and $0 at December 31, 2025 and at June 30, 2025, respectively    17,883    16,433 
Deferred costs    174    24 
Inventory    21,710    22,213 
Income tax receivable    266    1,056 
Prepaid expenses and other current assets    336    410 
Total current assets    49,186    47,295 
Land and building, net    6,015    6,061 
Equipment and leasehold improvements, net    4,757    5,153 
Right-of-use asset, net    830    1,050 
Intangibles, net    12    26 
Deferred income taxes, net    1,277    1,415 
Investments    135    148 
Other assets    44    44 
Total assets   $62,256   $61,192 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable   $4,111   $4,614 
Accrued liabilities    4,258    3,479 
Income taxes payable    1,200    186 
Deferred revenue    163    202 
Notes payable    2,469    6,148 
Total current liabilities    12,201    14,629 
Lease liability, net of current portion    419    685 
Notes payable, net of current portion    8,005    9,246 
Total non-current liabilities    8,424    9,931 
Total liabilities    20,625    24,560 

 

Shareholders’ equity:

          
Common stock; no par value; 50,000,000 shares authorized; 3,209,732 and 3,261,043 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively    —      704 
Retained earnings    41,631    35,928 
Total shareholders’ equity    41,631    36,632 
Total liabilities and shareholders’ equity   $62,256   $61,192 

 

 

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PRO-DEX, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share amounts)

  

   Three Months Ended
December 31,
   Six Months Ended
December 31,
 
   2025   2024   2025   2024 
                 
Net sales   $18,663   $16,793   $37,194   $31,686 
Cost of sales    12,920    11,721    26,083    21,464 
Gross profit    5,743    5,072    11,111    10,222 
                     
Operating expenses:                    
Selling, general and administrative expenses    1,750    1,438    3,241    2,733 
Research and development costs    734    942    1,502    1,784 
Total operating expenses    2,484    2,380    4,743    4,517 
Operating income    3,259    2,692    6,368    5,705 
                     
Other income (expense), net:                     
Interest expense    (141)   (204)   (341)   (357)
Gain (loss) on marketable equity investments, net    (250)   77    3,049    510 
Interest and other income    60    21    74    46 
Total other income (expense)    (331)   (106)   2,782    199 
                     
Income before income taxes    2,928    2,586    9,150    5,904 
Provision for income taxes    741    546    2,283    1,398 
Net income   $2,187   $2,040   $6,867   $4,506 
                     
Basic and diluted net income per share:                    
    Basic net income per share   $0.67   $0.63   $2.11   $1.36 
    Diluted net income per share   $0.66   $0.61   $2.07   $1.33 
                     
                     
Weighted-average common shares outstanding:                    
    Basic   3,249,260    3,261,145    3,255,507    3,314,207 
    Diluted    3,304,042    3,337,337    3,317,777    3,378,862 
Common shares outstanding    3,209,732    3,260,390    3,209,732    3,260,390 

 

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