EX-99 5 dyn10ksb0906ex99-1.txt PRESS RELEASE Contact: Craig Dunham Dynasil Corporation of America Phone: (856) 767-4600 Email: cdunham@Dynasil.com Dynasil Announces Fiscal Year 2006 Results WEST BERLIN, N.J.- December 12, 2006 - Dynasil Corporation of America (OTCBB: DYSL.OB), announced results of operations for the fiscal year ended September 30, 2006. Dynasil is a fabricator of optical blanks from synthetic fused silica, fused quartz, and other optical materials for the semi-conductor, laser, space and optical components industries. Through its subsidiary, Optometrics Corporation, it is a worldwide supplier of optical components including diffraction gratings, thin film filters, laser optics, monochromators, and specialized optical systems. Revenues for the quarter ended September 30, 2006 were $1,889,226, an increase of 19% over revenues of $1,581,096 for the quarter ended September 30, 2005. Net profit for the quarter ended September 30, 2006 was $213,260 or $.05 per share compared with a net profit of $98,134 or $.02 per share for the quarter ended September 30, 2005. Revenues for the 12 months ended September 30, 2006 were $6,936,631, an increase of 37% over revenues of $5,078,436 for the 12 months ended September 30, 2005. Net profit for the 12 months ended September 30, 2006 was $460,156 or $0.10 per share compared with a net profit of $173,019 or $0.04 per share for the 12 months ended September 30, 2005. The largest drivers for the 166% profitability increase were revenue increases in both business units, having Optometrics as part of Dynasil for the full year and gross margin increases for optical materials. On October 2, 2006, Dynasil Corporation acquired 100% of the stock of Evaporated Metal Films Corporation ("EMF") in Ithaca, NY. EMF provides optical thin-film coatings for a broad range of application markets including display systems, optical instruments, satellite communications and lighting. EMF's results will be included in Dynasil's results starting in the first quarter of 2007. EMF is expected to increase Dynasil revenues by 40-50% in 2007. "We are pleased with the 37% revenue increase and 166% net income increase for fiscal year 2006. Optometrics has had a major positive impact on Dynasil and we continue to implement process improvements which have helped us deliver the higher revenues and profitability." said Craig T. Dunham, President and CEO. "The acquisition of EMF is an exciting step in the execution of our strategy of profitable growth from our optical businesses and by pursuing strategic acquisitions. EMF is a fit with our markets and customers and has strong people and capabilities." added Mr. Dunham. About Dynasil: Founded in 1960, Dynasil Corporation of America is a manufacturer of optical components, optical materials, 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 September 30 September 30 2006 2005 ---------- ----------- ASSETS Current assets Cash and cash equivalents $352,139 $308,210 Accounts receivable 1,086,394 877,375 Inventories 1,131,648 842,149 Other current assets 190,457 124,548 ---------- ----------- Total current assets 2,760,638 2,152,282 Property, plant and equipment, net 626,790 744,764 Other assets 78,812 87,735 ---------- ----------- Total Assets $3,466,240 $2,984,781 ========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Note payable to bank- Line of $190,000 $250,000 credit Current portion of long-term 72,482 184,403 debt Accounts payable 390,110 322,094 Accrued expenses and other 368,977 232,476 current liabilities ---------- ----------- Total current liabilities 1,021,569 988,973 Long-term debt, net 593,889 592,712 Stockholders' Equity 1,850,782 1,403,096 ---------- ----------- Total Liabilities and $3,466,240 $2,984,781 Stockholders' Equity ========== =========== Dynasil Corporation of America and Subsidiaries Consolidated Statement of Operations Three Months Ended Twelve Months Ended September 30 September 30 2006 2005 2006 2005 ---------- --------- --------- --------- Sales $1,889,226 $1,581,096 $6,936,631 $5,078,436 Cost of Sales 1,193,602 1,019,726 4,500,791 3,519,845 ---------- --------- --------- --------- Gross Profit 695,624 561,370 2,435,840 1,558,591 Selling, general and 484,617 464,294 1,911,283 1,341,834 administrative ---------- --------- --------- --------- Income (Loss) from Operations 211,007 97,076 524,557 216,757 Interest expense - net (15,702) (14,916) (64,376) (54,488) ---------- --------- --------- --------- Income (Loss) before Income 195,305 82,160 460,181 162,269 Taxes Income Tax (expense) benefit 17,955 15,974 (25) 10,750 ---------- --------- --------- --------- Net Income $213,260 $98,134 $460,156 $173,019 ---------- --------- --------- --------- Net Income per share Basic $0.05 $0.02 $0.10 $0.04 Diluted $0.03 $0.02 $0.07 $0.03