NEWTON, Mass., Feb. 13, 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 revenue of $9.2 million for the first quarter of fiscal year
2018.
"Revenue for our Optics segment showed a 12% increase for the
quarter ended December 31, 2017, as
compared to the same period last year," said CEO Peter Sulick. "Unfortunately this was offset by
an approximately equivalent revenue decrease in our Research
segment. Additionally, we were impacted by the Tax Cuts and
Jobs Act signed into law in December, 2017. While we continue
to analyze the Act, along with our tax accountants, the reduction
of the corporate tax rate from 35% to 21% and the foreign earnings
and profit tax from our Hilger UK based subsidiary have resulted in
our need to adjust the deferred tax asset of $2.7 million which we recognized in our 1st
quarter 2017 by approximately $0.7
million, which has been recognized as tax expense during
this quarter."
"We released two recent public announcements which we would like
to call to your attention," continued Mr. Sulick. "One, we are
entering a new line of business for our optics segment – High
Efficiency Anti-Reflective (HEAR) and Diamond-Like Carbon (DLC) coatings on infrared
materials. We are investing in both personnel, space and
capital for this opportunity, which we believe offers substantial
revenue growth for us over the next 3-5 years. This startup
operational cost is reflected in a portion of the growth of our
operating costs for the quarter over the prior year. Second,
after extensive testing and data development, our biomedical
subsidiary, Xcede Technologies, filed for a First-In-Human clinical
trial of our developmental hemostatic patch. This is a significant
milestone along the course of the growth in the value of this
asset. The trial will be conducted in the
Netherlands by a team of experienced surgeons, well versed
in hemostasis trials. We anticipate the trial beginning in
the calendar second quarter. This is a significant milestone for
this development effort. Increased cost for the pretrial
activities represent the remaining growth in our G&A
costs."
"One final note," added Mr. Sulick, "we are also investing in a
prototype line at our Optometrics subsidiary to do optical assembly
for certain of our existing customers. As many of you know, we
are largely a component supplier. This is an opportunity to
offer a higher level of service incorporating our components into
frames or even end products for certain customers desirous of
subcontracting out work. We anticipate this line being operational
during our third quarter and are engaged in seeking revenue
opportunities now for this effort."
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 December 31,
2017
|
|
Optics
|
Contract
Research
|
Biomedical
|
Total
|
Revenue
|
$
4,942,000
|
$
4,247,000
|
$
-
|
$
9,189,000
|
Gross
profit
|
1,724,000
|
1,851,000
|
-
|
3,575,000
|
GM %
|
35%
|
44%
|
-
|
39%
|
Operating
expenses
|
1,576,000
|
1,723,000
|
445,000
|
3,744,000
|
Operating income
(loss)
|
$
148,000
|
$
128,000
|
$
(445,000)
|
$
(169,000)
|
|
|
|
|
|
|
|
|
|
|
Results of
Operations for the Three Months Ended December 31,
2016
|
|
Optics
|
Contract
Research
|
Biomedical
|
Total
|
Revenue
|
$
4,405,000
|
$
4,738,000
|
$
-
|
$
9,143,000
|
Gross
profit
|
1,574,000
|
1,951,000
|
-
|
3,525,000
|
GM %
|
36%
|
41%
|
-
|
39%
|
Operating
expenses
|
1,328,000
|
1,740,000
|
381,000
|
3,449,000
|
Operating income
(loss)
|
$
246,000
|
$
211,000
|
$
(381,000)
|
$
76,000
|
Net income (loss) for the three months ended December 31, 2017 was a loss of $0.8 million, or ($0.05) in basic earnings per share, compared
with income of $2.8 million, or
$0.17 in basic earnings per share,
for the quarter ended December 31,
2016. Dynasil recognized a deferred tax asset and a tax
related gain of $2.7 million for the
quarter ended December 31, 2016 which
represented virtually all of the income recognition for that
quarter. A portion of that asset was adjusted downward for
the quarter ended December 31, 2017
due to the new US Federal tax act, resulting in a recognized
expense of $0.7 million.
Upcoming Investor Presentation
In lieu of a first quarter conference call, Dynasil will
provide listen-only audio access to their Annual Stockholders
Meeting starting at 10:00 a.m. ET on
Thursday, February 22, 2018. Following the adjournment
of the Meeting, the Company will host an investor presentation led
by Chairman, CEO and President Peter
Sulick and featuring RMD's President, Dr. Kanai Shah, CEO of Xcede Technologies, Dr.
