NEWTON, Mass., May 15, 2017 /PRNewswire/ -- Dynasil
Corporation of America (NASDAQ: DYSL), a developer and manufacturer
of optics and photonics products, optical detection and analysis
technology and components for the homeland security, medical and
industrial markets, today announced continued success in its
efforts to improve gross profit margin in the Company's operating
segments.
"I am happy to report that both of our operating segments
continued to be profitable both for the quarter and six months
ended March 31, 2017, showing
continued improvements in gross profit margin," said CEO
Peter Sulick. "Our operating
businesses are continuing to make strides in improving yields and
productivity. For both the quarter and the six months, the Company
realized a 2% overall improvement in margin despite an overall
reduction in revenue from the prior year. The revenue reduction in
these periods is the result of certain one-time revenue
opportunities the Company was able to take advantage of in the
first half of 2016, the effect of the devaluation in the British
currency and a softening of revenue in project revenue at
RMD. Despite this, the Company's profitability was roughly
equivalent to the prior year before the reversal of the deferred
tax valuation."
Certain key metrics by segment for the current quarter and the
same period last year are presented below:
Results of
Operations for the Three Months Ended March 31, 2017
|
|
Optics
|
Contract
Research
|
Biomedical
|
Total
|
Revenue
|
$
5,281,000
|
$
4,804,000
|
$
-
|
$
10,085,000
|
Gross
profit
|
1,913,000
|
1,875,000
|
-
|
3,788,000
|
GM %
|
36%
|
39%
|
-
|
38%
|
Operating
expenses
|
1,597,000
|
1,802,000
|
392,000
|
3,791,000
|
Operating income
(loss)
|
$
316,000
|
$
73,000
|
$
(392,000)
|
$
(3,000)
|
|
|
|
|
|
Results of
Operations for the Three Months Ended March 31, 2016
|
|
Optics
|
Contract
Research
|
Biomedical
|
Total
|
Revenue
|
$
6,428,000
|
$
4,868,000
|
$
-
|
$
11,296,000
|
Gross
profit
|
2,208,000
|
1,870,000
|
-
|
4,078,000
|
GM %
|
34%
|
38%
|
-
|
36%
|
Operating
expenses
|
1,882,000
|
1,800,000
|
355,000
|
4,037,000
|
Operating income
(loss)
|
$
326,000
|
$
70,000
|
$
(355,000)
|
$
41,000
|
"Our Optics segment revenue decreased $1.1 million in the second quarter of 2017 as
compared to the same period last year. This decrease primarily
resulted from initial system orders and a safety stock sale to a
large U.K. customer in the second quarter of fiscal year 2016. The
second quarter of fiscal year 2017 represented a more normalized
shipping schedule for this customer," continued Mr. Sulick. "Our
Contract Research segment revenue was essentially equal to that of
the same three month period in 2016. The research revenue was
somewhat lower, but offset in part by increased commercial product
revenue for items originally developed by the research teams,
including shipments of our CLYC scintillation crystals to Thermo
Fisher Scientific for use in their RadEye SPRD-GN spectroscopic
personal radiation detectors."
Dynasil's net income (loss) attributable to common stockholders
was approximately ($0.1) million or
($0.00) per share for the quarter
ended March 31, 2017 and
approximately breakeven or ($0.00)
per share for the quarter ended March 31,
2016.
Earnings attributable to common stockholders for the six months
ended March 31, 2017 were
$2.8 million or $0.16 per common share, largely as the result of
a U.S. income tax benefit resulting from the deconsolidation for
tax purposes of Xcede Technologies, Inc., the Company's tissue
sealant technology development joint venture. Because of the
previously discussed Xcede Technologies' transactions in
November 2016, Dynasil's ownership
percentage in Xcede decreased to less than 80% and Dynasil will no
longer include Xcede in its consolidated federal tax return, which
resulted in an income tax benefit in the amount of $2.7 million for the six months ended
March 31, 2017.
