Dynasil Corporation of America Reports First Quarter Fiscal 2019 Results
February 13 2019 - 2:30PM
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 $10.0
million for the first quarter of fiscal year 2019.
“Overall revenue for the first quarter increased
9%, fueled by a 16% increase in revenue for our Optics segment, as
compared to the same period last year,” said CEO Peter Sulick. “Our
Innovation and Development segment revenue increased 1%, as
compared to the quarter ended December 31, 2017.”
“We continue to invest in growth initiatives in
our Optics segment to support further revenue growth,” continued
Mr. Sulick. “The operating expenses in our Optics segment increased
20% over the same period last year, partially attributable to an
increase in personnel for our growth initiatives, as well as the
recent scale up in our marketing initiatives. Additionally, the
approximately $160,000 in accounting expenses incurred due to the
implementation of new revenue recognition policies impacted both
our Optics and Innovation and Development segments.”
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, 2018 |
|
Optics |
Innovation andDevelopment* |
Biomedical |
Total |
Revenue |
$ |
5,721,000 |
|
$ |
4,307,000 |
|
$ |
- |
|
$ |
10,028,000 |
|
Gross profit |
|
1,879,000 |
|
|
1,813,000 |
|
|
- |
|
|
3,692,000 |
|
GM % |
|
33 |
% |
|
42 |
% |
|
- |
|
|
37 |
% |
Operating expenses |
|
1,885,000 |
|
|
1,879,000 |
|
|
53,000 |
|
|
3,817,000 |
|
Operating income
(loss) |
$ |
(6,000 |
) |
$ |
(66,000 |
) |
$ |
(53,000 |
) |
$ |
(125,000 |
) |
|
|
|
|
|
|
|
|
|
|
Results of Operations for the Three Months
Ended December 31, 2017 |
|
Optics |
Innovation andDevelopment* |
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 |
) |
|
|
|
|
|
*Formerly Contract
Research |
|
|
|
|
|
|
|
|
Net income (loss) for the three months ended
December 31, 2018 was a loss of ($0.1) million, or ($0.01) in basic
earnings per share, compared with a loss of ($0.8) million, or
($0.05) in basic earnings per share in the three months ended
December 31, 2017. For the quarter ended December 31, 2018, the
Company recorded a tax benefit of $0.1 million. For the quarter
ended December 31, 2017, due to the 2017 US Federal tax act, the
Company recorded a tax expense of $0.7 million.
Conference Call Information
Dynasil will host a conference call for
investors and analysts at 5:00 p.m. ET on February 13, 2019.
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 (toll
free) 1-866-688-3138 or (international callers) 1-574-990-2948. 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 optical 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 selling and continuing to develop products for dual-mode
radiation detection solutions for 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, Massachusetts, with
additional operations in Massachusetts, New Jersey, New York 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 success of efforts to develop a
successful Xcede Patch and to fund that development, our
development of new technologies including at Dynasil Biomedical,
the adequacy of our current financing sources to fund our current
operations, our growth initiatives, 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, Xcede’s ability
to produce preclinical data sufficient to enable it to initiate
clinical studies of hemostatic patch, clinical results of Xcede’s
programs which may not support further development, the ability of
our RMD business unit to identify and pursue possible continued
development opportunities for the Xcede patch, which is not
assured, 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, 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, 2018 |
|
September 30, 2018 |
Current Assets |
|
|
|
Cash and cash
equivalents |
$ |
1,165,000 |
|
$ |
2,327,000 |
Accounts
receivable, net |
|
3,471,000 |
|
|
4,069,000 |
Unbilled
receivables |
|
