EX-99 5 dyn10k093009-ex99.txt PRESS RELEASE Contact: Stuart Fine Phone: (908) 469-1788 Email: stuart@carpedminc.com Dynasil Announces Fiscal Year 2009 Results with a Doubling of Revenues and Income from Operations WEST BERLIN, N.J. - December 23, 2009 - Dynasil Corporation of America (OTCBB: DYSL.OB) ("Dynasil" or the "Company"), a rapidly growing manufacturer of specialized instruments and products with applications in the homeland security/defense, medical and industrial sectors, today announced the results of operations for its fiscal year ended September 30, 2009. Fiscal year 2009 was a year of significant growth in both revenues and profits for Dynasil following the acquisition of RMD on July 1, 2008. Fiscal year revenues doubled from $17.1 million in FY 2008 to $34.4 million in FY2009; income from operations doubled from $1.45 million to $2.84 million; and net income increased by 33.5% from $1.16 to $1.55 million. Net operating loss carry-forwards for federal taxes were exhausted during fiscal year 2008, so fiscal year 2009 net income was affected by provisions for increased federal taxes, as well as higher interest costs relating to the RMD acquisition. Also, fiscal year 2009 revenues from commercial operations including the optics/photonics products and instruments segment were impacted by the worldwide economic recession. In spite of this, the Company's business units all remained profitable, while its contract research segment showed a substantial revenue increase for the year and has about two years of project backlog. Dynasil also initiated a review of the intellectual property acquired with RMD and began the initial phases of commercial development of this technology. During fiscal year 2009, the Company paid down debt by $2.2 million and maintained liquidity with a cash balance of $3.1 million and an additional $1.2 million available from lines of credit as of September 30, 2009. "In light of the challenges presented by the global economic situation, we are pleased with our fiscal year 2009 results," said Craig T. Dunham, President and CEO. "Our 2008 acquisition of RMD enabled our continued revenue growth, which has averaged more than 70% per year for the last five years. RMD also added new proprietary technology with exciting commercial potential and the prospects for acquiring additional intellectual property assets through our contract research activities. In the case of government funded research, we are normally allowed not only to make a profit on that work, but also to retain commercial rights to the technology that we develop. During 2009, commercialization of that new technology became a major focus area, with the result that we are currently pursuing promising opportunities, some of which include: detectors to help Homeland Security identify nuclear threats, faster sensors for dynamic medical imaging, and crack detection sensors to find very small cracks in objects such as aircraft wings and turbine blades. Overall, we are very excited about the profit potential for this technology. Dynasil remains focused on growth of our commercial operations through internal development and improved efficiencies, as well as through active pursuit of complementary acquisitions and commercialization of technology from RMD." About Dynasil Dynasil is a rapidly growing manufacturer of specialized instruments and products for a broad range of applications markets in the homeland security/defense, medical and general industrial sectors. In addition, the Company is engaged in a significant amount of contract research for the government and private industry. Dynasil and its subsidiaries have operations in New Jersey, New York and Massachusetts. This news release may contain forward-looking statements usually containing the words "believe," "expect," "plan," "target," "intend" 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 on Form 10-K and in the Company's other Securities and Exchange Commission filings, continuation of existing market conditions and demand for our products and services. Dynasil Corporation of America and Subsidiaries Consolidated Balance Sheets September 30 September 30 2009 2008 ---------- ---------- ASSETS Current assets Cash and cash equivalents $3,104,778 $3,882,955 Accounts receivable, net 4,053,742 3,390,703 Inventories 2,371,516 2,909,730 Deferred tax asset 290,100 233,500 Other current assets 306,848 259,896 ---------- ---------- Total current assets 10,126,984 10,676,784 Property, plant and equipment, net 2,744,724 2,694,290 Other Assets Intangibles, net 7,232,035 7,767,258 Goodwill 11,054,396 11,054,396 Deferred financing costs, net 64,637 81,136 Other assets -0- 8,360 ---------- ---------- Total other assets 18,351,068 18,911,150 ---------- ---------- Total Assets $31,222,776 $32,282,224 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short term note payable -0- $490,117 Current portion of long-term 1,749,524 1,649,101 debt Accounts payable 773,837 877,525 Accrued expenses and other 1,171,790 1,620,692 current liabilities Income taxes payable 507,122 36,476 Dividends payable 149,150 149,150 ---------- ---------- Total current liabilities 4,351,423 4,823,061 Long-term debt 8,386,796 10,178,420 Stockholders' Equity 18,484,557 17,280,743 ---------- ---------- Total Liabilities and Stockholders' $31,222,776 $32,282,224 Equity =========== =========== Dynasil Corporation of America and Subsidiaries Consolidated Statement of Operations Twelve Months Ended September 30 2009 2008 Revenues $34,363,674 $17,116,341 Cost of Revenues 20,629,501 11,307,034 ---------- ---------- Gross Profit 13,734,173 5,809,307 Selling, general and 10,891,096 4,359,493 administrative ---------- ---------- Income from Operations 2,843,077 1,449,814 Interest expense - net 735,317 214,090 ---------- ---------- Income before Income Taxes 2,107,760 1,235,724 Income Tax expense 556,462 73,757 ---------- ---------- Net Income $1,551,298 $1,161,967 ========== ========== Net Income per share Basic $0.08 $0.12 Diluted $0.08 $0.12 Weighted average shares outstanding Basic 11,373,837 7,752,809 Diluted 12,328,261 8,871,825