Click here to close now.

Welcome!

News Feed Item

Dynatronics Announces Second Quarter Financial Results And Introduction of New ThermoStim Probe

SALT LAKE CITY, Feb. 14, 2014 /PRNewswire/ -- Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal second quarter ended December 31, 2013.

Net income for the quarter was $44,095 ($.02 per common share), compared to $140,983 ($.06 per common share) for the prior year period. Net loss for the six-month period ended December 31, 2013, was $63,689 ($.03 per common share), compared to net income of $89,839 ($.04 per common share) for the prior year period. Net sales in the quarter decreased to $7,146,787, compared to $7,998,319 in the same period of the prior year. Net sales in the six months ended December 31, 2013, decreased to $14,202,215, compared to $15,204,345 in the same period of the prior year. All per-share amounts reflect the company's one-for-five reverse stock split, effective December 19, 2012.

"Generating a profit this quarter is a positive sign after losses in three consecutive quarters," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "While the profit was not as big as last year when we introduced the new SolarisPlus product line, we made the necessary adjustments to expenses to offset the reported reduction in sales and achieve profitability.

"Due to uncertainty associated with healthcare reform in the United States, we have seen a marked decline in the opening of new clinics and expansion of existing clinics in our marketplace," continued Cullimore. "The new clinic openings are typically a significant source of demand for capital equipment – especially in December, as businesses traditionally take advantage of year-end tax benefits and the utilization of remaining capital budgets. The typical December surge of sales did not materialize this year, as it has historically, contributing significantly to the reported decline in sales."

To offset these challenges, management of the company has undertaken a multi-faceted approach to (1) expand distribution channels by adding several new dealers and sales representatives, (2) introduce the new Dynatron ThermoStim Probe, and (3) reduce operating costs over the past two years by more than $1.4 million. Since August 2013, the company has added 37 new salespeople, including sales people at dealers, to its team. These seasoned professionals are well-established in the industry and are expected to contribute to expanded sales efforts in the year to come.

The new ThermoStim Probe is a handheld electrode capable of delivering hot or cold therapy in combination with electrical stimulation.  It is also designed to allow the practitioner to simultaneously apply soft-tissue mobilization techniques in conjunction with the thermal therapy and electrical stimulation.  "Initial feedback from the field regarding this new product has been very encouraging," reported Larry K. Beardall, executive vice president of sales and marketing. "Practitioners are quickly recognizing the ThermoStim Probe's unique benefits, which include treatment time savings by delivering three distinct treatments simultaneously and greater ease of use compared to conventional methods. Importantly, patients are enjoying the comfortable treatments provided by this innovative new probe."

Because the probe is operated from the control console of the SolarisPlus units, demand for the company's SolarisPlus units is increasing. "We anticipate that the probe will be the catalyst to not only boost sales of our most profitable products, but also attract new distributors to our products," added Beardall.

"The new ThermoStim Probe is a unique product.  There is nothing like it on the market.  We have applied for patent protection of this proprietary technology.  The introduction of this exciting new product, together with the expansion of our distribution channel and cost reduction program, will be the keys to improving the company's operating performance," Cullimore concluded.

Dynatronics has scheduled a conference call for investors, Friday, February 14, 2014, at 2:00 p.m. ET. Those wishing to participate should call (800) 736-4594.

The following is a summary of the financial results as of December 31, 2013 and 2012, and for the quarter and six months then ended: 

 


Summary Selected Financial Data

Statement of Operations Highlights







Three Months Ended


Six Months Ended





December 31


December 31





2013


2012


2013


2012

Net sales


$

7,146,787


$   7,998,319


$14,202,215


$15,204,345

Cost of sales



4,469,256


4,899,404


8,943,615


9,394,582


Gross profit



2,677,531


3,098,915


5,258,600


5,809,763












Selling, general, and admin. expenses



2,315,463


2,565,282


4,694,833


5,024,386

Research and development expenses



238,711


274,379


553,534


540,646

Other expense, net



49,773


59,111


105,158


118,196


Income (loss) before income taxes



73,584


200,143


(94,925)


126,535












Income tax provision (benefit)



29,489


59,160


(31,236)


36,696


Net income (loss)


$

44,095


$      140,983


$      (63,689)


$       89,839

Basic and diluted net income (loss)










per common share


$

0.02


$            0.06


$          (0.03)


$           0.04












 

Balance Sheet Highlights





December 31, 2013


June 30, 2013






Cash and cash equivalents

$

418,378


302,050

Trade accounts receivable


3,001,381


3,246,712

Inventories, net


6,568,392


6,407,553

Total current assets


11,133,829


10,879,449

Total assets

$

15,135,334


15,104,587






Line of credit


3,676,592


3,496,390

Accounts payable


2,742,238


2,751,894

Accrued expenses


346,834


347,221

Accrued payroll and benefits expense


265,572


216,266

Total liabilities


8,954,426


8,895,637

Total liabilities and stockholders' equity

$

15,135,334


15,104,587






 

About Dynatronics Corporation:

Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets. More information regarding Dynatronics is available at www.dynatronics.com.

Safe Harbor Notification

This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements such as the statement regarding expectations for future new product introductions and plans to expand distribution. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the company's products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the company's products, availability of financing at cost-effective rates, and the risk factors listed from time to time in the company's SEC reports.

SOURCE Dynatronics Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
"We have seen the evolution of WebRTC right from the starting point to what it has become today, that people are using in real applications," noted Dr. Natasha Tamaskar, Vice President and Head of Cloud and Mobile Strategy and Ecosystem at GENBAND, in this SYS-CON.tv interview at WebRTC Summit, held June 9-11, 2015, at the Javits Center in New York City.
Enterprises are turning to the hybrid cloud to drive greater scalability and cost-effectiveness. But enterprises should beware as the definition of “policy” varies wildly. Some say it’s the ability to control the resources apps’ use or where the apps run. Others view policy as governing the permissions and delivering security. Policy is all of that and more. In his session at 16th Cloud Expo, Derek Collison, founder and CEO of Apcera, explained what policy is, he showed how policy should be arch...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US a...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"CenturyLink brings a full suite of services to the table and that enables us to be an IT service provider," explained Jeff Katzen, Director of the Cloud Practice at CenturyLink, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.