Executive Summary
ProDex Inc delivered a solid QQ3 2024 set of results with revenue of 14.29 million USD, representing a 9.28% year-over-year growth and a 13.54% quarter-over-quarter lift. The company posted a gross profit of 4.10 million USD and a gross margin of 28.7%, supported by strategic mix and favorable operating leverage. Operating income reached 2.21 million USD, yielding an operating margin of 15.5%, while net income was 0.655 million USD, or 4.6% net margin, and basic EPS of 0.19. EBITDA stood at 2.50 million USD (EBITDA margin of ~17.5%). The quarter also showcased meaningful operating cash flow (CFO) of 4.08 million USD and free cash flow of 3.96 million USD, underscoring durable cash generation for a small-cap healthcare supplier.
Liquidity remains robust, with cash and short-term investments totaling about 7.80 million USD and a healthy balance sheet characterized by a current ratio of 3.42 and a quick ratio of 2.05. Net debt stood at 9.82 million USD, while interest coverage was strong at 16.04x, supporting modest leverage (debt to equity 0.42, total debt 13.04 million USD). The company achieved a stabilizing working capital profile, evidenced by a 1.75 million USD increase in net working capital, which funded growth and inventory build for near-term demand. Trailing four-quarter revenue runs at approximately 49.46 million USD, highlighting a positive trajectory in a niche orthopedic/medical instrument market.
Despite these positives, the year-over-year net income declined by about 59.5%, reflecting non-operational factors or timing variances that warrant monitoring. The company’s valuation metrics show a price-to-sales around 4.24x and an enterprise value multiple near 28.2x, positioning PDEX as a mid-to-high multiple small-cap healthcare name with solid cash generation but limited scale in a competitive field. Investors should monitor order intake, customer concentration, and any potential ramp in research and development or regulatory costs that could affect margins.
Key Performance Indicators
QoQ: 31.00% | YoY:-59.49%
QoQ: 35.71% | YoY:-48.65%
Key Insights
Revenue: 14.293 million USD for QQ3 2024, up 9.28% YoY and 13.54% QoQ.
Gross Profit: 4.104 million USD; Gross Margin: 28.71% (YoY margin expansion and QoQ uplift driven by higher revenue and favorable product mix).
Operating Income: 2.213 million USD; Operating Margin: 15.48% (positive operating leverage).
Net Income: 0.655 million USD; Net Margin: 4.58% ( YoY decline of 59.49% but QoQ increase of 31.00%).
EPS: 0.19 (diluted); YoY EPS change -48.65%; QoQ change +35.71%.
EBITDA: 2.50 million ...
Financial Highlights
Revenue: 14.293 million USD for QQ3 2024, up 9.28% YoY and 13.54% QoQ.
Gross Profit: 4.104 million USD; Gross Margin: 28.71% (YoY margin expansion and QoQ uplift driven by higher revenue and favorable product mix).
Operating Income: 2.213 million USD; Operating Margin: 15.48% (positive operating leverage).
Net Income: 0.655 million USD; Net Margin: 4.58% ( YoY decline of 59.49% but QoQ increase of 31.00%).
EPS: 0.19 (diluted); YoY EPS change -48.65%; QoQ change +35.71%.
EBITDA: 2.50 million USD; EBITDA Margin: ~17.49%.
Cash Flow: Net cash provided by operating activities 4.078 million USD; Free cash flow 3.960 million USD; CFO/Revenue ~28.5%; FCF/Revenue ~27.7%.
Balance Sheet: Cash and cash equivalents 3.219 million USD; Short-term investments 4.578 million USD; Total cash & equivalents ~7.797 million USD. Total assets 50.548 million USD; Total liabilities 19.610 million USD; Total stockholders’ equity 30.938 million USD.
Liquidity & Leverage: Current ratio 3.42; Quick ratio 2.05; Cash ratio 0.309; Debt/Equity 0.422; Total debt 13.041 million USD; Net debt 9.822 million USD; Interest coverage 16.04x.
Efficiency: Days sales outstanding ~78.8 days; Days inventory outstanding ~125.8 days; Cash conversion cycle ~174.3 days; Asset turnover 0.283; Inventory turnover 0.715.
Valuation & Growth: Price-to-sales 4.24x; EV/EBITDA 28.17x; P/B 1.96x; FY2024 trailing revenue ~49.46 million USD based on four-quarter data.
Notes: YoY revenue grew ~9.3% while net income declined due to non-operating effects; management commentary not provided here.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.29M |
9.28% |
13.54% |
| Gross Profit |
4.10M |
7.69% |
46.47% |
| Operating Income |
2.21M |
7.17% |
184.81% |
| Net Income |
655.00K |
-59.49% |
31.00% |
| EPS |
0.19 |
-48.65% |
35.71% |
Key Financial Ratios
operatingProfitMargin
15.5%
operatingCashFlowPerShare
$1.18
freeCashFlowPerShare
$1.15
Management Commentary
Notes: The dataset contains an empty earnings transcript array for QQ3 2024. Consequently, there are no management quotes or call-specific remarks to quote verbatim. Key themes commonly associated with this result set, based on the disclosed metrics, would typically include: (1) emphasis on improving operating leverage and margin expansion as revenues grow; (2) commentary on working capital management given high inventory days and receivable levels; (3) discussion of product mix and demand drivers in orthopedic and surgical instrument markets; (4) potential regulatory and R&D considerations influencing longer-term profitability. In the absence of an actual transcript, the following themes are inferred as relevant anchors for investor context: revenue growth drivers in orthopedic tooling, margin discipline from scale, and cash flow efficiency supporting a conservative balance sheet. No direct quotes are available from management in the provided data.
Forward Guidance
No formal forward guidance is included in the QQ3 2024 data provided. The lack of explicit targets means investors should rely on trailing performance and qualitative industry cues. Given the strength in quarterly CFO and FCF generation, supported by a solid balance sheet and modest leverage, there is a plausible path to continued liquidity resilience if revenue growth sustains and working capital remains manageable. Monitoring points for the near to intermediate term include: (1) order backlog and new customer contracts in orthopedic instrumentation; (2) mix-driven margin stability as higher-margin products scale; (3) receivables and inventory levels to ensure working capital efficiency; (4) any changes in regulatory/regulatory-related costs or engineering spend that could impact profitability; (5) macro-adjacent risks in elective procedures that may affect device demand.