| | Contact: Patty Kehe Dynasil Corporation of America Phone: (607) 272-3320, ext. 26 Email: pkehe@dynasilcorp.com |
Dynasil Announces First Quarter Fiscal Year 2011 Results with Record Revenue
WATERTOWN, Mass. – February 14, 2011 – Dynasil Corporation of America (NASDAQ: DYSL) today announced financial results for the quarter ended December 31, 2010. Revenue for the first quarter of fiscal year 2011 which ended December 31, 2010 was at a record level of $11.6 million, an increase of 17% over revenue of $9.9 million for the quarter ended December 31, 2009. Income from Operations for the quarter was $736,000 as compared to $1,072,000 for the quarter ended December 31, 2009 which includes certain non-recurring costs associated with our listing on the NASDAQ Global Market in December 2010 and higher acquisition costs. Net income was $375,000 or $0.03 per share, compared with a Net Income of $614,000 or $0.04 per share.
“We are making significant investments for future growth with our NASDAQ listing, acquisitions, and commercialization of new technology which resulted in strong commercial business profitability being partially offset by our corporate level spending on future development. We are pleased to have record revenue with our Optics/Photonics Products & Instruments segment revenue growing 34% and our Contract Research segment revenue growing 5%, with a contracted backlog which will fund our R & D for approximately one and one-half years,” said Craig T. Dunham, Dynasil’s President and CEO. “In addition, we continue to execute on our strategic objectives to leverage our technologies and solutions to offer leading nuclear detection and medical imaging materials around the globe. We believe we are uniquely positioned to benefit from the industry trends in the medical, industrial, and homeland security/defense sectors. For our dual mode detectors aimed at locating nuclear bombs or radioactive materials at ports and borders, we made significant progress during our first quarter developing commercial relationships with lead customers as well as procuring equipment to scale up production. We expect to have dual mode detector production capacity operational at our recently acquired Hilger Crystals location during our second quarter and to achieve full production mode during this fiscal year.”
Peter Sulick, Chairman of Dynasil, stated, “I am pleased to have record revenue again this quarter, but the real story is our commitment and investment in future growth. Dynasil has a strong asset base across our commercial product sectors. This, in addition to promising technology coming out of RMD positions us well going forward. We are investing in the commercialization of certain of this technology while continuing to evaluate additional commercialization opportunities, acquisitions, licensing and joint ventures. Our listing on the NASDAQ Global Market in December 2010 was a significant achievement and we believe that it will allow the Company to attract additional world class team members and investors that will support the continued expansion of our business activities as well as enabling us to increase the trading liquidity of our stock, broaden our stockholder base and raise our profile in the investment community.”
The Company has scheduled a conference call to discuss the first quarter’s financial results and provide a business update to be held Tuesday, February 15, 2011 beginning at 2:00 p.m. Eastern time. To access the call, please dial (866) 393-8592 and enter conference ID number 4400 2598.
About Dynasil: Dynasil Corporation of America (NASDAQ: DYSL), is a provider of technology, products, services and solutions aimed at making the world safer and healthier. The company supplies a broad range of customers by serving their specific needs in the medical, industrial, and homeland security/defense markets. The Company has operations in New Jersey, New York, Massachusetts and the UK.
This news release may contain forward-looking statements usually containing the words "believe," "expect," “plan”, “target”, “intend” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Future results of operations, projections, and expectations, which may relate to this release, involve certain risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the factors detailed in the Company's Annual Report or Form 10-K, Quarterly Reports on Form 10-Q, as well as in the Company's other Securities and Exchange Commission filings, continuation of existing market conditions and demand for our products.
