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EX-31.1(A) - EXHIBIT 31.1(A) - DYNASIL CORP OF AMERICAv439038_ex31-1a.htm
EX-31.1(B) - EXHIBIT 31.1(B) - DYNASIL CORP OF AMERICAv439038_ex31-1b.htm
EX-32.1 - EXHIBIT 32.1 - DYNASIL CORP OF AMERICAv439038_ex32-1.htm
10-Q - FORM 10-Q - DYNASIL CORP OF AMERICAv439038_10q.htm

 

Exhibit 99.1

 

 

 

Contact:  
Patty Kehe  
Corporate Secretary  
Dynasil Corporation of America  
Phone: 617.668.6855  
pkehe@dynasil.com  

 

Dynasil Corporation of America Reports
Continued Revenue Growth in its Optics Business for

Fiscal 2016’s Second Quarter at 23%

 

Newton, MA, May 12, 2016 – Dynasil Corporation of America (NASDAQ: DYSL), a developer and manufacturer of optics and photonics products, optical detection and analysis technology and components for the homeland security, medical and industrial markets, today announced a strong revenue showing by its Optics segment. The Optics companies reported revenues of $6.4 million in the quarter ended March 31, 2016 compared to $5.2 million of revenues in the same period of 2015. This $1.2 million increase represents a 23% increase in Optics segment revenue year over year. Certain key metrics by segment for the current quarter and the same quarter last year are presented below:

 

 

Results of Operations for the Three Months Ended March 31, 2016
   Optics   Contract
Research
   Biomedical   Total 
Revenue  $6,428,000   $4,868,000   $-   $11,296,000 
Gross Profit   2,208,000    1,870,000    -    4,078,000 
GM %   34%   38%   -    36%
Operating expenses   1,882,000    1,800,000    355,000    4,037,000 
Net Income (loss)  $249,000   $67,000   $(347,000)  $(31,000)

 

 

Results of Operations for the Three Months Ended March 31, 2015
   Optics   Contract
Research
   Biomedical   Total 
Revenue  $5,220,000   $4,675,000   $-   $9,895,000 
Gross Profit   1,808,000    1,952,000    -    3,760,000 
GM %   34.6%   42%   -    38.0%
Operating expenses   1,580,000    1,896,000    270,000    3,746,000 
Net Income (loss)  $106,000   $53,000   $(258,000)  $(99,000)

 

 

 

 

“I am pleased to report our continued revenue growth in the Optics segment driven predominantly by a new product offering that has been ramping up over the past 9 months. Our operating businesses continue to have positive net income as well. The expenses from Xcede Technologies, Inc. (“Xcede”), our Hemostat/Sealant technology development project, caused Dynasil to end at breakeven for both the second quarter and year to date,” said CEO Peter Sulick.

 

“Despite some significant delays in funding from some of our U.S. government customers, our Contract Research segment revenues increased 4% to $4.9 million in the second quarter of 2016. Our backlog in this segment has been decreased slightly to $31 million, as we continue to experience government budget pressure, in the form of both contract award and funding delays.”

 

“Our Xcede joint venture continues to work with Cook Biotech Inc. of West Lafayette, IN to complete design freeze and manufacturing development of Xcede's resorbable hemostatic patch. Xcede’s management team is actively pursuing a number of financing alternatives to raise the necessary capital to complete biocompatibility testing and begin first in human clinical trials necessary for regulatory approvals. We anticipate this process to successfully conclude by the end of our fiscal year,” added Mr. Sulick.

 

Dynasil’s results for the second quarter of fiscal 2016 were essentially breakeven, up slightly from the net loss of ($0.1) million for the second quarter of fiscal 2015. The net loss also included expenses of approximately $0.4 million and $0.3 million in the three months ended March 31, 2016 and 2015, respectively, associated with research and start-up costs of Xcede. Dynasil has voting control of Xcede via its common stock ownership, thus Dynasil is required to include Xcede in the company’s consolidated financial statements even though Dynasil is no longer funding Xcede.

