Segment, Customer and Geographical Reporting

9 Months Ended

Jun. 30, 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 businesses comprising substantially all the Instruments segment were sold in the first quarter of fiscal 2014 as discussed in Note 2.

The Company’s segment information for the three months ended June 30, 2015 and 2014 is summarized below:

Results of Operations for the Three Months Ended June 30,
2015
	Contract
	Research			Optics			Instruments		Biomedical		Total
Revenue	$	4,626,000		$	5,613,000		$	-	$	-	$	10,239,000
Gross Profit		2,027,000			2,191,000			-		-		4,218,000
GM %		43.8	%		39.0	%		-		-		41.2	%
SG&A		1,934,000			1,565,000			-		236,000		3,735,000
Loss on sale of assets		-			(8,000)			-		-		(8,000)
Operating Income (Loss)		93,000			618,000			-		(236,000)		475,000
Depreciation and Amortization		74,000			223,000			-		15,000		312,000
Capital expenditures		-			270,000			-		21,000		291,000
Intangibles, Net		273,000			722,000			-		257,000		1,252,000
Goodwill		4,939,000			1,252,000			-		-		6,191,000
Total Assets	$	9,462,000		$	16,615,000		$	50,000	$	756,000	$	26,883,000

Results of Operations for the Three Months Ended June 30,
2014
	Contract Research			Optics			Instruments		Biomedical			Total
Revenue	$	5,461,000		$	5,172,000		$	-	$	8,000		$	10,641,000
Gross Profit		2,121,000			1,741,000			-		8,000			3,870,000
GM %		38.8	%		33.7	%		-		100.0	%		36.4	%
SG&A		2,057,000			1,516,000			(10,000)		181,000			3,744,000
Gain on sale of assets		-			-			30,000		-			30,000
Operating Income (Loss)		64,000			225,000			40,000		(173,000)			156,000
Depreciation and Amortization		70,000			190,000			-		15,000			275,000
Capital expenditures		-			1,937,000			-		-			1,937,000
Intangibles, Net		307,000			893,000			-		133,000			1,333,000
Goodwill		4,939,000			1,394,000			-		-			6,333,000
Total Assets	$	9,451,000		$	16,053,000		$	335,000	$	632,000		$	26,471,000

The Company’s segment information for the nine months ended June 30, 2015 and 2014 is summarized below:

Results of Operations for the Nine Months Ended June 30,
2015
	Contract
	Research			Optics			Instruments		Biomedical		Total
Revenue	$	13,964,000		$	15,781,000		$	-	$	-	$	29,745,000
Gross Profit		6,077,000			5,408,000			-		-		11,485,000
GM %		43.5	%		34.3	%		-		-		38.6	%
SG&A		5,712,000			5,150,000			-		739,000		11,601,000
Gain on sale of assets		-			178,000			-		-		178,000
Operating Income (Loss)		365,000			436,000			-		(739,000)		62,000
Depreciation and Amortization		222,000			631,000			-		45,000		898,000
Capital expenditures		4,000			666,000			-		77,000		747,000
Intangibles, Net		273,000			722,000			-		257,000		1,252,000
Goodwill		4,939,000			1,252,000			-		-		6,191,000
Total Assets	$	9,462,000		$	16,615,000		$	50,000	$	756,000	$	26,883,000

Results of Operations for the Nine Months Ended June 30,
2014
	Contract Research			Optics			Instruments			Biomedical			Total
Revenue	$	16,915,000		$	14,059,000		$	773,000		$	11,000		$	31,758,000
Gross Profit		7,093,000			5,175,000			318,000			11,000			12,597,000
GM %		41.9	%		36.8	%		41.1	%		100.0	%		39.7	%
SG&A		6,439,000			4,030,000			529,000			579,000			11,577,000
Gain on sale of assets		-			-			1,217,000			-			1,217,000
Operating Income (Loss)		654,000			1,145,000			1,006,000			(568,000)			2,237,000
Depreciation and Amortization		209,000			551,000			2,000			47,000			809,000
Capital expenditures		12,000			2,606,000			-			-			2,618,000
Intangibles, Net		307,000			893,000			-			133,000			1,333,000
Goodwill		4,939,000			1,394,000			-			-			6,333,000
Total Assets	$	9,451,000		$	16,053,000		$	335,000		$	632,000		$	26,471,000

Customer Financial Information

For the three and nine months ended June 30, 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 nine months ended June 30, 2014, 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 June 30, 2015 and 2014, these customers made up 64% and 68%, respectively, of Contract Research revenue. For the nine months ended June 30, 2015 and 2014, these customers made up 68% and 67%, respectively, of Contract Research revenue.

For the three months ended June 30, 2015, two customers in the Optics segment each represented more than 10% of the total segment revenue. For the nine months ended June 30, 2015, no customer made up more than 10% of the segment revenue. For the three and nine months ended June 30, 2014, a single customer in the Optics segment made up 18% and 10%, respectively 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 June 30, 2015 and 2014 are as follows:

	Three Months Ended					Three Months Ended
	June 30, 2015					June 30, 2014
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	8,228,000		80	%	$	8,255,000		78	%
Europe		1,140,000		11	%		689,000		6	%
Other		871,000		9	%		1,697,000		16	%
	$	10,239,000		100	%	$	10,641,000		100	%

Revenue by geographic location in total and as a percentage of total revenue, for the nine months ended June 30, 2015 and 2014 are as follows:

	Nine Months Ended					Nine Months Ended
	June 30, 2015					June 30, 2014
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	23,892,000		80	%	$	25,784,000		81	%
Europe		3,147,000		11	%		2,363,000		8	%
Other		2,706,000		9	%		3,611,000		11	%
	$	29,745,000		100	%	$	31,758,000		100	%