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10-Q - DYNASIL CORP OF AMERICAv211330_10q.htm
EX-31.1A - DYNASIL CORP OF AMERICAv211330_ex31-1a.htm
EX-32.1 - DYNASIL CORP OF AMERICAv211330_ex32-1.htm
EX-31.1B - DYNASIL CORP OF AMERICAv211330_ex31-1b.htm
 
 
Contact:
Patty Kehe
Dynasil Corporation of America
Phone: (607) 272-3320, ext. 26
Email:  pkehe@dynasilcorp.com
 
Dynasil Announces First Quarter Fiscal Year 2011 Results with Record Revenue
 
WATERTOWN, Mass. – February 14, 2011 – Dynasil Corporation of America (NASDAQ: DYSL) today announced financial results for the quarter ended December 31, 2010.  Revenue for the first quarter of fiscal year 2011 which ended December 31, 2010 was at a record level of $11.6 million, an increase of 17% over revenue of $9.9 million for the quarter ended December 31, 2009.  Income from Operations for the quarter was $736,000 as compared to $1,072,000 for the quarter ended December 31, 2009 which includes certain non-recurring costs associated with our listing on the NASDAQ Global Market in December 2010 and higher acquisition costs. Net income was $375,000 or $0.03 per share, compared with a Net Income of $614,000 or $0.04 per share.
 
 “We are making significant investments for future growth with our NASDAQ listing, acquisitions, and commercialization of new technology which resulted in strong commercial business profitability being partially offset by our corporate level spending on future development.  We are pleased to have record revenue with our Optics/Photonics Products & Instruments segment revenue growing 34% and our Contract Research segment revenue growing 5%, with a  contracted backlog which will fund our R & D for approximately one and one-half years,” said Craig T. Dunham, Dynasil’s President and CEO.  “In addition, we continue to execute on our strategic objectives to leverage our technologies and solutions to offer leading nuclear detection and medical imaging materials around the globe.  We believe we are uniquely positioned to benefit from the industry trends in the medical, industrial, and homeland security/defense sectors.  For our dual mode detectors aimed at locating nuclear bombs or radioactive materials at ports and borders, we made significant progress during our first quarter developing commercial relationships with lead customers as well as procuring equipment to scale up production.  We expect to have dual mode detector production capacity operational at our recently acquired Hilger Crystals location during our second quarter and to achieve full production mode during this fiscal year.”
 
Peter Sulick, Chairman of Dynasil, stated, “I am pleased to have record revenue again this quarter, but the real story is our commitment and investment in future growth.  Dynasil has a strong asset base across our commercial product sectors.  This, in addition to promising technology coming out of RMD   positions us well going forward.  We are investing in the commercialization of certain of this technology while continuing  to evaluate additional commercialization opportunities, acquisitions, licensing and joint ventures.   Our listing on the NASDAQ Global Market in December 2010 was a significant achievement and we believe that it will allow the Company to attract additional world class team members and investors that will support the continued expansion of our business activities as well as enabling us to increase the trading liquidity of our stock, broaden our stockholder base and raise our profile in the investment community.”

The Company has scheduled a conference call to discuss the first quarter’s financial results and provide a business update to be held Tuesday, February 15, 2011 beginning at 2:00 p.m. Eastern time. To access the call, please dial (866) 393-8592 and enter conference ID number 4400 2598.
 
About Dynasil: Dynasil Corporation of America (NASDAQ: DYSL), is a provider of technology, products, services and solutions aimed at making the world safer and healthier.  The company supplies a broad range of customers by serving their specific needs in the medical, industrial, and homeland security/defense markets. The Company has operations in New Jersey, New York, Massachusetts and the UK.
 

 
 
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-K, Quarterly Reports on Form 10-Q, as well as 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
     
 
   
31-Dec
   
30-Sep
 
   
2010
   
2010
 
 
(Unaudited)
       
ASSETS
           
Current assets
           
   Cash and cash equivalents
  $ 2,624,189     $ 4,111,966  
   Accounts receivable, net
    6,849,724       6,360,583  
   Inventories
    3,303,816       3,097,219  
Cost in excess of billings
    460,724       135,157  
Prepaid income taxes
    480,031       410,045  
Prepaid expenses and other current assets
    440,307       453,418  
                     Total current assets
    14,158,791       14,568,388  
                 
Property, Plant and Equipment, net
    3,882,136       3,953,319  
Other Assets
               
   Intangibles, net
    6,521,944       6,671,149  
   Goodwill
    13,591,287       13,591,287  
   Deferred financing costs, net
    180,590       190,568  
                     Total other assets
    20,293,821       20,453,004  
                 
                     Total Assets
  $ 38,334,748     $ 38,974,711  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current Liabilities
               
   Current portion of long-term debt
  $ 1,870,779     $ 1,870,779  
   Accounts payable
    1,047,100       1,482,250  
   Accrued expenses and other liabilities
    1,546,197       1,823,222  
   Deferred tax liability
    69,538       91,100  
   Dividends payable
    131,400       131,400  
                     Total current liabilities
    4,665,014       5,398,751  
                 
Long-term Liabilities
               
   Long-term debt, net
    10,368,298       10,833,334  
   Contingent consideration
    750,000       750,000  
                    Total long-term liabilities
    11,118,298       11,583,334  
                 
Temporary Equity
    2,000,000       2,000,000  
                 
Stockholders' Equity
    20,551,436       19,992,626  
                 
Total Liabilities and Stockholders' Equity
  $ 38,334,748     $ 38,974,711  



DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
   
Three Months Ended
 
   
December 31
 
   
2010
   
2009
 
Net revenue
  $ 11,626,507     $ 9,936,767  
Cost of revenue
    6,719,783       6,051,951  
Gross profit
    4,906,724       3,884,816  
Selling, general and administrative expenses
    4,171,010       2,812,980  
Income from operations
    735,714       1,071,836  
Interest expense, net
    158,196       162,441  
Income before income taxes
    577,518       909,395  
Income taxes
    202,341       295,626  
Net income
  $ 375,177     $ 613,769  
 
Earnings per Share
               
Net income
  $ 375,177     $ 613,769  
Dividends on preferred stock
    131,400       143,233  
Net income applicable to common stockholders
    243,777       470,536  
Dividend add back due to assumed preferred stock conversion
    131,400       -0-  
Net income for diluted income per common share
  $ 375,177     $ 470,536  
                 
Basic net income per common share
  $ 0.03     $ 0.04  
Diluted net income per common share
  $ 0.02     $ 0.04  
                 
Weighted average shares outstanding
               
           Basic
    12,979,939       11,791,820  
           Diluted
    15,497,495       11,968,319