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 second quarter
fiscal 2019 results.
Second Quarter Fiscal 2019
Results
Consolidated revenue was $11.5 million for the
three months ended March 31, 2019. This $1.2 million or 12% revenue
increase resulted from both a 5% increase in Optics segment revenue
and a 22% increase in Innovations and Development segment revenue
each as compared to the quarter ended March 31, 2018.
Gross profit for the quarter ended March 31,
2019 was $4.4 million, or 38% of revenue, as compared to the gross
profit of $3.9 million, or 38% of revenue for the quarter ended
March 31, 2018.
Total operating expenses were $4.0 million for
the three-month period ended March 31, 2019, a 3% increase over the
$3.9 million in operating expenses for the three months ended March
31, 2018. The increase was attributable to our continued
investments in our new initiatives, including promotional
activities from our new marketing team along with higher patent and
recruiting expenses.
Income from operations for the quarter ended
March 31, 2019 was $0.3 million, compared with $0.1 million for the
quarter ended March 31, 2018.
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,
2019 |
|
|
Optics |
|
Innovation and Development* |
|
|
Biomedical |
|
Total |
|
Revenue |
$ |
6,226,000 |
|
$ |
5,306,000 |
|
$ |
- |
|
$ |
11,532,000 |
|
Gross profit |
|
2,159,000 |
|
|
2,199,000 |
|
|
- |
|
|
4,358,000 |
|
GM % |
|
35% |
|
|
41% |
|
|
- |
|
|
38% |
|
Operating expenses |
|
1,871,000 |
|
|
2,141,000 |
|
|
22,000 |
|
|
4,034,000 |
|
Operating income (loss) |
$ |
288,000 |
|
$ |
58,000 |
|
$ |
(22,000 |
) |
$ |
324,000 |
|
|
|
|
|
|
|
Results of Operations for the Three Months Ended March 31,
2018 |
|
|
Optics |
Innovation and Development* |
|
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 |
|
|
|
|
|
|
|
*Formerly
Contract Research |
|
|
|
|
Net income for the three months ended March 31,
2019 was essentially breakeven, or $0.00 in basic earnings per
share, compared to $1.3 million, or $0.08 in basic earnings per
share, for the quarter ended March 31, 2018. The provision
for income taxes for the second quarter of 2019 was approximately
$0.2 million, whereas, during the quarter ended March 31, 2018, the
Company had a tax provision benefit of $1.3 million primarily as
the result of the estimate of the PATH 2015 R&E Tax Credit for
the years 2012 thru 2016 that the Company was in the process of
conducting in fiscal year 2018.
Plan to Deregister and Delist the Common
Stock
On May 2, 2019, the Company announced that a
Special Committee of independent directors has recommended, and its
Board of Directors has approved, a plan to cease the registration
of the Company’s common stock under the federal securities laws
following the completion of a proposed reverse stock split
transaction and to delist its shares of common stock from trading
on the Nasdaq Capital Market. It is expected that this plan would
be effectuated in late summer 2019, subject to Dynasil’s
stockholders approving the proposed reverse stock split at a
Special Meeting of Stockholders to be held for that purpose.
The Company expects to file a preliminary proxy statement with the
SEC later in May. Once available, the Company encourages
investors to read the proxy statement.
As the Company is currently in a proxy filing
process with respect to the above announcement, it will not be
hosting a quarterly conference call with respect to its second
quarter fiscal 2019 results.
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,
our expectations regarding results of operations, 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, the
strength of our intellectual property portfolio, perceived benefits
and costs of the proposed stock split transaction, the number of
shares of the Company’s common stock that are expected to be cashed
out in the such transaction and the timing and stockholder approval
of such transaction.. 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, seasonality, the
many variables that may impact the Company’s projected cost
savings, variables and risks related to consummation of the
proposed stock split transaction, SEC regulatory review of the
Company’s filings related to the such transaction, and the
continuing determination of the Board of Directors and Special
Committee that such transaction is in the best interests of all
stockholders. as well as the uncertainties set forth in the
Company’s Annual Report on Form 10-K, filed on December 21, 2018,
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, 2019 |
|
September 30, 2018 |
Current Assets |
|
|
|
Cash and cash equivalents |
$ |
350,000 |
|
$ |
2,327,000 |
Accounts receivable, net |
|
