DYSL Dynasil Corp of America (CE)

Dynasil Corporation of America (OTCBB: DYSL) today announced revenue of $10.3 million for the second quarter ended March 31, 2010, a 19% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $1.11 million, $633,330, and $0.04, increases of 47%, 57%, and 107%, respectively, compared with the prior year.

Dynasil’s contract research revenue increased as a result of strong government contracts and its commercial product revenue increased as the global economy recovered and as a result of new business initiatives. The 47% increase in Income from Operations was driven by the revenue increases in combination with operational savings, compared to the prior year quarter within the commercial products segment.

“We are extremely pleased to report a strong second quarter, the support of Sovereign/Santander Bank with their global resources, and the new contracts awarded, notably, Homeland Security’s award for development of our nuclear radiation threat detector materials,” said Craig T. Dunham, President and CEO of Dynasil. “Our performance reflects outstanding execution by our teams in achieving our operating and financial goals. We look forward to monetizing on the wealth of our research and technological innovation by commercializing additional products, services, and solutions.”

About Dynasil: Dynasil Corporation of America (OTCBB: DYSL), is a provider of technology, products, services and solutions to a broad range of customers to serve their specific needs in the medical, industrial, and homeland security/defense markets. The Company has operations 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-K 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 March 31 September 30 2010 2009 ASSETS (Unaudited)   Current assets Cash and cash equivalents $ 2,760,718 $ 3,104,778 Accounts receivable, net 5,103,968 4,053,742 Inventories 2,135,745 2,371,516 Deferred tax asset 290,100 290,100 Other current assets   425,799   306,848 Total current assets 10,716,330 10,126,984   Property, plant and equipment, net 2,656,939 2,744,724 Other Assets Intangibles, net 6,964,425 7,232,035 Goodwill 11,054,396 11,054,396 Deferred financing costs, net   53,252   64,637 Total other assets   18,072,073   18,351,068   Total Assets $ 31,445,342 $ 31,222,776   LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt 1,820,685 1,749,524 Note payable to related party 2,000,000 -0- Accounts payable 797,094 773,837 Billings in excess of cost 12,895 60,448 Income taxes payable 332,590 507,122 Dividends payable 131,400 149,150 Accrued expenses and other current liabilities   1,441,939   1,111,342 Total current liabilities 6,536,603 4,351,423   Long-term Liabilities Long-term debt, net 5,153,621 6,386,796 Note payable to related party   -0-   2,000,000 Total long-term liabilities 5,153,621 8,386,796   Stockholders' Equity   19,755,118   18,484,557   Total Liabilities and Stockholders' Equity $ 31,445,342 $ 31,222,776     DYNASIL CORPORATION OF AMERICA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)      

Three Months Ended

   

Six Months Ended

March 31

March 31

2010     2009 2010     2009 Net revenues $10,263,326     $8,602,885 $20,200,092     $17,370,161 Cost of revenues 6,054,847     5,105,158 12,106,800     10,782,696 Gross profit 4,208,479 3,497,727 8,093,292 6,587,465

Selling, general and administrative expenses

3,099,355     2,742,466 5,912,334     5,174,834 Income from operations 1,109,124 755,261 2,180,958 1,412,631 Interest expense, net 151,988     219,861 314,429     406,658 Income before income taxes 957,136 535,400 1,866,529 1,005,973 Income taxes 323,836     131,266 619,462     246,198 Net income $633,300     $404,134 $1,247,067     $759,775      

Earnings Per Share

Three Months Ended

Six Months Ended

March 31

March 31

Net income $633,300 $404,134 $1,247,067 $759,775 Dividends on preferred stock 131,400     149,150 274,633     298,300 Net income applicable to common shareholders 501,900 254,984 972,434 461,475 Dividend add back due to assumed Preferred Stock conversion 131,400 0 274,633 0

 

               

Net income for diluted income per common share

$633,300     $254,984 $1,247,067     $461,475   Basic net income per common share $ 0.04 $ 0.02 $ 0.08 $ 0.04 Diluted net income per common share $ 0.04 $ 0.02 $ 0.09 $ 0.04   Weighted average shares outstanding Basic 12,502,365 11,367,008 12,146,499 11,358,143 Diluted 14,839,745 12,345,107 14,483,879 12,336,162