Company: PDEX
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0001079973-25-000164
Chunk: 24

Company: PRO DEX INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Item 2
Chunk 24
---
 is consistent with the 33% and 29% increase
in revenue for the three and six months ended December 31, 2024, compared to the corresponding periods of the prior fiscal year. Additionally,
under-absorption for the three and six months ended December 31, 2024, increased $1.0 million and $1.9 million, respectively, compared
to the corresponding periods of the prior fiscal year. While we continue to anticipate growth
in our direct labor hours during the second half of this fiscal year such that our absorption will stabilize without the need to increase
our labor and overhead rates, however we also expect to increase our labor and overhead rates before the end of this fiscal year as needed.
The inventory and warranty charges for all periods presented are minor. 

Gross
profit increased by $2.3 million, or 81%, and $3.8 million, or 58%, for the three and six months ended December 31, 2024, respectively,
compared to the corresponding periods of the prior fiscal year, primarily as a result of the increase in medical device and repair revenue
for the same periods as described above. Gross margin as a percentage of sales for the three and six months ended December 31, 2024, increased
8 and 6 percentage points, respectively, compared to the corresponding periods of the prior fiscal year. 

19 

Operating Expenses

Operating Costs and Expenses
(in thousands except % change)

    Three
    Months Ended December 31,  
    Six
    Months Ended  December 31,  
    Year
    over Year % Change 

    2024  
    2023  
    2024  
    2023  
    Three
    Months  
    Six
    Months 

    %
    of Net Sales  
       
    %
    of Net Sales  
       
    %
    of Net Sales  
       
    %
    of Net Sales  

    Operating expenses: 

    Selling
    expenses	 
     49  
     —  
     37  
     —  
     98  
     —  
     63  
     —  
     32% 
     56%
  
    General
    and administrative expenses  
     1,389  
     8% 
     1,200  
     10%