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
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
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.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...