PDEX I'll post the Q&A section below.
To me, the nice thing about this report is not really the $0.01 EPS but the less restrained tone by Hal Hurwitz about the future, in particular 2 big projects that have had some degree of may-not-happen to them. Hurwitz was way less cautious in talking about them this time versus prior calls. At least, that is how I heard him. They seem to be all but a done deal now, and what that means to me is that PRO-DEX WILL SUCCESSFULLY "TURNAROUND" (and the stock will boom from present levels) -- they have cut costs so much that all they need is some new revenue streams. These projects I believe are it.
The only problem I guess is that investors might have to wait until Q3 (ends Mar 31) earnings are out. So that is an 8-month wait. Seems like forever these days. He indicated a small probability that some revenues could show up in December. But really I think we are looking at May being the likely time when investors will finally SEE that the whole turnaround started a few years ago has finally borne fruit.
I see a very slim chance that these 2 big projects won't happen. Somewhat more likely but not probable is that they will be delayed -- that is the more likely worse case scenario but I don't think it is actually likely.
Between now and then, we could go back to losing money. So I would keep that in mind that you may have to endure 2 money-losing quarters and investors maybe losing patience in the meantime.
Another positive which is in the CC below is a $3.5M order from PDEX's biggest customer for 2015. Hurwitz described himself as "happy" with this. It has just been my impression from past CCs that Hurwitz is always cautious in talking about PDEX's prospects and he seemed to be less so this CC, so I take that to mean he is quite confident that results are on the up and up, this thing is really working out.
CONF CALL:
Operator
(Operator Instructions) Our first question comes from the line of Matthew Mcclane [ph], a private investor.
Unidentified Participant
Hi, thanks for taking my question. Congratulations on finishing the year strong. I am just wondering I have a few questions. First one about, can we consider this quarter to be as somewhat of a run rate to the operations now, is it kind of stabilized revenue [inaudible] similar without the production contract coming through and is the cost base about where you want it to be?
Hal Hurwitz - Chief Executive Officer
Matt, first, thanks for your comments on this quarter. Because we are very much still a project based entity, and if I mention, we don’t look for manufacturing to start on our two large development projects until later in the calendar year I don’t know that I can say that we can yet call this a run rate for future quarters. But we’re definitely getting there.
Unidentified Participant
All right, thanks. And then just quickly on the purchase order from the largest customer, are you happy with the volume that’s going through in that contract and how does it look compared to prior year?
Hal Hurwitz - Chief Executive Officer
We are happy with it. Our customer has actually now run short of project -- products, that’s what we have been told, so that’s a good news. And we are very pleased with the PO.
Unidentified Participant
And then just lastly a bit, could you speak any more about how the product development projects are going and what are you looking at for the quarter, is there going to be hopefully some sort of the tooth [ph] on this by the end of the quarter, will revenue then follow in the following quarters, so how should we approach it as investors?
Hal Hurwitz - Chief Executive Officer
The product development projects are going nicely. We emerged substantially through the development phase. We are into a testing phase now. So we are not completely through the development phase. But it is an accomplishment to say that we are into the test phase now. And the answer to the latter part of your question is yes. We expect that we will be through the development phase of those projects late in this calendar year which would be our second fiscal quarter, so that our expectation is that meaningful manufacturing revenues likely would be on the other side of New Year. There is some chance that some manufacturing revenues would occur in December but I think that is a more realistic and reasonable expectation to say that it would occur in the quarter beginning January 1.
Unidentified Participant
All right. I appreciate that. And then I just have one last question about the 8-K filing and [inaudible] considering a possible manufacturing company acquisition, just wondering how potentially [inaudible] make sense with Pro-Dex, will it provide additional manufacturing capacity, does it align well with new product development contracts, just if you could provide any color, I understand that you are doing due diligence now, it may not be anything you can see through but if you could provide some additional information.
Hal Hurwitz - Chief Executive Officer
Sure. I will be happy to. The particular transaction that we are looking at as well as some others provides us with near term and shorter sales cycle revenues. As I have commented on and as my predecessors just commented on for many years now, the sale cycle in a medical device space is a very long one. Until we have a two-tiered approach with respect to business development, as we go after the larger tickets, higher margin revenues represented by the medical device projects, those need to be supported by a solid foundation of shorter sale cycle recurring on a regular basis revenues, which I think will make my answer to your first question about run rate an easier one in future quarters. That’s really our objective with this small acquisition.
Unidentified Participant
That’s good to hear. So this isn’t just simply buying [inaudible] assets, you’re actually looking to have reasonable operational revenue coming out of this as well?
Hal Hurwitz - Chief Executive Officer
That’s correct. I would remind you that this particular acquisition, as an example, is a small one, at $225,000 of purchase price, you can appreciate that it’s a small entity. But it does have a good run rate, a good positive cash flow and a good customer list which is our primary interest.
Operator
(Operator Instructions) Thank you. We have no further questions in queue at this time. I would like to hand the floor back to our host for closing remarks.
