Dynatronics, headquartered in Salt Lake City, recently released its financial results for the fiscal 2016 first quarter, which ended on September 30.

According to a media release from the company, net sales for the fiscal first quarter were $7.4 million, a 2.5% increase compared to $7.2 million in the same period of the prior year. Gross margin for the fiscal first quarter was 33.9% compared to 35.6% for the quarter that ended September 30, 2014, reflecting higher sales of distributed products which carry lower than average margins.

Net loss for the quarter that ended September 30, 2015, was $181,562, compared to net income of $40,923 for the quarter that ended September 30, 2014.  The increase in net loss is attributable to 1) slightly lower gross profit margins, 2) higher expenses incurred in the implementation of organic and M&A growth initiatives, 3) elevated R&D costs associated with new products planned for introduction later this fiscal year and 4) higher interest expense.

Net loss applicable to common shareholders for the quarter that ended September 30, 2015, was $262,062, compared to net income of $40,923 for the quarter ended September 30, 2014. Net loss applicable to common shareholders recognizes the dividend accrued on preferred stock during the quarter, which totaled $80,500 and was payable in common stock, the release continues.

“The strategic direction of the past few months, including the completion of the sale of $4 million in preferred stock to affiliates of Prettybrook Partners, is designed to accelerate our growth in the coming years,” says Kelvyn H. Cullimore Jr, its chairman and chief executive officer, in the release.

“We are focused on growing organically, both in the US and internationally. In addition, we are implementing an M&A strategy to acquire businesses that simultaneously fit our criteria and enhance our offering.  We are currently evaluating acquisition opportunities and anticipate executing on one of these in calendar year 2016,” he continues.

For more information, visit Dynatronics.

[Source(s): Dynatronics, PR Newswire]