SALT LAKE CITY, May 2 /PRNewswire-FirstCall/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced that it has completed measures designed to reduce expenses by an estimated $1.9 million annually.
These cost savings were achieved primarily by a reduction of approximately 20 percent of the company's workforce and the elimination of duplicative overhead expense. Many of these reductions had been contemplated following the successful acquisition and assimilation of six key distributors last summer. Since that time, Dynatronics has successfully consolidated operations from eight distribution points to three.
"Reductions of this kind are never easy, but they were part of our assimilation plan going into the acquisitions," reported Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "It has taken a little longer than expected, but eliminating redundant positions and streamlining key processes will allow us to maximize the synergies of the combined operations and realize the savings we had anticipated in making these acquisitions."
All expense reductions were completed prior to March 31, the end of the company's fiscal third quarter. "The fact that we completed these reductions in the third quarter and recently introduced four exciting new products positions us well for the fourth quarter and beyond," Cullimore added.
Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, pain management, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets.
This press release contains forward-looking statements. Those statements include references to the company's expectations of future events, including the scope of the cost savings to be realized from the reductions in personnel and consolidation of overhead expenses. Actual results may vary from the views expressed in the forward-looking statements. The development and sale of the company's products are subject to a number of risks and uncertainties, including, but not limited to, competitive factors, inventory risks due to shifts in market demand, market demand for the company's products, FDA clearance of new products, 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-KSB for the year ended June 30, 2007 and subsequent quarterly reports.
SOURCE Dynatronics Corporation