Dynasil Reports Second Quarter Results

WEST BERLIN, N.J.--([ BUSINESS WIRE ])--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.

"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 Securitya�s award for development of our nuclear radiation threat detector materials"

Dynasila�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.

aWe 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 Securitya�s award for development of our nuclear radiation threat detector materials,a said Craig T. Dunham, President and CEO of Dynasil. aOur 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.a

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," aplana, atargeta, aintenda 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		274,633

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

Contributing Sources

Market Wire

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Dynasil Reports Second Quarter Results