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EX-32.1 - EXHIBIT 32.1 - DYNASIL CORP OF AMERICAv472600_ex32-1.htm
EX-31.1(B) - EXHIBIT 31.1(B) - DYNASIL CORP OF AMERICAv472600_ex31-1b.htm
EX-31.1(A) - EXHIBIT 31.1(A) - DYNASIL CORP OF AMERICAv472600_ex31-1a.htm
EX-10.02 - EXHIBIT 10.02 - DYNASIL CORP OF AMERICAv472600_ex10-02.htm
EX-10.01 - EXHIBIT 10.01 - DYNASIL CORP OF AMERICAv472600_ex10-01.htm
10-Q - FORM 10-Q - DYNASIL CORP OF AMERICAv472600_10q.htm



Exhibit 99.1




Patty Kehe

Corporate Secretary

Dynasil Corporation of America

Phone: 617.668.6855


Dynasil Corporation of America Reports

Third Quarter Fiscal 2017 Results


Newton, MA, August 14, 2017 – 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 it is continuing its efforts to improve gross profit margin in the Company’s operating segments.


“Our third quarter was particularly difficult across our core research and optics businesses,” said Peter Sulick, Dynasil CEO. “While we have maintained operating profitability and margins, the combination of the loss in revenue from two large OEM customers, one a UK customer and the other a domestic customer, and a substantial delay in funding our approved government projects all hit us during the same quarter. The results of these revenue disruptions were a reduction of $1.0 million in Optics revenue for the quarter and a $0.6 million reduction in contract research revenue. Fortunately, all of this was timing-related and not due to any longer term systemic issues. Indications are that both large commercial customers are returning to prior order levels during the fourth quarter.


“We anticipate RMD returning to a normal operating posture during the fourth quarter. On the positive side, most delayed projects have now been funded and RMD had an excellent year for project awards,” continued Mr. Sulick. “Consequently, as of today, RMD’s project backlog and funded project levels are at one of the highest points in the past five years. This unusual swing was unanticipated and disruptive, but the situation at RMD is normalizing.


“One bright spot continues to be the RMD commercial revenue which should end the year at approximately three times the prior year level of $600,000. RMD’s CLYC dual mode scintillator is getting considerable market traction, particularly within the personalized radiation detector (PRD) market. We anticipate this business to continue to grow into 2018. In addition, RMD has a product pipeline which we anticipate coming on line serially over the next eighteen months, resulting in continued growth in RMD commercial revenue.


Certain key metrics by segment for the current quarter and the same period last year are presented below:





Results of Operations for the Three Months Ended June 30, 2017


   Optics   Contract
   Biomedical   Total 
Revenue  $4,837,000   $3,999,000   $-   $8,836,000 
Gross profit   1,655,000    1,709,000    -    3,364,000 
GM %   34%   43%   -    38%
Operating expenses   1,619,000    1,640,000    377,000    3,636,000 
Operating income (loss)  $36,000   $69,000   $(377,000)  $(272,000)


Results of Operations for the Three Months Ended June 30, 2016


   Optics   Contract
   Biomedical   Total 
Revenue  $5,780,000   $4,626,000   $-   $10,406,000 
Gross profit   2,012,000    1,915,000    -    3,927,000 
GM %   35%   41%   -    38%
Operating expenses   1,604,000    1,601,000    396,000    3,601,000 
Operating income (loss)  $408,000   $314,000   $(396,000)  $326,000 


Dynasil’s net income (loss) attributable to common stockholders was approximately ($0.2) million or ($0.01) per share for the quarter ended June 30, 2017, compared to net income of $0.3 million or $0.02 per share for the quarter ended June 30, 2016.


Earnings attributable to common stockholders for the nine months ended June 30, 2017 were $2.6 million or $0.15 per common share, largely as the result of a U.S. income tax benefit resulting from the deconsolidation for tax purposes of Xcede Technologies, Inc., the Company’s tissue sealant technology development joint venture. Because of the previously discussed Xcede Technologies’ transactions in November 2016, Dynasil’s ownership percentage in Xcede decreased to less than 80% and Dynasil will no longer include Xcede in its consolidated federal tax return, which resulted in an income tax benefit in the amount of $2.7 million for the nine months ended June 30, 2017.


