Hoping to keep a yearlong slide in revenues and sales from building to an avalanche, Dynavox is seeking financial advice.
The South Side-based medical and educational communication device manufacturer announced this week that it has enlisted the services of Boston-based financial consulting firm Bulger Partners to strategize growth plans for the struggling company.
Dynavox and Bulger officials did not immediately respond to an inquiry about whether the company could be involved in a merger or acquisition, but a news release issued by Bulger said it would consider "evaluating potential business combination transactions." Financial terms of the agreement were not disclosed.
The move to enlist Bulger came after a year of financial difficulties that ultimately lead to Dynavox being delisted from the Nasdaq exchange due to its share value falling below the index's $1 minimum bid price. On April 15, the company began trading on the over-the-counter marketplace. Dynavox lost $18.5 million, or $1.76 per share, during fiscal year 2012, compared to net income of $1.2 million, or 13 cents per share, during the 2011 fiscal year.
A 2013 third quarter report issued in May showed the company lost $6.6 million, or 58 cents per share, down from losses of $14.1 million, or $1.33 per share, the previous year. The report also noted the company's plans to default on a $4 million payment toward a $25 million debt and its intent to negotiate with its lenders. Since that time, Dynavox secured a forbearance agreement and an agreement to amend a $15 million secured credit agreement from its lenders.
Dynavox managers attributed losses to domestic funding cuts that affected educational and health spending, as well as advances in tablet computing that have increased competition. The company also said that a 2012 funding shift that made a primary payor the secondary payor behind Medicare and Medicaid for communications devices lead to $3.4 million less in net device sales for the third quarter.
Deborah M. Todd: firstname.lastname@example.org or 412-263-1652.