SALT LAKE CITY, May 17 /PRNewswire-FirstCall/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced results for its fiscal third quarter ended March 31, 2010.

Sales for the quarter increased 7.9 percent to $8,235,060, compared to $7,633,419 for the third quarter of the prior fiscal year. For the nine-month period ended March 31, 2010, sales increased 2.8 percent to $25,018,960, compared to $24,348,461 for the same period in the prior fiscal year.

"Sales of both rehabilitation capital equipment and medical supplies increased over last year's results for the quarter and nine-month periods," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "This is the most significant positive indicator we have seen since recessionary pressures began affecting the economy in the United States in 2008. We attribute these positive trends to our aggressive marketing efforts and, hopefully, a slight easing of recessionary pressures."

Pre-tax income for the quarter ended March 31, 2010, totaled $160,905, compared to $213,304 for the quarter ended March 31, 2009. Pre-tax income for the nine months ended March 31, 2010, increased to $612,881 compared to $112,393 for the nine months ended March 31, 2009.

"The 445% increase in pre-tax profits for the nine-month period is reflective of our enhanced marketing efforts and strategic reductions in expenses, and continues a string of six consecutive profitable quarters," Cullimore explained. Pre-tax profits for the current quarter were lower in comparison to the same quarter last year due to the benefit in the prior year of the reversal of an approximately $472,000 accrual for retirement benefits upon cancellation of employment agreements for Cullimore and the company's executive vice president of sales and marketing, Larry Beardall.

Net income for the quarter ended March 31, 2010, was $96,099, or $.01 per share, compared to $141,576, or $.01 per share, for the quarter ended March 31, 2009. Net income increased to $353,022, or $.03 per share, for the nine months ended March 31, 2010, compared to $57,223, or $.00 per share, for the nine months ended March 31, 2009.

"Our efforts to reduce expenses have been complemented by specific marketing strategies that resulted in the increase in sales reported for the quarter ended March 31, 2010," said Beardall. "With the broad line of products we now offer and a strong sales force that we expect will only grow stronger in the coming year, we believe we are well positioned to develop relationships with large chains of clinics and hospitals, national accounts and group purchasing organizations (GPOs) that buy primarily through negotiated contracts," Beardall added.

Dynatronics has scheduled a conference call for investors on Monday, May 17, 2010, at 1:30 p.m. ET. Those wishing to participate should call 800-861-4084 and use passcode 9921511.

A summary of the financial results as of March 31, 2010 and June 30, 2009 and for the three and nine months ended March 31, 2010 and 2009, follows:

                     Summary Selected Financial Data
                    Statement of Operations Highlights

                                 Three Months Ended     Nine Months Ended
                                      March 31,             March 31,
                                      2010       2009        2010        2009
                                      ----       ----        ----        ----

    Net sales                   $8,235,060 $7,633,419 $25,018,960 $24,348,461
    Cost of sales                5,119,797  4,788,993  15,396,978  14,994,838
                                 ---------  ---------  ----------  ----------
       Gross profit              3,115,263  2,844,426   9,621,982   9,353,623
    SG&A expenses                2,647,417  2,256,795   8,059,143   8,060,869
    R&D expenses                   222,062    247,293     644,912     775,040
    Other expenses, net             84,879    127,034     305,046     405,321
                                    ------    -------     -------     -------
       Net income before income
        taxes                      160,905    213,304     612,881     112,393
    Income tax provision            64,806     71,728     259,859      55,170
                                    ------     ------     -------      ------
       Net income                  $96,099   $141,576    $353,022     $57,223
                                   =======   ========    ========     -------
    Diluted income per common
     share                            $.01      $0.01        $.03        $.00
                                      ====      =====        ====        ====

                Balance Sheet Highlights

                                  March 31,    June 30,
                                        2010         2009
                                        ----         ----
    Cash                            $266,812     $141,714
    Accounts receivable            4,608,431    4,739,727
    Inventories                    5,734,580    6,199,251
    Total current assets          11,608,314   12,003,068
    Total assets                  16,600,142   17,087,289

    Accounts payable               1,772,708    1,795,520
    Accrued expenses                 384,012      446,327
    Line of credit                 3,889,565    4,602,651
    Total current liabilities      7,172,421    7,785,881
    Total liabilities              9,886,202   10,667,540
    Total liabilities and
     equity                      $16,600,142  $17,087,289

Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets. More information regarding Dynatronics is available at www.dynatronics.com.

This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements such as the statement regarding expectations for future growth in the company's business and market share gains. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the company's products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the company's products, availability of financing at cost effective rates, and the risk factors listed from time to time in the company's SEC reports including, but not limited to, the report on Form 10-K for the year ended June 30, 2009.

SOURCE Dynatronics Corporation