Value Microcaps Motherboard

[whyme2005]

Great PDEX presentation at the Roth Capital Partners Investors' Conference today. What impressed me the most was slide 22 of the presentation. This slide shows the incredible turnaround starting in 2002 when it lost money, and the steady increase in earnings year after year, ending up with a sensational 2006 when it will likely post net income of about 30c/share:

http://www.wsw.com/webcast/roth6/pdex/

The slide also shows the steady upwards trend in revenue growth with a temporary slight drop in 2005. It should be noted that the revenue drop was because PDEX exited high-revenue low-margin ventures during the year. Despite the slight revenue drop, the gross and net profit increased drastically because ot the steady gain in gross margins ending 2005 with a reciord high 51.2%.

Another impressive fact is that the projected 26 - 30c/share is fully taxed!!

Most profitable microcaps use loss carry-forwards that inflate their real net income. Not PDEX!

Furthermore, the 26 - 30c/share fully-taxed net income is conservative because it does not include any potential revenues from: 1) current project-development work, 2) any acreetive income from potential acquisitions, and 3) royalty income which is certainly coming from its ozone-generator project.

Rest assured that the big-pocketed institutional investors that attended the Roth Conference today will invest heavily on this undiscovered gem. The last time they presented at Roth, the pps gained over 70% at an steady clip over a period of about a month.

Don't forget that PDEX will release big 1Q 2006 results in about a month!!


***ON TUESDAY, SEPTEMBER 6, 2005 AH, PDEX REPORTED RECORD 4Q NET INCOME AND STRONG OVERALL 2005 RESULTS...IT ALSO GAVE A FANTASTIC GUIDANCE FORWARD:


** RECORD 4Q 2005 NET INCOME OF 9c/SHARE and FY 2005 NET INCOME OF 19c/SHARE!!

** PDEX PREDICTS 26 - 30c/SHARE NET INCOME IN 2006

** PDEX SEES 20 - 30% REVENUE GROWTH for 2006!!

** PDEX ENDED THE YEAR WITH $2.6M IN CASH AND ZERO DEBT!!

** RECORD FULL YESR GROSS MARGIN OF 51.2 IN 2005!!

** RECORD BACKLOG AT THE END OF 2005 !!


***** 9/6/2005 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 OF 9c/share Up 112% for the Quarter, 65% for the Year

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

- 2005 net income of 20c/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!!


***** 9/6/2005 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 has a flat cost structure that is leveraged for highly profitable revenue growth.


ALWAYS DO YOUR DD