NEWTON, Mass., May 14, 2018 /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 net income of $1.3
million or $0.08 per share for
the second quarter of fiscal year 2018.
"I am happy to report revenue in our Optics segment showed an
11% increase for the quarter as compared to the same period last
year – the second consecutive quarter of double-digit revenue
growth in Optics' revenue," said CEO Peter
Sulick. "Additionally, this quarter's results contain a
$1.3 million benefit for income taxes
as the result our ongoing review for the PATH 2015 federal R&E
Tax Credit for the years 2012 thru 2016. We anticipate completing
this review by the fiscal year end and we are expecting additional
state credits will be determined as well.
"And although our Research segment's revenue decreased 10% this
quarter, as compared to last year, largely due to a delay in
commercial revenue, RMD's commercial revenue shows signs of picking
up this quarter, as evidenced by the recently announced new
purchase orders from Thermo Fisher Scientific. Overall, our revenue
for the quarter was up 2% over the same period last year."
Certain key metrics by segment for the current quarter and the
same quarter last year are presented below:
Results of
Operations for the Three Months Ended March 31, 2018
|
|
Optics
|
Contract
Research
|
Biomedical
|
Total
|
Revenue
|
$
5,910,000
|
$
4,345,000
|
$
-
|
$
10,255,000
|
Gross
profit
|
2,050,000
|
1,895,000
|
-
|
3,945,000
|
GM %
|
35%
|
44%
|
-
|
38%
|
Operating
expenses
|
1,858,000
|
1,813,000
|
194,000
|
3,865,000
|
Operating income
(loss)
|
$
192,000
|
$
82,000
|
$
(194,000)
|
$
80,000
|
|
|
|
|
|
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)
|
Net income (loss) attributable to common stockholders was
approximately $1.3 million or
$0.08 per share for the quarter ended
March 31, 2018 and ($0.1) million or ($0.00) per share for the quarter ended
March 31, 2017. Dynasil's provision
for income taxes for the second quarter of 2018 was a benefit of
$1.3 million as compared to a tax
provision of $0.1 million for the
same period in fiscal year 2017. The 2018 provision in the second
quarter of fiscal year 2018 was the result of a PATH 2015 federal
R&E Tax Credit for the years 2012 thru 2016 that we are
estimating based on the review we are in the process of
conducting.
Conference Call Information
Dynasil will host a
conference call for investors and analysts at 5:00 p.m. ET today, Monday, May 14, 2018. 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 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, our compliance with
the financial covenants under our loan agreements with Middlesex
Savings Bank and Massachusetts Capital Resource Company, the
commercialization of our technology, including the Xcede patch and
our dual mode detectors, the expecting timing of the First-in-Human
clinical trial of the Xcede patch, the success of efforts to fund
Xcede, results of our pre-clinical and planned clinical trials,
regulatory approvals, our development of new technologies including
at Dynasil Biomedical, the adequacy of our current financing
sources to fund our current operations, our growth initiatives,
governmental budgetary and funding matters, our capital
expenditures 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. The
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. These factors that could cause actual results to differ
from those anticipated or predicted include, 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, 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, changing
priorities or reductions in government spending, litigation, the
effect of governmental regulatory developments, the availability of
financing sources, our ability to comply with our debt obligations,
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, filed on December 20, 2017,
including the risk factors contained in Item 1A, 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,
2018
|
|
September 30,
2017
|
Current
Assets
|
|
|
|
Cash and
cash equivalents
|
$
1,130,000
|
|
$
2,415,000
|
Accounts
receivable, net
|
4,276,000
|
|
3,407,000
|
Costs in
excess of billings and unbilled receivables
|
846,000
|
|
1,317,000
|
