Exhibit 99.1
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NEWS RELEASE
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Contact: Bob Cardon, Dynatronics Corp.
800-874-6251, or 801-568-7000
Dynatronics Announces Third Quarter Results;
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Prepares to Roll Out Parade of New Products
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Salt Lake City, Utah (May 11, 2005) - Dynatronics Corporation (NASDAQ:
DYNT) today announced results for its third fiscal quarter ended March 31, 2005.
Sales for the quarter were $5,048,108, compared to $5,246,044 in the same period
last year. Net income for the quarter ended March 31, 2005, was $164,762 ($.02
per share), compared to $309,702 ($.03 per share) in the third quarter of the
previous year.
Sales for the nine-month period ended March 31, 2005, were $15,289,610,
compared to $15,562,919 for the same period in 2004. Net income during the nine
months was $559,217 ($.06 per share), compared to $725,059 ($.08 per share)
achieved during the prior year period.
"Three significant factors affected third quarter results," stated
Kelvyn H. Cullimore Jr., company chairman and president. "First, we spent
$80,403 more for research and development (R&D) during the quarter than we did
in the same quarter last year because we're developing several new products.
Second, our estimated tax rate was higher in the quarter ended March 31, 2005
than in the comparable quarter in 2004, which impacted net income by
approximately $77,000. Third, overall sales were 4 percent lower than in the
prior year period primarily due to decreased sales of the company's predecessor
`50 Series' devices and other older product lines.
"Excluding the higher R&D expense and the change in tax estimate from
2004, the quarter's net income was within 8 percent of last year's amount and
within 6 percent cumulatively through nine months," explained Cullimore.
Consistent with its reputation as a leading innovator in the field of
physical medicine products, Dynatronics has accelerated its R&D program and
expanded the breadth of products in development. As a result, the company plans
to roll out a record number of products over the next six months. Of the new
products scheduled for introduction, several are based on Dynatronics' new light
therapy technology. Other new products include newly designed treatment tables,
an innovative traction device and an iontophoresis device for non-invasive drug
delivery.
"We anticipate these important new products will significantly improve
sales and profits, just as happened with the introduction of the Solaris product
line two years ago. We believe these projected increases in sales and profits
justify the increased R&D expenses we are incurring," Cullimore added.
Dynatronics plans to introduce the parade of new medical equipment at
its national dealer meeting, June 24-25. Shipments of the first completed
products are scheduled for July.
"The monumental R&D effort we have undertaken is creating a strong
foundation to support the company's projected future growth," said Larry K.
Beardall, Dynatronics' executive vice president of marketing and sales. "Our
innovative new light therapy products, for example, should change the entire
paradigm of how light therapy is delivered to patients."
Dynatronics has scheduled a conference call for investors today at 1
p.m. EDT (11 a.m. MDT). Those wishing to participate should call 800-861-4084
and use passcode 9921511#.
A summary of the financial results for the three and nine months ended
March 31, 2005, follows:
Summary Selected Financial Data
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Three Months Ended Nine Months Ended
March 31, March 31,
2005 2004 2005 2004
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Net sales $ 5,048,108 $ 5,246,044 $ 15,289,610 $ 15,562,919
Gross profit 2,016,934 2,139,754 6,207,432 6,151,889
Income before income taxes 267,905 380,622 909,296 1,054,433
Income tax expense 103,143 70,920 350,079 329,374
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Net income $ 164,762 $ 309,702 $ 559,217 $ 725,059
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Net income per share (diluted) $ .02 $ .03 $ .06 $ .08
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Dynatronics manufactures, markets and distributes advanced-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. More information regarding Dynatronics is
available at www.dynatronics.com.
This press release contains forward-looking statements. Those
statements include references to the company's expectations and similar
statements. Actual results may vary from the views expressed in the
forward-looking statements contained in this release. The development and sale
of the company's products are subject to a number of risks and uncertainties,
including, but not limited to, changes in the regulatory environment, FDA
clearance of new products, growth in the physical medicine industry, competitive
factors, availability of third-party component parts and products, inventory
risks due to shifts in market demand, changes in product mix, market demand for
the company's products and the risk factors listed from time to time in the
company's SEC reports including, but not limited to, the report on Form 10-KSB
for the year ended June 30, 2004, and its subsequent quarterly reports on Form
10-QSB.
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