Segment, Customer and Geographical Reporting

6 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 11 – Segment, Customer and Geographical Reporting

Segment Financial Information

Dynasil’s business is comprised of three segments: optics (“Optics”), contract research (“Contract Research”) and biomedical (“Biomedical”). The Company’s Instruments segment was substantially disposed of in the first quarter of fiscal 2014, has had no subsequent operations and had no remaining assets as of March 31, 2016. Consequently, it is no longer reported as a separate segment. At March 31, 2015, the Company had approximately $0.2 million of assets related to the businesses formerly comprising the Instruments segment.

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 Optics segment manufactures optical materials, components and coatings. The Contract Research segment is one of the largest small business participants in U.S. government-funded research. The Biomedical segment, through Xcede Technologies, Inc., a majority-owned joint venture, is focused on developing a tissue sealant technology 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, 2016 and 2015 is summarized below:

Results of Operations for the Three Months Ended March 31,
2016
				Contract
	Optics			Research			Biomedical		Total
Revenue	$	6,428,000		$	4,868,000		$	-	$	11,296,000
Gross Profit		2,208,000			1,870,000			-		4,078,000
GM %		34.3	%		38.4	%		-		36.1	%
SG&A		1,882,000			1,800,000			355,000		4,037,000
Gain on sale of assets		-			-			-		-
Operating Income (Loss)		326,000			70,000			(355,000)		41,000
Depreciation and Amortization		225,000			85,000			17,000		327,000
Capital expenditures		329,000			30,000			20,000		379,000
Intangibles, Net		608,000			247,000			301,000		1,156,000
Goodwill		1,109,000			4,939,000			-		6,048,000
Total Assets	$	17,653,000		$	8,502,000		$	571,000	$	26,726,000

Results of Operations for the Three Months Ended March 31,
2015
				Contract
	Optics			Research			Biomedical		Total
Revenue	$	5,220,000		$	4,675,000		$	-	$	9,895,000
Gross Profit		1,808,000			1,952,000			-		3,760,000
GM %		34.6	%		41.8	%		-		38.0	%
SG&A		1,580,000			1,896,000			270,000		3,746,000
Gain on sale of assets		-			-			-		-
Operating Income (Loss)		228,000			56,000			(270,000)		14,000
Depreciation and Amortization		204,000			74,000			15,000		293,000
Capital expenditures		152,000			4,000			56,000		212,000
Intangibles, Net		699,000			282,000			254,000		1,235,000
Goodwill		1,157,000			4,939,000			-		6,096,000
Total Assets	$	16,038,000		$	8,887,000		$	694,000	$	25,619,000

The Company’s segment information for the six months ended March 31, 2016 and 2015 is summarized below:

Results of Operations for the Six Months Ended March 31,
2016
				Contract
	Optics			Research			Biomedical		Total
Revenue	$	12,635,000		$	9,858,000		$	-	$	22,493,000
Gross Profit		4,318,000			3,724,000			-		8,042,000
GM %		34.2	%		37.8	%		-		35.8	%
SG&A		3,634,000			3,506,000			703,000		7,843,000
Gain on sale of assets		(4,000)			-			-		(4,000)
Operating Income (Loss)		688,000			218,000			(703,000)		203,000
Depreciation and Amortization		454,000			164,000			34,000		652,000
Capital expenditures		894,000			37,000			51,000		982,000
Intangibles, Net		608,000			247,000			301,000		1,156,000
Goodwill		1,109,000			4,939,000			-		6,048,000
Total Assets	$	17,653,000		$	8,502,000		$	571,000	$	26,726,000

Results of Operations for the Six Months Ended March 31,
2015
				Contract
	Optics			Research			Biomedical		Total
Revenue	$	10,168,000		$	9,338,000		$	-	$	19,506,000
Gross Profit		3,302,000			4,050,000			-		7,352,000
GM %		32.5	%		43.4	%		-		37.7	%
SG&A		3,670,000			3,778,000			504,000		7,952,000
Gain on sale of assets		(185,000)			-			-		(185,000)
Operating Income (Loss)		(183,000)			272,000			(504,000)		(415,000)
Depreciation and Amortization		408,000			148,000			30,000		586,000
Capital expenditures		396,000			4,000			56,000		456,000
Intangibles, Net		699,000			282,000			254,000		1,235,000
Goodwill		1,157,000			4,939,000			-		6,096,000
Total Assets	$	16,038,000		$	8,887,000		$	694,000	$	25,619,000

Customer Financial Information

For the three and six months ended March 31, 2016, one customer in the Optics segment represented more than 10% of the total segment revenue. For the three and six months ended March 31, 2015, there was no customer in the Optics segment whose revenue represented more than 10% of the total segment revenue.

For the three and six months ended March 31, 2016, three and five customers, respectively, 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, 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 months ended March 31, 2016 and 2015, these customers made up 57% and 69%, respectively, of Contract Research revenue. For the six months ended March 31, 2016 and 2015, these customers made up 77% and 70%, respectively, of Contract Research revenue.

Geographic Financial Information

Revenue by geographic location in total and as a percentage of total revenue, for the three months ended March 31, 2016 and 2015 are as follows:

	Three Months Ended					Three Months Ended
	March 31, 2016					March 31, 2015
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	8,226,000		73	%	$	7,982,000		81	%
Europe		2,452,000		22	%		1,124,000		11	%
Other		618,000		5	%		789,000		8	%
	$	11,296,000		100	%	$	9,895,000		100	%

Revenue by geographic location in total and as a percentage of total revenue, for the six months ended March 31, 2016 and 2015 are as follows:

	Six Months Ended					Six Months Ended
	March 31, 2016					March 31, 2015
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	16,455,000		73	%	$	15,664,000		80	%
Europe		4,493,000		20	%		2,008,000		10	%
Other		1,545,000		7	%		1,834,000		10	%
	$	22,493,000		100	%	$	19,506,000		100	%