Exhibit 99
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NEWS RELEASE
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Contact: Bob Cardon, Dynatronics Corp.
800-874-6251, or 801-568-7000
Dynatronics Announces First Quarter Results
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Salt Lake City, Utah (November 10, 2005) - Dynatronics Corporation
(NASDAQ: DYNT) today announced results for its first fiscal quarter ended
September 30, 2005. Sales for the quarter were $4,358,428, compared to
$4,918,884 in the same period last year. Net loss for the quarter ended
September 30, 2005, was $22,321 ($.00 per share), compared to net income of
$149,348 ($.02 per share) in the first quarter of the previous year.
"First quarter results were impacted by delays in new product
introductions," explained Kelvyn H. Cullimore Jr., company chairman and
president. "Quarterly sales and margins were lower because many distributors are
postponing purchases anticipating our new products. Also, R&D expenses were
approximately $160,000 higher than they were during last year's first quarter.
This increased pace of R&D expenditures is directly related to the new product
development.
"The good news is that we began shipping the first of our eight new
products October 18th," continued Cullimore. "The revolutionary new Dynatron Xp
Infrared Light Pad not only simplifies infrared light therapy treatments but is
an integral part of two of the upcoming new products scheduled for release. It
is a product greatly anticipated by our customers."
A second new product - the Dynatron iBox iontophoresis device for
non-invasive drug delivery - also began shipping in October. While projected to
generate only a small amount in sales, the iBox was strategically developed to
enhance sales of Dynatronics' disposable iontophoresis electrodes.
Other new products will follow. "We look forward to the introductions
of the new Dynatron X3 infrared light therapy device and the Dynatron DX1
Decompression System which we anticipate releasing in the quarter ending March
31, 2006," said Larry K. Beardall, executive vice president of sales and
marketing. "These important new products will provide state-of-the-art features
not available in the marketplace. For example, the Dynatron DX1 Decompression
System will combine the exciting benefits of light therapy with decompression
therapy for treating back pain. Decompression therapy is commonly used for
relieving pain associated with a number of back problems, including herniated
discs, degenerative disc disease, sciatica and pinched nerves."
Other new products in development include newly designed treatment
tables and two new light therapy probes. "We believe the investment we're making
in R&D will pay off in the second half of fiscal year 2006 and beyond," stated
Beardall.
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Cullimore noted that delays in the release of new products combined
with additional aggressive R&D costs will also impact second quarter results.
"However, following the complete release of the new products, we will be well
positioned for improved sales and profits in the future based upon the high
interest we have seen from customers," he explained.
Dynatronics has scheduled a conference call for investors today,
Thursday, November 10, 2005, at 1 p.m. ET (11 a.m. MT). Those wishing to
participate should call 800-861-4084 and use passcode 9921511#.
A summary of the financial results for the three months ended September
30, 2005, follows:
Summary Selected Financial Data
Income Statement Highlights
Three Months Ended
September 30,
2005 2004
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Net sales $ 4,358,428 $ 4,918,884
Cost of sales 2,769,844 2,907,405
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Gross profit 1,588,584 2,011,479
SG&A expenses 1,243,125 1,487,314
R&D expenses 413,605 253,792
Other income (expense) 31,852 (27,530)
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Income (loss) before income taxes (36,294) 242,843
Income tax expense (benefit) (13,973) 93,495
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Net income (loss) $ (22,321) $ 149,348
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Net income (loss) per share (diluted) $ (.00) $ .02
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Balance Sheet Highlights
September 30, June 30,
2005 2005
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Cash $ 411,066 $ 472,899
Accounts Receivable 3,177,811 3,006,315
Inventories 4,575,441 4,712,523
Total current assets 9,258,069 9,075,579
Total assets $ 13,563,980 $ 13,459,723
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September 30, June 30,
2005 2005
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Accounts payable $ 498,435 $ 605,788
Accrued expenses 483,538 571,940
Total current liabilities 2,201,676 2,031,725
Total liabilities 4,066,825 3,946,215
Total liabilities and equity $ 13,563,980 $ 13,459,723
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, 2005, and its subsequent quarterly reports on Form
10-QSB.
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