Earnings release
Page 1
Exhibit 99.1 Contact: Richard L. Van Kirk, Chief Executive Officer (949) 769-3200 For Immediate Release PRO-DEX, INC. ANNOUNCES FISCAL 2026 FIRST QUARTER RESULTS IRVINE, CA, October 30, 2025 - PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal 2026 first quarter ended September 30, 2025. The Company also filed its Quarterly Report on Form 10-Q for the first quarter of fiscal year 2026 with the Securities and Exchange Commission today. Quarter Ended September 30, 2025 Net sales for the three months ended September 30, 2025, increased $3.6 million, or 24%, to $18.5 million from $14.9 million for the three months ended September 30, 2024. The increase is driven primarily by a $4.4 million increase in revenue related to the resumption of the next-generation handpiece we sell to that customer, offset by a $1.3 million decrease in repairs of the legacy handpiece we sell to that customer. During the fourth quarter of fiscal 2025, at the customer’s request, we resumed production and shipment of the customer’s next generation handpiece. Because certain of the sub-assemblies included in the handpiece take several weeks of internal machining, the process to resume shipments at the requested levels has taken several months. By September 2025, our shipments reached the recurring level that the customer has requested. Gross profit for the three months ended September 30, 2025, increased $217,000, or 4%, compared to the year-ago period. Gross margin decreased by 6 percentage points to 29% during the three months ended September 30, 2025, compared to 35% during the corresponding year-ago period, due primarily as a result of higher costs, including tariffs, which have not been fully passed on to our customers. Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2025, increased $121,000, or 6%, to $2.3 million compared to $2.1 million for the prior fiscal year’s corresponding quarter. The increase relates primarily to increased general and administrative expenses relating to higher personnel costs specifically related to human resources, information technology and facilities. Our operating income for the quarter ended September 30, 2025, increased $96,000, or 3%, to $3.1 million compared to $3.0 million for the prior fiscal year’s corresponding quarter. The increase reflects our increased sales, as described above. Net income for the quarter ended September 30, 2025, increased to $4.7 million, or $1.40 per diluted share, compared to net income of $2.5 million, or $0.75 per diluted share, for the quarter ended September 30, 2024. Our net income for the quarter ended September 30, 2025, contains unrealized gains on our marketable equity investments of $3.3 million while our net income for the quarter ended September 30, 2024, includes unrealized gains on investments of $433,000. All of our investments are recorded at estimated fair value, and the period-to-period valuation can be highly volatile. Specifically, our investment in Monogram Technologies, Inc. was valued at the cash price we received in October 2025, upon its acquisition by Zimmer Biomet Holdings, Inc. We received $4.04 per share for each of the common shares we owned of Monogram, for a total of $8.9 million in cash proceeds.
Page 2
CEO Comments Richard L. (“Rick”) Van Kirk, the Company’s President and Chief Executive Officer, commented, “We are pleased with our first quarter results and excited to have resumed shipment of our largest customer’s next generation handpiece at the recurring levels we expect to deliver in our second fiscal quarter and beyond.” Mr. Van Kirk concluded, “We are also pleased with the recent cash infusion generated from our investment in Monogram and are thoughtfully considering how to best utilize it for our continued growth and strategic objectives.” About Pro-Dex, Inc.: Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi- function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions that appeal to our customers, primarily medical device distributors. Pro-Dex also sells compact pneumatic air motors for a variety of industrial applications. Pro-Dex's products are found in hospitals and medical engineering labs around the world. For more information, visit the Company's website at www.pro-dex.com. Statements herein concerning the Company's plans, growth, and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments, and future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the risk factors and other disclosures concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission. (tables follow)
Page 3
PRO-DEX, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share amounts) September 30,2025 June 30,2025 ASSETS Current Assets: Cash and cash equivalents $ 514 $ 419 Investments 10,038 6,740 Accounts receivable, net of allowance for credit losses of $2 and $0 at September 30, 2025 and at June 30, 2025, respectively 18,234 16,433 Deferred costs 32 24 Inventory 21,564 22,213 Income taxes receivable 106 1,056 Prepaid expenses and other current assets 235 410 Total current assets 50,723 47,295 Land and building, net 6,038 6,061 Equipment and leasehold improvements, net 4,969 5,153 Right-of-use asset, net 941 1,050 Intangibles, net 19 26 Deferred income taxes 1,415 1,415 Investments 149 148 Other assets 44 44 Total assets $ 64,298 $ 61,192 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 3,965 $ 4,614 Accrued liabilities 4,127 3,479 Income taxes payable 776 186 Deferred revenue 122 202 Notes payable 4,612 6,148 Total current liabilities 13,602 14,629 Lease liability, net of current portion 555 685 Notes payable, net of current portion 8,628 9,246 Total non-current liabilities 9,183 9,931 Total liabilities 22,785 24,560 Shareholders’ Equity: Common stock; no par value; 50,000,000 shares authorized; 3,262,004 and 3,261,043 shares issued and outstanding at September 30, 2025 and June 30, 2025, respectively 905 704 Retained earnings 40,608 35,928 Total shareholders’ equity 41,513 36,632 Total liabilities and shareholders’ equity $ 64,298 $ 61,192
Page 4
PRO-DEX, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts) Three Months Ended September 30, 2025 2024 Net sales $ 18,530 $ 14,892 Cost of sales 13,163 9,742 Gross profit 5,367 5,150 Operating expenses: Selling expenses 73 48 General and administrative expenses 1,417 1,246 Research and development costs 768 843 Total operating expenses 2,258 2,137 Operating income 3,109 3,013 Other income (expense): Interest and dividend income 14 25 Unrealized gain on investments 3,299 433 Interest expense (200) (152) Total other income 3,113 306 Income before income taxes 6,222 3,319 Provision for income taxes 1,542 853 Net income $ 4,680 $ 2,466 Basic and diluted net income per share: Basic net income per share $ 1.43 $ 0.76 Diluted net income per share $ 1.40 $ 0.75 Weighted-average common shares outstanding: Basic 3,261,753 3,259,742 Diluted 3,338,805 3,292,142 Common shares outstanding 3,262,004 3,297,510