EX-99 5 dyn10qsb0308-ex99.txt PRESS RELEASE Contact: Craig Dunham Dynasil Corporation of America Phone: (856) 767-4600 Email: cdunham@Dynasil.com Dynasil Announces Second Quarter 2008 Results WEST BERLIN, N.J. May 15, 2008 Dynasil Corporation of America (OTCBB: DYSL.OB), announced the results of operations for its 2008 second quarter ended March 31, 2008. Dynasil is a manufacturer of photonic products including optical materials, components, coatings and specialized instruments. Our capabilities support medical imaging technologies, quality inspection systems, and missile guidance systems, among others. Revenues for the 3 months ended March 31, 2008 were $3.04 million, an increase of 1.4% over revenues of $3 million for the 3 months ended March 31, 2007. Net profit for the 3 months ended March 31, 2008 was $145,976, or $0.02 per share, an increase of 30% over net profit of $112,229, or $0.02 per share, for the 3 months ended March 31, 2007. Year to date performance shows a 5.6% increase in revenues to $5.9 million and a 149% increase in net profit to $336,262 versus last year's $135,128. Improved execution and results for our EMF optical coatings business is the largest driver in the increases. Our Optometrics business in Ayer, MA, completed its first months of operations with the optical filter product line acquired in January, 2008, which is projected to add approximately $500,000 in annual revenues. The results met expectations and significant improvements in productivity were completed. On December 20, 2007, we announced that we had entered into a Letter of Intent to acquire a privately-owned advanced instruments company which, if completed, is expected to more than triple our revenues and profitability. The targeted company makes high growth potential instruments which are sold into the medical, environmental sensing and quality instrumentation markets. It also has a significant research and development team performing a number of government contracts for Homeland Security and other government agencies. Management expects that the acquisition would be transformational for Dynasil in that it would move us from a predominantly component-based supply company to an instrumentation company with a considerable intellectual property portfolio and extensive technology capability as well as more than tripling expected revenues and profitability. Consummation of the transaction is contingent on completion of definitive agreements, due diligence, and obtaining financing. "The majority of due diligence has been completed and definitive agreements are in-process," states Craig T. Dunham, President and CEO. "Non-binding bank term sheets have been obtained for at least $10 million of senior loan financing on favorable terms. We also are in the process of arranging required equity financing and closing is targeted for July 1, 2008." We continue to execute our strategy of significant profitable, growth through acquisitions as well as organic growth and effective execution in our businesses. About Dynasil: Founded in 1960, Dynasil is a manufacturer of photonic products including optical materials, components, coatings, and instruments for a broad range of applications markets in the medical, industrial, and defense sectors. Its wholly-owned subsidiaries are located in New Jersey, Massachusetts, and New York. 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 ASSETS March 31 September 30 2008 2007 (Unaudited) ---------- ---------- Current assets Cash and cash equivalents $ 518,965 $ 496,948 Accounts receivable, net 1,489,203 1,284,844 Inventories 1,790,567 1,832,720 Deferred tax asset 216,100 216,100 Other current assets 219,950 130,548 ---------- ---------- Total current assets 4,234,785 3,961,160 Property, Plant and Equipment, net 2,606,824 2,436,517 Other Assets 164,346 88,698 ---------- ---------- Total Assets $7,005,955 $6,486,375 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Note payable to bank $760,070 $311,870 Current portion long term debt 170,874 99,237 Accounts payable 393,115 684,208 Accrued expenses and other current liabilities 560,414 587,872 ---------- ---------- Total current liabilities 1,884,473 1,683,187 Long-term Debt, net 1,482,850 1,626,980 Stockholders' Equity 3,638,632 3,176,208 ---------- ---------- Total Liabilities and Stockholders' Equity $7,005,955 $6,486,375 ========== ==========
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended March 31 March 31 2008 2007 2008 2007 ---------- --------- --------- --------- Sales $3,045,974 $3,003,216 $5,860,880 $5,539,512 Cost of Sales 2,070,418 2,144,767 3,971,438 4,028,630 ---------- --------- --------- --------- Gross Profit 975,556 858,449 1,889,442 1,510,882 Selling, general and 777,348 695,633 1,456,756 1,280,435 administrative ---------- --------- --------- --------- Income from Operations 198,208 162,816 432,686 230,447 Interest expense - net 42,062 39,001 75,584 74,664 ---------- --------- --------- --------- Income before Income Taxes 156,146 123,815 357,102 155,783 Income Tax expense 10,170 11,586 20,840 20,655 ---------- --------- --------- --------- Net Income $ 145,976 $ 112,229 $ 336,262 $ 135,128 ========== ========= ========= ========= Net Income per share Basic $0.02 $0.02 $0.05 $0.02 Diluted $0.02 $0.02 $0.04 $0.01 Weighted average shares outstanding 7,461,992 4,943,093 7,192,658 4,599,067