Conference Call Information


Dynasil will host a conference call for investors and analysts at 5:00 p.m. ET today, Monday, August 14, 2017. 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 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





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 results of operations and the strength of our intellectual property portfolio. These forward-looking statements may be identified by the use of words such as “plans,” “intends,” “may,” “could,” “expect,” “estimate,” “anticipate,” “continue” or similar terms, though not all forward-looking statements contain such words. 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 without limitation, our ability to develop and commercialize our products, including obtaining regulatory approvals, 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, Xcede’s ability to produce preclinical data sufficient to enable it to initiate clinical studies of its resorbable hemostatic patch, clinical results of Xcede’s programs which may not support further development, competition, the loss of key management and technical personnel, our ability to obtain timely payment of our invoices to governmental customers, litigation, the effect of governmental regulatory developments, the availability of financing sources, our ability to deleverage our balance sheet, 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 (Unaudited)



   June 30, 2017   September 30, 2016 
Current Assets          
Cash and cash equivalents  $1,790,000   $2,607,000 
Accounts receivable, net   3,404,000    3,502,000 
Costs in excess of billings and unbilled receivables   1,183,000    1,208,000 
Inventories, net of reserves   4,117,000    3,726,000 
Prepaid expenses and other current assets   1,133,000    1,078,000 
Total current assets   11,627,000    12,121,000 
Property, Plant and Equipment, net   6,815,000    7,223,000 
Other Assets          
Intangibles, net   1,067,000    1,067,000 
Deferred tax asset   2,766,000    - 
Goodwill   5,894,000    5,898,000 
Security deposits   13,000    60,000 
Total other assets   9,740,000    7,025,000 
Total Assets  $28,182,000   $26,369,000 
Current Liabilities          
Current portion of long-term debt  $1,994,000   $2,477,000 
Capital lease obligations, current   96,000    105,000 
Convertible notes and accrued interest   -    3,085,000 
Accounts payable   1,426,000    1,627,000 
Deferred revenue   109,000    238,000 
Accrued expenses and other liabilities   2,392,000    2,955,000 
Total current liabilities   6,017,000    10,487,000 
Long-term Liabilities          
Long-term debt, net of current portion   1,182,000    736,000 
Capital lease obligations, net of current portion   102,000    173,000 
Deferred tax liability   253,000    263,000 
Other long-term liabilities   37,000    43,000 
Total long-term liabilities   1,574,000    1,215,000 
Stockholders' Equity          
Dynasil stockholders' equity   19,093,000    14,973,000 
Noncontrolling interest   1,498,000    (306,000)
Total stockholders' equity   20,591,000    14,667,000 
Total Liabilities and Stockholders' Equity  $28,182,000   $26,369,000 





Dynasil Corporation of America

Consolidated Statement of Operations and Comprehensive Income (Loss)



   Three Months Ended   Nine Months Ended 
   June 30,   June 30, 
   2017   2016   2017   2016 
Net revenue  $8,836,000   $10,406,000   $28,065,000   $32,899,000 
Cost of revenue   5,472,000    6,479,000    17,386,000    20,930,000 
Gross profit   3,364,000    3,927,000    10,679,000    11,969,000 
Operating expenses:                    
Sales and marketing   255,000    246,000    848,000    923,000 
Research and development   176,000    196,000    707,000    761,000 
General and administrative   3,205,000    3,159,000    9,321,000    9,759,000 
(Gain) loss on sale of assets   -    -    -    (4,000)
Total operating expenses   3,636,000    3,601,000    10,876,000    11,439,000 
Income (loss) from operations   (272,000)   326,000    (197,000)   530,000 
Interest expense, net   53,000    78,000    164,000    215,000 
Income (loss) before taxes   (325,000)   248,000    (361,000)   315,000 
Income tax (credit)   (111,000)   32,000    (2,769,000)   101,000 
Net income (loss)   (214,000)   216,000    2,408,000    214,000 
Less: Net loss attributable to noncontrolling interest   (64,000)   (42,000)   (197,000)   (118,000)
Net income (loss) attributable to common stockholders  $(150,000)  $258,000   $2,605,000   $332,000 
Net income (loss)  $(214,000)  $216,000   $2,408,000   $214,000 
Other comprehensive income (loss):                    
Foreign currency translation   212,000    (417,000)   (18,000)   (673,000)
Total comprehensive income (loss)   (2,000)   (201,000)   2,390,000    (459,000)
Less: comprehensive income (loss) attributable to  noncontrolling interest   (64,000)   (42,000)   (197,000)   (118,000)
Total comprehensive income (loss) attributable to common stockholders  $62,000   $(159,000)  $2,587,000   $(341,000)
Basic net income (loss) per common share  $(0.01)  $0.02   $0.15   $0.02 
Diluted net income (loss) per common share  $(0.01)  $0.02   $0.15   $0.02 
Weighted average shares outstanding                    
Basic   16,945,744    16,698,205    16,879,864    16,628,279 
Diluted   16,945,744    16,701,737    16,879,864    16,671,016