EX-99 2 dyn10ksb0905ex99-1.txt EXHIBIT 99.1 - PRESS RELEASE Contact: Craig Dunham Dynasil Corporation of America Phone: (856) 767-4600 Email: cdunham@Dynasil.com Dynasil Announces Fourth Quarter Fiscal Year 2005 Results WEST BERLIN, N.J.-December 19, 2005 -- Dynasil Corporation of America (OTCBB: DYSL.OB), a worldwide supplier of optical components and optical materials for the laser, optical instrument, and general optics industries announced results of operations for the 4th quarter ended September 30, 2005. This is the second full quarter of results since the acquisition of Optometrics LLC assets on March 8, 2005. The results for fiscal year 2005 include 205 days of Optometrics' results from March 9 through September 30, 2005. Revenues for the quarter ended September 30, 2005 were $1,581,096, an increase of 176% over revenues of $573,798 for the quarter ended September 30, 2004. The net profit for the quarter ended September 30, 2005 was $98,134, or $.02 per share, compared with a net loss of $5,051, or a negative $.01 per share, for the quarter ended September 30, 2004. Excluding the impact of the Optometrics acquisition, Dynasil's historic optical materials business delivered a sales increase of 34% and a fourth consecutive profitable quarter. Revenues for the 12 months ended September 30, 2005 were $5,078,436, an increase of 112% over the revenues of $2,296,264 for the 12 months ended September 30, 2004. The net profit for the 12 months ended September 30, 2005 was $173,019 or a positive $0.04 per share, compared with a net loss of $175,881 or a negative $0.08 per share, for the 12 months ended September 30, 2004. Net profit included a $10,750 income tax benefit as fully described in our 10-KSB SEC filing. On a proforma basis, results including Optometrics for the entire 12 months ended September 30, 2005 show revenues of $6.4 million, net income of $248,024, and basic earnings per share of $0.05. "We are pleased to have completed a major turnaround year where we delivered a 41% revenue increase and consistent profitability from our historical optical materials business as well as completing the acquisition of Optometrics which approximately doubled our revenues and added significant profitability," said Craig T. Dunham, President and CEO. "The integration of Optometrics has gone extremely well and we are realizing benefits from sales cooperation and cost savings. We continue to focus on our strategy of profitable growth from our optical components businesses and by pursuing acquisitions and strategic alliances", added Mr. Dunham. 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 as well as optical components and specialized optical systems. 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) ASSETS September September 30 30 2005 2004 ---------- ------------ Current assets Cash and cash equivalents $308,210 $254,908 Accounts receivable, net 877,375 309,276 Inventories 842,149 369,813 Deferred tax asset 24,250 -0- Prepaid expenses and other 100,298 16,656 current assets ---------- ------------ Total current assets 2,152,282 950,653 Property, plant and equipment, net 744,764 419,718 Other assets 87,735 3,321 ---------- ------------ Total Assets $2,984,781 $1,373,692 ========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Note payable to bank $250,000 $ -0- Current portion of long-term 184,403 120,000 debt Accounts payable 322,094 184,214 Accrued expenses and other 232,476 114,959 current liabilities ---------- ------------ Total current liabilities 988,973 419,173 Long-term debt, net 592,712 488,889 Stockholders' Equity 1,403,096 465,630 ---------- ------------ Total Liabilities and $2,984,781 $1,373,692 Stockholders' Equity ========== ============ -2- DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended Twelve Months Ended September 30 September 30 2005 2004 2005 2004 ---------- --------- --------- --------- Sales $1,581,096 $573,798 $5,078,436 $2,296,264 Cost of Sales 1,019,726 422,532 3,519,845 1,759,736 ---------- --------- --------- --------- Gross Profit 561,370 151,266 1,558,591 536,528 Selling, general and administrative 464,294 148,735 1,341,834 676,976 ---------- --------- --------- --------- Income (Loss) from Operations 97,076 2,531 216,757 (140,448) Interest expense - net (14,916) ( 7,582) (54,488) (35,433) ---------- --------- --------- --------- Income (Loss) before Income Taxes 82,160 ( 5,051) 162,269 (175,881) Income Tax benefit 15,974 -0- 10,750 -0- ---------- --------- --------- --------- Net Income (Loss) $98,134 ($ 5,051) $ 173,019 ($175,881) ---------- --------- --------- --------- Net Income (Loss) per share Basic $0.02 ($ 0.01) $0.04 ($ 0.08) Diluted $0.02 ($ 0.01) $0.03 ($ 0.08) -3-