[LOGO] Dynasil
Contacts: Exhibit 99.1
Patty Kehe
Dynasil Corporation of America
Phone: (617) 668-6855
pkehe@dynasilcorp.com
David Calusdian
Executive Vice President and Partner
Sharon Merrill
617.542.5300
DYSL@InvestorRelations.com
Dynasil Corporation of America Reports
Fiscal Year 2011 Financial Results
- Revenue Increases 9 Percent to $47 Million
- Company Posts Net Income of $1.4 Million, EPS of $0.08
- Company to Host Earnings Conference Call at 5:00 p.m. (ET) Today
Watertown, MA, December 29, 2011 - Dynasil Corporation of America (NASDAQ:
DYSL), a leading developer of sensing, detection and analysis technology for
homeland security, medical and industrial applications, today reported
financial results for fiscal year ended September 30, 2011.
Revenue for fiscal 2011 increased to $47.0 million compared with $43.0 million
in fiscal 2010. Contract Research segment revenue increased to $24.9 million
from $23.1 million in fiscal 2010. The Company's renamed Products & Technology
segment (previously called "Optics/Photonics, Products & Instruments") posted
revenue of $22.1 million, up from $19.9 million a year earlier.
Net income for the 12 months ended September 30, 2011 was $1.4 million, or
$0.08 per diluted share, compared with $3.2 million, or $0.22 per diluted
share, in fiscal 2010. Lower net income in the 2011 period resulted from
higher selling, general and administrative expenses and increased investment
in corporate growth initiatives, partially offset by Research &
Experimentation (R&E) Tax Credits. For fiscal year 2011, the Company had an
income tax expense of $293,198 compared with an income tax expense of $929,661
for fiscal year 2010. The significant difference primarily resulted from
state and federal R&E tax credits of approximately $1.5 million in fiscal
2011, partially offset by the required deferred tax liability recorded for the
tax effects of book/tax differences related to Property, Plant and Equipment,
Goodwill, and Intangible Assets.
"Dynasil delivered 9 percent revenue growth in 2011, with gains in both
business segments despite a challenging economic environment," said Steven
Ruggieri, the Company's president and chief executive officer. "Our Contract
Research segment grew $1.8 million, or nearly 8 percent, from fiscal 2010,
reflecting robust business with key federal customers including the U.S.
Department of Homeland Security and the U.S. Department of Energy. Our
Products & Technology segment grew more than $2 million, or 11 percent, from
the year-earlier period, primarily as a result of our acquisition of Hilger
Crystals in the fourth quarter of fiscal 2010."
Product Pipeline
"During the fourth quarter of 2011 we began shipping our dual-mode radiation
detectors to OEM customers for beta testing, and we remain on track to begin
generating revenue from this program in 2012," Ruggieri said. "Our dual-mode
technology represents the first in a planned pipeline of scintillation crystal
products capable of advanced radiation detection for markets including
homeland security, baggage screening and energy."
"Our product pipeline also includes sensors for non destructive testing,
radiation dosimeters based on technologies developed at our RMD Research
business unit and thin film digital X-rays," Ruggieri continued. "In addition,
we are testing and evaluating three of the biomedical technologies acquired
earlier this year from Dr. Daniel Ericson. While development is still in the
early stages, we believe that these technologies have commercial potential."
Recent Highlights
. Dynasil promoted Kanai S. Shah, Ph.D., Vice President of Research and
leader of the Materials Science Group, to President of RMD Research, the
Company's research business unit, beginning in December. Dr. Shah, 50,
joined RMD in 1985 as a Staff Scientist. He became Director of Research
in 2002 and Vice President of Research in 2009. He has been responsible
for new semiconductor and scintillator development at RMD for more than
a decade.
. RMD Research received contracts totaling $3.65 million from the
Department of Homeland Security's Domestic Nuclear Detection Office
(DNDO). These contracts provide funded research and development of gamma
and neutron radiation detectors capable of identifying illicit nuclear
materials. The contracts consist of $2.15 million under the DNDO's
Exploratory Research Program (ERP) and $1.5 million under the Small
Business Innovation Research (SBIR) program. Earlier this month, the
U.S. House and Senate negotiated a deal to reauthorize the SBIR program
for an additional six years.
"In fiscal 2011 we made good progress in expanding our product pipeline and
diversifying our contract research business," Ruggieri said. "In the coming
quarters, we expect to have a product realization process in place designed to
support the evaluation, assessment, development and commercialization of our
technologies. We have a number of exciting milestones to look forward to in
2012, and we believe that we are well positioned for continued growth."
Conference Call Information
As previously announced, Dynasil Corporation will host a conference call for
investors and analysts Thursday, December 29, 2011 at 5:00 p.m. ET. On the
call will be Dynasil President and Chief Executive Officer Steven Ruggieri and
Chief Financial Officer Richard Johnson. Those who wish to listen to the
conference call and view presentation slides should visit the Investor
Information section of the Company's website at www.dynasilcorp.com. The call
also may be accessed by dialing (877) 407-5790 or (201) 689-8328. For
interested individuals unable to join the live conference call, a webcast
replay will be available on the Company's website for one year.
About Dynasil
Dynasil Corporation of America (NASDAQ: DYSL) develops and manufactures
detection, sensing and analysis technology, precision instruments and optical
components for the homeland security, medical and industrial markets.
