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                                    Contact: Stuart Fine
                                    Phone: (908) 469-1788

 Dynasil Announces Fiscal Year 2009 Results with a Doubling
           of Revenues and Income from Operations

WEST  BERLIN, N.J. - December 23, 2009 - Dynasil Corporation
of America (OTCBB: DYSL.OB) ("Dynasil" or the "Company"),  a
rapidly growing manufacturer of specialized instruments  and
products with applications in the homeland security/defense,
medical  and industrial sectors, today announced the results
of operations for its fiscal year ended September 30, 2009.

Fiscal  year 2009 was a year of significant growth  in  both
revenues  and profits for Dynasil following the  acquisition
of  RMD on July 1, 2008.  Fiscal year revenues doubled  from
$17.1  million in FY 2008 to $34.4 million in FY2009; income
from operations doubled from $1.45 million to $2.84 million;
and  net  income  increased by 33.5%  from  $1.16  to  $1.55
million. Net operating loss carry-forwards for federal taxes
were  exhausted during fiscal year 2008, so fiscal year 2009
net  income was affected by provisions for increased federal
taxes, as well as higher interest costs relating to the  RMD
acquisition.    Also,   fiscal  year  2009   revenues   from
commercial   operations   including   the   optics/photonics
products  and  instruments  segment  were  impacted  by  the
worldwide  economic  recession.   In  spite  of  this,   the
Company's business units all remained profitable, while  its
contract  research  segment  showed  a  substantial  revenue
increase  for  the year and has about two years  of  project
backlog.    Dynasil  also  initiated   a   review   of   the
intellectual  property  acquired  with  RMD  and  began  the
initial phases of commercial development of this technology.
During fiscal year 2009, the Company paid down debt by  $2.2
million and maintained liquidity with a cash balance of $3.1
million and an additional $1.2 million available from  lines
of credit as of September 30, 2009.

"In light of the challenges presented by the global economic
situation,  we  are  pleased  with  our  fiscal  year   2009
results,"  said Craig T. Dunham, President  and  CEO.   "Our
2008  acquisition  of  RMD  enabled  our  continued  revenue
growth,  which has averaged more than 70% per year  for  the
last  five years.  RMD also added new proprietary technology
with  exciting  commercial potential and the  prospects  for
acquiring  additional intellectual property  assets  through
our  contract research activities. In the case of government
funded research, we are normally allowed not only to make  a
profit on that work, but also to retain commercial rights to
the    technology   that   we   develop.     During    2009,
commercialization  of  that new technology  became  a  major
focus  area, with the result that we are currently  pursuing
promising opportunities, some of which include: detectors to
help  Homeland  Security  identify nuclear  threats,  faster
sensors  for  dynamic medical imaging, and  crack  detection
sensors  to  find  very  small cracks  in  objects  such  as
aircraft  wings and turbine blades.  Overall,  we  are  very
excited  about  the  profit potential for  this  technology.
Dynasil   remains  focused  on  growth  of  our   commercial
operations   through  internal  development   and   improved
efficiencies,   as  well  as  through  active   pursuit   of
complementary   acquisitions   and   commercialization    of
technology from RMD."

About Dynasil

Dynasil  is  a  rapidly growing manufacturer of  specialized
instruments  and products for a broad range of  applications
markets  in  the  homeland  security/defense,  medical   and
general  industrial sectors.  In addition,  the  Company  is
engaged in a significant amount of contract research for the
government   and   private  industry.    Dynasil   and   its
subsidiaries  have operations in New Jersey,  New  York  and

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  on
Form 10-K and in the Company's other Securities and Exchange
Commission   filings,  continuation   of   existing   market
conditions and demand for our products and services.

Dynasil Corporation of America and Subsidiaries Consolidated Balance Sheets September 30 September 30 2009 2008 ---------- ---------- ASSETS Current assets Cash and cash equivalents $3,104,778 $3,882,955 Accounts receivable, net 4,053,742 3,390,703 Inventories 2,371,516 2,909,730 Deferred tax asset 290,100 233,500 Other current assets 306,848 259,896 ---------- ---------- Total current assets 10,126,984 10,676,784 Property, plant and equipment, net 2,744,724 2,694,290 Other Assets Intangibles, net 7,232,035 7,767,258 Goodwill 11,054,396 11,054,396 Deferred financing costs, net 64,637 81,136 Other assets -0- 8,360 ---------- ---------- Total other assets 18,351,068 18,911,150 ---------- ---------- Total Assets $31,222,776 $32,282,224 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short term note payable -0- $490,117 Current portion of long-term 1,749,524 1,649,101 debt Accounts payable 773,837 877,525 Accrued expenses and other 1,171,790 1,620,692 current liabilities Income taxes payable 507,122 36,476 Dividends payable 149,150 149,150 ---------- ---------- Total current liabilities 4,351,423 4,823,061 Long-term debt 8,386,796 10,178,420 Stockholders' Equity 18,484,557 17,280,743 ---------- ---------- Total Liabilities and Stockholders' $31,222,776 $32,282,224 Equity =========== ===========
Dynasil Corporation of America and Subsidiaries Consolidated Statement of Operations Twelve Months Ended September 30 2009 2008 Revenues $34,363,674 $17,116,341 Cost of Revenues 20,629,501 11,307,034 ---------- ---------- Gross Profit 13,734,173 5,809,307 Selling, general and 10,891,096 4,359,493 administrative ---------- ---------- Income from Operations 2,843,077 1,449,814 Interest expense - net 735,317 214,090 ---------- ---------- Income before Income Taxes 2,107,760 1,235,724 Income Tax expense 556,462 73,757 ---------- ---------- Net Income $1,551,298 $1,161,967 ========== ========== Net Income per share Basic $0.08 $0.12 Diluted $0.08 $0.12 Weighted average shares outstanding Basic 11,373,837 7,752,809 Diluted 12,328,261 8,871,82