Linda Zuckerman and Dynasil's
Executive Vice President of Photonics, Dr. Gary Bishop. Access to the event is
available in listen-only mode via the event page or by visiting the
Investor Information section of the Company's website at
www.dynasil.com. The event also may be accessed by dialing (888)
346-2613 or (412) 902-4252. For interested individuals unable
to join the live event, 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
|
December 31,
2017
|
|
September 30,
2017
|
Current
Assets
|
|
|
|
Cash and
cash equivalents
|
$
961,000
|
|
$
2,415,000
|
Accounts
receivable, net
|
3,750,000
|
|
3,407,000
|
Costs in
excess of billings and unbilled receivables
|
1,230,000
|
|
1,317,000
|
Inventories, net of reserves
|
4,491,000
|
|
4,326,000
|
Prepaid
expenses and other current assets
|
792,000
|
|
973,000
|
Total current assets
|
11,224,000
|
|
12,438,000
|
|
|
|
|
Property, Plant and
Equipment, net
|
7,377,000
|
|
7,032,000
|
Other
Assets
|
|
|
|
Intangibles, net
|
978,000
|
|
987,000
|
Deferred
tax asset
|
2,109,000
|
|
2,642,000
|
Goodwill
|
5,951,000
|
|
5,940,000
|
Security
deposits
|
58,000
|
|
58,000
|
Total other assets
|
9,096,000
|
|
9,627,000
|
|
|
|
|
Total Assets
|
$
27,697,000
|
|
$
29,097,000
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Current
portion of long-term debt
|
$
1,840,000
|
|
$
2,007,000
|
Capital
lease obligations, current
|
78,000
|
|
91,000
|
Accounts
payable
|
1,899,000
|
|
2,380,000
|
Deferred
revenue
|
34,000
|
|
129,000
|
Accrued
expenses and other liabilities
|
2,336,000
|
|
2,667,000
|
Total current liabilities
|
6,187,000
|
|
7,274,000
|
|
|
|
|
Long-term
Liabilities
|
|
|
|
Long-term debt, net of current portion
|
1,358,000
|
|
1,045,000
|
Capital
lease obligations, net of current portion
|
68,000
|
|
81,000
|
Deferred
tax liability
|
236,000
|
|
234,000
|
Other
long-term liabilities
|
163,000
|
|
38,000
|
Total long-term liabilities
|
1,825,000
|
|
1,398,000
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Dynasil
stockholders' equity
|
18,302,000
|
|
18,971,000
|
Noncontrolling interest
|
1,383,000
|
|
1,454,000
|
Total stockholders' equity
|
19,685,000
|
|
20,425,000
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
$
27,697,000
|
|
$
29,097,000
|
Dynasil
Corporation of America Consolidated Statement of
Operations and Comprehensive Income
(Loss) (Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
Net
revenue
|
|
$
9,189,000
|
|
$
9,143,000
|
Cost of
revenue
|
|
5,614,000
|
|
5,618,000
|
Gross
profit
|
|
3,575,000
|
|
3,525,000
|
Operating
expenses:
|
|
|
|
|
|
Sales and
marketing
|
|
279,000
|
|
266,000
|
|
Research and
development
|
|
308,000
|
|
196,000
|
|
General and
administrative
|
|
3,157,000
|
|
2,987,000
|
|
|
|
|
|
|
Total operating
expenses
|
|
3,744,000
|
|
3,449,000
|
Income (loss) from
operations
|
|
(169,000)
|
|
76,000
|
Interest expense,
net
|
|
43,000
|
|
67,000
|
Income (loss) before
taxes
|
|
(212,000)
|
|
9,000
|
Income taxes
(benefit)
|
|
660,000
|
|
(2,730,000)
|
Net income
(loss)
|
|
(872,000)
|
|
2,739,000
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
(75,000)
|
|
(69,000)
|
Net income (loss)
attributable to common stockholders
|
|
$
(797,000)
|
|
$
2,808,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(872,000)
|
|
$
2,739,000
|
Other comprehensive
income (loss):
|
|
|
|
|
|
Foreign currency
translation
|
|
35,000
|
|
(295,000)
|
Total comprehensive
loss
|
|
$
(837,000)
|
|
$
2,444,000
|
Less:
comprehensive income (loss) attributable to
|
|
|
|
|
noncontrolling interest
|
|
(75,000)
|
|
(69,000)
|
Total comprehensive
income (loss) attributable to
|
|
|
|
|
common
stockholders
|
|
$
(762,000)
|
|
$
2,513,000
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
|
$
(0.05)
|
|
$
0.17
|
Diluted net income
(loss) per common share
|
|
$
(0.05)
|
|
$
0.17
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
Basic
|
|
17,047,690
|
|
16,808,729
|
|
Diluted
|
|
17,047,690
|
|
16,808,729
|
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