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
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
As people view cloud as a preferred option to build IT systems, the size of the cloud-based system is getting bigger and more complex. As the system gets bigger, more people need to collaborate from design to management. As more people collaborate to create a bigger system, the need for a systematic approach to automate the process is required. Just as in software, cloud now needs DevOps. In this session, the audience can see how people can solve this issue with a visual model. Visual models ha...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they bu...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...