EX-99 2 dyn8k-081204ex99.txt PRESS RELEASE Exhibit 99.1 John Kane President and CEO Dynasil Corporation of America Phone: (856) 767-4600 Email: jkane@dynasil.com Dynasil Announces 3rd Quarter Results - Fiscal Year 2004 WEST BERLIN, N.J.- August 12, 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 3rd quarter ended June 30, 2004. Revenues for the quarter ended June 30, 2004 were $505,504, a decrease of 18.2% over revenues of $618,394 for the quarter ended June 30, 2003. The net loss for the quarter ended June 30, 2004 was $97,926, or a negative $.04 per share, compared with a net loss of $33,812, or a negative $.02 per share for the quarter ended June 30, 2003. "We continue to feel the effects of low demand and aggressive pricing," said John Kane, President and CEO of Dynasil Corporation. "In addition to adding other optical glasses, in an effort to expand our product line, we will continue to maintain tight controls over expenses until demand improves," added Mr. Kane. In an unrelated development, Mr. Kane also announced that he had advised Dynasil's Board of Directors that he did not intend to renew his Employment Agreement dated December 1, 2000. The timing of this announcement was to ensure a smooth and timely transition in finding a replacement. 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) June 30 September 30 2004 2003 ASSETS Current assets Cash and cash equivalents $89,376 $323,321 Accounts receivable 244,337 242,919 Inventories 375,898 435,820 Prepaid expenses and other 22,518 38,935 current assets --------- --------- Total current assets 732,129 1,040,995 Property, plant and equipment, net 445,904 558,191 Other assets 54,173 10,654 --------- --------- Total Assets $1,232,206 $1,609,840 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term $120,000 $140,925 debt Accounts payable 115,742 131,518 Accrued expenses and other 107,024 73,624 current liabilities --------- --------- Total current liabilities 342,766 346,067 Long-term debt, net 568,889 772,781 Stockholders' Equity 320,551 490,992 --------- --------- Total Liabilities and Stockholders' $1,232,206 $1,609,840 Equity ========= ========= Dynasil Corporation of America and Subsidiaries Consolidated Statement Of Operations (Unaudited) Three months Nine months ended ended June 30 June 30 2004 2003 2004 2003 -------- ------- --------- --------- Revenues $505,504 $618,394 $1,722,467 $1,874,242 Cost of Revenues 417,299 492,506 1,337,204 1,458,114 -------- ------- --------- --------- Gross Profit 88,205 125,888 385,263 416,128 Selling, general and 173,740 149,694 528,243 498,544 administrative -------- ------- --------- --------- Loss from operations (85,535) (23,806) (142,980) (82,416) Other income (expense) Interest expense - net (12,391) (10,006) (27,851) (33,183) -------- ------- --------- --------- Loss before provision for (97,926) (33,812) (170,831) (115,599) income taxes Provision for income taxes -------- ------- --------- --------- Net loss ($97,926) ($33,812) ($170,831) ($115,599) Basic net loss per common share ($0.04) ($0.02) ($0.08) ($0.05) Diluted net loss per common ($0.04) ($0.02) ($0.08) ($0.05) share