Pro-Dex Q3 Sales Jump 15% to $19.9M as Net Income Hits $1.20 per Share
PDEX•Pro-Dex’s Q3 net sales rose 15% to $19.9M, driving gross profit up 6% to $6.1M despite a 2-point margin decline and a 41% increase in operating expenses from the APM acquisition. Net income climbed to $3.9M ($1.20/share), boosted by a $2.3M contingent-value gain.
1. Third Quarter Results
Pro-Dex’s Q3 net sales rose 15%, or $2.5M, to $19.9M, boosted by $4.7M in next-generation orthopedic handpiece shipments; gross profit increased 6% to $6.1M while gross margin fell to 31% from 33% due to an unfavorable product mix.
2. Acquisition Impact
Operating expenses climbed 41% to $3.0M, reflecting higher SG&A costs and $200K of nonrecurring legal and consulting fees tied to the Advanced Precision Machining acquisition, which contributed to a 15% drop in operating income to $3.1M; net income still rose to $3.9M ($1.20/share) largely from a $2.3M contingent-value gain.
3. Nine-Month Performance
In the nine months ended March 31, net sales grew 16% to $57.1M, driven by $16.6M in next-generation handpiece shipments and $2.1M in CMF driver and battery sales despite declines in legacy handpiece and repair revenues; operating income edged up 1% to $9.5M and net income reached $10.8M ($3.27/share) amid a 3-point margin drop.
4. CEO Commentary
CEO Rick Van Kirk highlighted the record quarterly revenue and completion of the APM acquisition, emphasizing the expanded machining capacity, new revenue streams and Pro-Dex’s strong positioning for sustained growth through the remainder of fiscal 2026.
