EX-99 5 dyn10qsb0307ex99-1.txt PRESS RELEASE Contact: Craig Dunham Dynasil Corporation of America Phone: (856) 767-4600 Email: cdunham@Dynasil.com Dynasil Announces Second Quarter Fiscal Year 2007 Results WEST BERLIN, N.J. - May 14, 2007 - Dynasil Corporation of America (OTCBB: DYSL.OB), announced results of operations for the quarter ended March 31, 2007. Dynasil is a manufacturer of photonic products including optical materials, components, coatings and specialized sub- systems. We fabricate optical blanks from synthetic fused silica and other optical materials for the laser, semi-conductor, aerospace and optical instrument industries. Through our subsidiary, Optometrics Corporation, we are a worldwide supplier of optical components including diffraction gratings, thin film filters, laser optics, monochromators, and specialized optical sub-systems. On October 2, 2006, we 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. This is the second quarter that includes EMF. Revenues for the quarter ended March 31, 2007 were $3,003,216, an increase of 80% over revenues of $1,665,496 for the quarter ended March 31, 2006. The net profit for the quarter ended March 31, 2007 was $112,229, or a positive $.02 per share, compared with a net profit of $81,881, or $.02 per share, for the quarter ended March 31, 2006. Excluding the impact of the EMF acquisition and $11,366 of stock option expense, revenues for our historical businesses were up 39% and net income was up 208% from $81,881 to $251,866 compared to the three months ended March 31, 2006. Strong revenue growth combined with continued process improvements drove those significant gains. As anticipated, transitional and process improvement costs resulted in a loss at EMF for its second quarter with Dynasil. The EMF loss offset the substantial improvements in our historical businesses. Management is clearly focused on the EMF initiatives required to show continued improvement in 2007 and to deliver profitable results for fiscal year 2008. During Quarter 2, we significantly improved manufacturing yields and reduced downtime as we develop the disciplined processes required for EMF to consistently execute with strong quality, service, and cost performance. Revenues for the 6 months ended March 31, 2007 were $5,539,512, an increase of 72% over revenues of $3,213,536 for the 6 months ended March 31, 2006. The net profit for the 6 months ended March 31, 2007 was $135,128, or $0.02 per share, compared with a net profit of $107,306, or $0.02 per share, for the 6 months ended March 31, 2006. Excluding the impact of the EMF acquisition and $11,366 of stock option expense, revenues for our historical businesses were up 31% and net income was up 256% from $107,306 to $381,866 compared to the six months ended March 31, 2006. "We are pleased with the second quarter net income increases of 208% for our historical business and we are showing progress at EMF. We have a very clear focus on the EMF improvements required to make it profitable." said Craig T. Dunham, President and CEO. "Achieving 39% organic growth and the EMF operational improvements are important milestones towards executing our strategy of profitable growth in our photonic businesses." About Dynasil: Founded in 1960, Dynasil is a manufacturer of photonic products including optical materials, components, coatings and specialized sub-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) March 31 September 30 2007 2006 --------- --------- ASSETS Current assets Cash and cash equivalents $259,559 $352,139 Accounts receivable 1,474,833 1,086,394 Inventories 1,417,054 1,131,648 Deferred tax asset 87,400 61,500 Other current assets 187,180 128,957 --------- --------- Total current assets 3,426,026 2,760,638 Property, plant and equipment, net 2,374,227 626,790 Other assets 87,687 78,812 --------- --------- Total Assets $5,887,940 $3,466,240 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Note payable to bank- Line of $407,251 $190,000 credit Current portion of long-term 98,906 72,482 debt Accounts payable 436,590 390,110 Accrued expenses and other 551,451 368,977 current liabilities --------- --------- Total current liabilities 1,494,198 1,021,569 Long-term debt, net 1,594,095 593,889 Stockholders' Equity 2,799,647 1,850,782 --------- --------- Total Liabilities and $5,887,940 $3,466,240 Stockholders' Equity ========= ========= DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended March 31 March 31 2007 2006 2007 2006 ---------- --------- --------- --------- Sales $3,003,216 $1,665,496 $5,539,512 $3,213,536 Cost of Sales 2,144,767 1,072,295 4,028,630 2,142,192 ---------- --------- --------- --------- Gross Profit 858,449 593,201 1,510,882 1,071,344 Selling, general and 715,962 486,640 1,321,429 913,298 administrative ---------- --------- --------- --------- Income from Operations 142,487 106,561 189,453 158,046 Interest expense - net (18,672) (18,709) (33,670) (39,244) ---------- --------- --------- --------- Income before Income Taxes 123,815 87,852 155,783 118,802 Income Taxes (11,586) (5,971) (20,655) (11,496) ---------- --------- --------- --------- Net Income $ 112,229 $ 81,881 $ 135,128 $ 107,306 ========== ========= ========= ========= Net Income (Loss) per share Basic $0.02 $0.02 $0.02 $0.02 Diluted $0.02 $0.01 $0.01 $0.01