Conference Call Information
Dynasil will host a conference call for investors and analysts
at 5:00 p.m. ET today, Monday, May 15, 2017. The call will be
hosted by Chairman, CEO and President Peter
Sulick and Chief Financial Officer Robert Bowdring. Those who wish to listen
to the conference call can go to the event page at or visit the
Investor Information section of the Company's website at
www.dynasil.com. The call also may be accessed by dialing (888)
346-2613 or (412) 902-4252. For interested individuals unable
to join the live conference call, a webcast replay will be
available on the Company's website for one year.
About Dynasil
Dynasil Corporation of America (NASDAQ: DYSL) develops and
manufactures optics and photonics products, optical detection and
analysis technology and components for the homeland security,
medical and industrial markets. Combining world-class
expertise in research and materials science with extensive
experience in manufacturing and product development, Dynasil is
commercializing products including dual-mode radiation detection
solutions for Homeland Security and commercial applications and
sensors for non-destructive testing. Dynasil has an
impressive and growing portfolio of issued and pending U.S.
patents. The Company is based in Newton, MA, with additional operations in MA,
MN, NY, NJ and the United Kingdom.
More information about the Company is available at
www.dynasil.com.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements regarding future
events and our future results are based on current expectations,
estimates, forecasts, and projections and the beliefs and
assumptions of our management, including, without limitation, our
expectations regarding results of operations and the strength of
our intellectual property portfolio. These forward-looking
statements may be identified by the use of words such as "plans",
"intends," "may," "could," "expect," "estimate," "anticipate,"
"continue" or similar terms, though not all forward-looking
statements contain such words. Actual results of the future events
described in such forward-looking statements could differ
materially from those stated in such forward-looking statements due
to a number of important factors, including without limitation, our
ability to develop and commercialize our products, including
obtaining regulatory approvals, the size and growth of the
potential markets for our products and our ability to serve those
markets, the rate and degree of market acceptance of any of our
products, general economic conditions, costs and availability of
raw materials and management information systems, our ability to
obtain and maintain intellectual property protection for our
products, Xcede's ability to produce preclinical data sufficient to
enable it to initiate clinical studies of its resorbable hemostatic
patch, clinical results of Xcede's programs which may not support
further development, competition, the loss of key management and
technical personnel, our ability to obtain timely payment of our
invoices to governmental customers, litigation, the effect of
governmental regulatory developments, the availability of financing
sources, our ability to deleverage our balance sheet, our ability
to identify and execute on acquisition opportunities and integrate
such acquisitions into our business, and seasonality, as well as
the uncertainties set forth in the Company's Annual Report on Form
10-K and from time to time in the Company's other filings with the
Securities and Exchange Commission. The Company disclaims any
intention or obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Dynasil
Corporation of America and Subsidiaries
|
|
|
|
Consolidated
Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
ASSETS
|
March 31,
2017
|
|
September 30,
2016
|
Current
Assets
|
|
|
|
Cash and
cash equivalents
|
$
2,299,000
|
|
$
2,607,000
|
Accounts
receivable, net
|
3,325,000
|
|
3,502,000
|
Costs in
excess of billings and unbilled receivables
|
880,000
|
|
1,208,000
|
Inventories, net of reserves
|
3,965,000
|
|
3,726,000
|
