Optics Revenue Climbs Amid Downturn at Dynasil

Record revenues in three of its four optics businesses couldn't counteract a decline in profits and overall revenue at Dynasil Corp. of America.

For the year ended Sept. 30, Dynasil incurred a net loss of $353,000, or 1 cent per diluted share, compared with net income of $2 million, or 13 cents per diluted share, in fiscal 2014.

The loss was attributed to the final termination and settlement of a subsidiary's pension plan. Dynasil also paid down about $3 million in debt during fiscal 2015. The previous year's gain resulted partly from the sale of two businesses related to x-ray detection of lead paint and radiation detectors used in medicine.

Giving up those businesses meant a loss of approximately $800,000 in revenue in fiscal 2015. Overall revenue declined 4 percent to $40.5 million from fiscal 2014 to this year.

Contract research funding also declined $3.2 million, or 15 percent, to $18.8 million. This continued a downward trend since 2012 that CEO Peter Sulick said reflected changing government funding policies and research budget cutbacks. As a result, Dynasil has concentrated R&D on radiation detection and related fields with fewer, but larger and more collaborative, projects. The company does not expect further erosion of research revenue over the next two years, however.

Optics segment revenues, meanwhile, increased $2.2 million, or 11 percent, to $21.8 million. It was the second year of double-digit growth in this area, Sulick said. The trend is expected to continue as U.K. subsidiary Hilger Crystals carries out a three-year agreement to supply components for x-ray and gamma-ray imaging.

Dynasil develops optical detection and analysis technology and components for the homeland security, medical and industrial markets. Subsidiaries include EMF and Optometrics.