Dais Analytic Corporation Reports FY11 Financial Results

TAMPA, Fla., April 2, 2012 /PRNewswire/ -- Dais Analytic Corporation (OTC.BB: DLYT) announced on Friday, March 30, 2012 financial results and key business highlights for the fiscal year ended December 31, 2011.

Financial Results for the Year Ending December 31, 2011

Dais Analytic Corporation reports 4.8% year-over-year revenue growth for the fiscal year ended December 31, 2011, to $3,504,054, compared to $3,342,468 for the prior year. On a year-over-year basis, ConsERV™ Energy Recovery Ventilator unit and core revenues increased by 16%.  

Tim Tangredi, CEO of Dais Analytic Corporation, said that, "When considering combined revenue growth and increased government grant funding yielded cash of $4,274,720 for the fiscal year 2011 compared to $3,441,468 for the prior year, this provided an increase of approximately 24%. We strongly believe leveraging government programs moves more applications to market sooner and these sorts of associations provide needed technical validation of the differentiated options Dais offers to the energy and water industries."

Tangredi continued, "2011 was a year characterized by the management team as one of upgrading:

• Significant aspects of the organization were re-tooled. The Company replaced under-performing independent sales representatives with better-positioned entities in the HVAC sales channels, including Trane Corporation's franchise and corporate offices. Key new positions were filled on the Company's product development team.
• Dais introduced a new ConsERV™ product (G-series) built from the ground-up to satisfy expanding customer demand.
• The Company entered into a business relationship with a firm in Switzerland to begin selling the flagship ConsERV™ product in key areas of the European market in 2012 and beyond while vetting candidates in two other major international markets to broaden ConsERV's access to different distribution channels.
• The Company moved the NanoAir™ application, a water-based air conditioning process, further along the development path by using funds provided by the U.S. Department of Energy and Pasco County, Florida.
• The Company was granted its tenth U.S. Patent. This tenth patent is titled "Nano-particulate Ultracapacitor". We also succeeded to reach 'proof of concept' stage by operating the first working prototype. Work was done in association with the University of Florida.

In summary, 2011 found the Dais management team leading changes in sales channels, product and applications development while putting the Dais team in a better position."

Key Financial Highlights

Dais Analytic Corporation reported the following financial results:

• Transitioning from under-performing independent sales representatives to firms better positioned to market Dais' products in the available sales channels, including moving to Trane Corporation's franchise and corporate offices in certain existing and new metropolitan market areas, accounted for $1,260,999 of product revenues for the fiscal year 2011 compared to $549,618 of product revenues in 2010 representing a 229% increase in revenue within these geographic areas.
• Research and development expenses were approximately $821,400 and $338,000 for the fiscal years ending December 31, 2011 and 2010, respectively, for an increase of 143%.
• Partially as a result of research and development expenses, the Company reported a net loss of $2,335,204 for the year ended December 31, 2011, compared to a net loss of $1,433,593 for fiscal year 2010, or ($0.07) and ($0.05) per common share, respectively. Net cash used by operating activities for the fiscal year ended December 31, 2011, was $1,329,734 compared to $1,180,848 for the same period 2010, representing a year-over-year increase in the use of cash of 12%.
• During the years ended December 31, 2011 and 2010, the Company received grant revenue of approximately $769,200 and $99,700, respectively, to offset the cost of research and development expenses as it relates to the NanoAir project funded in part by grants from Pasco County, Florida, and the U.S. Department of Energy's Advanced Research Projects Agency – Energy (ARPA-E) which is part of the American Recovery and Reinvestment Act funding program.
• Gross profit for fiscal year 2011 was $940,804, compared to $1,052,427 in 2010, representing gross margins of 26.8% and 31.5%, respectively.

Judith Norstrud, Dais' CFO, said that, "Gross profit dipped in 2011 due to general increases in materials and labor costs. The Company is focused on managing growth with the use of current, and where needed, stronger internal controls aimed at lowering costs and maximizing the management of all its resources."

Additional Key Operating Highlights

• Selected to receive grant funding up to $1.9M by the U.S. Department of Defense's Environmental Security Technology Certification Program (ESTCP) for development and installation of an advanced outside air handling system using Dais' patented Aqualyte™ material.
• Signed a non-exclusive marketing agreement with Trane – a brand of Ingersoll Rand, covering select geographical areas in the U.S.
• Signed a non-binding Memorandum of Understanding with Seven-Air Meyer Bros. Ltd. in Lucerne, Switzerland, to license and supply Dais' Aqualyte Moisture Transfer Membrane Material for use in residential, commercial and industrial Energy Recovery Ventilators.
• Expanded its line of ConsERV™ Energy Recovery Ventilators designed to lower energy consumption of buildings' HVAC systems with the addition of the G-Series. Importantly, the G-Series is intended to broaden the addressable market for Dais' ConsERV™ product.
• The Company filed two patent applications in 2011, and was awarded one U.S. Patent Number 7,990,679 by the United States Patent Office. The patent, entitled "Nanoparticle Ultracapacitor" uses Dais' commercial family of Aqualyte™ nano-structured materials to create an energy storage mechanism which the Company projects when fully developed to have performance and cost advantages over existing or other new storage technologies.
• Successfully engineered, built, and are operating a Heating, Ventilation, Air Conditioning and Refrigeration (HVAC+R) beta unit employing Dais' Aqualyte™ nanotechnology materials emulating the cooling section of a traditional heat pump using no refrigerant gases with having a calculated reduction in energy usage.  
• Awarded a FEBRAVA Innovation Award for the ConsERV™ product in September, 2011, at the Bi-annual South American HVAC exposition in Sao Paulo, Brazil.  This is ConsERV's 4th Industry award for innovation since 2006.   
• Mr. Tangredi was selected and represented Dais on two foreign Trade Missions (Brazil, and U.A.E./Qatar) in 2011 working to secure additional sales channels or strategic support for the Company's Aqualyte™-based applications for the energy and water industries.

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.

Media Relations:

Denise Sanderson
Dais Analytic Corporation
Phone: 727-375-8484 x 223
Email: [email protected]

SOURCE Dais Analytic Corporation