Contact:
Craig Dunham
Dynasil Corporation of
America
Phone: (856) 767-4600
Email: cdunham@Dynasil.com
Dynasil Announces Second Quarter Fiscal Year 2007 Results
WEST BERLIN, N.J. - May 14, 2007 - Dynasil Corporation of America
(OTCBB: DYSL.OB), announced results of operations for the quarter
ended March 31, 2007. Dynasil is a manufacturer of photonic products
including optical materials, components, coatings and specialized sub-
systems. We fabricate optical blanks from synthetic fused silica and
other optical materials for the laser, semi-conductor, aerospace and
optical instrument industries. Through our subsidiary, Optometrics
Corporation, we are a worldwide supplier of optical components
including diffraction gratings, thin film filters, laser optics,
monochromators, and specialized optical sub-systems. On October 2,
2006, we acquired 100% of the stock of Evaporated Metal Films
Corporation ("EMF") in Ithaca, NY. EMF provides optical thin-film
coatings for a broad range of application markets including display
systems, optical instruments, satellite communications and lighting.
This is the second quarter that includes EMF.
Revenues for the quarter ended March 31, 2007 were $3,003,216, an
increase of 80% over revenues of $1,665,496 for the quarter ended
March 31, 2006. The net profit for the quarter ended March 31, 2007
was $112,229, or a positive $.02 per share, compared with a net
profit of $81,881, or $.02 per share, for the quarter ended March 31,
2006. Excluding the impact of the EMF acquisition and $11,366 of
stock option expense, revenues for our historical businesses were up
39% and net income was up 208% from $81,881 to $251,866 compared to
the three months ended March 31, 2006. Strong revenue growth
combined with continued process improvements drove those significant
gains. As anticipated, transitional and process improvement costs
resulted in a loss at EMF for its second quarter with Dynasil. The
EMF loss offset the substantial improvements in our historical
businesses. Management is clearly focused on the EMF initiatives
required to show continued improvement in 2007 and to deliver
profitable results for fiscal year 2008. During Quarter 2, we
significantly improved manufacturing yields and reduced downtime as
we develop the disciplined processes required for EMF to consistently
execute with strong quality, service, and cost performance.
Revenues for the 6 months ended March 31, 2007 were $5,539,512, an
increase of 72% over revenues of $3,213,536 for the 6 months ended
March 31, 2006. The net profit for the 6 months ended March 31, 2007
was $135,128, or $0.02 per share, compared with a net profit of
$107,306, or $0.02 per share, for the 6 months ended March 31, 2006.
Excluding the impact of the EMF acquisition and $11,366 of stock
option expense, revenues for our historical businesses were up 31%
and net income was up 256% from $107,306 to $381,866 compared to the
six months ended March 31, 2006.
"We are pleased with the second quarter net income increases of 208%
for our historical business and we are showing progress at EMF. We
have a very clear focus on the EMF improvements required to make it
profitable." said Craig T. Dunham, President and CEO. "Achieving 39%
organic growth and the EMF operational improvements are important
milestones towards executing our strategy of profitable growth in our
photonic businesses."
About Dynasil: Founded in 1960, Dynasil is a manufacturer of photonic
products including optical materials, components, coatings and
specialized sub-systems.
This news release may contain forward-looking statements usually
containing the words "believe," "expect," 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-KSB and 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
(Unaudited)
March 31 September 30
2007 2006
--------- ---------
ASSETS
Current assets
Cash and cash equivalents $259,559 $352,139
Accounts receivable 1,474,833 1,086,394
Inventories 1,417,054 1,131,648
Deferred tax asset 87,400 61,500
Other current assets 187,180 128,957
--------- ---------
Total current assets 3,426,026 2,760,638
Property, plant and equipment, net 2,374,227 626,790
Other assets 87,687 78,812
--------- ---------
Total Assets $5,887,940 $3,466,240
========= =========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Note payable to bank- Line of $407,251 $190,000
credit
Current portion of long-term 98,906 72,482
debt
Accounts payable 436,590 390,110
Accrued expenses and other 551,451 368,977
current liabilities
--------- ---------
Total current liabilities 1,494,198 1,021,569
Long-term debt, net 1,594,095 593,889
Stockholders' Equity 2,799,647 1,850,782
--------- ---------
Total Liabilities and $5,887,940 $3,466,240
Stockholders' Equity ========= =========
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
March 31 March 31
2007 2006 2007 2006
---------- --------- --------- ---------
Sales $3,003,216 $1,665,496 $5,539,512 $3,213,536
Cost of Sales 2,144,767 1,072,295 4,028,630 2,142,192
---------- --------- --------- ---------
Gross Profit 858,449 593,201 1,510,882 1,071,344
Selling, general and 715,962 486,640 1,321,429 913,298
administrative
---------- --------- --------- ---------
Income from Operations 142,487 106,561 189,453 158,046
Interest expense - net (18,672) (18,709) (33,670) (39,244)
---------- --------- --------- ---------
Income before Income Taxes 123,815 87,852 155,783 118,802
Income Taxes (11,586) (5,971) (20,655) (11,496)
---------- --------- --------- ---------
Net Income $ 112,229 $ 81,881 $ 135,128 $ 107,306
========== ========= ========= =========
Net Income (Loss) per share
Basic $0.02 $0.02 $0.02 $0.02
Diluted $0.02 $0.01 $0.01 $0.01