NEWTON, Mass., May 12, 2016 /PRNewswire/ -- Dynasil Corporation of America (NASDAQ: DYSL), a developer and manufacturer of optics and photonics products, optical detection and analysis technology and components for the homeland security, medical and industrial markets, today announced a strong revenue showing by its Optics segment. The Optics companies reported revenues of $6.4 million in the quarter ended March 31, 2016 compared to $5.2 million of revenues in the same period of 2015. This $1.2 million increase represents a 23% increase in Optics segment revenue year over year. Certain key metrics by segment for the current quarter and the same quarter last year are presented below:
Results of Operations for the Three Months Ended March 31, 2016 | ||||
Optics | Contract | Biomedical | Total | |
Revenue | $ 6,428,000 | $ 4,868,000 | $ - | $ 11,296,000 |
Gross Profit | 2,208,000 | 1,870,000 | - | 4,078,000 |
GM % | 34% | 38% | - | 36% |
Operating expenses | 1,882,000 | 1,800,000 | 355,000 | 4,037,000 |
Net Income (loss) | $ 249,000 | $ 67,000 | $ (347,000) | $ (31,000) |
Results of Operations for the Three Months Ended March 31, 2015 | ||||
Optics | Contract | Biomedical | Total | |
Revenue | $ 5,220,000 | $ 4,675,000 | $ - | $ 9,895,000 |
Gross Profit | 1,808,000 | 1,952,000 | - | 3,760,000 |
GM % | 34.6% | 42% | - | 38.0% |
Operating expenses | 1,580,000 | 1,896,000 | 270,000 | 3,746,000 |
Net Income (loss) | $ 106,000 | $ 53,000 | $ (258,000) | $ (99,000) |
"I am pleased to report our continued revenue growth in the Optics segment driven predominantly by a new product offering that has been ramping up over the past 9 months. Our operating businesses continue to have positive net income as well. The expenses from Xcede Technologies, Inc. ("Xcede"), our Hemostat/Sealant technology development project, caused Dynasil to end at breakeven for both the second quarter and year to date," said CEO Peter Sulick.
"Despite some government budget pressure, our Contract Research segment revenues increased 4% to $4.9 million in the second quarter of 2016. Our backlog in this segment has been decreased slightly to $31 million, as we continue to experience government budget pressure, in the form of both contract award and funding delays."
"Our Xcede joint venture continues to work with Cook Biotech Inc. of West Lafayette, IN to complete design freeze and manufacturing development of Xcede's resorbable hemostatic patch. Xcede's management team is actively pursuing a number of financing alternatives to raise the necessary capital to complete biocompatibility testing and begin first in human clinical trials necessary for regulatory approvals. We anticipate this process to successfully conclude by the end of our fiscal year," added Mr. Sulick.
Dynasil's results for the second quarter of fiscal 2016 were essentially breakeven, up slightly from the net loss of ($0.1) million for the second quarter of fiscal 2015. The net loss also included expenses of approximately $0.4 million and $0.3 million in the three months ended March 31, 2016 and 2015, respectively, associated with research and start-up costs of Xcede. Dynasil has voting control of Xcede via its common stock ownership, thus Dynasil is required to include Xcede in the company's consolidated financial statements even though Dynasil is no longer funding Xcede.
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, CEO and President Peter Sulick and Chief Financial Officer Robert Bowdring. Those who wish to listen to the conference call can go to the event page at or visit the Investor Information section of the Company's website at www.dynasil.com. The call also may be accessed by dialing (888) 346-2613 or (412) 902-4252. 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 optics and photonics products, optical detection and analysis technology and components for the homeland security, medical and industrial markets. Combining world-class expertise in research and materials science with extensive experience in manufacturing and product development, Dynasil is commercializing products including dual-mode radiation detection solutions for Homeland Security and commercial applications and sensors for non-destructive testing. Dynasil has an impressive and growing portfolio of issued and pending U.S. patents. The Company is based in Newton, MA, with additional operations in MA, MN, NY, NJ and the United Kingdom. More information about the Company is available at www.dynasil.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
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