EX-99.1 5 v312444_ex99-1.htm EXHIBIT 99.1

 

 

Contacts:

Patty Kehe

Corporate Secretary
Dynasil Corporation of America
Phone: (617) 668-6855

pkehe@dynasil.com

 

David Calusdian
Executive Vice President and Partner
Sharon Merrill
617.542.5300
DYSL@InvestorRelations.com



Dynasil Corporation of America Reports Results for the Second Quarter Fiscal 2012
- Company Hosts Earnings Conference Call at 5:00 p.m. (ET) Today

Watertown, MA, May 15, 2012 – Dynasil Corporation of America (NASDAQ: DYSL), a leading developer of sensing, detection and analysis technology for homeland security, medical and industrial applications, today announced financial results for the fiscal 2012 second quarter ended March 31, 2012.

 

Net revenue for the second quarter of fiscal 2012 increased 3% to $12.5 million from $12.1 million for the second quarter of fiscal 2011. Contract Research segment revenue increased to $6.9 million from $6.4 million in the second quarter of fiscal 2011. The Products and Technology segment posted revenue of $5.5 million, down from $5.7 million a year earlier.

 

“Higher second-quarter revenue reflected the continued strength of our Contract Research segment, with business from a range of sources including the U.S. Department of Homeland Security and the Department of Energy,” said Dynasil President and Chief Executive Officer Steven Ruggieri. “Our contract research backlog remains a robust 18 months. While our Products and Technology segment reported a slight decrease in second-quarter revenues, we expect the segment’s sales to pick up in the coming quarters and into fiscal year 2013 with our new product and technology launches.”

 

Gross margin improved to 41.6% of net revenue for the second quarter of fiscal 2012 from 38.9% of net revenue for the same period of fiscal 2011, reflecting higher revenue in the Contract Research segment and an improved sales mix in the Products and Technology segment.

 

Selling, general and administrative expenses for the second quarter of fiscal 2012 totaled $5.5 million, versus $3.9 million for the comparable period of 2011, reflecting significant investment in the Company’s Product and Technology pipeline to support further growth. These investments include technology development activities, capital equipment, development of intellectual property and staff additions in support of organic product development, dual mode nuclear detector technology and Dynasil’s biomedical technology portfolio.

 

Net loss for the second quarter of fiscal 2012 was approximately $340,000, or $0.02 per share, compared with net income of $396,000, or $0.03 per diluted share, in the second quarter of fiscal 2011, reflecting increased investments in product development and commercialization initiatives.

 

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Liquidity

As previously disclosed, on February 27, 2012 a former owner of RMD Instruments, LLC exercised a Put Right for the Company to purchase a total of 928,773 shares of Dynasil common stock, which at $2 per share will require a payment by Dynasil of $1,857,546 by May 29, 2012. The Company may pay this obligation with cash, a promissory note or a combination of the two. This liability created by the Put Right, coupled with a temporary delay in collections relating to the processing of the Company’s invoices with governmental customers as well as increased spending on commercialization and R&D activities, has created significant liquidity constraints for Dynasil that the Company is currently seeking to address with its lender, Sovereign Bank, and through other actions, as more fully discussed in Dynasil’s Form 10-Q filed today with Securities and Exchange Commission.

 

Recent Highlights

Dynasil this month announced that its RMD, Inc. subsidiary received the Tibbetts Award for its “Model of Excellence” in the Small Business Innovation Research program. RMD was among only 19 companies to receive the award, which recognizes RMD’s role in advancing the government’s research and development priorities in next-generation gamma-ray and neutron detectors through technology innovation.

 

“We are honored to receive this prestigious award,” Ruggieri said. “Our strong contract research backlog and deep product pipeline reflect our focus on making technology innovation the cornerstone of our commercialization strategy. During the first quarter we continued to advance this strategy with the filing of nine new patent applications in the second quarter, bringing our portfolio to 40 issued and 49 pending applications.”

 

Business Outlook

“We have made significant operational progress on our strategic initiatives through the first half of fiscal 2012, and we are excited about our prospects,” Ruggieri said. “We are developing multiple pathways to market through organic growth, acquisitions and licensing opportunities. With two product rollouts planned in the coming months, we have exciting catalysts that we believe will further our growth objectives in the years ahead. As we discussed in the first quarter, our strategic investments will remain an important theme as we develop and expand our product pipeline. While some of our technologies are in the evaluation and development stage, these investments are indicative of the commitment that the Dynasil board and management team are making to build shareholder value for the long term.”