3,950,000 |
|
|
4,069,000 |
Unbilled receivables |
|
2,553,000 |
|
|
1,215,000 |
Contract assets |
|
19,000 |
|
|
- |
Inventories, net of reserves |
|
4,525,000 |
|
|
4,106,000 |
Prepaid expenses and other current assets |
|
847,000 |
|
|
664,000 |
Total current assets |
|
12,244,000 |
|
|
12,381,000 |
|
|
|
|
Property, Plant and Equipment, net |
|
8,020,000 |
|
|
8,098,000 |
Other Assets |
|
|
|
Intangibles, net |
|
701,000 |
|
|
755,000 |
Deferred tax asset |
|
4,198,000 |
|
|
4,333,000 |
Goodwill |
|
5,900,000 |
|
|
5,900,000 |
Long term contract assets |
|
26,000 |
|
|
7,000 |
Security deposits |
|
53,000 |
|
|
58,000 |
Total other assets |
|
10,878,000 |
|
|
11,053,000 |
|
|
|
|
Total Assets |
$ |
31,142,000 |
|
$ |
31,532,000 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current Liabilities |
|
|
|
Equipment line of credit |
$ |
484,000 |
|
$ |
- |
Current portion of long-term debt |
|
1,307,000 |
|
|
1,246,000 |
Capital lease obligations, current |
|
33,000 |
|
|
40,000 |
Accounts payable |
|
2,218,000 |
|
|
2,355,000 |
Contract liabilities |
|
25,000 |
|
|
253,000 |
Accrued expenses and other liabilities |
|
2,469,000 |
|
|
2,803,000 |
Total current liabilities |
|
6,536,000 |
|
|
6,697,000 |
|
|
|
|
Long-term Liabilities |
|
|
|
Long-term debt |
|
1,660,000 |
|
|
2,075,000 |
Long-term capital lease obligations |
|
38,000 |
|
|
52,000 |
Deferred tax liability |
|
205,000 |
|
|
205,000 |
Other long-term liabilities |
|
180,000 |
|
|
175,000 |
Total long-term liabilities |
|
2,083,000 |
|
|
2,507,000 |
|
|
|
|
Stockholders' Equity |
|
|
|
Dynasil stockholders' equity |
|
21,249,000 |
|
|
21,029,000 |
Noncontrolling interest |
|
1,274,000 |
|
|
1,299,000 |
Total stockholders' equity |
|
22,523,000 |
|
|
22,328,000 |
|
|
|
|
Total Liabilities and Stockholders'
Equity |
$ |
31,142,000 |
|
$ |
31,532,000 |
|
|
|
|
|
|
Dynasil Corporation of
AmericaConsolidated Statement of Operations and
Comprehensive Income
(Loss)(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
Net revenue |
$ |
11,532,000 |
|
$ |
10,255,000 |
|
|
$ |
21,560,000 |
|
$ |
19,443,000 |
|
Cost of
revenue |
|
7,174,000 |
|
|
6,310,000 |
|
|
|
13,510,000 |
|
|
11,958,000 |
|
Gross profit |
|
4,358,000 |
|
|
3,945,000 |
|
|
|
8,050,000 |
|
|
7,485,000 |
|
Operating
expenses: |
|
|
|
|
|
|
Sales and marketing |
|
477,000 |
|
|
388,000 |
|
|
|
875,000 |
|
|
667,000 |
|
|
Research and development |
|
147,000 |
|
|
215,000 |
|
|
|
324,000 |
|
|
524,000 |
|
|
General and
administrative |
|
3,410,000 |
|
|
3,262,000 |
|
|
|
6,652,000 |
|
|
6,418,000 |
|
|
|
|
|
|
|
|
Total operating
expenses |
|
4,034,000 |
|
|
3,865,000 |
|
|
|
7,851,000 |
|
|
7,609,000 |
|
Income (loss) from
operations |
|
324,000 |
|
|
80,000 |
|
|
|
199,000 |
|
|
(124,000 |
) |
Interest expense,
net |
|
46,000 |
|
|
45,000 |
|
|
|
88,000 |
|
|
88,000 |
|
Income (loss)
before taxes |
|
278,000 |
|
|
35,000 |
|
|
|
111,000 |
|
|
(212,000 |
) |
Income tax
(benefit) |
|
206,000 |
|
|
(1,255,000 |
) |
|
|
141,000 |
|
|
(595,000 |
) |
Net income
(loss) |
|
72,000 |
|
|
1,290,000 |
|
|
|
(30,000 |
) |
|
383,000 |
|
|
Less: Net loss attributable to
noncontrolling interest |
|
(4,000 |
) |
|
(33,000 |
) |
|
|
(13,000 |
) |
|
(108,000 |
) |
Net income (loss) attributable to common
stockholders |
$ |
76,000 |
|
$ |
1,323,000 |
|
|
$ |
(17,000 |
) |
$ |
491,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
72,000 |
|
$ |
1,290,000 |
|
|
$ |
(30,000 |
) |
$ |
383,000 |
|
Other
comprehensive income (loss): |
|
|
|
|
|
|
Foreign currency
translation |
|
145,000 |
|
|
222,000 |
|
|
|
4,000 |
|
|
257,000 |
|
Total
comprehensive income (loss) |
|
217,000 |
|
|
1,512,000 |
|
|
|
(26,000 |
) |
|
640,000 |
|
|
Less: comprehensive income
(loss) |
|
|
|
|
|
|
attributable to noncontrolling
interest |
|
(4,000 |
) |
|
(33,000 |
) |
|
|
(13,000 |
) |
|
(108,000 |
) |
Total
comprehensive income (loss) |
|
|
|
|
|
attributable to
common stockholders |
$ |
221,000 |
|
$ |
1,545,000 |
|
|
$ |
(13,000 |
) |
$ |
748,000 |
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share |
$ |
0.00 |
|
$ |
0.08 |
|
|
$ |
(0.00 |
) |
$ |
0.03 |
|
Diluted net income
(loss) per common share |
$ |
0.00 |
|
$ |
0.08 |
|
|
$ |
(0.00 |
) |
$ |
0.03 |
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
Basic |
|
17,433,249 |
|
|
17,133,468 |
|
|
|
17,379,113 |
|
|
17,090,530 |
|
|
Diluted |
|
17,433,249 |
|
|
17,133,468 |
|
|
|
17,379,113 |
|
|
17,090,530 |
|
Contact:
Patty Kehe Corporate Secretary Dynasil Corporation of America
Phone: 617.668.6855 pkehe@dynasil.com
Dynasil Corp of America (NASDAQ:DYSL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dynasil Corp of America (NASDAQ:DYSL)
Historical Stock Chart
From Jul 2023 to Jul 2024