Dynatronics Corporation (NASDAQ:DYNT) Q2 2023 Earnings Call Transcript

Jeffrey Cohen: Perfect. Got it. And then secondly for us, could you comment a little bit, I mean on one hand nice job of bringing the inventory levels down to $10.75 million for the quarter. On the other hand, I guess, could you talk about current inventory and the freshness of inventory and if we would anticipate that that would continue to decrease? Is that inventory level being filled with new products or higher margins with kind of the more historic products still sitting there at lower margins, or could you talk about the inventory a little bit please?

John Krier: Absolutely. Our expectation would be that, it come down further. We are targeting some additional strategic reductions. As I mentioned before, finishing last fiscal year at $12.1 million in inventory is too high, $6.5 million the year before too low. And so the answer is somewhere in between. The wildcard for us is, we’re adding new products related to our product releases. So we’re building inventory in advance of those releases. You’re seeing that with the releases that you see contained in the materials on slide nine today, while we move out in end-of-life certain other products to improve our gross margin mix. So long story short, I expect it to come down. I can’t tell you exactly where it’s going to land, because it’s going to really depend on, how quickly we can get new product launches out, but it’s a key driver of just running a fiscally healthy company is to use and have a good inventory level.

Jeffrey Cohen: Okay. Perfect. That does it for us. Thanks for taking the questions.

John Krier: Thank you, Jeff.

Operator: Thank you, very much. There are no further questions in the queue. I would now like to turn the floor back over to John for any closing comments.

John Krier: Thank you, operator. And thank you for your interest in Dynatronics. We are actively sharing our story with the investment community as we move forward in our markets. We hope to meet with you at upcoming investor events. Notable upcoming events include the Canaccord Musculoskeletal Conference on March 7, 2023, Roth Investor Conference, March 12 through the 14, 2023, and the Virtual Investor Summit on March 29, 2023. If you have any further questions, please direct them to ir@dynatronics.com. Have a great day. And operator you may end the call.

Operator: Thank you, John. This does conclude today’s conference call and you may disconnect your phone lines at this time. Thank you for your participation.