Pro-Dex, Inc. (PDEX) research, news, and more from GeoInvesting

Company description

Sun, 01 Nov 2009 04:00:00 GMT

Pro-Dex, Inc., with operations in California, Oregon and Nevada, specializes in bringing speed to market in the development and manufacture of technology-based solutions that incorporate miniature rotary drive systems, embedded motion control and fractional horsepower DC motors, serving the medical, dental, semi-conductor, scientific research and aerospace markets. Pro-Dex's products are found in hospitals, dental offices, medical engineering labs, commercial and military aircraft, scientific research facilities and high tech manufacturing operations around the world.

Research

Sat, 02 May 2026 18:54:09 GMT

Pro-Dex, Inc. (NASDAQ:PDEX) ($44.23; $141.6M market cap) announced Q3 2026 results:

Q3 sales of $19.9 million vs. $17.4 million in the prior year
Q3 2026 EPS: $1.20 vs. $0.98 in the prior year
Adjusted EPS of $0.77 vs $0.81 in the prior year

Management Commentary:

"Our third quarter revenue reflects a new quarterly record."

"Additionally, as we previously announced, we completed the acquisition of APM this quarter and remain excited about both the additional revenue streams created as well as the expanded machining capacity and technology provided by this subsidiary."

"I want to thank the Pro-Dex family for their efforts and execution. We are well positioned for sustained success for the remainder of this fiscal year and beyond."

Our Quick Take:

Financials were unexciting, and PDEX stock is down around 9% today; however, Zimmer Biomet, the multibillion-dollar company ($15.98B market cap), for which PDEX has an agreement to supply certain components for its mBos platform (knee replacement robot), posted Q1 2026 results yesterday, and the comments regarding mBos are encouraging. Recall that a good deal of the bullish thesis on PDEX revolves around its Zimmer relationship.

Launch timeline reconfirmed and expanded: Semi-autonomous version launching early 2027, fully autonomous version "late 2027 or early 2028."
Clinical study enrollment completed - fully autonomous version advancing: The semi-autonomous mBôS was already FDA 510(k) cleared in March 2025. The 102-patient clinical study that Zimmer just finished enrolling is for the fully autonomous version paired with Zimmer's Persona implants (a separate regulatory requirement). Zimmer is now preparing the 510(k) submission, which aligns with CVR milestone #2 (FDA clearance of the fully autonomous system by December 31, 2027). The semi-autonomous version remains on track for early 2027 launch.
Surgeon feedback "overwhelmingly positive." At AAOS in March 2026, Zimmer hosted technical evaluations of mBôS. Tornos highlighted procedures under 4 minutes, enhanced safety boundaries, a short learning curve, high reproducibility, and accuracy, "like nothing I've seen in my many years."
200+ dedicated robotics sales reps being hired by end of 2027: This is specifically for the mBôS launch, in addition to the existing field team. As a reminder, in a previous conference, Zimmer indicated that it was increasing its robotic specialist sales force by 3.5x. 4.0x.
Technology segment growing 30%: ROSA and related robotic technology sales grew 30% in Q1, showing strong underlying demand for robotic surgery platforms that could eventually incorporate mBôS.
Chief Science & Technology Officer hired: Dr. Jonathan Vigdorchik from Hospital for Special Surgery, a global KOL in robotic surgery, was hired to oversee AI-enabled robotics, software, and smart implants.

Pro-Dex, Inc. designs and manufactures powered surgical instruments and related engineering services for medical device OEMs, primarily for orthopedic, thoracic, and craniomaxillofacial procedures.

Research

Mon, 12 Sep 2022 12:23:39 GMT

Pro-Dex, Inc. (NASDAQ:PDEX) specializes in the design, development, and manufacture of autoclavable, battery-powered, and electric multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have followed the PDEX story off and on for the past decade. Several times we dug in but never pulled the trigger. It is now in focus on the heels of strong Q4 2022 results and strong 2023 analyst EPS estimates.

Sales of $12.6 million vs $9.4 million in the prior year
EPS of $0.38 vs $0.20 in the prior year

“We are very pleased with our continued year-over-year sales growth, especially given the challenging environment we faced related to sourcing components this fiscal year, as well as the progress we have made in our validation efforts at our new building." said the Company's President and Chief Executive Officer Richard L. ("Rick") Van Kirk. "With our new building and additional capacity coming online this year, combined with our focus on new business development and technology, we are excited about the continued growth we expect to see in the next fiscal year and beyond."

Strong Q4 coupled with analyst EPS estimates of $1.43 for fiscal 2023 will have us watching PDEX closely.

It should be noted that sales estimates for 2023 only call for 2.3% growth and no growth for 2024.

However, The company significantly beat Q4 estimates on the top and bottom line. So, we want to find out if analyst estimates might be too conservative

Research

Mon, 14 Feb 2011 05:00:00 GMT

On February 11, 2011 we initiated a short-term trading position in PDEX @ $2.54

The company reported strong fiscal 2011 financial bottom line results, translating into adjusted EPS of $0.12 vs. $0.02 in the prior year period.

