Company: PDEX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001079973-25-000729
Chunk: 27

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 27
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 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 increased by approximately 5 percentage points compared to the corresponding period of the
prior fiscal year due primarily to favorable product mix.

Cost
of sales for the nine months ended March 31, 2025, increased by 4.7 million, or 17%, compared to the corresponding period of the prior
fiscal year. The increase in total costs of sales is consistent with the 27% increase in revenue for the same period. Under-absorption
of manufacturing costs increased by $2.1 million for the nine months ended March 31, 2025, compared to the corresponding period of the
prior fiscal year and as discussed above we have increased our assembly labor and overhead rates to better absorb our indirect manufacturing
costs. Inventory and warranty charges decreased slightly by approximately $49,000, or 14%, for the nine months ended March 31, 2025, compared
to the corresponding period of the prior fiscal year. 

21 

Gross
profit increased by $5.6 million, or 53%, for the nine months ended March 31, 2025, compared to the corresponding period 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 increased by 6 percentage points compared to the corresponding period of the prior fiscal year primarily
related to a more favorable product mix. 

Operating Expenses

Operating Costs and Expenses
(in thousands except percentages)

    Three
    Months Ended March 31,  
    Nine
    Months Ended  March 31,  
    Year
    over Year % Change 

    2025  
    2024  
    2025  
    2024  
    Three
    Months  
    Nine
    Months 

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

    Operating expenses: 

    Selling
    expenses	 
    $113  
     1% 
    $17  
     —  
    $211  
     —  
    $79  
     —  
     565% 
     167%