Quarter Ended June 30, 2019
Net sales for the three months ended June 30, 2019 increased $756,000, or 12%, to $7.0 million from $6.2 million for the three months
ended June 30, 2018, due primarily to increased medical device sales and repair revenue generated from our largest customer of a product used
in orthopedic surgical applications. Gross profit for the three months ended June 30, 2019 increased $153,000, or 6%, to $2.5 million from $2.4
million for the same period in 2018. The increase in gross margin is due to better absorption of our fixed costs due to higher sales volumes, as
well as manufacturing efficiencies derived this fiscal year from higher volumes and continued investment in new machinery.
Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended
June 30, 2019 decreased 27% to $1.4 million from $1.9 million in the prior year’s corresponding quarter, due primarily to the prior year impairment
of our entire $800,000 investment in Monogram Orthopaedics Inc. (“Monogram”) offset by increased expenditures of $61,000 in selling expenses
and $97,000 in research and development costs to support our continued efforts to further grow our business, as well as an increase of $148,000
in general and administrative expenses due to increased bonus accruals.
Net income for the quarter ended June 30, 2019 increased by $720,000, to $888,000, or $0.21 per diluted share, compared to $168,000,
or $0.04 per diluted share, in the corresponding quarter in 2018.
Year Ended June 30, 2019
Net sales for the fiscal year ended June 30, 2019 increased $4.7 million, or 21%, to $27.2 million from $22.5 million for the fiscal year
ended June 30, 2018, due primarily to increases in medical device revenues. Specifically, our largest customer accounted for an increase of $4.6
million in revenue during fiscal 2019.
Gross profit for the fiscal year ended June 30, 2019 increased $1.8 million, or 23%, to $9.8 million compared to $7.9 million for fiscal 2018,
due to increased revenues and manufacturing efficiencies.
Operating expenses (which include selling, general and administrative, and research and development expenses) for the fiscal year ended
June 30, 2019 decreased 14% to $4.8 million from $5.6 million in the prior fiscal year, due in part to the prior year impairment charges related to
our Monogram investment as well as our Fineline Molds division, which we sold in May 2018.
Net income for the fiscal year ended June 30, 2019 was $4.2 million, or $0.97 per diluted share, compared to $1.6 million, or $0.37 per
diluted share, for fiscal 2018.
Although the Company has released its earnings prior to the filing of its annual Form 10-K with the Securities and Exchange Commission,
we are able to do this because we are a non-accelerated filer and as a result have more time to do so at fiscal year-end. During our quarterly
reporting periods we anticipate that our earnings releases will continue to be released at the same time as our Form 10-Q’s are filed with the
Securities and Exchange Commission. We anticipate filing our Form 10-K with the Securities and Exchange Commission on September 12, 2019.
