Dynasil, in default, sees earnings improve in Q1
Watertown-based optical detection and analysis company Dynasil Corp. returned to profitability in the first quarter of 2014, following the sale of its lead paint and medical products businesses.
Dynasil, which houses its optometrics division in Ayer, reported net income of $1.45 million, or 10 cents per share, compared with a net loss of $379,000 in the first quarter of 2012, ending Dec. 31. The bulk of the increase was due to the $1.18 million generated in the sale of the two businesses.
Dynasil sold its lead paint analyzer business to Protec Instrument Corp. in November and its Navigator gamma probe business, which included products used in cancer surgeries, to Dilon Technologies Inc.
Meanwhile, net revenue improved slightly in the first quarter, from $10.6 million in 2013 to $10.7 million in 2014, with sales in the contract research segment increasing 19 percent. But revenue in the instrument segment declined 40 percent because of the sale of the lead paint and medical products businesses.
Dynasil said while it has made substantial debt reduction and is in compliance with NASDAQ listing requirements, the company remains in default with both of its lenders. Management has initiated discussions with both lenders to address the situation, according to an earnings statement, but “the company cannot predict when or whether a resolution…will be achieved.”
WBJ Web Partners
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