Contact:
Patty Kehe
Dynasil Corporation of America
Phone: (607) 272-3320, ext. 26
Email: pkehe@dynasilcorp.com
Dynasil Announces Third Quarter 2009 Results
WEST BERLIN, N.J. - August 12, 2009 - Dynasil Corporation of America
(OTCBB: DYSL.OB), announced the results of operations for its third
quarter of fiscal year 2009 ended June 30, 2009. Dynasil Corporation
is a rapidly growing manufacturer of specialized instruments and
products for a broad range of applications markets in the medical,
industrial, and homeland security/ defense sectors. Dynasil
currently derives more than half of their revenues from government-
funded contract research where the number of opportunities has
significantly increased with the economic stimulus package.
Revenues for the quarter ended June 30, 2009 more than tripled to
$8.5 million compared to revenues of $2.7 million for the quarter
ended June 30, 2008. Income from Operations for the quarter was
$695,191, nearly seven times greater than $105,774 for the quarter
ended June 30, 2008. Net income for the quarter was $393,368, or
$0.02 per share, compared with net income of $53,002, or $0.01 per
share, for the quarter ended June 30, 2008. For the nine months
ended June 30, 2009, revenues tripled to $25.9 million, Income from
Operations more than tripled to $2.1 million and Net Income nearly
tripled to $1,153,141 as compared to the nine months ended June 30,
2008. This is the fourth 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.
"With the current situation in our economy, we are pleased that we
were able to triple revenues and increase Income from Operations
seven fold 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 hired Mr. Paul Tyra as Vice President- Commercialization to drive
the commercialization of technology developed through our government
funded research. Mr. Tyra brings extensive marketing and technical
experience with commercialization as well as a master's degree in
Engineering and an MBA from MIT. We also have organized an advisory
board of entrepreneurs to help accelerate our commercialization
efforts and to maximize its effectiveness. We continue to execute our
strategy of significant and profitable growth through organic growth,
commercialization of our broad research portfolio and acquisitions."
About Dynasil: Dynasil is a rapidly growing manufacturer of
specialized instruments and products for a broad range of
applications markets in the medical, industrial, and homeland
security/ defense sectors as well as currently deriving more than
half of its revenues from government-funded contract research. 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
June 30, September 30,
2009 2008
(Unaudited)
---------- ----------
Current assets
Cash and cash equivalents $ 3,196,064 $ 3,882,955
Accounts receivable, net of allowance for doubtful
accounts of $25,870 and $70,165 and sales
returns of $4,177 and $8,200 for June 30, 2009
and September 30, 2008, respectively 3,813,386 3,390,703
Inventories 2,503,135 2,909,730
Deferred tax asset 233,500 233,500
Prepaid expenses and other current assets 294,220 259,896
---------- ----------
Total current assets 10,040,305 10,676,784
Property, Plant and Equipment, net 2,669,597 2,694,290
Other Assets
Intangibles, net 7,365,840 7,767,258
Goodwill 11,054,396 11,054,396
Deferred financing costs, net 65,615 81,136
Other assets 3,091 8,360
---------- ----------
Total other assets 18,488,942 18,911,150
---------- ----------
Total Assets $31,198,844 $32,282,224
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short Term Note Payable $ -0- $ 490,117
Current portion of long term debt 1,706,605 1,649,101
Accounts payable 922,829 1,026,675
Billings in excess of cost -0- 216,946
Accrued expenses and other current liabilities 1,568,354 1,440,222
---------- ----------
Total current liabilities 4,197,788 4,823,061
Long-term Liabilities
Long-term debt, net 6,844,976 8,178,420
Note payable to related party 2,000,000 2,000,000
---------- ----------
Total long-term liabilities 8,844,976 10,178,420
Stockholders' Equity
Common Stock, $.0005 par value, 40,000,000 shares
authorized, 12,182,093 and 12,142,849 shares issued,
11,371,933 and 11,332,689 shares outstanding 6,091 6,072
Preferred Stock, $.001 par value, 15,000,000
Shares authorized, 5,966,000 shares 5,966 5,966
issued and outstanding for June 30, 2009 and
September 31, 2008, 10% cumulative, convertible
Additional paid in capital 16,284,946 16,122,185
Retained earnings 2,845,419 2,132,862
---------- ----------
19,142,422 18,267,085
Less 810,160 shares in treasury - at cost (986,342) (986,342)
---------- ----------
Total stockholders' equity 18,156,080 17,280,743
---------- ----------
Total Liabilities and Stockholders' Equity $31,198,844 $32,282,224
========== ==========
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30 June 30
2009 2008 2009 2008
---------- -------- -------- --------
Net sales $8,512,892 $2,676,263 $25,883,053 $8,537,144
Cost of sales 4,860,590 1,972,006 15,440,128 6,097,322
---------- --------- ---------- ----------
Gross profit 3,652,302 704,257 10,442,925 2,439,822
Selling, general and administrative
expenses 2,957,111 598,483 8,335,105 1,901,361
---------- --------- ---------- ----------
Income from operations 695,191 105,774 2,107,820 538,461
Interest expense, net 160,367 39,191 567,025 114,774
---------- --------- ---------- ---------
Income before income taxes 534,824 66,583 1,540,795 423,687
Income taxes 141,456 13,581 387,654 34,421
---------- --------- ---------- ---------
Net income $393,368 $ 53,002 $1,153,141 $389,266
========== ========= ========== ==========
Basic net income per common share $0.02 $0.01 $0.06 $0.05
Diluted net income per common share $0.02 $0.00 $0.06 $0.05
Weighted average shares outstanding
Basic 11,371,933 6,743,853 11,362,745 6,559,629
Diluted 12,346,636 7,443,784 12,337,448 7,259,560