Dynatronics Corp., a Cottonwood Heights-based company that manufacturers and sells equipment used by physical therapists and sports-medicine practitioners, reported higher revenue for its second quarter and first six months of its 2012 fiscal year.
The company said sales for the quarter ended Dec. 31, 2011 increased 1 percent to $8.3 million, compared to $8.2 million for the same period in the previous fiscal year. Sales for its first six months also increased 1 percent to $16.3 million from $16.1 million a year ago.
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Net income was a different story, however.
Dynatronics net income for its second quarter was $46,344 compared to $67,839 for the same quarter a earlier. Six month net income was $21,926 compared to net income of $84,851, or 1 cent per share, for the same period in the prior fiscal year.
But Kelvyn H. Cullimore, Dynatronics’ president, said the reduction in income for the second quarter can be accounted for by an increased in the company’s research and development spending — expenditure that he said will pay off in the long run.
"As a result of our increased investment in R&D over the past two years, we expect to introduce a record number of new products this year, including several high-margin therapy devices as well as other specialty rehab equipment," he said.
Cullimore said that once those new products are introduced, the company’s R&D expenditures should return to more traditional levels, triggering annual savings in the range of approximately $300,000 to $400,000.
Most of the new products will be released in the first six months of calendar 2012, he said.
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