Dynatronics First Quarter Results Accompanied by Plan for Profitability

Salt Lake City, Utah-based Dynatronics Corporation has released its first quarter (ending Sept. 30) financial results for fiscal year 2014.

Net sales in the quarter decreased 2.1 percent to $7,055,428, compared to $7,206,025 in the same period of the prior year. Net loss for the quarter was $107,784 ($.04 per common share), compared to $51,145 ($.02 per common share) for the prior year period. The loss was primarily the result of lower sales of products manufactured by third parties, as well as approximately $49,000 in higher research and development costs this quarter associated with the company’s new Thermostim probe, a product expected to launch during the quarter ending Dec. 31, 2013.

“While sales of manufactured capital products and supplies remained even or improved, reduced sales of distributed medical products and supplies, including exercise products, nutritional supplements and taping products, accounted for the decrease in sales for the quarter ended Sept. 30, 2013, compared to the prior year period,” said Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. “The continued general economic weakness in our primary markets, combined with uncertainties surrounding the implementation of the Affordable Care Act, have dampened demand and contributed to lower sales numbers. To offset these challenges, management has undertaken a plan to significantly expand the company’s distribution channels by adding new dealers and sales representatives. To date, we have added more than 30 new sales representatives to our distribution channel. These new representatives are independent direct sales reps and sales reps at newly added independent dealers. They will augment our geographical reach to practitioners across the country. The addition of these new reps brings us nearly halfway to our goal of adding 75 new sales representatives selling our products.”

“We’ve also developed a major new product that we expect to introduce in the quarter ending Dec. 31, 2013,” reported Larry K. Beardall, executive vice president of sales and marketing. “This is the Dynatron Thermostim Probe, and will be one of the most innovative and attractive products in our history. The Thermostim Probe is a soft-tissue mobilization tool that also allows a practitioner to deliver heat or cold therapy in combination with electrical stimulation—all at the same time.”

The new hand-held probe is an accessory to the Dynatron Solarisplus family of products. It uses a thermoelectric chip to generate the thermal therapy and is powered by any one of four Dynatron Solarisplus units.

“Demand for this innovative probe is building even before it is released,” said Beardall. “We now have indications of interest from over 500 clinicians across the country who have become aware of this innovative new product. And since the probe is operated from the control console of the Solarisplus units, we expect demand for Solarisplus units to rise commensurate with the demand for the Thermostim probe.”

“We believe the introduction of the new Thermostim probe, together with the expansion of our distribution channel, will be the impetus to return Dynatronics to profitability,” Cullimore concluded.

Dynatronics makes sdvanced 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.