Inventories, net of reserves
|
4,638,000
|
|
4,326,000
|
Prepaid
expenses and other current assets
|
686,000
|
|
973,000
|
Total current assets
|
11,576,000
|
|
12,438,000
|
|
|
|
|
Property, Plant and
Equipment, net
|
7,551,000
|
|
7,032,000
|
Other
Assets
|
|
|
|
Intangibles, net
|
997,000
|
|
987,000
|
Deferred
tax asset
|
3,351,000
|
|
2,642,000
|
Goodwill
|
6,009,000
|
|
5,940,000
|
Security
deposits
|
33,000
|
|
58,000
|
Total other assets
|
10,390,000
|
|
9,627,000
|
|
|
|
|
Total Assets
|
$
29,517,000
|
|
$
29,097,000
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current
portion of long-term debt
|
$
1,896,000
|
|
$
2,007,000
|
Capital
lease obligations, current
|
62,000
|
|
91,000
|
Accounts
payable
|
1,744,000
|
|
2,380,000
|
Deferred
revenue
|
126,000
|
|
129,000
|
Accrued
expenses and other liabilities
|
2,745,000
|
|
2,667,000
|
Total current liabilities
|
6,573,000
|
|
7,274,000
|
|
|
|
|
Long-term
Liabilities
|
|
|
|
Long-term debt, net of current portion
|
1,172,000
|
|
1,045,000
|
Capital
lease obligations, net of current portion
|
61,000
|
|
81,000
|
Deferred
tax liability, net
|
244,000
|
|
234,000
|
Other
long-term liabilities
|
164,000
|
|
38,000
|
Total long-term liabilities
|
1,641,000
|
|
1,398,000
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Dynasil
stockholders' equity
|
19,948,000
|
|
18,971,000
|
Noncontrolling interest
|
1,355,000
|
|
1,454,000
|
Total stockholders' equity
|
21,303,000
|
|
20,425,000
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
29,517,000
|
|
$
29,097,000
|
|
|
|
|
|
Dynasil
Corporation of America
|
|
Consolidated
Statement of Operations and Comprehensive Income
(Loss)
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net
revenue
|
|
$10,255,000
|
|
$10,085,000
|
|
$19,443,000
|
|
$19,228,000
|
Cost of
revenue
|
|
6,310,000
|
|
6,297,000
|
|
11,958,000
|
|
11,915,000
|
Gross
profit
|
|
3,945,000
|
|
3,788,000
|
|
7,485,000
|
|
7,313,000
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
388,000
|
|
328,000
|
|
667,000
|
|
593,000
|
|
Research and
development
|
|
215,000
|
|
335,000
|
|
524,000
|
|
531,000
|
|
General and
administrative
|
|
3,262,000
|
|
3,128,000
|
|
6,418,000
|
|
6,115,000
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
3,865,000
|
|
3,791,000
|
|
7,609,000
|
|
7,239,000
|
Income (loss) from
operations
|
|
80,000
|
|
(3,000)
|
|
(124,000)
|
|
74,000
|
Interest expense,
net
|
|
45,000
|
|
45,000
|
|
88,000
|
|
112,000
|
Income (loss) before
taxes
|
|
35,000
|
|
(48,000)
|
|
(212,000)
|
|
(38,000)
|
Income tax
(benefit)
|
|
(1,255,000)
|
|
71,000
|
|
(595,000)
|
|
(2,658,000)
|
Net income
(loss)
|
|
1,290,000
|
|
(119,000)
|
|
383,000
|
|
2,620,000
|
|
Less: Net loss
attributable to noncontrolling
interest
|
|
(33,000)
|
|
(64,000)
|
|
(108,000)
|
|
(133,000)
|
Net income (loss)
attributable to common
stockholders
|
|
$
1,323,000
|
|
$
(55,000)
|
|
$
491,000
|
|
$
2,753,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
1,290,000
|
|
$
(119,000)
|
|
$
383,000
|
|
$
2,620,000
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
222,000
|
|
65,000
|
|
257,000
|
|
(230,000)
|
Total comprehensive
income (loss)
|
|
1,512,000
|
|
(54,000)
|
|
640,000
|
|
2,390,000
|
|
Less: comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
noncontrolling interest
|
|
(33,000)
|
|
(64,000)
|
|
(108,000)
|
|
(133,000)
|
Total comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
attributable to
common stockholders
|
|
$
1,545,000
|
|
$
10,000
|
|
$
748,000
|
|
$
2,523,000
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
|
$
0.08
|
|
$
(0.00)
|
|
$
0.03
|
|
$
0.16
|
Diluted net income
(loss) per common share
|
|
$
0.08
|
|
$
(0.00)
|
|
$
0.03
|
|
$
0.16
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
17,133,468
|
|
16,886,628
|
|
17,090,530
|
|
16,847,679
|
|
Diluted
|
|
17,133,468
|
|
16,886,628
|
|
17,090,530
|
|
16,847,679
|
Contact:
Patty Kehe
Corporate Secretary
Dynasil Corporation of America
Phone: 617.668.6855
pkehe@dynasil.com
View original
content:http://www.prnewswire.com/news-releases/dynasil-corporation-of-america-reports-second-quarter-fiscal-2018-net-income-of-1-3-million-300647641.html
SOURCE Dynasil Corporation of America