Contact:
Craig Dunham
Dynasil Corporation of
America
Phone: (856) 767-4600
Email: cdunham@Dynasil.com
Dynasil Announces Third Quarter Fiscal 2007 Results
WEST BERLIN, N.J. - August 14, 2007 - Dynasil Corporation of America
(OTCBB: DYSL.OB), announced results of operations for the quarter
ended June 30, 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") of 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 third fiscal quarter that includes EMF's results.
Revenues for the quarter ended June 30, 2007 were $2,584,519, an
increase of 41% over revenues of $1,833,869 for the quarter ended
June 30, 2006. The net profit for the quarter ended June 30, 2007
was $98,104, or $.02 per share, compared with a net profit of
$139,591, or $.03 per share, for the quarter ended June 30, 2006,
from $139,591 to $254,944.
Excluding the impact of the EMF acquisition and $11,366 of stock
option expenses, revenues for our historical businesses were up 5%
and net income was up 83% compared to the three months ended June 30,
2006. Ongoing process improvements drove those significant gains.
Transitional and process improvement costs resulted in a loss at EMF
for its third 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 3, we continued to improve manufacturing yields
and downtime. The search was concluded for a new EMF President with
a strong operations background who started work on July 11.
Revenues for the 9 months ended June 30, 2007 were $8,124,031, an
increase of 61% over revenues of $5,047,405 for the 9 months ended
June 30, 2006. The net profit for the 9 months ended June 30, 2007
was $233,231, or $0.03 per share, compared with a net profit of
$246,896, or $0.05 per share, for the 9 months ended June 30, 2006.
Excluding the impact of the EMF acquisition and option expenses,
revenues for our historical businesses were up 21% and net income was
up 153% compared to the nine months ended June 30, 2006 from
$246,896 to $625,442.
"We are pleased with the third quarter net income increases of 83%
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 21%
organic growth year to date and recruiting the new EMF President 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
June 30 September 30
2007 2006
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $290,556 $352,139
Accounts receivable 1,272,152 1,086,394
Inventories 1,592,892 1,131,648
Deferred tax asset 87,400 61,500
Other current assets 215,772 128,957
Total current assets 3,458,772 2,760,638
--------- ---------
Property, plant and equipment, net 2,456,530 626,790
Other assets 83,613 78,812
--------- ---------
Total Assets $5,998,915 $3,466,240
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Note payable to bank- Line of $368,290 $190,000
credit
Current portion of long-term 99,634 72,482
debt
Accounts payable 510,117 390,110
Accrued expenses and other 569,617 368,977
current liabilities
--------- ---------
Total current liabilities 1,547,658 1,021,569
Long-term debt, net 1,569,127 593,889
Stockholders' Equity 2,882,130 1,850,782
--------- ---------
Total Liabilities and $5,998,915 $3,466,240
Stockholders' Equity
-2-
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30 June
2007 2006 2007 2006
---------- --------- --------- ---------
Sales $2,584,519 $1,833,869 $8,124,031 $5,047,405
Cost of Sales 1,776,432 1,164,997 5,785,706 3,307,189
---------- --------- --------- ---------
Gross Profit 808,087 668,872 2,338,325 1,740,216
Selling, general and 680,900 501,159 2,021,685 1,414,458
administrative ---------- --------- --------- ---------
Income from Operations 127,187 167,713 316,640 325,758
Interest expense - net 19,110 21,638 52,780 60,882
---------- --------- --------- ---------
Income before Income Taxes 108,077 146,075 263,860 264,876
Income Taxes 9,973 6,484 30,629 17,980
---------- --------- --------- ---------
Net Income $ 98,104 $ 139,591 $ 233,231 $ 246,896
---------- --------- --------- ---------
Net Income per share
Basic $0.02 $0.03 $0.03 $0.05
Diluted $0.01 $0.02 $0.03 $0.04