Thu, Nov 14, 5:04 PM (95 days ago)
Dynatronics Corporation (NASDAQ: DYNT) reported a challenging Q1 FY2025, with net sales decreasing 18.7% year-over-year to $7,602,000, attributed to reduced demand in orthopedic soft bracing and OEM customer volumes. Gross profit fell 14.1% to $1,981,000, but gross margin improved slightly to 26.1%. SG&A expenses decreased by 12.3% to $2,232,000, reflecting cost-cutting measures. The company recorded a net loss of $367,000, compared to $331,000 in Q1 FY2024, driven by lower gross profit and increased interest expenses. Loss per share improved to $0.09 from $0.12. Cash and cash equivalents declined to $278,000, with working capital at $2,535,000, indicating liquidity pressures. Dynatronics is navigating uncertainties in the economic environment, which may impact future operations. The company has a line of credit of $1,890,000 and is exploring measures to maintain liquidity, including potential equity or debt financing. Additionally, a proposed reverse stock split was approved by shareholders, allowing for flexibility in capital management. Overall, Dynatronics is focused on operational adjustments to stabilize its financial position amid market challenges.