DYSL Dynasil Corp of America (CE)

Dynasil Corporation of America (OTCBB: DYSL.OB), (“Dynasil” or the “Company”), a rapidly growing manufacturer of specialized instruments and products with applications in the homeland security/defense, medical and industrial sectors, today announced the results of operations for the first quarter of Fiscal Year 2010 ending December 31, 2009.

Revenues for the quarter ended December 31, 2009 increased by 13.3% to $9.9 million compared to revenues of $8.8 million for the quarter ended December 31, 2008. Income from Operations for the quarter increased by 63% to $1,071,836 compared to $657,370 for the quarter ended December 31, 2008. Net income for the quarter was $613,769 or $0.04 per share, an increase of 73% compared to $355,639 or $0.02 per share, for the quarter ended December 31, 2008.

These gains in profitability were spurred primarily by an increased demand for our products and services, which generated a 13.3% revenue increase, as well as improved profitability in the Products and Instruments businesses. Management has now essentially completed integration of the RMD acquisition and continues commercializing its promising innovations. Overall, Dynasil’s contract research segment continued to grow as interest in RMD’s extensive research capabilities increased. In addition, the Company continued revenue improvements in the Products and Instruments segment and more than doubled its operating margin as a percentage of revenues.

“We are pleased that we were able to continue our five year revenue and profitability track record,” said Craig T. Dunham, President and CEO. “The cost and efficiency improvements completed over the last year have paid off in increased profitability for our Products and Instruments segment. As we look toward future growth, commercializing RMD’s new technologies for Homeland Security’s detection of nuclear materials is our top priority. We believe that our current level of profitability will allow us to be more aggressive in developing the opportunities that result from RMD’s dynamic research results. We expect our revenues to continue to exceed prior year periods as we carry on our strategy of significant and profitable growth through organic development, commercialization of our broad research portfolio, complementary acquisitions, and increasing operating efficiencies.”

About Dynasil: Founded in 1960, Dynasil is a manufacturer of specialized instruments and products for a broad range of applications markets in the medical, industrial and homeland security/ 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 December 31 September 30 2009 2009 ASSETS (Unaudited)   Current assets Cash and cash equivalents $ 2,212,093 $ 3,104,778 Accounts receivable, net 5,626,191 4,053,742 Inventories 2,162,265 2,371,516 Deferred tax asset 290,100 290,100 Other current assets   326,990   306,848 Total current assets 10,617,639 10,126,984   Property, plant and equipment, net 2,676,642 2,744,724 Other Assets Intangibles, net 7,098,230 7,232,035 Goodwill 11,054,396 11,054,396 Deferred financing costs, net   60,490   64,637 Total other assets   18,213,116   18,351,068   Total Assets $ 31,507,397 $ 31,222,776   LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities

Current portion of long-term debt

1,775,585 1,749,524 Note payable to related party 2,000,000 -0- Accounts payable 880,472 773,837 Billings in excess of cost 480,548 60,448 Income taxes payable 153,564 507,122 Dividends payable 131,400 149,150 Accrued expenses and other current liabilities   1,291,324   1,111,342 Total current liabilities 6,712,893 4,351,423   Long-term Liabilities Long-term debt, net 5,634,703 6,386,796 Note payable to related party   -0-   2,000,000 Total long-term liabilities 5,634,703 8,386,796   Stockholders' Equity   19,159,801   18,484,557   Total Liabilities and Stockholders' Equity $ 31,507,397 $ 31,222,776

DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

 

Three Months Ended December 31

 

2009

 

2008

  Revenues $ 9,936,767 $ 8,767,275   Cost of Revenues 6,051,951 5,527,568 -------------- -------------- Gross Profit 3,884,816 3,239,707

 

Selling, general and administrative 2,812,980 2,582,337 ------------- --------------   Income from Operations 1,071,836 657,370   Interest expense – net 162,441 186,797 ------------- --------------   Income before Income Taxes 909,395 470,573   Income Tax expense 295,626 114,934 ------------- --------------   Net Income $ 613,769   $ 355,639 Net Income per share Basic $ 0.04 $ 0.02 Diluted $ 0.04 $ 0.02

Weighted average shares outstanding

   Basic

   Diluted

11,791,820

11,968,319

11,349,404

12,328,159