Executive Summary
ProDex Inc delivered a robust Q4 2024 performance, highlighted by a 41.2% year-over-year revenue increase to $15.03 million and a solid gross margin of 27.9%. The quarter produced operating income of $2.35 million and net income of $1.59 million, translating to basic EPS of $0.47. The result set marks meaningful top-line acceleration on a base that benefited from demand for powered surgical instruments and related services, coupled with disciplined cost management that kept operating expenses in check.
Profitability remained favorable with an operating margin of 15.6% and a net margin of 10.6%, supported by EBITDA of $2.66 million and an interest-coverage ratio of 15.8x. Cash flow remains positive, with $1.02 million generated from operations and free cash flow of $0.913 million in the quarter. The company ended the period with roughly $2.63 million in cash and equivalents and a total cash-and-equivalents plus short-term investments position of about $6.85 million. Total debt stands at $13.55 million, leaving net debt at approximately $10.92 million and a relatively conservative debt profile (debt-to-equity ~0.44, debt ratio ~0.25).
From a balance-sheet and working-capital perspective, ProDex exhibits a strong current position (current ratio 2.82; quick ratio 1.64), though operating-cycle metrics indicate a relatively extended cash conversion cycle (CCC ≈ 210 days) driven by higher days sales outstanding and inventory days. Management commentary (when available) will be critical to understanding whether this leverage on working capital is a near-term artifact of OEM production lags or a structural characteristic of the business model. Overall, the QQ4 results reinforce a constructive investment thesis: scalable profitability, a lean cost structure, and sufficient liquidity to fund ongoing product development and potential market expansion. Based on the data, we outline growth opportunities, risks, and an actionable investment outlook for investors to monitor going into 2025 and beyond.
Key Performance Indicators
QoQ: 142.29% | YoY:-58.30%
QoQ: 147.37% | YoY:-56.07%
Key Insights
Revenue: $15.03M, YoY +41.23%, QoQ +5.12%
Gross Profit: $4.194M, Gross Margin 27.91%, YoY +24.86%, QoQ +2.19%
Operating Income: $2.351M, Op. Margin 15.65%, YoY +46.02%, QoQ +6.24%
Net Income: $1.587M, Net Margin 10.56%, YoY -58.30%, QoQ +142.29%
Earnings Per Share (Basic): $0.47; EPS (Diluted): $0.46
EBITDA: $2.657M; EBITDA Margin 17.68%
Net Cash Provided by Operating Activities: $1.02M; Free Cash Flow: $0.913M
Cash and Equivalents: $2.631M; Short-Term Investments: $4.217M; Cash & ST Investm...
Financial Highlights
Revenue: $15.03M, YoY +41.23%, QoQ +5.12%
Gross Profit: $4.194M, Gross Margin 27.91%, YoY +24.86%, QoQ +2.19%
Operating Income: $2.351M, Op. Margin 15.65%, YoY +46.02%, QoQ +6.24%
Net Income: $1.587M, Net Margin 10.56%, YoY -58.30%, QoQ +142.29%
Earnings Per Share (Basic): $0.47; EPS (Diluted): $0.46
EBITDA: $2.657M; EBITDA Margin 17.68%
Net Cash Provided by Operating Activities: $1.02M; Free Cash Flow: $0.913M
Cash and Equivalents: $2.631M; Short-Term Investments: $4.217M; Cash & ST Investments: $6.848M
Total Assets: $54.21M; Total Liabilities: $23.34M; Total Stockholders’ Equity: $30.87M
Total Debt: $13.55M; Net Debt: $10.92M; Interest Coverage: 15.78x
Current Ratio: 2.82; Quick Ratio: 1.64; Cash Ratio: 0.20
Days Sales Outstanding (DSO): 83.18; Days Inventory Outstanding (DIO): 126.88; Days Payables Outstanding (DPO): 37.50; Cash Conversion Cycle (CCC): 210.06 days
Valuation (as of QQ4 2024): P/E ~9.83x; P/B ~2.02x; P/S ~4.15x; EV/Sales ~27.60x; Price/OCF ~61.18x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
15.03M |
41.23% |
5.12% |
| Gross Profit |
4.19M |
24.86% |
2.19% |
| Operating Income |
2.35M |
46.02% |
6.24% |
| Net Income |
1.59M |
-58.30% |
142.29% |
| EPS |
0.47 |
-56.07% |
147.37% |
Key Financial Ratios
operatingProfitMargin
15.6%
operatingCashFlowPerShare
$0.3
freeCashFlowPerShare
$0.27
Management Commentary
Transcript data not provided in the dataset. Consequently, no management quotes or thematic remarks from an earnings call are available for this QQ4 2024 analysis. If the earnings call transcript can be supplied, I will integrate management commentary by themes (strategy, operations, market conditions) with precise quotes.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. In the absence of formal targets, the outlook hinges on organic growth in the orthopedic/surgical instruments market, OEM demand stability, and continued execution on cost discipline and working-capital management. Given the YoY revenue acceleration, improving margins, and positive cash flow, a cautious view would anticipate mid-single-digit revenue growth in 2025 if OEM demand remains resilient, with EBITDA margins potentially expanding modestly as volume scales and fixed-cost leverage improves. Key factors to monitor include: (1) order visibility from OEM customers and any shifts in procurement cycles, (2) inventory management efficiency to reduce CCC, (3) regulatory/compliance accruals tied to engineering services, and (4) sustained balance-sheet liquidity to fund R&D and potential product launches.