 

Conference Call Information

Dynasil Corporation will host a conference call for investors and analysts at 5:00 p.m. ET today. The call will be hosted by Dynasil President and Chief Executive Officer Steven Ruggieri and Chief Financial Officer Richard Johnson. They will be joined on the call by Gordon Lewis, general manager of the Company’s Dynasil Products business unit. Those who wish to listen to the conference call and view presentation slides should visit the Investor Information section of the Company’s website at www.dynasil.com. The call also may be accessed by dialing (877) 407-5790 or (201) 689-8328. For interested individuals unable to join the live conference call, a webcast replay will be available on the Company’s website for one year.

 

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About Dynasil 

Dynasil Corporation of America (NASDAQ: DYSL) develops and manufactures detection and analysis technology, precision instruments and optical components for the homeland security, medical and industrial markets.  Combining world-class technology with expertise in research and materials science, Dynasil is commercializing products including dual-mode radiation detection solutions for Homeland Security and commercial applications, probes for medical imaging 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 Watertown, 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 news 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. These forward-looking statements may be identified by the use of words such as “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 develop and commercialize our products, 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 personnel, 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 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.

 

 

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Dynasil Corporation of America and Subsidiaries        
Consolidated Balance Sheets        
   31-Mar   30-Sep 
   2012   2011 
ASSETS  (Unaudited)     
Current assets          
  Cash and cash equivalents  $1,869,736   $4,479,840 
  Accounts receivable, net   8,275,879    5,837,139 
  Inventories, net   3,066,696    3,250,539 
  Cost in excess of billings   21,446    408,240 
  Deferred tax asset   1,225,446    1,119,800 
  Prepaid expenses and other current assets   588,180    771,564 
                    Total current assets   15,047,383    15,867,122 
           
Property, Plant and Equipment, net   5,128,566    4,860,328 
Other Assets          
  Intangibles, net   6,048,724    6,374,329 
  Goodwill   13,353,572    13,330,182 
  Deferred financing costs, net   130,700    150,656 
                    Total other assets   19,532,996    19,855,167 
           
                    Total Assets  $39,708,945   $40,582,617 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current Liabilities          
  Current portion of long-term debt  $9,885,831   $1,859,728 
  Accounts payable   2,051,381    2,088,395 
  Accrued expenses and other liabilities   1,946,761    2,298,460 
  Obligation to repurchase stock – current portion   461,630    -0- 
  Contingent consideration   166,977    183,713 
                    Total current liabilities   14,512,580    6,430,296 
           
Long-term Liabilities          
  Long-term debt, net of current portion   10,337    8,985,442 
  Obligation to repurchase stock, net of current portion   1,395,916    -0- 
  Deferred tax liability   811,705    924,837 
                   Total long-term liabilities   2,217,958    9,910,279 
           
Temporary Equity   142,454    2,000,000 
           
Stockholders' Equity   22,835,953    22,242,042 
           
Total Liabilities and Stockholders' Equity  $39,708,945   $40,582,617 

 

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DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

 

   Three Months Ended   Six Months Ended 
   March 31,   March 31, 
   2012   2011   2012   2011 
Net revenue  $12,465,781   $12,116,349   $24,864,036   $23,742,856 
Cost of revenue   7,280,801    7,400,518    14,381,994    14,120,300 
Gross profit   5,184,980    4,715,831    10,482,042    9,622,556 
Selling, general and administrative expenses   5,529,642    3,898,973    10,580,827    8,069,983 
Income (loss) from operations   (344,662)   816,858    (98,785)   1,552,573 
Interest expense, net   122,474    155,157    246,637    313,352 
Income (loss) before income taxes (benefit)   (467,136)   661,701    (345,422)   1,239,221 
Income taxes (benefit)   (127,585)   265,485    (250,911)   467,823 
Net income (loss)  $(339,551)  $396,216   $(94,511)  ($771,398)
                     
                     
Net Income (loss)  $339,551)  $396,216   $(94,511)  $771,398 
Other comprehensive income (loss):                    
Foreign currency translation   138,552    96,913    78,192    138,594 
Total comprehensive income (loss)  $(200,999)  $493,129   $(16,319)  $909,992 
                     
                     
Net income (loss)  $(339,551)  $396,216   $(94,511)  $771,398 
Dividends on preferred stock   -0-    -0-    -0-    116,646 
Net income (loss) applicable to common stockholders  $(339,551)   396,216   $(94,511)   654,752 
Dividend add back due to preferred stock conversion   -0-    -0-    -0-    116,646 
Net income (loss) for diluted income per common share  $(339,551)  $396,216   $(94,511)  $771,398 
                     
Basic net income (loss) per common share  $(0.02)  $0.03   $(0.01)  $0.06 
Diluted net income (loss) per common share  $(0.02)  $0.03   $(0.01)  $0.05 
                     
Weighted average shares outstanding                    
Basic   15,002,818    15,245,850    15,091,356    13,955,273 
Diluted   15,002,818    15,781,469    15,091,356    14,490,892 

 

 

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