What's Driving Pro-Dex?

(RTTNews) - Shares of Pro-Dex Inc. (PDEX), which touched a new 52-week high of $11 in intraday trading yesterday, have yielded a decent return of 44% year-to-date.

Pro-Dex specializes in the design, development and manufacture of powered rotary drive surgical and dental instruments used primarily in the orthopedic, spine, maxocranial facial and dental markets. The Company's products are found in hospitals and medical engineering labs around the world.

The Company has steadily improved its sales volumes and gross margins over the years. Its fiscal year ends on June 30.

Net sales in the fiscal year ended June 30, 2016 were $19.2 million, and it improved to $21.9 million in fiscal 2017 and $22.5 million in the fiscal 2018. Gross margin, which was 26 percent in fiscal 2016, increased to 33 percent in fiscal 2017, and was maintained the same in fiscal 2018.

Net income from continuing operations was $1.10 million or $0.27 per share in fiscal 2016, and it rose to $4.84 million or $1.19 per share in fiscal 2017. However, in fiscal 2018, net income from continuing operations dropped to $1.62 million or $0.37 per share as operating expenses increased 25%.

In a recent PR, Pro-Dex's CEO Richard Van Kirk, revealed that his company recently completed the development of its thoracic driver and entered a supply agreement with one of its existing customers to private-label the product. The sales of the driver and accessories are expected to begin in late fiscal 2019.

The Company ended June 30, 2018 with cash of $5.2 million.

PDEX has traded in a range of $6.05 to $11.00 in the last 1 year.