EX-99 5 dyn10ksb0907ex99-1.txt PRESS RELEASE Contact: Craig Dunham Dynasil Corporation of America Phone: (856) 767-4600 Email: cdunham@Dynasil.com Dynasil Announces Fiscal Year 2007 Results WEST BERLIN, N.J. - December 19, 2007 - Dynasil Corporation of America (OTCBB: DYSL.OB), announced the results of operations for its fiscal year ended September 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 the first fiscal year that includes EMF's results. Revenues for the year ended September 30, 2007 were $10.8 million, an increase of 55.6% over revenues of $6.9 million for the year ended September 30, 2006. The net profit for the year ended September 30, 2007 was $542,010, or $.08 per share, compared with a net profit of $460,156, or $.10 per share, for the year ended September 30, 2006. Excluding the impact of the EMF acquisition and $11,366 of stock option expense, fiscal year 2007 revenues for our historical businesses were up 15% and net income was up 100% from $460,000 to $922,000, compared to the fiscal year ended September 30, 2006. Strong revenue growth combined with continued process improvements drove those substantial gains. The EMF acquisition significantly increased our optical coating capabilities and added 37% to fiscal year 2007 revenues. We improved operating efficiency at EMF to deliver a profitable fourth quarter after losses during the first three quarters since the acquisition. Revenues for the 3 months ended September 30, 2007 were $2.7 million, an increase of 41.3% over revenues of $1.9 million for the 3 months ended September 30, 2006. The net profit for the 3 months ended September 30, 2007 was $308,779, or $0.05 per share, compared with a net profit of $213,260, or $0.05 per share, for the 3 months ended September 30, 2006. EMF had a profitable quarter with improved manufacturing efficiencies as we continue to develop the disciplined processes required for EMF to consistently execute with excellent quality, service, and cost performance. "We are pleased with our fiscal year 2007 results. They demonstrate our commitment to delivering shareholder value through organic growth of our business units as well as growing through acquisitions", said Craig T. Dunham, President and CEO. 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 September September 30 30 2007 2006 --------- --------- ASSETS Current assets Cash and cash equivalents $496,948 $352,139 Accounts receivable, net 1,284,844 1,086,394 Inventories 1,832,720 1,131,648 Deferred tax asset 216,100 61,500 Other current assets 130,548 128,957 --------- --------- Total current assets 3,961,160 2,760,638 Property, plant and equipment, net 2,436,517 626,790 Other assets 88,698 78,812 --------- --------- Total Assets $6,486,375 $3,466,240 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Note payable to bank $311,870 $190,000 Current portion of long-term 99,237 72,482 debt Accounts payable 684,208 390,110 Accrued expenses and other 587,872 368,977 current liabilities --------- --------- Total current liabilities 1,683,187 1,021,569 Long-term debt, net 1,626,980 593,889 Stockholders' Equity 3,176,208 1,850,782 --------- --------- Total Liabilities and $6,486,375 $3,466,240 Stockholders' Equity ========= ========= DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Three Months Ended Twelve Months Ended September 30 September 30 2007 2006 2007 2006 Sales $2,670,619 $1,889,226 $10,794,650 $6,936,631 Cost of Sales 1,712,985 1,193,602 7,498,691 4,500,791 --------- --------- ---------- --------- Gross Profit 957,634 695,624 3,295,959 2,435,840 Selling, general and 748,636 496,825 2,708,886 1,911,283 administrative --------- --------- ---------- --------- Income from Operations 208,998 198,799 587,073 524,557 Interest expense - net 39,308 3,494 153,523 64,376 --------- --------- ---------- --------- Income before Income Taxes 169,690 195,305 433,550 460,181 Income Tax expense (benefit) (139,089) (17,955) (108,460) 25 --------- --------- ---------- --------- Net Income $308,779 $213,260 $542,010 $460,156 ======== ======== ======== ======== Net Income (Loss) per share Basic $0.05 $0.05 $0.08 $0.10 Diluted $0.04 $0.03 $0.07 $0.07