Contact: Craig Dunham
Dynasil Corporation of America
Phone: (856) 767-4600
Email: cdunham@Dynasil.com
Dynasil Announces Third Quarter 2008 Results
WEST BERLIN, N.J. - August 13, 2008 - Dynasil Corporation
of America (OTCBB: DYSL.OB), announced the results of
operations for its 2008 third quarter ended June 30, 2008.
Dynasil is a manufacturer of photonic products including
optical materials, components, coatings and specialized
instruments. For the 3 months ended June 30, 2008, revenues
were $2,676,263, an increase of 3.5% over the three months
ended June 30, 2007 and net income was $53,002 or $0.01 per
share, a decrease of 46% over net income of $98,104 or $0.02
per share. Third quarter profits were impacted by staffing
costs and other expenses in support of a significant
acquisition which closed on July 1, 2008. The Company
also experienced weaker than expected results in its optical
materials business unit. Through three quarters, year to
date performance shows a 5.1% increase in revenues to
approximately $8.5 million and a 67% increase in net profit
to $389,266 versus the prior year. Improved execution and a
turnaround in the Company's EMF optical coatings unit is the
largest contributor for the significant improvement in
profitability.
On July 1, 2008, Dynasil acquired the stock of Radiation
Monitoring Devices, Inc. and specific assets of RMD
Instruments, LLC (together, "RMD") which are advanced
instruments and research companies located in Watertown, MA.
The purchase price totaled approximately $20 million. RMD
revenues for the twelve months ended 6/30/08 were
approximately $22.5 million. Preliminary, unaudited RMD
profit before tax for the twelve months ended 6/30/08 was
approximately $3 million. Management is very excited about
this acquisition and views the addition of the RMD companies
to be a transformational event for Dynasil. RMD is expected
to more than triple the Company's revenues and net income.
RMD Instruments Corporation manufactures and sells
instruments and components that management believes have
high growth potential. These are sold into the medical
imaging, environmental sensing and quality control markets
and include hand-held analyzers for lead paint and medical
probes for cancer surgery with the potential to
significantly improve surgical outcomes. More than 30% of
RMD's 2007 commercial revenue came from after-sales
maintenance and support providing ongoing, profitable
revenue from the installed base of instruments. RMD has
been conducting government research under the SBIR program
for more than 25 years and the current contract backlog
exceeds one year. Management believes that prior and
current research projects are a source for new commercial
products in areas like medical imaging, augmented reality
and homeland security.
The addition of RMD continues Dynasil's dramatic turnaround
story. Since 2004 when CEO Craig Dunham joined the company,
Dynasil has grown from an unprofitable $2.0 million of
revenues to revenues which are expected to exceed $35.0
million for fiscal year 2009 with strong profitability.
"Adding RMD involved a substantial investment of resources
during Quarter Three but it is a major step in executing
Dynasil's profitable growth strategy. We plan to apply our
skills in effective execution to build on their strong cash
flow by accelerating the growth of their current products as
well as commercializing new technology," said Mr. Dunham,
"We continue to execute our strategy of significant
profitable, growth through acquisitions and organic growth
through effective execution in our business units."
About Dynasil: Founded in 1960, Dynasil is a manufacturer of
photonic products including optical materials, components,
coatings and instruments for a broad range of applications
markets in the medical, industrial and defense sectors. Its
wholly owned subsidiaries are located in New Jersey, New
York and Massachusetts.
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
2008 2007
(Unaudited)
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $371,904 $496,948
Accounts receivable, net 1,317,830 1,284,844
Inventories 2,036,849 1,832,720
Deferred tax asset 216,100 216,100
Other current assets 207,409 130,548
---------- ----------
Total current assets 4,150,092 3,961,160
Property, plant and equipment, net 2,603,608 2,436,517
Other assets 232,374 88,698
---------- ----------
Total Assets $6,986,074 $6,486,375
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Note payable to bank $560,070 $311,870
Current portion of long-term 167,119 99,237
debt
Accounts payable 496,109 684,208
Accrued expenses and other 571,260 587,872
current liabilities
---------- ----------
Total current liabilities 1,794,558 1,683,187
Long-term debt, net 1,463,362 1,626,980
Stockholders' Equity 3,728,154 3,176,208
---------- ----------
Total Liabilities and $6,986,074 $6,486,375
Stockholders' Equity
========== ==========
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months
Ended
June 30 June 30
2008 2007 2008 2007
Sales $2,676,263 $2,584,519 $8,537,144 $8,124,031
Cost of Sales 1,891,753 1,776,432 5,867,317 5,785,706
--------- --------- --------- ---------
Gross Profit 784,510 808,087 2,669,827 2,338,325
Selling, general and 678,736 660,459 2,131,366 1,960,250
--------- --------- --------- ---------
Income from Operations 105,774 147,628 538,461 378,075
Interest expense - net 39,191 39,551 114,774 114,215
--------- --------- --------- ---------
Income before Income Taxes 66,583 108,077 423,687 263,860
Income Tax expense 13,581 9,973 34,421 30,629
--------- --------- --------- ---------
Net Income $53,002 $98,104 $389,266 $233,231
--------- --------- --------- ---------
Net Income per share
Basic $0.01 $0.02 $0.05 $0.03
Diluted $0.00 $0.01 $0.05 $0.03
Weighted average shares
outstanding 6,743,853 6,114,679 6,559,629 5,104,271