Company: PDEX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001079973-25-001655
Chunk: 24

Company: PRO DEX INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 24
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57,000, or 5%, in the first quarter of fiscal 2026 compared to the corresponding period of the prior fiscal year,
due to volume rebates related to the legacy orthopedic handpiece we sell to our largest customer, which they negotiated in conjunction
with our contract extension through 2025.

At
September 30, 2025, we had a backlog of approximately
$46.8 million, of which $43.6 million is scheduled for delivery during the remainder of fiscal 2026. Our backlog represents firm
purchase orders received and acknowledged from our customers and does not include all revenue expected to be generated from existing
customer contracts. We may experience
variability in our new order bookings due to various reasons, including, but not limited to, the timing of major new product launches
and customer planned inventory builds. However, we do not typically experience seasonal fluctuations
in our shipments and revenues.

20 

Cost of Sales and Gross Margin

    Three
    Months Ended September 30,  
    Increase
    (Decrease) From 

    2025  
    2024  
    2024 to 2025 

    Dollars
    in thousands  

    Cost of sales: 
       
    % of Net Sales  
       
    % of Net Sales  

    Product costs	 
    $12,408  
     67% 
    $9,347  
     63% 
     33%
  
    Under-(over) absorption of manufacturing costs	 
     619  
     3% 
     325  
     2% 
     91%
  
    Inventory and warranty charges	 
     136  
     1% 
     70  
     —  
     94%
  
    Total cost of sales	 
    $13,163  
     71% 
    $9,742  
     65% 
     35%
  
    Gross profit and gross margin 
    $5,367  
     29% 
    $5,150  
     35% 
     4%

Cost of sales for the three
months ended September 30, 2025, increased by $3.4 million, or 35%, compared to the corresponding period of the prior fiscal year. The
increase in cost of sales is consistent with the 24% increase in revenue for the same period