| Dynasil Corporation of America and Subsidiaries | | | |
| Consolidated Balance Sheets | | | |
| | | 31-Dec | | | 30-Sep | |
| | | 2010 | | | 2010 | |
| | (Unaudited) | | | | |
| ASSETS | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 2,624,189 | | | $ | 4,111,966 | |
| Accounts receivable, net | | | 6,849,724 | | | | 6,360,583 | |
| Inventories | | | 3,303,816 | | | | 3,097,219 | |
| Cost in excess of billings | | | 460,724 | | | | 135,157 | |
| Prepaid income taxes | | | 480,031 | | | | 410,045 | |
| Prepaid expenses and other current assets | | | 440,307 | | | | 453,418 | |
| Total current assets | | | 14,158,791 | | | | 14,568,388 | |
| | | | | | | | | |
| Property, Plant and Equipment, net | | | 3,882,136 | | | | 3,953,319 | |
| Other Assets | | | | | | | | |
| Intangibles, net | | | 6,521,944 | | | | 6,671,149 | |
| Goodwill | | | 13,591,287 | | | | 13,591,287 | |
| Deferred financing costs, net | | | 180,590 | | | | 190,568 | |
| Total other assets | | | 20,293,821 | | | | 20,453,004 | |
| | | | | | | | | |
| Total Assets | | $ | 38,334,748 | | | $ | 38,974,711 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Current Liabilities | | | | | | | | |
| Current portion of long-term debt | | $ | 1,870,779 | | | $ | 1,870,779 | |
| Accounts payable | | | 1,047,100 | | | | 1,482,250 | |
| Accrued expenses and other liabilities | | | 1,546,197 | | | | 1,823,222 | |
| Deferred tax liability | | | 69,538 | | | | 91,100 | |
| Dividends payable | | | 131,400 | | | | 131,400 | |
| Total current liabilities | | | 4,665,014 | | | | 5,398,751 | |
| | | | | | | | | |
| Long-term Liabilities | | | | | | | | |
| Long-term debt, net | | | 10,368,298 | | | | 10,833,334 | |
| Contingent consideration | | | 750,000 | | | | 750,000 | |
| Total long-term liabilities | | | 11,118,298 | | | | 11,583,334 | |
| | | | | | | | | |
| Temporary Equity | | | 2,000,000 | | | | 2,000,000 | |
| | | | | | | | | |
| Stockholders' Equity | | | 20,551,436 | | | | 19,992,626 | |
| | | | | | | | | |
| Total Liabilities and Stockholders' Equity | | $ | 38,334,748 | | | $ | 38,974,711 | |
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
| | | Three Months Ended | |
| | | December 31 | |
| | | 2010 | | | 2009 | |
| Net revenue | | $ | 11,626,507 | | | $ | 9,936,767 | |
| Cost of revenue | | | 6,719,783 | | | | 6,051,951 | |
| Gross profit | | | 4,906,724 | | | | 3,884,816 | |
| Selling, general and administrative expenses | | | 4,171,010 | | | | 2,812,980 | |
| Income from operations | | | 735,714 | | | | 1,071,836 | |
| Interest expense, net | | | 158,196 | | | | 162,441 | |
| Income before income taxes | | | 577,518 | | | | 909,395 | |
| Income taxes | | | 202,341 | | | | 295,626 | |
| Net income | | $ | 375,177 | | | $ | 613,769 | |
| Earnings per Share | | | | | | | | |
| Net income | | $ | 375,177 | | | $ | 613,769 | |
| Dividends on preferred stock | | | 131,400 | | | | 143,233 | |
| Net income applicable to common stockholders | | | 243,777 | | | | 470,536 | |
| Dividend add back due to assumed preferred stock conversion | | | 131,400 | | | | -0- | |
| Net income for diluted income per common share | | $ | 375,177 | | | $ | 470,536 | |
| | | | | | | | | |
| Basic net income per common share | | $ | 0.03 | | | $ | 0.04 | |
| Diluted net income per common share | | $ | 0.02 | | | $ | 0.04 | |
| | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | |
| Basic | | | 12,979,939 | | | | 11,791,820 | |
| Diluted | | | 15,497,495 | | | | 11,968,319 | |
