Operating results showed significant improvement over the three and nine months ended March 31, 2008. Pre-tax profit for the quarter ended March 31, 2009 improved to $213,304, compared to a pre-tax loss of $1,019,557 for the third quarter of fiscal year 2008.

Dynatronics saw a turnaround of approximately $2,800,000, with pre-tax profit for the nine months ended March 31, 2009 of $112,393, compared to a pre-tax loss of $2,650,456 for the same period in fiscal year 2008. Net income for the nine months ended March 31, 2009 was $57,223 ($0.00 per share) – a significant improvement compared to a net loss of $1,679,770 ($0.12 per share) for the same period one year ago.

Approximately $472,000 of the improvement in pre-tax income for the quarter and nine months ended March 31, 2009 resulted from the reversal of an accrued liability due to the cancellation of a retirement benefit previously owed to two executive officers of the company, Kelvyn H. Cullimore, Jr. and Larry K. Beardall.

Sales for the nine months ended March 31, 2009 were down less than one percent, totaling $24,348,461 compared to $24,534,934 for the same period in the prior year.

We have worked hard to maintain sales and significantly improve operating results through the first nine months of this fiscal year, stated Kelvyn H. Cullimore chairman and president of Dynatronics. Due to aggressive cost reduction measures over the past year we reduced SG&A expenses by $1,100,000 in the quarter and almost $2,200,000 year-to-date compared to the same periods in 2008. Combining these cost reductions with lower R&D expenses and slightly improved margins, our operating profits showed significant improvement compared to the same quarter and nine-month periods last year. We are proud of these accomplishments given the challenging general economic conditions in the United States. Even so, we have more improvement plans on the horizon.

With the help of Vici Capital Partners, over the past four months we have uncovered a number of opportunities to save money and improve not only operational efficiencies, but also strengthen margins and reduce manufacturing and other costs, continued Cullimore. These changes were specifically targeted at lowering transaction costs, obtaining better pricing and terms from vendors and service providers, streamlining customer service and production processes, and improving our sales support functions.

Through this effort, we have identified between $1,500,000 and $2,000,000 in improvements, which we have implemented already or we will implement over the coming quarters, he added. Much of the impact of these improvements will be realized beginning in the fourth quarter of fiscal year 2009.

Looking ahead, Dynatronics expects to announce the release of an innovative new vibration therapy device, the V-Force, before the end of its fiscal year on June 30, 2009. This new, high-margin product is projected to drive sales and operating profits higher in the coming quarters, based on the initial indications of interest among medical practitioners, reported Larry K. Beardall, executive vice president of sales and marketing.

Dynatronics is a manufacturer, marketer and distributor of 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.