1,245,000 |
|
|
1,215,000 |
Contract
assets |
|
21,000 |
|
|
- |
Inventories, net of reserves |
|
4,492,000 |
|
|
4,106,000 |
Prepaid
expenses and other current assets |
|
801,000 |
|
|
664,000 |
Total
current assets |
|
11,195,000 |
|
|
12,381,000 |
|
|
|
|
Property, Plant and
Equipment, net |
|
7,956,000 |
|
|
8,098,000 |
Other Assets |
|
|
|
Intangibles, net |
|
718,000 |
|
|
755,000 |
Deferred
tax asset |
|
4,394,000 |
|
|
4,333,000 |
Goodwill |
|
5,864,000 |
|
|
5,900,000 |
Long term
contract assets |
|
4,000 |
|
|
7,000 |
Security
deposits |
|
53,000 |
|
|
58,000 |
Total
other assets |
|
11,033,000 |
|
|
11,053,000 |
|
|
|
|
Total Assets |
$ |
30,184,000 |
|
$ |
31,532,000 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
Liabilities |
|
|
|
Equipment
line of credit |
$ |
240,000 |
|
$ |
- |
Current
portion of long-term debt |
|
1,253,000 |
|
|
1,246,000 |
Capital
lease obligations, current |
|
34,000 |
|
|
40,000 |
Accounts
payable |
|
1,669,000 |
|
|
2,355,000 |
Contract
liabilities |
|
157,000 |
|
|
253,000 |
Accrued
expenses and other liabilities |
|
2,322,000 |
|
|
2,803,000 |
Total
current liabilities |
|
5,675,000 |
|
|
6,697,000 |
|
|
|
|
Long-term
Liabilities |
|
|
|
Long-term
debt |
|
1,898,000 |
|
|
2,075,000 |
Long-term
capital lease obligations |
|
44,000 |
|
|
52,000 |
Deferred
tax liability |
|
199,000 |
|
|
205,000 |
Other
long-term liabilities |
|
178,000 |
|
|
175,000 |
Total
long-term liabilities |
|
2,319,000 |
|
|
2,507,000 |
|
|
|
|
Stockholders'
Equity |
|
|
|
Dynasil
stockholders' equity |
|
20,898,000 |
|
|
21,029,000 |
Noncontrolling interest |
|
1,292,000 |
|
|
1,299,000 |
Total
stockholders' equity |
|
22,190,000 |
|
|
22,328,000 |
|
|
|
|
Total
Liabilities and Stockholders' Equity |
$ |
30,184,000 |
|
$ |
31,532,000 |
|
|
|
|
|
Dynasil Corporation of America |
Consolidated Statement of Operations and Comprehensive
Income (Loss) |
(Unaudited) |
|
|
|
Three Months Ended |
|
December 31, |
|
2018 |
|
2017 |
Net revenue |
$ |
10,028,000 |
|
|
$ |
9,189,000 |
|
Cost of revenue |
|
6,336,000 |
|
|
|
5,614,000 |
|
Gross profit |
|
3,692,000 |
|
|
|
3,575,000 |
|
Operating
expenses: |
|
|
|
Sales and
marketing |
|
398,000 |
|
|
|
279,000 |
|
Research
and development |
|
177,000 |
|
|
|
308,000 |
|
General
and administrative |
|
3,242,000 |
|
|
|
3,157,000 |
|
|
|
|
|
Total
operating expenses |
|
3,817,000 |
|
|
|
3,744,000 |
|
Income (loss) from
operations |
|
(125,000 |
) |
|
|
(169,000 |
) |
Interest expense,
net |
|
42,000 |
|
|
|
43,000 |
|
Income
(loss) before taxes |
|
(167,000 |
) |
|
|
(212,000 |
) |
Income
tax (benefit) |
|
(65,000 |
) |
|
|
660,000 |
|
Net
income (loss) |
|
(102,000 |
) |
|
|
(872,000 |
) |
Less: Net
income (loss) attributable to noncontrolling interest |
|
(9,000 |
) |
|
|
(75,000 |
) |
Net
income (loss) attributable to common stockholders |
$ |
(93,000 |
) |
|
$ |
(797,000 |
) |
|
|
|
|
|
|
|
|
Net
income (loss) |
$ |
(102,000 |
) |
|
$ |
(872,000 |
) |
Other
comprehensive income (loss): |
|
|
|
Foreign
currency translation |
|
(141,000 |
) |
|
|
35,000 |
|
Total
comprehensive income (loss) |
|
(243,000 |
) |
|
|
(837,000 |
) |
Less:
comprehensive income (loss) attributable to |
|
|
|
noncontrolling interest |
|
(9,000 |
) |
|
|
(75,000 |
) |
Total
comprehensive income (loss) attributable to |
|
|
|
common
stockholders |
$ |
(234,000 |
) |
|
$ |
(762,000 |
) |
|
|
|
|
Basic net income (loss)
per common share |
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
Diluted net income
(loss) per common share |
$ |
(0.01 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
Weighted average shares
outstanding |
|
|
|
Basic |
|
17,324,976 |
|
|
|
17,047,690 |
|
Diluted |
|
17,324,976 |
|
|
|
17,047,690 |
|
|
|
|
|
Contact: Patty Kehe Corporate Secretary Dynasil
Corporation of America Phone: 617.668.6855 pkehe@dynasil.com
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