EX-99 2 dyn8k-050504ex99.txt EXHIBIT 99.1 Exhibit 99.1 Contact: John Kane President and CEO Dynasil Corporation of America Phone: (856) 767-4600 Email: jkane@dynasil.com Dynasil Announces 2nd Quarter Results - Fiscal Year 2004 WEST BERLIN, N.J.- May 5, 2004 - Dynasil Corporation of America (OTCBB: DYSL), fabricator of optical blanks from synthetic fused silica, fused quartz, and other optical materials for the semi-conductor, laser, space and optical components industries announced results of operations for the 2nd quarter ended March 31, 2004. Revenues for the quarter ended March 31, 2004 were $594,469, a decrease of 0.8% over revenues of $599,692 for the quarter ended March 31, 2003. The net loss for the quarter ended March 31, 2004 was $46,873, or a negative $.02 per share, a slight improvement of $3,915 over the loss of $50,788, or a negative $.02 per share, for the quarter ended March 31, 2003. "Low demand and aggressive competitor pricing continues to effect our performance," said John Kane, President and CEO of Dynasil Corporation. "The new optical glasses we have added to our product lines have not grown as quickly as we had hoped. We will maintain tight controls over expenses until demand improves," added Mr. Kane. About Dynasil: Founded in 1960, Dynasil Corporation of America is a fabricator of optical blanks from synthetic fused silica, fused quartz and other optical materials. For over four decades, Dynasil has provided high quality synthetic fused silica and fused quartz products to customers for a wide and ever increasing range of applications. This news release may contain forward-looking statements usually containing the words "believe," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Future results of operations, projections, and expectations, which may relate to this release, involve certain risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the factors detailed in the Company's Annual Report or Form 10-KSB and in the Company's other Securities and Exchange Commission filings, continuation of existing market conditions and demand for our products. Dynasil Corporation of America and Subsidiaries Consolidated Balance Sheets (Unaudited) March 31 September 2004 2003 --------- --------- ASSETS Current assets Cash and cash equivalents $225,075 $323,321 Accounts receivable 362,725 242,919 Inventories 391,967 435,820 Prepaid expenses and other 40,378 38,935 current assets --------- --------- Total current assets 1,020,145 1,040,995 Property, plant and equipment, net 479,441 558,191 Other assets 5,025 10,654 --------- --------- Total Assets $1,504,611 $1,609,840 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt $ 92,219 $140,925 Accounts payable 197,689 131,518 Accrued expenses and other 66,909 73,624 current liabilities --------- --------- Total current liabilities 356,817 346,067 Long-term debt, net 729,447 772,781 Stockholders' Equity 418,347 490,992 --------- --------- Total Liabilities and Stockholders' $1,504,611 $1,609,840 Equity ========== ========== Dynasil Corporation of America and Subsidiaries Consolidated Statement Of Operations (Unaudited) Three months ended Six months ended March 31 March 31 2003 2002 2003 2004 ----- ----- ---- ---- Revenues $594,469 $599,692 $1,216,963 $1,255,848 Cost of Revenues 457,361 470,988 919,907 965,604 -------- -------- ---------- --------- Gross Profit 137,108 128,704 297,056 290,244 Selling, general and administrative 175,923 168,330 354,502 348,850 -------- -------- ---------- --------- Income (Loss) from operations (38,815) (39,626) (57,446) (58,606) Other income (expense) Interest expense - net (8,058) (11,162) (15,459) (23,177) -------- -------- ---------- --------- Income (Loss) before provision for income taxes (46,873) (50,788) (72,905) (81,783) Provision for income taxes -------- -------- ---------- --------- Net income (loss) ($46,873) ($50,788) ($72,905) ($81,783) ======== ======== ========== ========= Basic net loss per common share ($0.02) ($0.02) ($0.03) ($0.03) Diluted net loss per common share ($0.02) ($0.02) ($0.03) ($0.03)