TAMPA, Fla., Aug. 15, 2012 /PRNewswire/ -- Dais Analytic Corporation (OTC.BB: DLYT) announced financial results and key business highlights for the second quarter ended June 30, 2012.
Financial Results for the Three Months and Six Months Ending June 30, 2012
Total revenues for the six months ended June 30, 2012 and 2011 were $1,688,498 and $1,982,773, respectively, a decrease of $294,275 or 14.8% as a result of a decrease in sales in the second quarter. The decrease in revenues in the second quarter was primarily attributable to customers' concerns related to the Company's ability to repay a convertible secured promissory note in the principal amount of $1.5 million. The note was repaid on July 13, 2012.
Tim Tangredi, CEO of Dais Analytic Corporation, said, "While the Company faced a difficult financial environment in the second quarter, the Board of Directors and the entire Dais team are committed to overcoming the unique challenges it faced in this quarter. Noteworthy is the fact we continued to implement operational improvements and make discernable inroads in the development of the newer targeted applications of the Aqualyte™ family of materials projected to add additional revenue over time."
Cost of goods sold decreased $297,712 to $508,962 and represented 78% of revenues, for the three months ended June 30, 2012 compared to $806,674 or 72% of revenues for the three months ended June 30, 2011. Gross profit margin decreased from 28% in 2011 to 22% in 2012. Cost of goods sold decreased $315,465 to $1,192,099 and represented 70.6% of revenues, for the six months ended June 30, 2012 compared to $1,507,564 or 76% of revenues for the six months ended June 30, 2011. Gross profit margin increased from 24% in 2011 to 29.4% in 2012.
The increase in the gross profit margin was due to the recognition of $150,000 from a nonrefundable deposit from a sales agreement terminated earlier this year. The increase in costs is related to the planned relocation of the production of our ConsERV to the Company's Odessa facility and the resulting start-up costs for equipment, materials, and new employees as well as training of assembly and quality assurance procedures for the newer team members.
Key Business Highlights
"We continue to sell and ship high quality ConsERV Energy Recovery Ventilator units and to work closely with our independent sales representative network to address their clients' needs. We brought the ConsERV core production capabilities in-house and fully expect the transition will soon lead to better customer response times," said David Longacre, Dais' Vice President of Sales and Marketing.
"Development activities continue to produce results," said Scott Ehrenberg, Dais' Chief Technology Officer. "We have developed a new member of the Aqualyte™ family of nano-structured materials addressing a specific customer need which also adds depth to Dais' material capabilities. More exciting is the energy densities and repeatability of material performance in the NanoCap™ ultra capacitor application continue to improve."
About Dais Analytic Corporation
Dais Analytic Corporation (OTC.BB: DLYT - News) is commercializing its innovative Aqualyte™ family of nano-structured materials and processes focusing on evolutionary or disruptive air, energy and water applications.
The uses include:
- ConsERV™, a commercially available engineered energy recovery ventilator (an HVAC product) useful for efficient management of ventilation air's temperature and moisture content using the energy found in the outgoing 'stale' air stream to pre-condition the incoming fresh air often saving energy, CO2, and allowing for equipment downsizing;
- NanoAir™, a beta-stage water-based, no fluorocarbon producing refrigerant cooling cycle useful to replace the existing gas based compression cooling cycle in most all forms of air-conditioning and refrigeration saving a projected 50% in energy and CO2;
- NanoClear™, a beta-stage method for treating contaminated water (sea, waste, industrial) to provide 1,000 times cleaner potable water; and;
- NanoCap™, which holds promise to use the Aqualyte™ family to form a disruptive non-chemical energy-storage device (an ultra capacitor) when completed for use in transportation, renewable energy, and 'smart grid' configurations.
Each use demonstrates the diversity of Dais' core product - Aqualyte™ - the family of nano-structured polymers and engineered processes having a focus on minimizing consumption of irreplaceable natural resources, and ending the degradation of our environment. To find out more about Dais please visit www.daisanalytic.com, and to learn more about ConsERV please visit www.conserv.com.
Safe Harbor Statement
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. For example, statements about the future sales volume are forward looking and subject to risks. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Dais Analytic Corporation
Phone: 727-375-8484 x 223
SOURCE Dais Analytic Corporation