Segment, Customer and Geographical Reporting

9 Months Ended

Jun. 30, 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 June 30, 2016. Consequently, it is no longer reported as a separate segment. At June 30, 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 June 30, 2016 and 2015 is summarized below:

Results of Operations for the Three Months Ended June 30, 2016
	Optics			Contract Research			Biomedical		Total
Revenue	$	5,780,000		$	4,626,000		$	-	$	10,406,000
Gross Profit		2,012,000			1,915,000			-		3,927,000
GM %		35	%		41	%		-		38	%
SG&A		1,604,000			1,601,000			396,000		3,601,000
(Gain) loss on sale of assets		-			-			-		-
Operating Income (Loss)		408,000			314,000			(396,000)		326,000
Depreciation and Amortization		247,000			24,000			17,000		288,000
Capital expenditures		330,000			-			6,000		336,000
Intangibles, Net		549,000			239,000			308,000		1,096,000
Goodwill		1,001,000			4,939,000			-		5,940,000
Total Assets	$	16,752,000		$	8,546,000		$	424,000	$	25,722,000

Results of Operations for the Three Months Ended June 30, 2015
	Optics			Contract Research			Biomedical		Total
Revenue	$	5,613,000		$	4,626,000		$	-	$	10,239,000
Gross Profit		2,006,000			2,027,000			-		4,033,000
GM %		36	%		44	%		-		39	%
SG&A		1,380,000			1,934,000			236,000		3,550,000
(Gain) loss on sale of assets		8,000			-			-		8,000
Operating Income (Loss)		618,000			93,000			(236,000)		475,000
Depreciation and Amortization		223,000			74,000			15,000		312,000
Capital expenditures		270,000			-			21,000		291,000
Intangibles, Net		722,000			273,000			257,000		1,252,000
Goodwill		1,252,000			4,939,000			-		6,191,000
Total Assets	$	16,665,000		$	9,462,000		$	756,000	$	26,883,000

The Company’s segment information for the nine months ended June 30, 2016 and 2015 is summarized below:

Results of Operations for the Nine Months Ended June 30, 2016
	Optics			Contract Research			Biomedical		Total
Revenue	$	18,415,000		$	14,484,000		$	-	$	32,899,000
Gross Profit		6,330,000			5,639,000			-		11,969,000
GM %		34	%		39	%		-		36	%
SG&A		5,237,000			5,107,000			1,099,000		11,443,000
(Gain) loss on sale of assets		(4,000)			-			-		(4,000)
Operating Income (Loss)		1,097,000			532,000			(1,099,000)		530,000
Depreciation and Amortization		700,000			187,000			52,000		939,000
Capital expenditures		1,224,000			37,000			81,000		1,342,000
Intangibles, Net		549,000			239,000			308,000		1,096,000
Goodwill		1,001,000			4,939,000			-		5,940,000
Total Assets	$	16,752,000		$	8,546,000		$	424,000	$	25,722,000

Results of Operations for the Nine Months Ended June 30, 2015
	Optics			Contract Research			Biomedical		Total
Revenue	$	15,781,000		$	13,964,000		$	-	$	29,745,000
Gross Profit		5,222,000			6,077,000			-		11,299,000
GM %		33	%		44	%		-		38	%
SG&A		4,964,000			5,712,000			739,000		11,415,000
(Gain) loss on sale of assets		(178,000)			-			-		(178,000)
Operating Income (Loss)		436,000			365,000			(739,000)		62,000
Depreciation and Amortization		631,000			222,000			45,000		898,000
Capital expenditures		666,000			4,000			77,000		747,000
Intangibles, Net		722,000			273,000			257,000		1,252,000
Goodwill		1,252,000			4,939,000			-		6,191,000
Total Assets	$	16,665,000		$	9,462,000		$	756,000	$	26,883,000

Customer Financial Information

For the three and nine months ended June 30, 2016, one customer in the Optics segment represented more than 10% of the total segment 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, 2016, four 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 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 months ended June 30, 2016 and 2015, these customers made up 72% and 64%, respectively, of Contract Research revenue. For the nine months ended June 30, 2016 and 2015, these customers made up 77% and 68%, 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 June 30, 2016 and 2015 are as follows:

	Three Months Ended					Three Months Ended
	June 30, 2016					June 30, 2015
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	7,908,000		76	%	$	8,228,000		80	%
Europe		1,868,000		18	%		1,140,000		11	%
Other		630,000		6	%		871,000		9	%
	$	10,406,000		100	%	$	10,239,000		100	%

Revenue by geographic location in total and as a percentage of total revenue, for the nine months ended June 30, 2016 and 2015 are as follows:

	Nine Months Ended					Nine Months Ended
	June 30, 2016					June 30, 2015
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	24,363,000		74	%	$	23,892,000		80	%
Europe		6,361,000		19	%		3,147,000		11	%
Other		2,175,000		7	%		2,706,000		9	%
	$	32,899,000		100	%	$	29,745,000		100	%