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These cost savings were achieved primarily by a reduction of approximately20 percent of the company's workforce and the elimination of duplicativeoverhead expense. Many of these reductions had been contemplated following thesuccessful acquisition and assimilation of six key distributors last summer.Since that time, Dynatronics has successfully consolidated operations fromeight distribution points to three.
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"Reductions of this kind are never easy, but they were part of ourassimilation plan going into the acquisitions," reported Kelvyn H. CullimoreJr., chairman and president of Dynatronics. "It has taken a little longer thanexpected, but eliminating redundant positions and streamlining key processeswill allow us to maximize the synergies of the combined operations and realizethe savings we had anticipated in making these acquisitions."
All expense reductions were completed prior to March 31, the end of thecompany's fiscal third quarter. "The fact that we completed these reductionsin the third quarter and recently introduced four exciting new productspositions us well for the fourth quarter and beyond," Cullimore added.
Dynatronics manufactures, markets and distributes advanced-technologymedical devices, orthopedic soft goods and supplies, treatment tables andrehabilitation equipment for the physical therapy, pain management, sportsmedicine, chiropractic, podiatry, plastic surgery, dermatology and otherrelated medical, cosmetic and aesthetic markets.
This press release contains forward-looking statements. Those statementsinclude references to the company's expectations of future events, includingthe scope of the cost savings to be realized from the reductions in personneland consolidation of overhead expenses. Actual results may vary from the viewsexpressed in the forward-looking statements. The development and sale of thecompany's products are subject to a number of risks and uncertainties,including, but not limited to, competitive factors, inventory risks due toshifts in market demand, market demand for the company's products, FDAclearance of new products, and the risk factors listed from time to time inthe company's SEC reports, including, but not limited to the report on Form10-KSB for the year ended June 30, 2007 and subsequent quarterly reports.
SOURCE Dynatronics Corporation
