DYSL Dynasil Corp of America (CE)

Dynasil Corporation of America (OTCBB:DYSL.OB), announced the results of operations for its third quarter of fiscal year 2009 ended June 30, 2009. Dynasil Corporation is a rapidly growing manufacturer of specialized instruments and products for a broad range of applications markets in the medical, industrial, and homeland security/ defense sectors. Dynasil currently derives more than half of their revenues from government-funded contract research where the number of opportunities has significantly increased with the economic stimulus package.

Revenues for the quarter ended June 30, 2009 more than tripled to $8.5 million compared to revenues of $2.7 million for the quarter ended June 30, 2008. Income from Operations for the quarter was $695,191, nearly seven times greater than $105,774 for the quarter ended June 30, 2008. Net income for the quarter was $393,368, or $0.02 per share, compared with net income of $53,002, or $0.01 per share, for the quarter ended June 30, 2008. For the nine months ended June 30, 2009, revenues tripled to $25.9 million, Income from Operations more than tripled to $2.1 million and Net Income nearly tripled to $1,153,141 as compared to the nine months ended June 30, 2008. This is the fourth quarter since the acquisition of Radiation Monitoring Devices, Inc. and certain assets of RMD Instruments, LLC (together, “RMD”) on July 1, 2008, which was the key driver for the large revenue and profitability increases. Net Operating Loss carry-forwards for federal taxes were exhausted during fiscal year 2008 so fiscal year 2009 net income was impacted by increased federal tax provisions as well as the higher interest costs related to the RMD acquisition.

“With the current situation in our economy, we are pleased that we were able to triple revenues and increase Income from Operations seven fold for the quarter,” said Craig T. Dunham, President and CEO. “The acquisition of RMD has significantly increased Dynasil’s technical capabilities and intellectual property. During the quarter, we hired Mr. Paul Tyra as Vice President- Commercialization to drive the commercialization of technology developed through our government funded research. Mr. Tyra brings extensive marketing and technical experience with commercialization as well as a master’s degree in Engineering and an MBA from MIT. We also have organized an advisory board of entrepreneurs to help accelerate our commercialization efforts and to maximize its effectiveness. We continue to execute our strategy of significant and profitable growth through organic growth, commercialization of our broad research portfolio and acquisitions.”

About Dynasil: Dynasil is a rapidly growing manufacturer of specialized instruments and products for a broad range of applications markets in the medical, industrial, and homeland security/ defense sectors as well as currently deriving more than half of its revenues from government-funded contract research. 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

   

ASSETS

June 30,2009

September 30,2008 (Unaudited)   Current assets Cash and cash equivalents $ 3,196,064 $ 3,882,955

Accounts receivable, net of allowance for doubtful accounts of $25,870 and $70,165 and sales returns of $4,177 and $8,200 for June 30, 2009 and September 30, 2008, respectively

3,813,386 3,390,703 Inventories 2,503,135 2,909,730 Deferred tax asset 233,500 233,500 Prepaid expenses and other current assets   294,220   259,896 Total current assets 10,040,305 10,676,784 Property, Plant and Equipment, net 2,669,597 2,694,290 Other Assets Intangibles, net 7,365,840 7,767,258 Goodwill 11,054,396 11,054,396 Deferred financing costs, net 65,615 81,136 Other assets   3,091   8,360 Total other assets   18,488,942   18,911,150 Total Assets $ 31,198,844 $ 32,282,224 LIABILITIES AND STOCKHOLDERS' EQUITY   Current Liabilities Short Term Note Payable $ -0- $ 490,117 Current portion of long term debt 1,706,605 1,649,101 Accounts payable 922,829 1,026,675 Billings in excess of cost -0- 216,946 Accrued expenses and other current liabilities   1,568,354   1,440,222 Total current liabilities 4,197,788 4,823,061 Long-term Liabilities Long-term debt, net 6,844,976 8,178,420 Note payable to related party   2,000,000   2,000,000 Total long-term liabilities 8,844,976 10,178,420 Stockholders' Equity

Common Stock, $.0005 par value, 40,000,000 shares authorized, 12,182,093 and 12,142,849 shares issued, 11,371,933 and 11,332,689 shares outstanding

6,091 6,072 Preferred Stock, $.001 par value, 15,000,000

Shares authorized, 5,966,000 shares issued and outstanding for June 30, 2009 and September 31, 2008, 10% cumulative, convertible

5,966 5,966 Additional paid in capital 16,284,946 16,122,185 Retained earnings   2,845,419   2,132,862 19,142,422 18,267,085 Less 810,160 shares in treasury - at cost   (986,342 )   (986,342 ) Total stockholders' equity   18,156,080   17,280,743 Total Liabilities and Stockholders' Equity $ 31,198,844 $ 32,282,224    

DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

    Three Months EndedJune 30 Nine Months EndedJune 30 2009   2008 2009   2008 Net sales $ 8,512,892 $ 2,676,263 $ 25,883,053 $ 8,537,144 Cost of sales   4,860,590   1,972,006   15,440,128   6,097,322 Gross profit 3,652,302 704,257 10,442,925 2,439,822

Selling, general and administrative expenses

  2,957,111   598,483   8,335,105   1,901,361 Income from operations 695,191 105,774 2,107,820 538,461 Interest expense, net   160,367   39,191   567,025   114,774 Income before income taxes 534,824 66,583 1,540,795 423,687 Income taxes   141,456   13,581   387,654   34,421 Net income $ 393,368 $ 53,002 $ 1,153,141 $ 389,266  

Basic net income per common share

$ 0.02 $ 0.01 $ 0.06 $ 0.05 Diluted net income per commonshare $ 0.02 $ 0.00 $ 0.06 $ 0.05  

Weighted average shares outstanding

Basic 11,371,933 6,743,853 11,362,745 6,559,629 Diluted 12,346,636 7,443,784 12,337,448 7,259,560