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

Company: PRO DEX INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 25
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NRE and proto-type revenue decreased $48,000, or 21%, and $488,000, or 64%, for the three and nine months ended March 31, 2025, compared
to the corresponding periods of the prior fiscal year, due to a decrease in billable contracts for various NRE projects undertaken for
our customers.

Sales
of our dental products and components decreased $17,000, or 27%, and $28,000, or 19%, respectively, for the three and nine months ended
March 31, 2025, compared to the corresponding periods of the prior fiscal year. We expect future declines in this area as we are no longer
manufacturing dental products, but rather are simply selling remaining component inventory. 

Repair
revenue increased $666,000 or 15%, and $3.3 million, or 29%, for the three and nine months ended March 31, 2025, respectively, compared
to the corresponding periods of the prior fiscal year primarily due to an increased number of repairs of the orthopedic handpiece we sell
to our largest customer. This increase relates to the continuation of the previously disclosed enhanced repair program. 

20 

At
March 31, 2025, we had a backlog of approximately $49.5 million, of which $12.8 million is scheduled to be delivered in the fourth quarter
of fiscal 2025 and the balance is scheduled to be delivered next fiscal year. 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.

Cost of Sales and Gross Margin
(in thousands except percentages)

    Three
    Months Ended March 31,  
    Nine
    Months Ended March 31, 

    2025  
    2024  
    2025  
    2024 

    % of Total  
       
    % of Total  
       
    % of Total  
       
    % of Total 
  
    Cost of sales: 

    Product cost 
    $ 10,997  
     95% 
    $ 9,815