EX-99 5 dyn1205-10qsbex99.txt PRESS RELEASE Contact: Craig Dunham Dynasil Corporation of America Phone: (856) 767-4600 Email: cdunham@Dynasil.com Dynasil Announces First Quarter Fiscal Year 2006 Results WEST BERLIN, N.J.- February 14, 2005 - Dynasil Corporation of America (OTCBB: DYSL.OB), fabricator of optical blanks from synthetic fused silica, fused quartz, and other optical materials for the semi- conductor, laser, space and optical components industries, and through its subsidiary, Optometrics Corporation, a worldwide supplier of optical components including diffraction gratings, thin film filters, laser optics, monochromators, and specialized optical systems, announced results of operations for the 1st quarter ended December 31, 2005. This is the third full quarter of results after the combination of Optometrics with Dynasil. As previously announced, the acquisition of the assets of Optometrics LLC was completed on March 8, 2005. Revenues for the quarter ended December 31, 2005 were $1,548,040, an increase of 98% over revenues of $781,186 for the quarter ended December 31, 2004. The net profit for the quarter ended December 31, 2005 was $25,425, or $.00 per share, compared with a net profit of $6,074, or $.00 per share, for the quarter ended December 31, 2004. The addition of Optometrics approximately doubled the Company's revenue for the quarter ending December 31, 2005 over the same quarter in 2004 and added significant profitability. "I am pleased with the results of the integration of Optometrics and Dynasil which has made both companies stronger in the marketplace and has yielded significant cost savings" said Craig T. Dunham, President and CEO. "Problems with a fused silica subcontractor for an order completed in November caused $26,000 of unexpected costs but we were able to maintain our strong customer service record. We further strengthened our New Jersey operations in January 2006 with the refinancing of our bank loans and the return of Bruce Leonetti as Vice President- Sales and Marketing. 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) December September 31 30 2005 2005 --------- --------- ASSETS Current assets Cash and cash equivalents $286,609 $308,210 Accounts receivable 733,862 877,375 Inventories 879,919 842,149 Other current assets 167,775 124,548 --------- --------- Total current assets 2,068,165 2,152,282 Property, plant and equipment, net 730,004 744,764 Other assets 84,046 87,735 --------- --------- Total Assets $2,882,215 $2,984,781 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Note payable to bank- Line of $215,000 $250,000 credit Current portion of long-term 182,166 184,403 debt Accounts payable 270,809 322,094 Accrued expenses and other 220,473 232,476 current liabilities --------- --------- Total current liabilities 888,448 988,973 Long-term debt, net 548,607 592,712 Stockholders' Equity 1,445,160 1,403,096 --------- --------- Total Liabilities and $2,882,215 $2,984,781 Stockholders' Equity -2- DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended December 31 2005 2004 --------- --------- Sales $1,548,040 $ 781,186 Cost of Sales 1,069,896 580,689 --------- --------- Gross Profit 478,144 200,497 Selling, general and 426,659 186,720 administrative --------- --------- Income from Operations 51,485 13,777 Interest expense - net (20,535) (7,703) --------- --------- Income before Income Taxes 30,950 6,074 Income Taxes 5,525 0 --------- --------- Net Income $25,425 $6,074 --------- --------- Net Income per share Basic $0.00 $0.00 Diluted $0.00 $0.00