Dynasil Corporation of America Reports First Quarter Fiscal 2013 Financial Results

  Dynasil Corporation of America Reports First Quarter Fiscal 2013 Financial

       Company to Host Earnings Conference Call at 5:00 p.m. (ET) Today

Business Wire

WATERTOWN, Mass. -- February 13, 2013

Dynasil Corporation of America (NASDAQ: DYSL), a leading developer of sensing,
detection and analysis technology for homeland security, medical and
industrial applications, today announced financial results for the fiscal 2013
first quarter ended December 31, 2012.

“Our first-quarter results underscore our focus on right-sizing the cost
structure of our various businesses as we work to conserve cash, work through
our debt issues and achieve profitability,” said Dynasil Chairman and Interim
CEO Peter Sulick. “In the first quarter of fiscal 2013 we were able to reduce
operating expenses to their lowest level in five quarters,” said Dynasil
Chairman and Interim CEO Peter Sulick. “Total operating expenses decreased
from the first quarter of 2012 and were down 5.5% on a sequential basis.
General and administrative expenses, which represent a significant component
of our total operating expenses, have declined by over $300,000 as compared to
the first quarter of fiscal year 2012.”

Net revenue for the first quarter of fiscal 2013 was $10.6 million, compared
with $12.1 million for the first quarter of fiscal 2012. Contract Research
revenues declined to $4.9 million from $6.2 million in the first quarter of
fiscal 2012, primarily due to lower billable material and subcontractor costs
in the 2013 period. The Company’s Contract Research backlog has remained
consistent at nearly 18 months. Instruments segment revenues were $1.3 million
in the first quarter of fiscal 2013 compared with $2.0 million for the 2012
comparable period. The Company attributes this result to customers delaying
the purchase of two existing products, a lead paint analyzer and gamma medical
probe, in anticipation of the availability of new versions of these products.
Dynasil has completed development work on both refreshed products, which are
awaiting required regulatory approvals. Offsetting these revenue decreases
were increases in the Company’s Optics business of approximately $300,000.

Gross profit for the first quarter of 2013 totaled $4.6 million, or 43.8% of
net revenue, compared with $5.1 million, or 42.3% of revenue for the first
quarter of fiscal 2012.

Total operating expenses for the first quarter of fiscal 2013 declined to $4.8
million from $4.9 million for the same period of 2012.

Dynasil reported a net loss for the fiscal 2013 first quarter of $0.4 million,
or $0.03 per share, compared with net income of $0.4 million, or $0.02 per
diluted share, for the same period of 2012.

On December 31, 2012, the Company announced it is in default of certain
financial covenants set forth in the terms of its outstanding indebtedness
with respect to its fiscal year ended September 30, 2012. The Company
continues to be current with all principal and interest payments due on all
its outstanding indebtedness and management expects to continue discussions
with its lenders to address the financial covenant situation. However, the
Company cannot predict when or whether a resolution of this situation will be

Recent Highlights: Delivery of Pilot Production Order to Thermo Fisher

In January 2013, Dynasil announced that Thermo Fisher Scientific Inc. (NYSE:
TMO) is integrating the Company’s proprietary gamma and neutron scintillator
detection technology, known as CLYC, into the Thermo Fisher Scientific RadEye®
GN+ Personal Radiation Detector. The device is being deployed to homeland
security, defense and law enforcement agencies worldwide.

“We are excited about the prospects of our CLYC dual mode scintillator
crystals for homeland security applications as well as other large market
opportunities,” Sulick said. “In addition to being able to identify illicit
nuclear materials and other threats, our CLYC crystals have broad
applicability in industries such as well-logging, where they are used to
determine the presence of rocks, minerals, oil, gas and other substances of
value. Our Hilger Crystals business unit, which is commercializing this
program with support from our RMD business, continues to significantly enhance
the CLYC production processes. We have received expressions of interest in
CLYC from several prospective customers, and are engaged in design activity on
a number of fronts.”

Conference Call Information

Dynasil will host a conference call for investors and analysts at 5:00 p.m. ET
today. The call will be hosted by Chairman and Interim CEO and President Peter
Sulick and Chief Financial Officer Thomas Leonard. Those who wish to listen to
the conference call should visit the Investor Information section of the
Company’s website at www.dynasil.com. The call also may be accessed by dialing
(877) 407-5790 or (201) 689-8328. For interested individuals unable to join
the live conference call, a webcast replay will be available on the Company’s
website for one year.