PDEX has reported 4 straight quarter of above average EPS growth
Trades below its book value per share of $2.57

Unfortunately, three issues may hold shares at bay and cause us to close this trade.

Legal problems (from filings)

On June 23, 2008, the Orange County Water District (“OCWD”) filed a complaint in the Superior Court of the State of California in the County of Orange concerning remediation of alleged ground water contamination in the Orange County Groundwater South Basin; Orange County Water District v. Sabic Innovative Plastics U.S. LLC, et al., Case No. 00078246. The South Basin underlies parts of Santa Ana, California and adjacent cities. The complaint identifies 17 named defendants, including Pro-Dex, and also designates 400 unnamed Doe defendants.

Overall, the OCWD complaint remains vague, the OCWD is in an early stage of its remedial activities in the South Basin, the lawsuit is in the middle stage of discovery, one of our insurers has committed to pay most defense costs and has reserved rights under one three-year set of policies and is continuing to consider extending coverage to us under other past policies, Pro-Dex and OCWD are engaged in settlement negotiations, and any recovery the OCWD may gain through trial of the lawsuit is likely to be allocated among several defendants. Therefore, our liabilities, as well as our costs of defending, monitoring and concluding our involvement in this case are uncertain, and those costs cannot now be estimated.

Potential loss of customer: (from filings)

It is possible that revenue otherwise attributable to this Customer could begin to decline during the second half of calendar year 2011. However, the Customer is not obligated either to abide by the timetables it has communicated to us or to update us as to the status of its product development efforts. Accordingly, we are unable to know or predict the status of the Customer’s initiatives on an ongoing basis. The Customer could accelerate, delay or terminate its transition to its own products at any time and without notice to us, which could have a material impact on our revenues. The identity of the Customer is protected by a confidentiality agreement. We have implemented the initial steps of a strategic plan, the objective of which is to identify and capture additional revenue opportunities. There can be no assurance, however, as to either the timing or success of achieving this objective, and it would be our intent to reduce operating costs, if and as necessary, to minimize the impact of a revenue reduction, should it occur. In the event that the Customer’s future purchases are reduced beyond the realization of such opportunities or cost reductions, the Company is likely to experience a material and adverse impact on its business.

Revenue growth has been stagnant for the past 3 years.

If not for the legal and customer loss issues, we would have coded PDEX as a GeoSpecial. We will give this trade a chance to pan out, but it will not be a favorite selection.

Investor Alert

Wed, 30 Dec 2009 05:00:00 GMT

The Company announced that one of its largest customers (the "Customer") is in the process of developing, and plans to eventually manufacture its own surgical hand pieces which are functionally comparable to the two products currently provided by the Company. Aggregate sales of these two products to this Customer during the 12-month period ending November 30, 2009 were $7.5 million, representing 35% of the Company's revenues during the same period. Pro-Dex has been the exclusive manufacturer of these products since they were developed. The Customer's 5-year commitment to exclusivity with the Company will conclude on January 6, 2010.

The Customer has not provided firm transition dates or volumes due to the inherent uncertainty in the design, testing, and qualification process. The Customer advised that it expects to maintain its current level of purchases at least through August of 2010 for one product (which represents 45% of its total purchases from the Company during the 12-month period ended November 30, 2009), and at least through December of 2010 for the second product (which represents 43% of its total purchases from the Company during the 12-month period ended November 30, 2009).

On December 4, 2009, the Customer placed a $1.5 million purchase order with the Company for delivery of the second product at historical monthly quantities through September, 2010. The Customer also stated that it expects to continue to buy some volume of these products from the Company beyond those dates as its initial success is not assured, certain markets may not adopt the Customer's design, and regulatory registration in certain markets is a lengthy process. Further, the Customer indicated that it will continue to rely on the Company for the repair of Company manufactured units in the field. Such repairs represented 12% (approximately $914,000) of its total purchases for the 12-month period ended November 30, 2009.

The design and production of these products is quite technologically challenging, as such devices are exposed to extremely harsh surgical and sterilization conditions. A different large customer of the Company pursued a similar course of action several years ago and ultimately canceled its in-sourcing project, continuing its purchases from Pro-Dex. The Customer currently pursuing this course has indicated a high commitment to proceeding cautiously. Accordingly, the actual occurrence of, and certainly the specific timing of any transition is very difficult to estimate.

The Company intends to find additional business and reduce its operating costs as necessary to minimize the impact of a potential revenue reduction. In the event that the Customer's future purchases are reduced beyond the additional business won and the cost savings realized, the Company is likely to experience a material and adverse impact on its business.

GeoTeam Requests Input

Sun, 01 Nov 2009 04:00:00 GMT

We will begin tracking PDEX, a manufacturer of power control products. We don't see anything that compelling as of yet, but the company has returned to profitably and has a new product line it is cultivating. We would need to see greater profitably along with top line growth to really peak our curiosity. To this point back log is up.

Request GeoReaders input.