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Segment, Customer and Geographical Reporting
 12 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 17 – Segment, Customer and Geographical Reporting

 

Segment Financial Information

 

Operating segments are based upon Dynasil’s internal organizational structure, the manner in which the operations are managed, the criteria used by the Chief Operating Decision Makers (CODM) to evaluate segment performance and the availability of separate financial information. During the fourth quarter of fiscal year 2012, the Company changed its internal reporting structure and adjusted it reportable segments. Dynasil now reports four reportable segments: contract research (“Contract Research”), optics (“Optics”), instruments (“Instruments”) and biomedical (“Biomedical”). Segment data for fiscal year 2011 has been revised to reflect the change in the segment classification. Within these segments, there is a segregation of reportable units based upon the organizational structure used to evaluate performance and make decisions on resource allocation, as well as availability and materiality of separate financial results consistent with that structure. Dynasil’s Contract Research segment is one of the largest small business participants in U.S. government-funded research. The Optics segment manufactures optical materials, components and coatings. The Instruments segment manufactures specialized instruments used in various applications in the medical, industrial, and homeland security/defense sectors. The Biomedical segment is developing technologies for a wide spectrum of applications, including hematology, hypothermic core cooling and tissue sealants and will primarily pursue product commercialization of technologies and technology licensing opportunities, though there can be no assurances that any of these opportunities will become successfully commercialized. The Company’s segment information is summarized below:

  

Results of Operations for the Fiscal Year Ended September 30,
2012
    Contract Research     Optics     Instruments     Biomedical     Total  
Revenue     24,270,675       17,456,436       6,054,752       105,287       47,887,150  
Gross Profit     8,859,780       7,125,962       3,436,542       83,459       19,505,743  
SG&A     9,523,642       5,548,421       4,915,723       939,149       20,926,935  
Impairment of goodwill     -       -       2,284,499       -       2,284,499  
Operating Income (Loss)     (663,862 )     1,577,541       (3,763,680 )     (855,690 )     (3,705,691 )
GM %     36.5 %     40.8 %     56.8 %     79.3 %     40.7 %
                                         
Depreciation and Amortization     237,623       796,847       575,246       60,003       1,669,719  
Capital expenditures     348,314       462,445       207,454       -       1,018,213  
                                         
Intangibles, Net     366,853       960,821       5,135,634       239,997       6,703,305  
Goodwill     4,938,625       1,300,463       4,015,072       -       10,254,160  
Total Assets     12,870,151       11,588,145       12,537,403       469,729       37,465,428  
                                         
Results of Operations for the Fiscal Year Ended September 30,
2011
    Contract Research     Optics     Instruments     Biomedical     Total  
Revenue     24,874,088       15,839,205       6,238,373       -       46,951,666  
Gross Profit     10,339,990       6,391,291       3,018,950       -       19,750,231  
SG&A Costs     9,149,838       5,178,590       2,639,944       495,201       17,463,573  
Operating Income (Loss)     1,190,152       1,212,700       379,007       (495,201 )     2,286,658  
GM %     41.6 %     40.4 %     48.4 %     0.0 %     42.1 %
                                         
Depreciation and Amortization     147,687       581,464       503,922       -       1,233,073  
Capital expenditures     284,098       915,978       343,186       -       1,543,262  
                                         
Intangibles, Net     456,367       1,096,773       5,613,366       300,000       7,466,506  
Goodwill     4,938,625       1,283,775       6,299,571       -       12,521,971  
Total Assets     10,447,842       14,683,407       15,363,526       371,808       40,866,583  

 

Customer Financial Information

 

For the years ended September 30, 2012 and 2011, the top three customers for the Contract Research segment were each various agencies of the U.S. Government. For the years ended September 30, 2012 and 2011, these customers made up 69.6% and 78.1%, respectively, of Contract Research revenue.

 

For the Optics segment, there was no customer whose revenue represented more than 10% of the total segment revenues for the years ended September 30, 2012 and 2011.

 

For the Instruments segment, there was one customer whose revenue represented 18.5% and 18.0, respectively of the Instruments segment revenue in the years ended September 30, 2012 and 2011.

 

For the Biomedical segment, there was one customer whose revenue represented 92.1% of the revenue for the year ended September 30, 2012. The Biomedical segment had no revenue or customers in the year ended September 30, 2011.

  

Geographic Financial Information

 

Revenues by geographic location in total and as a percentage of total revenue, for the years ended September 30, 2012 and 2011 are as follows:

 

    2012     2011  
Geographic Location   Revenue     % of Total     Revenue     % of Total  
United States   $ 39,520,178       82.6 %   $ 38,739,330       82.5 %
Europe     4,274,119       8.9 %     5,003,441       10.7 %
Other     4,092,853       8.5 %     3,208,895       6.8 %
    $ 47,887,150       100.0 %   $ 46,951,666       100.0 %