Contact:
Patty Kehe
Dynasil Corporation of America
Phone: (607) 272-3320, ext. 26
Email: cdunham@dynasil.com
Dynasil Announces Second Quarter 2009 Results
WEST BERLIN, N.J. May 14, 2009 Dynasil Corporation of
America (OTCBB: DYSL.OB), announced the results of
operations for its second quarter of fiscal year 2009 ended
March 31, 2009. Dynasil is a manufacturer of specialized
instruments and photonic products including optical
materials, components and coatings as well as currently
deriving more than fifty percent of its revenue from
government funded research. The Company serves a broad
range of applications markets in the medical, industrial,
and homeland security/defense sectors.
Revenues for the quarter ended March 31, 2009 nearly
tripled to $8.6 million compared to revenues of $3.0
million for the quarter ended March 31, 2008. Income from
Operations for the quarter nearly quadrupled to $755,261
compared to $198,208 for the quarter ended March 31, 2008.
Net income for the quarter was $404,134, or $0.02 per
share, compared with net income of $145,976, or $0.02 per
share, for the quarter ended March 31, 2008. For the six
months ended March 31, 2009, revenues tripled to $17.4
million, Income from Operations tripled to $1.4 million and
Net Income more than doubled to $759,775 as compared to the
six months ended March 31, 2008. This is the third
quarter since the acquisition of Radiation Monitoring
Devices, Inc. and certain assets of RMD Instruments, LLC
(together, "RMD") on July 1, 2008, which was the key driver
for the large revenue and profitability increases. Net
Operating Loss carry-forwards for federal taxes were
exhausted during fiscal year 2008 so fiscal year 2009 net
income was impacted by increased federal tax provisions as
well as the higher interest costs related to the RMD
acquisition.
"Given current economic conditions, we are pleased that we
were able to triple revenues and nearly quadruple Income
from Operations for the quarter," said Craig T. Dunham,
President and CEO. "The acquisition of RMD has
significantly increased Dynasil's technical capabilities
and intellectual property. During the quarter, we made
substantial progress in identifying potential products for
commercialization and developing additional government
funding for those projects. Those potential new products
include improved sensors for: medical imaging, non-
destructive testing for cracks in metal parts and Homeland
Security's detection of nuclear threats. We are seeing
unprecedented levels of government contracting
opportunities which appear to be driven by the economic
stimulus package. We continue to execute our strategy of
significant and profitable growth through organic growth,
commercialization of our broad research portfolio and
acquisitions."
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," "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-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
ASSETS March 31, September 30,
2009 2008
(Unaudited)
---------- ----------
Current assets
Cash and cash equivalents $ 1,439,157 $ 3,882,955
Accounts receivable, net of allowance for doubtful
accounts of $66,733 and $70,165 and sales
returns of $21,758 and $8,200 for March 31, 2009
and September 31, 2008, respectively 5,266,640 3,390,703
Inventories 2,472,545 2,909,730
Deferred tax asset 233,500 233,500
Prepaid expenses and other current assets 378,775 259,896
---------- ----------
Total current assets 9,790,617 10,676,784
Property, Plant and Equipment, net 2,701,044 2,694,290
Other Assets
Intangibles, net 7,499,645 7,767,258
Goodwill 11,054,396 11,054,396
Deferred financing costs, net 69,752 81,136
Other assets 3,091 8,360
---------- ----------
Total other assets 21,327,928 18,911,150
---------- ----------
Total Assets $31,118,545 $32,282,224
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short Term Note Payable $ 32,451 $ 490,117
Current portion of long term debt 1,695,296 1,649,101
Accounts payable 539,561 1,026,675
Billings in excess of cost 396,957 216,946
Accrued expenses and other current liabilities 1,299,563 1,440,222
---------- ----------
Total current liabilities 3,963,828 4,823,061
Long-term Liabilities
Long-term debt, net 7,264,698 8,178,420
Note payable to related party 2,000,000 2,000,000
---------- ----------
Total long-term liabilities 9,264,698 10,178,420
Stockholders' Equity
Common Stock, $.0005 par value, 40,000,000 shares
authorized, 12,177,655 and 12,142,849 shares issued,
11,367,495 and 11,332,689 shares outstanding 6,089 6,072
Preferred Stock, $.001 par value, 15,000,000
Shares authorized, 5,966,000 shares 5,966 5,966
issued and outstanding for March 31, 2009 and
September 31, 2008, 10% cumulative, convertible
Additional paid in capital 16,263,106 16,122,185
Retained earnings 2,601,200 2,132,862
---------- ----------
18,876,361 18,267,085
Less 810,160 shares in treasury - at cost (986,342) (986,342)
---------- ----------
Total stockholders' equity 17,890,019 17,280,743
---------- ----------
Total Liabilities and Stockholders' Equity $31,118,545 $32,282,224
========== ==========
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
March 31 March 31
2009 2008 2009 2008
---------- -------- -------- --------
Net sales $8,602,885 $3,045,974 $17,370,161 $5,860,880
Cost of sales 4,901,999 2,070,418 10,579,537 3,971,438
---------- --------- ---------- ----------
Gross profit 3,700,886 975,556 6,790,624 1,889,442
Selling, general and administrative
expenses 2,945,625 777,348 5,377,993 1,456,756
---------- --------- ---------- ----------
Income from operations 755,261 198,208 1,412,631 432,686
Interest expense, net 219,861 42,062 406,658 75,584
---------- --------- ---------- ---------
Income before income taxes 535,400 156,146 1,005,973 357,102
Income taxes 131,266 10,170 246,198 20,840
---------- --------- ---------- ---------
Net income $404,134 $145,976 $759,775 $336,262
========== ========= ========== ==========
Basic net income per common share $0.02 $0.02 $0.04 $0.05
Diluted net income per common share $0.02 $0.02 $0.04 $0.04
Weighted average
shares outstanding 11,367,008 6,736,852 11,358,143 6,467,518