About Dynasil

Dynasil Corporation of America (NASDAQ: DYSL) develops and manufactures
detection and analysis technology, precision instruments and optical
components for the homeland security, medical and industrial markets.
Combining world-class technology with expertise in research and materials
science, Dynasil is commercializing products including dual-mode radiation
detection solutions for Homeland Security and commercial applications, probes
for medical imaging and sensors for non-destructive testing. The Company is
building a relationship with the Mayo Clinic to develop early-stage
opportunities such as advanced biomedical technologies. Dynasil has an
impressive and growing portfolio of issued and pending U.S. patents. The
Company is based in Watertown, Massachusetts, with additional operations in
Mass., Minn., NY, NJ and the United Kingdom. More information about the
Company is available at www.dynasil.com.

Forward-looking Statements

This news 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, the commercialization of our products
including our dual mode detectors, the adequacy of our current financing
sources to fund our current operations, our growth initiatives, our capital
expenditures and the strength of our intellectual property portfolio. These
forward-looking statements may be identified by the use of words such as
“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 resolve our current default under our
outstanding indebtedness, 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, our ability to
address our material weaknesses in our internal controls, 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, 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 identify
and execute on acquisition opportunities and integrate such acquisitions into
our business, and seasonality, as well as the uncertainties set forth in the
Company’s Annual Report on Form 10-K, 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

                                                   31-Dec          30-Sep
                                                   2012            2012
ASSETS                                             (Unaudited)     
Current Assets
Cash and cash equivalents                          $2,471,900      $3,414,880
Accounts receivable, net                           4,849,552       5,475,142
Cost in excess of billings and unbilled            1,941,547       1,735,798
Inventories, net of reserves                       3,550,710       3,271,700
Deferred tax asset                                 126,187         126,187
Prepaid expenses and other current assets          1,401,925       1,334,649
Total current assets                               14,341,821      15,358,356
Property, Plant and Equipment, net                 5,093,097       4,984,150
Other Assets
Intangibles, net                                   6,527,608       6,703,305
Goodwill                                           10,264,499      10,254,160
Deferred financing costs, net                      152,650         165,457
Total other assets                                 16,944,757      17,122,922
Total Assets                                       $36,379,675     $37,465,428
Current Liabilities
Current portion of long-term debt                  $11,511,905     $11,984,492
Accounts payable                                   2,807,421       2,416,397
Deferred revenue                                   826,880         694,672
Accrued expenses and other liabilities             1,951,680       2,809,580
Total current liabilities                          17,097,886      17,905,141
Long-term Liabilities
Pension liability                                  342,848         345,443
Deferred tax liability                             365,328         371,256
Total long-term liabilities                        708,176         716,699
Stockholders' Equity                               18,573,613      18,843,588
Total Liabilities and Stockholders' Equity         $36,379,675     $37,465,428

Dynasil Corporation of America
Consolidated Statement of Operations
                                               Three Months Ended
                                               December 31,
                                               2012              2011
Net revenue                                    $10,553,275       $12,132,295
Cost of revenue                                5,926,409        7,005,347   
Gross profit                                   4,626,866         5,126,948
Operating expenses:
Sales and marketing expenses                   479,878           392,801
Research and development expenses              637,129           519,395
General and administrative expenses            3,701,146        4,028,24    
Total operating expenses                       4,818,153        4,940,620   
Income (loss) from operations                  (191,287    )     186,328
Interest expense, net                          186,767          124,157     
Income (loss) before income tax (benefit)      (378,044    )     62,171
Income tax (benefit) provision                 1,298            (308,167    )
Net income (loss)                              ($379,342   )     $370,338    
Net Income (loss)                              ($379,342   )     $370,338
Other comprehensive income (loss):
Foreign currency translation                   29,739           (60,360     )
Total comprehensive income (loss)              ($349,603   )     $309,978    
Basic net income per common share              ($0.03      )     $0.02
Diluted net income per common share            ($0.03      )     $0.02
Weighted average shares outstanding
Basic                                          14,673,356        15,583,103
Diluted                                        14,673,356        15,683,834


Dynasil Corporation of America
Patty Kehe, 617-668-6855
Corporate Secretary
Sharon Merrill
David Calusdian, 617-542-5300
Executive Vice President and Partner
Press spacebar to pause and continue. Press esc to stop.