Dynatronics Corporation (NASDAQ: DYNT) today announced results for its fiscal fourth quarter and year ended June 30, 2011.
Sales for the quarter ended June 30, 2011 increased 3 percent to $8,190,382, compared to $7,943,432 for the quarter ended June 30, 2010. Sales for the year ended June 30, 2011, were $32,692,859, down less than 1 percent from $32,962,392 for the prior year.
Net income for the quarter ended June 30, 2011 was $68,776 ($.01 per common share), compared to $70,955 ($.01 per common share) for the same quarter in the prior fiscal year. Net income for the year ended June 30, 2011 was $270,888 ($.02 per common share), compared to $423,977 ($.03 per common share) for the prior fiscal year. Approximately $469,000 in increased research and development expenses primarily accounts for the lower profitability in fiscal year 2011.
"Despite the fact R&D expenditures diminished our comparative profitability, such expenditures are important to enhancing future sales and maintaining our position as an innovator in the market," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "In addition to our R&D initiative, we also made significant progress cultivating new sales opportunities with Group Purchasing Organizations (GPOs) and national accounts. During the year, we announced the signing of contracts with four GPOs: Premier, Amerinet, First Choice and Champs Group Purchasing. These contracts became effective in the latter part of the fiscal year and we have begun the process of introducing GPO member facilities to Dynatronics' brand of products."
"The contracts with the GPOs represent a license to solicit business directly from the members of the respective GPOs," explained Cullimore. "While initial indications of interest from these new GPO customers have been encouraging, we recognize that the process of converting business to our brand is more of a marathon than a sprint and it will take several quarters to show significant progress."