EX-99 7 dyn10qsb0607ex99-1.txt PRESS RELEASE Contact: Craig Dunham Dynasil Corporation of America Phone: (856) 767-4600 Email: cdunham@Dynasil.com Dynasil Announces Third Quarter Fiscal 2007 Results WEST BERLIN, N.J. - August 14, 2007 - Dynasil Corporation of America (OTCBB: DYSL.OB), announced results of operations for the quarter ended June 30, 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") of 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 third fiscal quarter that includes EMF's results. Revenues for the quarter ended June 30, 2007 were $2,584,519, an increase of 41% over revenues of $1,833,869 for the quarter ended June 30, 2006. The net profit for the quarter ended June 30, 2007 was $98,104, or $.02 per share, compared with a net profit of $139,591, or $.03 per share, for the quarter ended June 30, 2006, from $139,591 to $254,944. Excluding the impact of the EMF acquisition and $11,366 of stock option expenses, revenues for our historical businesses were up 5% and net income was up 83% compared to the three months ended June 30, 2006. Ongoing process improvements drove those significant gains. Transitional and process improvement costs resulted in a loss at EMF for its third 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 3, we continued to improve manufacturing yields and downtime. The search was concluded for a new EMF President with a strong operations background who started work on July 11. Revenues for the 9 months ended June 30, 2007 were $8,124,031, an increase of 61% over revenues of $5,047,405 for the 9 months ended June 30, 2006. The net profit for the 9 months ended June 30, 2007 was $233,231, or $0.03 per share, compared with a net profit of $246,896, or $0.05 per share, for the 9 months ended June 30, 2006. Excluding the impact of the EMF acquisition and option expenses, revenues for our historical businesses were up 21% and net income was up 153% compared to the nine months ended June 30, 2006 from $246,896 to $625,442. "We are pleased with the third quarter net income increases of 83% 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 21% organic growth year to date and recruiting the new EMF President 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 June 30 September 30 2007 2006 (Unaudited) ASSETS Current assets Cash and cash equivalents $290,556 $352,139 Accounts receivable 1,272,152 1,086,394 Inventories 1,592,892 1,131,648 Deferred tax asset 87,400 61,500 Other current assets 215,772 128,957 Total current assets 3,458,772 2,760,638 --------- --------- Property, plant and equipment, net 2,456,530 626,790 Other assets 83,613 78,812 --------- --------- Total Assets $5,998,915 $3,466,240 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Note payable to bank- Line of $368,290 $190,000 credit Current portion of long-term 99,634 72,482 debt Accounts payable 510,117 390,110 Accrued expenses and other 569,617 368,977 current liabilities --------- --------- Total current liabilities 1,547,658 1,021,569 Long-term debt, net 1,569,127 593,889 Stockholders' Equity 2,882,130 1,850,782 --------- --------- Total Liabilities and $5,998,915 $3,466,240 Stockholders' Equity -2- DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended June 30 June 2007 2006 2007 2006 ---------- --------- --------- --------- Sales $2,584,519 $1,833,869 $8,124,031 $5,047,405 Cost of Sales 1,776,432 1,164,997 5,785,706 3,307,189 ---------- --------- --------- --------- Gross Profit 808,087 668,872 2,338,325 1,740,216 Selling, general and 680,900 501,159 2,021,685 1,414,458 administrative ---------- --------- --------- --------- Income from Operations 127,187 167,713 316,640 325,758 Interest expense - net 19,110 21,638 52,780 60,882 ---------- --------- --------- --------- Income before Income Taxes 108,077 146,075 263,860 264,876 Income Taxes 9,973 6,484 30,629 17,980 ---------- --------- --------- --------- Net Income $ 98,104 $ 139,591 $ 233,231 $ 246,896 ---------- --------- --------- --------- Net Income per share Basic $0.02 $0.03 $0.03 $0.05 Diluted $0.01 $0.02 $0.03 $0.04