Pro-Dex, Inc. (NASDAQ:PDEX) reported results for the first quarter of fiscal 2027, with net sales and operating income higher than in the corresponding quarter of the prior fiscal year. Net income declined as unrealized gains on marketable equity investments were substantially lower than in the year-ago period.
For the three months ended September 30, 2026, net sales rose $2.1 million, or 11%, to $20.6 million from $18.5 million for the three months ended September 30, 2025.
Medical device revenue, including rebates, increased $3.3 million. The next-generation handpiece sold to Pro-Dex's largest customer accounted for $1.8 million of that increase. This was partly offset by a $1.7 million reduction in repairs of the legacy handpiece sold to the same customer.
Revenue from newly acquired subsidiary Advanced Precision Machining, LLC increased by $511,000, excluding $814,000 in inter-company sales eliminated during consolidation.
Gross profit increased $1.5 million, or 28%, compared with the corresponding period. Gross margin reached 33%, up from 29%, an increase of 4 percentage points that Pro-Dex attributed primarily to product mix.
Operating expenses rose $1.1 million, or 48%, to $3.3 million from $2.3 million. Engineering costs increased $442,000 because of personnel costs and higher internal project expenditures. Selling, general and administrative expenses increased $642,000, including $466,000 related to APM's separate operations and $195,000 in higher personnel costs tied to accounting, mergers and acquisitions, human resources, and information technology.
Operating income increased $406,000, or 13%, to $3.5 million from $3.1 million. The company said the increase in gross profit was partly offset by higher operating expenses.
Net income decreased to $3.0 million, or $0.92 per diluted share, from $4.7 million, or $1.40 per diluted share, for the three months ended September 30, 2025.
Pro-Dex reported unrealized gains on marketable equity investments of $73,000 for the three months ended September 30, 2026, compared with $3.3 million for the corresponding period in 2025. The company stated that its investments are recorded at estimated fair value and that valuations can be highly volatile from one period to another.
Pro-Dex also filed its Quarterly Report on Form 10-Q for the first quarter of fiscal 2027 with the Securities and Exchange Commission.
Pro-Dex designs, develops and manufactures autoclavable, battery-powered and electric multi-function surgical drivers and shavers used primarily in orthopedic, thoracic and maxocranial facial markets. The company also provides engineering, quality and regulatory consulting services and sells rotary air motors.
Its Advanced Precision Machining subsidiary manufactures parts and assemblies for the aerospace and defense industries and supplies machined components for Pro-Dex customers.
President and Chief Executive Officer Richard L. (“Rick”) Van Kirk said the company expects to ship validation units later this fiscal year while working with the Monogram and Zimmer Biomet teams. Pro-Dex identifies statements concerning expected shipments, future events and future performance as forward-looking statements and said actual results may differ materially because of various factors.
PRO-DEX, INC. announced its financial results for the fiscal 2027 first quarter and said it had filed its Quarterly Report on Form 10-Q for the first quarter of fiscal year 2027 with the Securities and Exchange Commission.
The results covered the three months ended September 30, 2026, with comparisons against the three months ended September 30, 2025.
Net sales increased $2.1 million, or 11%, to $20.6 million from $18.5 million in the year-ago period. The company attributed the increase primarily to higher medical device revenue and revenue generated by its newly acquired subsidiary, Advanced Precision Machining, LLC.
Medical device revenue, inclusive of rebates, increased $3.3 million, including $1.8 million related to the next-generation handpiece sold to the company's largest customer. This was partly offset by a $1.7 million decrease in repairs of the legacy handpiece sold to that customer.
Advanced Precision Machining generated an increase in revenue of $511,000, excluding inter-company sales of $814,000 that were eliminated in consolidation. The subsidiary manufactures parts and assemblies for the aerospace and defence industries and provides machined components supporting PRO-DEX, INC.'s customers.
Gross profit increased $1.5 million, or 28%, compared with the year-ago period, while gross margin increased by 4 percentage points to 33% from 29%. The company said the margin change was primarily due to favourable product mix.
Operating expenses increased $1.1 million, or 48%, to $3.3 million from $2.3 million. The increase included $442,000 of higher engineering costs, related to personnel costs and higher internal project expenditures, and $642,000 of higher selling, general and administrative expenses, including $466,000 from APM's separate operations and $195,000 of higher personnel costs.
Operating income increased $406,000, or 13%, to $3.5 million from $3.1 million, reflecting higher gross profit offset by higher operating expenses. Net income decreased to $3.0 million, or $0.92 per diluted share, from $4.7 million, or $1.40 per diluted share.
The company said the comparison was affected by unrealised gains on marketable equity investments: net income for the latest quarter included $73,000 of such gains, compared with $3.3 million in the year-ago quarter. PRO-DEX, INC. stated that the estimated fair value of its investments can be highly volatile from period to period.
The balance sheet lists cash and cash equivalents of $11,759 at September 30, 2026. It also lists notes payable of $4,171 under current liabilities and notes payable, net of current portion, of $12,270 under non-current liabilities.
PRO-DEX, INC. designs, develops and manufactures autoclavable, battery-powered and electric multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic and maxocranial facial markets. It also provides engineering, quality and regulatory consulting services, sells rotary air motors, and operates Advanced Precision Machining, which manufactures parts and assemblies for the aerospace and defence industries.
The announcement identifies the company as PRO-DEX, INC. (NASDAQ:PDEX).
President and Chief Executive Officer Richard L. ("Rick") Van Kirk said the company expects to ship validation units later this fiscal year while working with the Monogram and Zimmer Biomet teams. The company classified statements about expected shipment of Monogram validation units and other future events or performance as forward-looking statements, and said actual results may differ materially because of various factors.