Segment, Customer and Geographical Reporting

6 Months Ended

Mar. 31, 2015

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 March 31, 2015 and 2014 is summarized below:

Results of Operations for the Three Months Ended March 31,
2015
	Contract Research			Optics			Instruments		Biomedical		Total
Revenue	$	4,675,000		$	5,220,000		$	-	$	-	$	9,895,000
Gross Profit		1,952,000			1,808,000			-		-		3,760,000
GM %		41.8	%		34.6	%		-		-		38.0	%
SG&A		1,896,000			1,580,000			-		270,000		3,746,000
Gain on sale of assets		-			-			-		-		-
Operating Income (Loss)		56,000			228,000			-		(270,000)		14,000
Depreciation and Amortization		74,000			204,000			-		15,000		293,000
Capital expenditures		4,000			152,000			-		56,000		212,000
Intangibles, Net		282,000			699,000			-		254,000		1,235,000
Goodwill		4,939,000			1,157,000			-		-		6,096,000
Total Assets	$	8,887,000		$	15,800,000		$	238,000	$	694,000	$	25,619,000

Results of Operations for the Three Months Ended March 31,
2014
	Contract Research			Optics			Instruments		Biomedical			Total
Revenue	$	5,614,000		$	4,789,000		$	-	$	4,000		$	10,407,000
Gross Profit		2,442,000			1,919,000			(6,000)		4,000			4,359,000
GM %		43.5	%		40.1	%		-		100.0	%		41.9	%
SG&A		2,200,000			1,397,000			70,000		225,000			3,892,000
Gain on sale of assets		-			-			-		-			-
Operating Income (Loss)		242,000			522,000			(76,000)		(221,000)			467,000
Depreciation and Amortization		70,000			183,000			-		15,000			268,000
Capital expenditures		12,000			397,000			-		-			409,000
Intangibles, Net		316,000			858,000			-		148,000			1,322,000
Goodwill		4,939,000			1,333,000			-		-			6,272,000
Total Assets	$	10,230,000		$	13,816,000		$	455,000	$	332,000		$	24,833,000

The Company’s segment information for the six months ended March 31, 2015 and 2014 is summarized below:

Results of Operations for the Six Months Ended March 31,
2015
	Contract Research			Optics			Instruments		Biomedical		Total
Revenue	$	9,338,000		$	10,168,000		$	-	$	-	$	19,506,000
Gross Profit		4,050,000			3,302,000			-		-		7,352,000
GM %		43.4	%		32.5	%		-		-		37.7	%
SG&A		3,778,000			3,670,000			-		504,000		7,952,000
Gain on sale of assets		-			(185,000)			-		-		(185,000)
Operating Income (Loss)		272,000			(183,000)			-		(504,000)		(415,000)
Depreciation and Amortization		148,000			408,000			-		30,000		586,000
Capital expenditures		4,000			396,000			-		56,000		456,000
Intangibles, Net		282,000			699,000			-		254,000		1,235,000
Goodwill		4,939,000			1,157,000			-		-		6,096,000
Total Assets	$	8,887,000		$	15,800,000		$	238,000	$	694,000	$	25,619,000

Results of Operations for the Six Months Ended March 31,
2014
	Contract Research			Optics			Instruments			Biomedical			Total
Revenue	$	11,454,000		$	8,887,000		$	773,000		$	4,000		$	21,118,000
Gross Profit		4,971,000			3,517,000			317,000			4,000			8,809,000
GM %		43.4	%		39.6	%		41.0	%		100.0	%		41.7	%
SG&A		4,381,000			2,596,000			539,000			399,000			7,915,000
Gain on sale of assets		-			-			(1,187,000)			-			(1,187,000)
Operating Income (Loss)		590,000			921,000			965,000			(395,000)			2,081,000
Depreciation and Amortization		139,000			362,000			2,000			32,000			535,000
Capital expenditures		12,000			527,000			-			-			539,000
Intangibles, Net		316,000			858,000			-			148,000			1,322,000
Goodwill		4,939,000			1,333,000			-			-			6,272,000
Total Assets	$	10,230,000		$	13,816,000		$	455,000		$	332,000		$	24,833,000

Customer Financial Information

For the three and six months ended March 31, 2015, 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 and six months ended March 31, 2014, three customers, all various agencies of the U.S. Government, each represented more than 10% of the total segment revenue. For both the three months ended March 31, 2015 and 2014, these customers made up 69% of Contract Research revenue. For the six months ended March 31, 2015 and 2014, these customers made up 70% and 67%, respectively, of Contract Research revenue.

 

For the three and six months ended March 31, 2015 and 2014, there was no customer in the Optics segment whose revenue represented more than 10% of the total segment revenue.

 

Geographic Financial Information

Revenue by geographic location in total and as a percentage of total revenue, for the three months ended March 31, 2015 and 2014 are as follows:

	Three Months Ended				Three Months Ended
	March 31, 2015				March 31, 2014
Geographic Location	Revenue		% of Total		Revenue		% of Total
United States	$	7,982,000	81	%	$	8,622,000	83	%
Europe		1,124,000	11	%		845,000	8	%
Other		789,000	8	%		940,000	9	%
	$	9,895,000	100	%	$	10,407,000	100	%

Revenue by geographic location in total and as a percentage of total revenue, for the six months ended March 31, 2015 and 2014 are as follows:

	Six Months Ended				Six Months Ended
	March 31, 2015				March 31, 2014
Geographic Location	Revenue		% of Total		Revenue		% of Total
United States	$	15,664,000	80	%	$	17,529,000	83	%
Europe		2,008,000	10	%		1,675,000	8	%
Other		1,834,000	10	%		1,914,000	9	%
	$	19,506,000	100	%	$	21,118,000	100	%