Dynasil Corporation of America Reports Third Quarter Fiscal 2015 Financial Results

Operating Income for the Quarter increases 300%

Aug 12, 2015, 16:01 ET from Dynasil Corporation of America

NEWTON, Mass., Aug. 12, 2015 /PRNewswire/ -- 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 financial results for the fiscal 2015 third quarter ended June 30, 2015.

Dynasil reported net income for the quarter of $0.4 million or $0.02 per share compared with breakeven income or $0.00 per share for the quarter ended June 30, 2014.  Optics segment revenues for the quarter ended June 30, 2015 increased to $5.6 million, an increase of $0.4 million or 9% compared to the same quarter in 2014.  Contract Research segment revenues for the quarter ended June 30, 2015 were $4.6 million, a decrease of $0.8 million or 15% compared to the same quarter in the prior year.

"Our Optometrics, Hilger and EMF subsidiaries all continued to experience solid revenue growth," said Dynasil Chairman and CEO Peter Sulick, "and I anticipate continued growth in the Optics segment in the fourth quarter.  Growth for both Optometrics and Hilger are the result of large customer contracts while EMF's growth includes the DichroTec business, acquired in June, 2014.  Our strategy of selective acquisitions complementary with our existing business, leveraging our contract research business for commercial opportunities and organic revenue growth across our optics businesses is reflected in our improved quarter."

"Our Contract Research segment revenues have been steady for the first three quarters of fiscal 2015 after a contraction that began in last year's second quarter in response to government fiscal constraint on R & D," continued Mr. Sulick.  "We have continued to prudently manage our costs and our backlog which stands at $35 million as of June 30, 2015.  While forecasting is particularly difficult given the government funding constraints and uncertainty in future awards, I am optimistic that Contract Research segment revenues will increase modestly in the fourth quarter.  You should also take note of our right sizing this business as circumstances dictate.  The business is being managed by an experienced group of scientific and business professionals."

"Overall, both our operating segments reported increased operating profits for the quarter compared to the prior year.  However, we also consolidate the results of our 90% owned joint venture, Xcede, and while it continues to make progress with its tissue sealant technology, Xcede continues to incur approximately $250,000 of Research and Development expense each quarter which is included in our results.  I believe the Xcede business, which continues to be funded by outside angel investors and certain members of Dynasil's executive team and board of directors, represents a significant opportunity for Dynasil.  On August 7, we converted the provisional patents filed last year on the improved Xcede patch, which were presented at our annual meeting to full utility patents.  This filing is a major step toward protecting Xcede's intellectual property as we continue down the path to potential commercialization.  We remain very committed to the realization of value for this technology as one of the most exciting opportunities within Dynasil."

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 Thomas Leonard.  Those who wish to listen to the conference call live can go to the event page or 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 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, Massachusetts, with additional operations in Mass., Minn., 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 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, our compliance with the financial covenants under our loan agreements with Middlesex Savings Bank and Massachusetts Capital Resource Company, Xcede obtaining financing from outside investors, the commercialization of our products including our dual mode detectors, our development of new technologies including at Dynasil Biomedical, uncertainty of the impact of the DichroTec acquisition, the adequacy of our current financing sources to fund our current operations, our growth initiatives, our capital expenditures 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.  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 comply with the financial covenants under our outstanding indebtedness,  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, 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 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, filed on December 16, 2014, including the risk factors contained in Item 1A,  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)

ASSETS

June 30, 2015

September 30, 2014

Current Assets

   Cash and cash equivalents

$                 3,478,000

$                  3,842,000

   Accounts receivable, net

3,362,000

3,240,000

   Costs in excess of billings and unbilled receivables

1,271,000

1,235,000

   Inventories, net of reserves

3,419,000

2,954,000

   Prepaid expenses and other current assets

1,185,000

861,000

                     Total current assets

12,715,000

12,132,000

Property, Plant and Equipment, net

6,458,000

6,518,000

Other Assets

   Intangibles, net

1,252,000

1,383,000

   Goodwill

6,191,000

6,247,000

   Deferred financing costs, net

29,000

39,000

   Security and other deposits

238,000

58,000

                     Total other assets

7,710,000

7,727,000

                     Total Assets

$               26,883,000

$                26,377,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

   Current portion of long-term debt

$                 3,664,000

$                  2,329,000

   Capital lease obligations, current

103,000

134,000

   Convertible notes

1,784,000

1,433,000

   Accounts payable

1,493,000

1,602,000

   Deferred revenue

130,000

103,000

   Accrued expenses and other liabilities

2,855,000

2,503,000

                     Total current liabilities

10,029,000

8,104,000

Long-term Liabilities

   Long-term debt, net of current portion

2,045,000

3,282,000

   Capital lease obligations, net of current portion

52,000

95,000

   Pension liability

-

318,000

   Deferred tax liability

245,000

264,000

   Other long-term liabilities

47,000

-

                    Total long-term liabilities

2,389,000

3,959,000

Stockholders' Equity

   Dynasil stockholders' equity

14,609,000

14,383,000

   Noncontrolling interest

(144,000)

(69,000)

                    Total stockholders' equity

14,465,000

14,314,000

Total Liabilities and Stockholders' Equity

$               26,883,000

$                26,377,000

 

Dynasil Corporation of America and Subsidiaries

Consolidated Statement of Operations and Comprehensive Income (Loss)

(Unaudited)

Three Months Ended

Nine Months Ended

June 30,

June 30,

2015

2014

2015

2014

Net revenue

$        10,239,000

$        10,641,000

$        29,745,000

$        31,758,000

Cost of revenue

6,021,000

6,771,000

18,260,000

19,161,000

Gross profit

4,218,000

3,870,000

11,485,000

12,597,000

Operating expenses:

Sales and marketing

312,000

337,000

986,000

1,047,000

Research and development

382,000

301,000

1,172,000

1,025,000

General and administrative

3,041,000

3,106,000

9,443,000

9,505,000

Gain on sale of assets

8,000

(30,000)

(178,000)

(1,217,000)

Total operating expenses

3,743,000

3,714,000

11,423,000

10,360,000

Income from operations

475,000

156,000

62,000

2,237,000

Interest expense, net

124,000

146,000

372,000

567,000

Income (loss) before taxes

351,000

10,000

(310,000)

1,670,000

Income tax provision (credit)

(14,000)

(48,000)

7,000

(87,000)

Net income (loss)

365,000

58,000

(317,000)

1,757,000

Less: Net loss attributable to noncontrolling interest

(23,000)

(16,000)

(75,000)

(47,000)

Net income (loss) attributable to common stockholders

$             388,000

$              74,000

$            (242,000)

$          1,804,000

Net income (loss)

$             365,000

$              58,000

$            (317,000)

$          1,757,000

Other comprehensive income (loss):

Decrease in pension liability

-

-

318,000

-

Foreign currency translation

251,000

142,000

(138,000)

215,000

Total comprehensive income (loss)

$             616,000

$             200,000

$            (137,000)

$          1,972,000

Basic net income (loss) per common share

$                  0.02

$                  0.00

$                 (0.01)

$                  0.12

Diluted net income (loss) per common share

$                  0.02

$                  0.00

$                 (0.01)

$                  0.12

Weighted average shares outstanding

Basic

16,439,637

15,280,607

16,368,313

15,134,377

Diluted

16,447,088

15,299,422

16,368,313

15,145,639

 

Contact:                                                                                                                                            Patty Kehe Corporate Secretary Dynasil Corporation of America Phone: (617) 668-6855 pkehe@dynasil.com

SOURCE Dynasil Corporation of America



RELATED LINKS

http://www.dynasil.com