Segment, Customer and Geographical Reporting

12 Months Ended

Sep. 30, 2014

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. Dynasil reports four reportable segments: contract research (“Contract Research”), optics (“Optics”), instruments (“Instruments”) and biomedical (“Biomedical”). 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 manufactured specialized instruments used in various applications in the medical, industrial, and homeland security/defense sectors until substantially all its businesses were sold in the first quarter of fiscal year 2014. The Biomedical segment consists of a single business unit, Dynasil Biomedical Corporation (“Dynasil Biomedical”), a medical technology incubator which owns rights to certain early stage medical technologies. Dynasil Biomedical holds the common stock of the Xcede joint venture which is developing a tissue sealant technology and currently has no other operations. The Company’s segment information is summarized below:

Results of Operations for the Fiscal Year Ended September 30,

2014

 

	Contract Research			Optics			Instruments			Biomedical			Total
Revenue	$	21,935,000		$	19,590,000		$	773,000		$	11,000		$	42,309,000
Gross Profit		9,301,000			7,100,000			318,000			11,000			16,730,000
GM %		42.4	%		36.2	%		41.1	%		100.0	%		39.5	%
SG&A		8,546,000			5,482,000			527,000			778,000			15,333,000
Gain on sale of assets		-			-			1,297,000			-			1,297,000
Operating Income (Loss)		755,000			1,618,000			1,087,000			(765,000)			2,695,000
Depreciation and Amortization		280,000			781,000			2,000			60,000			1,123,000
Capital expenditures		12,000			1,326,000			-			110,000			1,448,000
Intangibles, Net		299,000			854,000			-			230,000			1,383,000
Goodwill		4,939,000			1,308,000			-			-			6,247,000
Total Assets	$	8,857,000		$	16,019,000		$	313,000		$	1,188,000		$	26,377,000

Results of Operations for the Fiscal Year Ended September 30,

2013

 

	Contract Research			Optics			Instruments			Biomedical			Total
Revenue	$	21,889,000		$	15,564,000		$	5,105,000		$	195,000		$	42,753,000
Gross Profit		9,822,000			5,647,000			2,422,000			195,000			18,086,000
GM %		44.9	%		36.3	%		47.4	%		100.0	%		42.3	%
SG&A		9,345,000			5,624,000			3,487,000			970,000			19,426,000
Impairment of goodwill & long-lived assets		-			-			6,829,000			-			6,829,000
Operating Income (Loss)		477,000			23,000			(7,894,000)			(775,000)			(8,169,000)
Depreciation and Amortization		317,000			765,000			454,000			60,000			1,596,000
Capital expenditures		32,000			506,000			7,000			-			545,000
Intangibles, Net		333,000			882,000			2,090,000			180,000			3,485,000
Goodwill		4,939,000			1,302,000			-			-			6,241,000
Total Assets	$	9,831,000		$	12,380,000		$	4,254,000		$	212,000		$	26,677,000

Customer Financial Information

For the years ended September 30, 2014 and 2013, the top three customers for the Contract Research segment were each various agencies of the U.S. Government. For the years ended September 30, 2014 and 2013, these customers made up 68.9% and 57.3%, respectively, of Contract Research revenue.

For the Optics segment, there was one customer whose revenue represented 11.1% and 4.8% of the total segment revenues for the years ended September 30, 2014 and 2013.

For the Instruments segment, there was one customer whose revenue represented 9.5% and 18.1%, respectively, of the Instruments segment revenue in the years ended September 30, 2014 and 2013.

For the Biomedical segment, there was one customer whose revenue represented 100% of the revenue for the years ended September 30, 2014 and 2013.

Geographic Financial Information

Revenues by geographic location in total and as a percentage of total revenue, for the years ended September 30, 2014 and 2013 are as follows:

	2014				2013
Geographic Location	Revenue		% of Total		Revenue		% of Total
United States	$	33,936,000	80	%	$	35,018,000	82	%
Europe		3,001,000	7	%		3,719,000	9	%
Other		5,372,000	13	%		4,016,000	9	%
	$	42,309,000	100	%	$	42,753,000	100	%