Segment, Customer and Geographical Reporting

6 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 10 – Segment, Customer and Geographical Reporting

Segment Financial Information

Dynasil reports three reportable segments: innovation and development (“Innovation and Development”), (formerly known as the Contract Research segment), optics (“Optics”) and biomedical (“Biomedical”). Within these segments, there is a segregation of operating segments 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 aggregates four operating segments – Dynasil Fused Silica, Optometrics, Hilger Crystals (“Hilger”), and Evaporated Metal Films – that manufacture commercial products, including optical crystals for sensing in the security and medical imaging markets, as well as optical components, optical coatings and optical materials for scientific instrumentation and other applications. The Innovation and Development segment is one of the largest small business participants in U.S. government-funded research. The Biomedical segment consists of a single operating segment, Dynasil Biomedical Corporation (“Dynasil Biomedical”), a medical technology incubator which owns rights to certain early stage medical technologies. Dynasil Biomedical holds common and preferred stock in the Xcede joint venture which is developing a tissue sealant technology and currently has no other operations.

The Company’s segment information for the three months ended March 31, 2019 and 2018 is summarized below:

Results of Operations for the Three Months Ended March 31,
2019
	Optics			Innovation and Development*			Biomedical			Total
Revenue	$	6,226,000		$	5,306,000		$	-		$	11,532,000
Gross profit		2,159,000			2,199,000			-			4,358,000
GM %		35	%		41	%		-			38	%
Operating expenses		1,871,000			2,141,000			22,000			4,034,000
Operating income (loss)		288,000			58,000			(22,000	)		324,000
Depreciation and amortization		292,000			60,000			3,000			355,000
Capital expenditures		313,000			47,000			-			360,000
Intangibles, net		358,000			145,000			198,000			701,000
Goodwill		961,000			4,939,000			-			5,900,000
Total assets	$	21,482,000		$	9,456,000		$	204,000		$	31,142,000

Results of Operations for the Three Months Ended March 31,
2018
	Optics			Innovation and Development*			Biomedical			Total
Revenue	$	5,910,000		$	4,345,000		$	-		$	10,255,000
Gross profit		2,050,000			1,895,000			-			3,945,000
GM %		35	%		44	%		-			38	%
Operating expenses		1,858,000			1,813,000			194,000			3,865,000
Operating income (loss)		192,000			82,000			(194,000	)		80,000
Depreciation and amortization		247,000			61,000			3,000			311,000
Capital expenditures		339,000			58,000			29,000			426,000
Intangibles, net		455,000			179,000			363,000			997,000
Goodwill		1,070,000			4,939,000			-			6,009,000
Total assets	$	20,903,000		$	8,028,000		$	586,000		$	29,517,000

*Formerly Contract Research

The Company’s segment information for the six months ended March 31, 2019 and 2018 is summarized below:

Results of Operations for the Six Months Ended March 31,
2019
	Optics			Innovation and Development*			Biomedical			Total
Revenue	$	11,947,000		$	9,613,000		$	-		$	21,560,000
Gross profit		4,009,000			4,041,000			-			8,050,000
GM %		34	%		42	%		-			37	%
Operating expenses		3,756,000			4,020,000			75,000			7,851,000
Operating income (loss)		253,000			21,000			(75,000	)		199,000
Depreciation and amortization		566,000			120,000			7,000			693,000
Capital expenditures		497,000			64,000			-			561,000
Intangibles, net		358,000			145,000			198,000			701,000
Goodwill		961,000			4,939,000			-			5,900,000
Total assets	$	21,482,000		$	9,456,000		$	204,000		$	31,142,000

Results of Operations for the Six Months Ended March 31,
2018
	Optics			Innovation and Development*			Biomedical			Total
Revenue	$	10,853,000		$	8,590,000		$	-		$	19,443,000
Gross profit		3,740,000			3,745,000			-			7,485,000
GM %		34	%		44	%		-			38	%
Operating expenses		3,433,000			3,537,000			639,000			7,609,000
Operating income (loss)		307,000			208,000			(639,000	)		(124,000	)
Depreciation and amortization		477,000			126,000			7,000			610,000
Capital expenditures		928,000			77,000			45,000			1,050,000
Intangibles, net		455,000			179,000			363,000			997,000
Goodwill		1,070,000			4,939,000			-			6,009,000
Total assets	$	20,903,000		$	8,028,000		$	586,000		$	29,517,000

*Formerly Contract Research

Customer Financial Information

For three and six months ended March 31, 2019, one customer in the Optics segment represented more than 10% of the total segment revenue. For the three and six months ended March 31, 2018, no customer in the Optics segment represented more than 10% of the total segment revenue.

For the three and six months ended March 31, 2019, three customers of the Innovation and Development 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, 2018, four customers of the Innovation and Development segment, all various agencies of the U.S. Government, each 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, 2019 and 2018 are as follows:

	Three Months Ended					Three Months Ended
	March 31, 2019					March 31, 2018
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	8,773,000		76	%	$	8,129,000		79	%
Asia		865,000		7	%		671,000		7	%
Europe		1,713,000		15	%		1,365,000		13	%
Other		181,000		2	%		90,000		1	%
	$	11,532,000		100	%	$	10,255,000		100	%

Revenue by geographic location in total and as a percentage of total revenue, for the six months ended March 31, 2019 and 2018 are as follows:

	Six Months Ended					Six Months Ended
	March 31, 2019					March 31, 2018
Geographic Location	Revenue		% of Total			Revenue		% of Total
United States	$	16,233,000		75	%	$	15,481,000		80	%
Asia		1,795,000		8	%		1,193,000		6	%
Europe		3,237,000		15	%		2,633,000		13	%
Other		295,000		2	%		136,000		1	%
	$	21,560,000		100	%	$	19,443,000		100	%