Pro-dex, Inc. · NASDAQ:PDEX
Pro-dex — Proxy Contest (December 2012)
6 slides from Pro-dex's proxy contest presentation, Dec 27, 2012
Slide 1: Revenue is trending down
Source: FactSet. Data as of 12/19/2012 Revenue is trending down - PDEX’s revenues have steadily declined after peaking in 2QFY11 – largely due to purchase by Company A.
Slide 2: Failure to replace lost revenue
Failure to replace lost revenue - Despite its claims that PDEX has a strategy to replace lost revenue, non-Company A revenue has declined since 2009.
Slide 3: Failure to manage G&A expenses
Failure to manage G&A expenses - PDEX has failed to formulate and implement an effective cost rationalization strategy.
Slide 4: Misaligned executive compensation
Misaligned executive compensation - Over the last five years, PDEX CEO and CFO have received approx. $6 million in total compensation, while Earnings Before Taxes have declined $2.8 million.
Slide 5: Misaligned executive compensation (contd.)
Misaligned executive compensation (contd.) r In 2011, ISS did not support the amendment to the 2004 Stock Option Plan because it failed the ISS model (shareholder value transfer cap was 20%, cost of plan amendment 22%); r The Stock Plan permitted re-pricing via exchange of previously granted options
Slide 6: Our Plan
Our Plan r Enhance profitability by cutting bloated executive suite expenses – Reduce excess corporate overhead through a rigorous review and elimination of expenses that are not directly related to production, engineering and sales/marketing. Pro-Dex generates $2.4mm of gross margin per year and ca
PRO DEX — Proxy Contest (December 2012) on 6ix