Segment, Customer and Geographical Reporting

3 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 9 – Segment, Customer and Geographical Reporting

Segment Financial Information

Dynasil’s business is comprised of four segments: contract research (“Contract Research”), optics (“Optics”), instruments (“Instruments”) and biomedical (“Biomedical”). Substantially all the operating assets of the Instruments segment were sold in the three months ended December 31, 2013.

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. The 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 Biomedical segment, through Xcede Technologies, Inc., a majority owned, joint venture, is focused on developing a tissue sealant technology for a wide spectrum of applications though no assurance can be given that this technology will become successfully commercialized.

The Company’s segment information for the three months ended December 31, 2014 and 2013 is summarized below:

Results of Operations for the Three Months Ended December 31,

2014

	Contract
	Research			Optics			Instruments		Biomedical		Total
Revenue	$	4,663,000		$	4,948,000		$	-	$	-	$	9,611,000
Gross Profit		2,098,000			1,495,000			-		-		3,593,000
GM %		45.0	%		30.2	%		-		-		37.4	%
SG&A		1,881,000			2,091,000			-		235,000		4,207,000
Gain on sale of assets		-			185,000			-		-		185,000
Operating Income (Loss)		216,000			(410,000)			-		(235,000)		(429,000)
Depreciation and Amortization		74,000			204,000			-		15,000		293,000
Capital expenditures		-			244,000			-		-		244,000
Intangibles, Net		290,000			752,000			-		229,000		1,271,000
Goodwill		4,939,000			1,232,000			-		-		6,171,000
Total Assets	$	9,036,000		$	15,226,000		$	289,000	$	922,000	$	25,473,000

Results of Operations for the Three Months Ended December 31,

2013

	Contract
	Research			Optics			Instruments			Biomedical		Total
Revenue	$	5,840,000		$	4,099,000		$	773,000		$	-	$	10,712,000
Gross Profit		2,530,000			1,597,000			324,000			-		4,451,000
GM %		43.3	%		39.0	%		41.9	%		-		41.6	%
SG&A		2,182,000			1,199,000			469,000			174,000		4,024,000
Gain on sale of assets		-			-			1,187,000			-		1,187,000
Operating Income (Loss)		348,000			398,000			1,042,000			(174,000)		1,614,000
Depreciation and Amortization		70,000			178,000			2,000			16,000		266,000
Capital expenditures		-			131,000			-			-		131,000
Intangibles, Net		324,000			870,000			-			163,000		1,357,000
Goodwill		4,939,000			1,317,000			-			-		6,256,000
Total Assets	$	10,360,000		$	12,538,000		$	752,000		$	505,000	$	24,155,000

Customer Financial Information

For the three months ended December 31, 2014, four customers of the Contract Research segment, all various agencies of the U.S. Government, each represented more than 10% of the total segment revenue. For the three months ended December 31, 2013, three customers, all various agencies of the U.S. Government, each represented more than 10% of the total segment revenue. For the three months ended December 31, 2014 and 2013, these customers made up 72% and 64%, respectively, of Contract Research revenue.

For the three months ended December 31, 2014 and 2013, there was no customer in the Optics segment whose revenue represented more than 10% of the total segment revenue.

For the three months ended December 31, 2014 and 2013, the Biomedical segment had no revenue.

Geographic Financial Information

Revenue by geographic location in total and as a percentage of total revenue, for the three months ended December 31, 2014 and 2013 are as follows:

	Three Months Ended					Three Months Ended
	December 31, 2014					December 31, 2013
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	7,682,000		80	%	$	8,908,000		83	%
Europe		884,000		9	%		830,000		8	%
Other		1,045,000		11	%		974,000		9	%
	$	9,611,000		100	%	$	10,712,000		100	%