Value Microcaps Motherboard

[whyme2005]

PDEX $3.25: REPORTED 4Q NET INCOME. SEES HUGE PROFITABLE GROWTH FOR 2006.


RECORD 4Q NET INCOME OF 9c/SHARE!!

20 - 30% REVENUE GROWTH for 2006 !!

OVER 50% NET INCOME GROWTH IN 2006!!

$3M IN CASH AND ZERO DEBT!!



***** EARNINGS HIGHLIGHTS:

- Record 4Q net income of 9c/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 the previous quarter.

- Net Income Up 112% for the Quarter, 65% for the Year

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

- 2005 net income of 19c/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.

- Backlog of $7.9M an increase of 52% over the $5.1M backlog at the end of 2004.

- Cash and cash equivalents of over $3M with ZERO debt!!


***** GUIDANCE HIGHLIGHTSs:

- 26 - 30c/share net income for FY 2006

- $16 - $18M revenues for a 20 to 30% Revenue growth for YF 2006

- 50% revenue growth for 1Q 2006 to little over $4M. This corresponds to 6c to 8c/share net income. 1Q 2006 results will be announced next month (this per the CC).


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.

PDEX business model allows it to minimimize its R&D and SG&A expenses because they are leveraged with customers' funds.

This means that with this flat cost structure, any revenue growth ends up causing a big increase in the bottom line.


PDEX CEO Mr. Johnson said, " In comparing how we finished the fourth quarter this year to last year, all indicators are trending up. Sales were up by 19 percent for the quarter, a pace we expect to continue into the new fiscal year as we have expanded the product mix from which we derive recurring revenue. Gross profit was up for the year by nearly 4 margin points, a trend that bodes well for gross profitability in the coming fiscal year..."

.." Expenses were down despite increases in product development, sales and marketing activities, all drivers of future sales. As a result, operating income was up 36 percent for the quarter and 25 percent for the year, further evidence of a favorable trend."

"In addition, new order bookings were up by $700,000 in the fourth quarter compared to the prior quarter, pushing our total order backlog to $7.9 million at the end of the year, a $2.8 million or 52 percent increase over the end of last year,"


2006 Outlook:


For fiscal 2006, management believes that the Company will achieve sales of $16-18 million and net income of $0.26-0.30 per share.

"This estimate does not include new product launches yet to reach supply agreement negotiation, any potential acquisitions and does not include new royalty payments," Mr. Johnson continued. "This growth is indicative of the work we've done during the past two years: streamlining our corporate operations to reduce expenses and building a portfolio of development projects to produce profitable revenue growth..."

Here the link for the earnings release:

http://biz.yahoo.com/prnews/050906/nytu123c.html?.v=1



ALWAYS DO YOUR DD!!