Combining world-class technology with expertise in research and materials
science, Dynasil is commercializing products including dual-mode radiation
detection solutions for Homeland Security and commercial applications, probes
for medical imaging and sensors for non-destructive testing. Dynasil has an
impressive and growing portfolio of issued and pending U.S. patents. The
Company is based in Watertown, Massachusetts, with additional operations in
Mass., Minn., NY, NJ and the United Kingdom. More information about the
Company is available at www.dynasilcorp.com.
Forward-looking Statements
This news release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements regarding future events and our future results are based on current
expectations, estimates, forecasts, and projections and the beliefs and
assumptions of our management, including, without limitation, our expectations
regarding results of operations, the commercialization of our products
including our dual mode detectors, our development of new technologies
including at Dynasil Biomedical, the adequacy of our current financing
sources, our capital expenditures and the strength of our intellectual
property portfolio. These forward-looking statements may be identified by the
use of words such as "may," "could," "expect," "estimate," anticipate,"
continue" or similar terms, though not all forward-looking statements contain
such words. The actual results of the future events described in such
forward-looking statements could differ materially from those stated in such
forward-looking statements due to a number of important factors. These factors
that could cause actual results to differ from those anticipated or predicted
include, without limitation, our ability to develop and commercialize our
products, the size and growth of the potential markets for our products and
our ability to serve those markets, the rate and degree of market acceptance
of any of our products, general economic conditions, costs and availability of
raw materials and management information systems, our ability to obtain and
maintain intellectual property protection for our products, competition, the
loss of key management personnel, litigation, the effect of governmental
regulatory developments, the availability of financing sources, our ability to
identify and execute on acquisition opportunities and integrate such
acquisitions into our business, and seasonality, as well as the uncertainties
set forth in the Company's Annual Report on Form 10-K and from time to time
in the Company's other filings with the Securities and Exchange Commission.
The Company disclaims any intention or obligation to update any forward-
looking statements, whether as a result of new information, future events or
otherwise.
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
2011 2010
Current assets
Cash and cash equivalents $4,479,840 $4,111,966
Accounts receivable, net of allowance for
doubtful accounts of $182,634 and $132,584 and
sales returns allowance of $18,356 and $24,168
for September 30, 2011 and September 30, 2010,
respectively.
5,837,139 6,360,583
Inventories 3,250,539 3,097,219
Costs in excess of billings 408,240 135,157
Deferred tax asset 1,119,800 1,196,735
Prepaid income taxes 341,825 166,231
Prepaid expenses and other current assets 453,738 453,418
----------- -----------
Total current assets 15,891,121 15,521,309
Property, Plant and Equipment, net 4,860,328 3,953,319
Other Assets
Intangibles, net 6,374,329 6,671,149
Goodwill 13,330,182 13,775,087
Deferred tax asset - non current 694,800 -0-
Deferred financing costs, net 150,656 190,568
----------- -----------
Total other assets 20,549,967 20,636,804
----------- -----------
Total Assets $41,301,416 $40,111,432
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current portion of long-term debt $1,859,728 $1,870,779
Accounts payable 2,088,395 1,482,250
Accrued expenses and other liabilities 2,322,459 2,177,743
Contingent consideration 183,713 -0-
Dividends payable -0- 131,400
----------- -----------
Total current liabilities 6,454,295 5,662,172
Long-term Liabilities
Long-term debt, net 8,985,442 10,833,334
Deferred tax liability 1,619,637 873,300
Contingent consideration -0- 750,000
----------- -----------
Total long-term liabilities 10,605,079 12,456,634
Temporary Equity 2,000,000 2,000,000
Stockholders' Equity 22,242,042 19,992,626
----------- -----------
Total Liabilities and
Stockholders' Equity $41,301,416 $40,111,432
=========== ===========
DYNASIL CORPORATION OF AMERICA
CONSOLIDATED STATEMENTS OF OPERATIONS
2011 2010
----------- -----------
Net revenue
$46,951,666 $42,969,762
Cost of revenue 27,683,729 25,205,960
----------- -----------
Gross profit 19,267,937 17,763,802
Selling, general and
administrative expenses 17,021,191 12,971,640
----------- -----------
Income from operations 2,246,746 4,792,162
Interest expense, net 601,903 628,120
----------- -----------
Income before income taxes 1,644,843 4,164,042
Income taxes 293,198 929,661
----------- -----------
Net income $1,351,645 $3,234,381
=========== ===========
Net Income $1,351,645 $3,234,381
Other comprehensive income:
Foreign currency translation,
net of $83,318
and $77,400 income taxes
in 2011 and 2010 147,404 150,162
----------- -----------
Total comprehensive income $1,499,049 $3,384,543
=========== ===========
Net income $1,351,645 $3,234,381
Dividends on preferred stock 116,646 537,433
----------- -----------
Net income applicable to common
stockholders 1,234,999 2,696,948
Dividend add back due to preferred
stock conversion -0- 537,433
----------- -----------
Net income for diluted income per
common share $1,234,999 $3,234,381
=========== ===========
Basic net income per common share $0.08 $0.22
Diluted net income per common share $0.08 $0.22
Weighted average shares outstanding
Basic 14,932,226 12,404,701
Diluted 15,127,004 14,937,575