  

Conference Call Information

 

Dynasil will host a conference call for investors and analysts at 5:00 p.m. ET today. The call will be hosted by Chairman, CEO and President Peter Sulick and Chief Financial Officer Robert Bowdring. Those who wish to listen to the conference call can go to the event page at or visit the Investor Information section of the Company’s website at www.dynasil.com. The call also may be accessed by dialing (888) 346-2613 or (412) 902-4252. 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 optics and photonics products, optical detection and analysis technology and components for the homeland security, medical and industrial markets. Combining world-class expertise in research and materials science with extensive experience in manufacturing and product development, Dynasil is commercializing products including dual-mode radiation detection solutions for Homeland Security and commercial applications 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 Newton, MA, with additional operations in MA, MN, NY, NJ and the United Kingdom. More information about the Company is available at www.dynasil.com.

 

 

 

 

Forward-Looking Statements

 

This press 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 Xcede’s ability to obtain financing from outside investors. 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, including the availability of financing sources, 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 (Unaudited)        
         
  March 31, 2016   September 30, 2015 
ASSETS        
Current Assets          
Cash and cash equivalents  $814,000   $1,295,000 
Accounts receivable, net   4,850,000    3,382,000 
Costs in excess of billings and unbilled receivables   1,437,000    1,518,000 
Inventories, net of reserves   4,037,000    3,066,000 
Prepaid expenses and other current assets   1,251,000    1,125,000 
Total current assets   12,389,000    10,386,000 
           
Property, Plant and Equipment, net   7,073,000    6,662,000 
Other Assets          
Intangibles, net   1,156,000    1,225,000 
Goodwill   6,048,000    6,131,000 
Security deposits   60,000    58,000 
Total other assets   7,264,000    7,414,000 
           
Total Assets  $26,726,000   $24,462,000 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current Liabilities          
Current portion of long-term debt  $2,544,000   $1,567,000 
Capital lease obligations, current   82,000    76,000 
Convertible notes   2,570,000    2,123,000 
Accounts payable   2,628,000    1,886,000 
Deferred revenue   237,000    109,000 
Accrued expenses and other liabilities   2,847,000    2,650,000 
Total current liabilities   10,908,000    8,411,000 
           
Long-term Liabilities          
Long-term debt, net of current portion   978,000    1,288,000 
Capital lease obligations, net of current portion   102,000    43,000 
Deferred tax liability   249,000    242,000 
Other long-term liabilities   49,000    50,000 
Total long-term liabilities   1,378,000    1,623,000 
           
Stockholders' Equity          
Dynasil stockholders' equity   14,704,000    14,616,000 
Noncontrolling interest   (264,000)   (188,000)
Total stockholders' equity   14,440,000    14,428,000 
           
Total Liabilities and Stockholders' Equity  $26,726,000   $24,462,000 

 

 

 

 

Dynasil Corporation of America and Subsidiaries

Consolidated Statement of Operations and Comprehensive Income (Loss)

(Unaudited)

 

   Three Months Ended   Six Months Ended 
   March 31,   March 31, 
   2016   2015   2016   2015 
Net revenue  $11,296,000   $9,895,000   $22,493,000   $19,506,000 
Cost of revenue   7,218,000    6,135,000    14,451,000    12,154,000 
Gross profit   4,078,000    3,760,000    8,042,000    7,352,000 
                     
Operating expenses:                    
Sales and marketing   343,000    309,000    685,000    674,000 
Research and development   512,000    416,000    1,003,000    790,000 
General and administrative   3,182,000    3,021,000    6,155,000    6,488,000 
Gain on sale of assets   -    -    (4,000)   (185,000)
                     
Total operating expenses   4,037,000    3,746,000    7,839,000    7,767,000 
                     
Income (loss) from operations   41,000    14,000    203,000    (415,000)
Interest expense, net   77,000    123,000    136,000    248,000 
                     
Income (loss) before taxes   (36,000)   (109,000)   67,000    (663,000)
Income tax (credit)   33,000    18,000    68,000    21,000 
                     
Net income (loss)   (69,000)   127,000)   (1,000)   (684,000)
Less: Net loss attributable to noncontrolling interest   (38,000)   (28,000)   (76,000)   (52,000)
Net income (loss) attributable to common stockholders  $(31,000)  $(99,000)  $75,000   $(632,000)