Guidance for Fiscal Year ‘23
Dynatronics reaffirmed net sales guidance for fiscal year ‘23 of $45 million to $48 million. The midpoint of this range is a 5% improvement over the Company’s $44.3 million net sales in fiscal year ‘22. The Company expects the distribution of net sales across the quarters in fiscal year ‘23 to align with historical trends, which are highest in the first quarter, lower in the second and third quarters, with a bounce back in the fourth quarter. The second quarter of fiscal year 2023 continued this historical seasonality trend.
Even as it expects fiscal year ’23 to showcase continued improvement toward its 40% long-term goal, given the persistent inflationary pressure and macro-economic impacts the Company is deferring providing gross margin guidance.
Selling, general, and administrative expenses are anticipated to be 30% to 35% of net sales in fiscal year ‘23.
Dynatronics expects to continue its strategic approach to optimize inventory levels with selected reductions while preparing for future new product introductions and historical seasonality-related growth expected in our fiscal fourth quarter. This approach allowed the company to generate positive cash flow from operations of $0.3 million for the first six months of the fiscal year.
The Company’s financial guidance for fiscal year ’23 is subject to the risks identified in its safe harbor notification below. The Company continues to expect volatility due to the challenges related to the broader economic environment and the COVID-19 global pandemic, including higher raw material, delivery and shipment costs, supply chain disruptions, extended handling times and delays or disruption in procedure volume. Dynatronics also expects some ongoing volatility from the Company’s business optimization.
