DYSL Dynasil Corp of America (CE)

Dynasil Corporation of America (OTCBB:DYSL.OB), announced the results of operations for its fiscal year ended September 30, 2008. Dynasil is a manufacturer of photonic products including optical materials, components, coatings and specialized instruments as well as contract research. The Company supplies a broad range of applications markets in the medical, industrial, and homeland security/ defense sectors. Fiscal year 2008 was a transformational year for Dynasil with the acquisition of Radiation Monitoring Devices, Inc. and certain assets of RMD Instruments, LLC (together, �RMD�) on July 1, 2008. When compared to fiscal year 2007, revenues increased by 58.6% from $10.9 to $17.1 million and net income increased by 114.3% from $0.5 to $1.16 million. Fiscal year 2008 results included only one quarter of results from the RMD acquisition and proforma 2008 revenues with RMD were $34.3 million. Fiscal year 2008 revenues for Dynasil�s historical businesses other than RMD were up 5% and net income before tax was up 47%, from $0.43 to $0.63 million, compared to fiscal year 2007. Revenue growth and major operational improvements at Dynasil�s EMF subsidiary drove those substantial gains. For Quarter 4, the RMD acquisition tripled revenues from $2.7 to $8.6 million and was the major factor in more than quadrupling net profit before taxes from $0.17 to $0.81 million. �We are pleased with our fiscal year 2008 results, especially the technical capabilities and intellectual property acquired with RMD,� said Craig T. Dunham, President and CEO. �Adding RMD was a major step in executing Dynasil�s profitable growth strategy since we expect it to drive short term results as well as provide exciting technology for potential commercialization. At a time when economic conditions are impacting commercial revenues, it is very helpful to have a significant portion of revenues coming from RMD�s contract research which is increasing substantially with a backlog of more than one year. We plan to build on RMD�s strong cash flow by accelerating the growth of RMD�s current products and targeting the commercialization of RMD�s new technology for uses such as medical imaging sensors and detectors for nuclear materials for Homeland Security. We plan to continue to execute our strategy of significant and profitable growth through acquisitions and the organic growth of our business units through effective execution.� About Dynasil: Founded in 1960, Dynasil is a manufacturer of photonic products including optical materials, components, coatings and instruments for a broad range of applications markets in the medical, industrial and defense sectors. Its wholly owned subsidiaries are located in New Jersey, New York and Massachusetts. This news release may contain forward-looking statements usually containing the words "believe," "expect," �plan,� �target,� �intend� or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Future results of operations, projections, and expectations, which may relate to this release, involve certain risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the factors detailed in the Company's Annual Report or Form 10-KSB and in the Company's other Securities and Exchange Commission filings, continuation of existing market conditions and demand for our products. � � Dynasil Corporation of America and Subsidiaries Consolidated Balance Sheets � September 30 September 30 2008 2007 ASSETS � Current assets Cash and cash equivalents $ 3,882,955 $ 496,948 Accounts receivable, net 3,390,703 1,284,844 Inventories 2,909,730 1,832,720 Deferred tax asset 233,500 216,100 Other current assets � 259,896 � 130,548 Total current assets 10,676,784 3,961,160 � Property, plant and equipment, net 2,694,290 2,436,517 Other Assets Intangibles, net 7,807,414 49,475 Goodwill 11,014,240 -0- Deferred financing costs, net 81,136 30,167 Other assets � 8,360 � 9,056 Total other assets 18,911,150 88,698 � � Total Assets $ 32,282,224 $ 6,486,375 � LIABILITIES AND STOCKHOLDERS' EQUITY � Current liabilities Note payable to bank $ 490,117 $ 311,870 Current portion of long-term debt 1,649,101 99,237 Accounts payable 1,026,675 687,208 Accrued expenses and other current liabilities � 1,657,168 � 587,872 Total current liabilities 4,823,061 1,683,187 � Long-term debt 10,178,420 1,626,980 � Stockholders' Equity 17,280,743 3,176,208 � � Total Liabilities and Stockholders' Equity $ 32,282,224 $ 6,486,375 � � � � � Dynasil Corporation of America and Subsidiaries Consolidated Statement of Operations � � Three Months Ended Twelve Months Ended � September 30 September 30 � 2008 � 2007 � 2008 � 2007 � Sales $ 8,579,199 $ 2,670,619 $ 17,116,341 $ 10,794,650 � Cost of Sales 5,209,711 1,712,985 11,307,034 7,498,691 --------- ---------- ---------- ---------- Gross Profit 3,369,488 957,634 5,809,307 3,295,959 � Selling, general and administrative 2,403,162 748,636 4,359,493 2,708,886 --------- ---------- ---------- ---------- � Income from Operations 966,326 208,998 1,449,814 587,073 � Interest expense � net 154,286 39,308 214,090 153,523 --------- ---------- ---------- ---------- � Income before Income Taxes $ 812,040 $ 169,690 $ 1,235,724 $ 433,550 � Income Tax expense (benefit) 39,336 (139,089 ) 73,757 (108,460 ) --------- ---------- ---------- ---------- � Net Income $ 772,704 $ 308,779 $ 1,161,967 $ 542,010 � � � � � Net Income (Loss) per share Basic $ 0.05 $ 0.05 $ 0.12 $ 0.08 Diluted $ 0.05 $ 0.04 $ 0.11 $ 0.07 � Weighted average shares outstanding ��11,992,472 �7,235,170 �8,412,935 ���6,476,128 