Pro Dex (PDEX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.29 million, or $ 0.07 a share in the quarter, against a net loss of $0.12 million, or $0.03 a share in the last year period. Revenue during the quarter surged 32.10 percent to $5.41 million from $4.10 million in the previous year period. Gross margin for the quarter expanded 389 basis points over the previous year period to 29.71 percent. Operating margin for the quarter period stood at positive 5.41 percent as compared to a negative 2.90 percent for the previous year period.
Operating income for the quarter was $0.29 million, compared with an operating loss of $0.12 million in the previous year period.
Richard L. ("Rick") Van Kirk, the Companys president and chief executive officer, commented, "We are pleased with the increase in our net sales this quarter, the improvement of our product margins, and our continued profitability for four successive quarters. We continue to focus on cost-reductions related to our newest medical device products and have invested in manufacturing equipment to increase our operational efficiency."
Operating cash flow turns positive
Pro Dex has generated cash of $0.26 million from operating activities during the quarter as against cash outgo of $0.64 million in the last year period. The company has spent $0.33 million cash to meet investing activities during the quarter as against cash outgo of $0.06 million in the last year period.
The company has spent $0.06 million cash to carry out financing activities during the quarter as against cash inflow of $0.50 million in the last year period.
Cash and cash equivalents stood at $2.17 million as on Sep. 30, 2016, up 339.76 percent or $1.68 million from $0.49 million on Sep. 30, 2015.
Working capital increases sharply
Pro Dex has recorded an increase in the working capital over the last year. It stood at $7.16 million as at Sep. 30, 2016, up 53.79 percent or $2.51 million from $4.66 million on Sep. 30, 2015. Current ratio was at 3.70 as on Sep. 30, 2016, up from 2.29 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 62 days for the quarter from 156 days for the last year period. Days sales outstanding went down to 59 days for the quarter compared with 73 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 130 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 47 for the same period last year.
Debt comes down significantly
Pro Dex has recorded a decline in total debt over the last one year. It stood at $0.16 million as on Sep. 30, 2016, down 72.85 percent or $0.43 million from $0.59 million on Sep. 30, 2015. Total debt was 1.35 percent of total assets as on Sep. 30, 2016, compared with 4.83 percent on Sep. 30, 2015. Debt to equity ratio was at 0.02 as on Sep. 30, 2016, down from 0.07 as on Sep. 30, 2015.
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