Value Microcaps Motherboard

[whyme2005]

PDEX $3.1 COULD BE A BIG GAINER NEXT WEEK AFTER 9/6 AH EARNINGS


On Tuesday, September 6, 2005 AH, PDEX will announce record net 4Q net income and will give strong guidance forward for 1Q 2006 and full-year 2006. A CC will follow the earnings announcement

PDEX has a float of only 6.5M shares out of 9.3M O/S shares. PDEX has almost $3M in cash and no long-term debt. PDEX has reported 10 consecutive profitable quarters, with the biggest ones coming up in 2006.


**** On July 7, low-floarer PDEX pre-announced the following results for 4Q 2005 and FY 2005:

Record 4Q net income of 7c - 8c/share. Compared to 5c/share in the prior year and 3c/share the prior quarter.

4Q Revenues of $4.4M. Up 19% over prior year and 35% over previous year.

2005 Gross Margin of 52 - 53%, up from 48% the prior year.

2005 net income of 18c/share compared to 13c/share in 2004 and 2c/share in 2003.

Order backlog at the end of 2005 of $7.9 million compared to $5.1 million at the end of 2004.


I believe that the company will give a strong guidance forward for 1Q 2006 and full-year 2006 on September 6. PDEX's CEO has hinted that 1Q 2006 to be announced next month will be very similar to 4Q 2005 in terms or revenue and net income. That is is significant improvement over 1 Q 2005. A good indication of that is the 53% in backlog over 2004. For details listen to the company's presentation to investors at the B. Ryley Conference in New York at the B. Riley Micro Cap Investors Conference. You can find this presentation at the company website http://www.pro-dex.com and specifically at http://www.wsw.com/webcast/brileyco5/pdex/.

PDEX is a high-tech and engineering company specializing in product development and manufacturing of special devices for top customers in the medical, dental, semi-comiductor, and facory automation industries. These customers come to PDEX when they need to launch new products rapidly and efficiently often times to beat customers to market or to provide competing products to protect market share.

This unique business model allows PDEX to minimimize its R&D and SG&A expenses because they are leveraged with customers' funds. In fact, PDEX has decreased its expenses almost every quarter while its revenue has been gradually increasing. PDEX is gaining strong momentum revenue-wise starting in 4Q 2005 and continuing through 2006 and beyond judging by the strong backlog of new projects. This means that 1Q 2006 and FY 2006 will very likely yield record net income. My estimate is for 25c/share to 35c/share for FY 2006.

PDEX will be presenting at Roth's Investors' Conference on August 8....two days after its earnings' release. You can bet they'll have very good things to say about the company's future at that conference.


**** Here are pre-announcement excerpts:


Solid Bookings Continue Momentum; Company Expects to Meet Earnings Target of $0.18 Per Share


SANTA ANA, Calif., July 7 /PRNewswire-FirstCall/ -- PRO-DEX, INC. (Nasdaq: PDEX - News) a developer and manufacturer of embedded motion control and miniature rotary drive systems, serving the medical, dental, factory automation, and scientific research markets, today announced that based on preliminary results for the year ended June 30, 2005, the Company expects to report quarterly sales of $4.4 million, an increase of 34.8 percent compared to the prior quarter and an increase of 19 percent compared to the $3.7 million reported during the fourth quarter of last fiscal year. Earnings for the fourth quarter are expected to be $0.07 to $0.08 per share compared to $0.05 per share for the year ago period..."

..."we shipped $2.3 million in aggregate during the month of June and a result of this increased momentum.."

.."The Company expects to report gross margins for the year-end of approximately 52 to 53 percent, a substantial improvement from the 47.9 percent reported at the end of fiscal year 2004. The Company also completed the quarter with $7.9 million in backlog compared to $5.1 million at the end of last fiscal year, an increase of 55 percent. Of this total backlog, $3.8 million is booked to ship in the first quarter. Pro-Dex ended the quarter with nine active product development projects, five of which are customer funded, representing an estimated $6.5 million in first year revenue, compared to eight projects and $4.0 million last year. Further strengthening its balance sheet, the Company expects to end the year with $2.6 million in cash and remains debt free with $2.0 million available on its existing credit line..."

Addressing the prospects for the new fiscal year, Mr. Johnson continued, "Our strong June performance and solid backlog position provides optimism that the first quarter will closely resemble the fourth quarter, and with a record number of products in our development portfolio, we believe all indicators point toward further revenue growth and operating improvements during fiscal 2006. We look forward to discussing the year's accomplishments in more detail during our conference call in early September, when we will provide sales and earnings guidance for fiscal year 2006."



ABOUT PDEX ...

Pro-Dex Inc., (Nasdaq: PDEX) with operations in Santa Ana, California and Beaverton, Oregon, specializes in bringing speed to market in the development and manufacture of technology-based solutions that incorporate embedded motion control and miniature rotary drive systems, serving the medical, dental, semi-conductor, and scientific research markets. Pro-Dex's products are found in hospitals, dental offices, medical engineering labs, scientific research facilities and high tech manufacturing operations around the world.

This one will fly soon.....DO YOUR DD!!