Prepaid
expenses and other current assets
|
1,148,000
|
|
1,078,000
|
Total current assets
|
11,617,000
|
|
12,121,000
|
|
|
|
|
Property, Plant and
Equipment, net
|
6,802,000
|
|
7,223,000
|
Other
Assets
|
|
|
|
Intangibles, net
|
1,057,000
|
|
1,067,000
|
Deferred
tax asset
|
2,649,000
|
|
-
|
Goodwill
|
5,838,000
|
|
5,898,000
|
Security
deposits
|
13,000
|
|
60,000
|
Total other assets
|
9,557,000
|
|
7,025,000
|
|
|
|
|
Total Assets
|
$
27,976,000
|
|
$
26,369,000
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current
portion of long-term debt
|
$
1,979,000
|
|
$
2,477,000
|
Capital
lease obligations, current
|
100,000
|
|
105,000
|
Convertible notes
|
-
|
|
3,085,000
|
Accounts
payable
|
1,205,000
|
|
1,627,000
|
Deferred
revenue
|
99,000
|
|
238,000
|
Accrued
expenses and other liabilities
|
2,335,000
|
|
2,955,000
|
Total current liabilities
|
5,718,000
|
|
10,487,000
|
|
|
|
|
Long-term
Liabilities
|
|
|
|
Long-term debt, net of current portion
|
1,384,000
|
|
736,000
|
Capital
lease obligations, net of current portion
|
123,000
|
|
173,000
|
Deferred
tax liability
|
246,000
|
|
263,000
|
Other
long-term liabilities
|
35,000
|
|
43,000
|
Total long-term liabilities
|
1,788,000
|
|
1,215,000
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Dynasil
stockholders' equity
|
18,913,000
|
|
14,973,000
|
Noncontrolling interest
|
1,557,000
|
|
(306,000)
|
Total stockholders' equity
|
20,470,000
|
|
14,667,000
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
27,976,000
|
|
$
26,369,000
|
Dynasil
Corporation of America
|
Consolidated
Statement of Operations and Comprehensive Income
(Loss)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
revenue
|
|
$
10,085,000
|
|
$11,296,000
|
|
$19,228,000
|
|
$22,493,000
|
Cost of
revenue
|
|
6,297,000
|
|
7,218,000
|
|
11,915,000
|
|
14,451,000
|
Gross
profit
|
|
3,788,000
|
|
4,078,000
|
|
7,313,000
|
|
8,042,000
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
328,000
|
|
343,000
|
|
593,000
|
|
678,000
|
|
Research and
development
|
|
335,000
|
|
277,000
|
|
531,000
|
|
565,000
|
|
General and
administrative
|
|
3,128,000
|
|
3,417,000
|
|
6,115,000
|
|
6,600,000
|
|
Gain on sale of
assets
|
|
-
|
|
-
|
|
-
|
|
(4,000)
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
3,791,000
|
|
4,037,000
|
|
7,239,000
|
|
7,839,000
|
Income (loss) from
operations
|
|
(3,000)
|
|
41,000
|
|
74,000
|
|
203,000
|
Interest expense,
net
|
|
45,000
|
|
77,000
|
|
112,000
|
|
136,000
|
Income (loss) before
taxes
|
|
(48,000)
|
|
(36,000)
|
|
(38,000)
|
|
67,000
|
Income tax
(credit)
|
|
71,000
|
|
33,000
|
|
(2,658,000)
|
|
68,000
|
Net income
(loss)
|
|
(119,000)
|
|
(69,000)
|
|
2,620,000
|
|
(1,000)
|
|
Less: Net loss
attributable to
noncontrolling interest
|
|
(64,000)
|
|
(38,000)
|
|
(133,000)
|
|
(76,000)
|
Net income (loss)
attributable to
common stockholders
|
|
$
(55,000)
|
|
$
(31,000)
|
|
$
2,753,000
|
|
$
75,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(119,000)
|
|
$
(69,000)
|
|
$
2,620,000
|
|
$
(1,000)
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
65,000
|
|
(142,000)
|
|
(230,000)
|
|
(256,000)
|
Total comprehensive
income (loss)
|
|
(54,000)
|
|
(211,000)
|
|
2,390,000
|
|
(257,000)
|
|
Less: comprehensive
income (loss)
attributable to noncontrolling
interest
|
|
(64,000)
|
|
(38,000)
|
|
(133,000)
|
|
(76,000)
|
Total comprehensive
income (loss)
attributable to common stockholders
|
|
$
10,000
|
|
$
(173,000)
|
|
$
2,523,000
|
|
$
(181,000)
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common
share
|
|
$
(0.00)
|
|
$
(0.00)
|
|
$
0.16
|
|
$
0.00
|
Diluted net income
(loss) per common
share
|
|
$
(0.00)
|
|
$
(0.00)
|
|
$
0.16
|
|
$
0.00
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
16,886,628
|
|
16,636,950
|
|
16,847,679
|
|
16,594,074
|
|
Diluted
|
|
16,886,628
|
|
16,636,950
|
|
16,847,679
|
|
16,650,606
|
Contact:
Patty
Kehe
Corporate Secretary
Dynasil Corporation of America
Phone: 617.668.6855
pkehe@dynasil.com
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SOURCE Dynasil Corporation of America