Attached files

file filename
10-Q - FORM 10-Q - DYNASIL CORP OF AMERICAv300673_10q.htm
EX-10.2 - EXHIBIT 10.2 - DYNASIL CORP OF AMERICAv300673_10-2.htm
EX-10.1 - EXHIBIT 10.1 - DYNASIL CORP OF AMERICAv300673_10-1.htm
EX-32.1 - EXHIBIT 32.1 - DYNASIL CORP OF AMERICAv300673_ex32-1.htm
EX-31.1(B) - EXHIBIT 31.1(B) - DYNASIL CORP OF AMERICAv300673_ex31-1b.htm
EX-31.1(A) - EXHIBIT 31.1(A) - DYNASIL CORP OF AMERICAv300673_ex31-1a.htm



Patty Kehe
Dynasil Corporation of America
Phone: (617) 668-6855


David Calusdian
Executive Vice President and Partner
Sharon Merrill

Dynasil Corporation of America Reports Record
Net Revenue for the First Quarter Fiscal 2012

-Revenue of $12.4 Million, Up 7% From First Quarter 2011
- Company Hosts Earnings Conference Call at 5:00 p.m. (ET) Today

Watertown, MA, February 14, 2012 Dynasil Corporation of America (NASDAQ: DYSL), a leading developer of sensing, detection and analysis technology for homeland security, medical and industrial applications, today announced financial results for the fiscal 2012 first quarter ended December 31, 2011.

Net revenue for the first quarter of fiscal 2012 increased 7% to a record $12.4 million from $11.6 million for the first quarter of fiscal 2011. Contract Research segment revenue increased to $6.2 million from $6.1 million in the first quarter of fiscal 2011. The Products and Technology segment posted revenue of $6.2 million, up from $5.6 million a year earlier.

Gross margin improved to 42.8% of net revenue for the first quarter of fiscal 2012 from 42.2 % of net revenue for the same period of fiscal 2011.

Selling, general and administrative expenses for the first quarter of fiscal 2012 totaled $5.1 million, versus $4.2 million for the comparable period of 2011, reflecting significant investments in the Company’s Product and Technology pipeline to support future growth. These investments include technology development activities, depreciation of capital equipment, development of intellectual property and staff additions in support of organic product development, dual mode nuclear detector technology and Dynasil’s recently acquired biomedical technology portfolio. “While some of our technologies are in the evaluation and developmental stage, these investments are indicative of the commitment that the Dynasil Board and Management Team are making to build shareholder value for the long term,” said Steven Ruggieri, the Company’s President and Chief Executive Officer.

Net income for the first quarter of fiscal 2012 was approximately $245,000, or $0.02 earnings per share, compared with $375,000, or $0.03 earnings per share, in the first quarter of fiscal 2011. “Favorable product mix drove higher gross profit in the first quarter, as sales in both segments grew on a year-over-year basis,” Ruggieri said. “Our Contract Research segment increased just over 2 % from the first quarter of 2011, and our backlog from that business remains steady. Our Products and Technology segment grew about 11 percent for the quarter.



“Strategic investment is expected to remain an important theme for us in the coming months, as we develop and expand our product pipeline and advance our dual-mode radiation detection technology to commercialization,” Ruggieri continued. “Enhancements of products such as our handheld lead paint analyzer, Navigator medical probe and RadCam radiation imaging system are planned for later this fiscal year. In addition, we are building the foundation for enhanced product development, engineering and management capability for our commercial product lines. This investment will strengthen our ability to evaluate designs for manufacturability, explore new contract manufacturing pathways, assess cost of goods and pricing, and implement launch and distribution strategies.”

Conference Call Information
Dynasil Corporation will host a conference call for investors and analysts at 5:00 p.m. ET today. The call will be hosted by Dynasil President and Chief Executive Officer Steven Ruggieri and Chief Financial Officer Richard Johnson. They will be joined on the call by Kanai Shah, Ph.D., President of RMD, the Company’s Contract Research business unit. 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 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




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, including those related to the future commercialization of our products, are based on current expectations, estimates, forecasts, and projections and the beliefs and assumptions of our management. 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 Sheets

   December 31,   September 30, 
   2011   2011 
Current assets          
Cash and cash equivalents  $2,737,424   $4,479,840 
Accounts receivable, net   7,426,283    5,837,139 
Inventories   2,978,189    3,250,539 
Costs in excess of billings   224,135    408,240 
Deferred tax asset   1,156,359    1,119,800 
Prepaid income taxes   341,825    341,825 
Prepaid expenses and other current assets   291,695    453,738 
Total current assets   15,155,910    15,891,121 
Property, Plant and Equipment, net   5,068,102    4,860,328 
Other Assets          
Intangibles, net   6,211,526    6,374,329 
Goodwill   13,330,182    13,330,182 
Deferred tax asset - non current   807,932    694,800 
Deferred financing costs, net   140,678    150,656 
Total other assets   20,490,318    20,549,967 
Total Assets  $40,714,330   $41,301,416 
Current Liabilities          
Current portion of long-term debt  $1,868,231   $1,859,728 
Accounts payable   2,249,904    2,088,395 
Accrued expenses and other liabilities   1,575,976    2,322,459 
Contingent consideration   183,713    183,713 
Total current liabilities   5,877,824    6,454,295 
Long-term Liabilities          
Long-term debt, net   8,501,780    8,985,442 
Deferred tax liability   1,619,637    1,619,637 
Total long-term liabilities   10,121,417    10,605,079 
Temporary Equity   2,000,000    2,000,000 
Stockholders' Equity   22,715,089    22,242,042 
Total Liabilities and Stockholders' Equity  $40,714,330   $41,301,416 




Dynasil Corporation of America

Consolidated Statement of Operations


   Three Months Ended 
   December 31, 
   2011   2010 
Net revenue  $12,398,254   $11,626,507 
Cost of revenue   7,095,036    6,719,783 
Gross profit   5,303,218    4,906,724 
Selling, general and administrative expenses   5,054,566    4,171,010 
Income from operations   248,652    735,714 
Interest expense, net   124,157    158,196 
Income before income taxes   124,495    577,518 
Income taxes   (120,572)   202,341 
Net income  $245,067   $375,177 
Net Income  $245,067   $375,177 
Other comprehensive income:          
Foreign currency translation, net of $31,094 income tax benefit and $21,562 income taxes in 2011 and 2010   (60,360)   41,681 
Total comprehensive income  $184,707   $416,858 
Net income  $245,067   $375,177 
Dividends on preferred stock   -0-    131,400 
Net income applicable to common stockholders   245,067    243,777 
Dividend add back due to preferred stock conversion   -0-    131,400 
Net income for diluted income per common share  $245,067   $375,177 
Basic net income per common share  $0.02   $0.03 
Diluted net income per common share  $0.02   $0.02 
Weighted average shares outstanding          
Basic   15,583,103    12,979,939 
Diluted   15,683,834    15,497,495