Dynasil (DYSL) Reports FY12 Loss of $0.29, Comments on "Going Concern"
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Price: $2.50 --0%
Financial Fact:
Diluted net income per common share (in dollars per share): 0.02
Today's EPS Names:
MFON, SICP, LBAS, More
Financial Fact:
Diluted net income per common share (in dollars per share): 0.02
Today's EPS Names:
MFON, SICP, LBAS, More
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Dynasil Corporation of America (NASDAQ: DYSL) reported Q4 EPS of ($0.29), versus $0.08 reported last year. Revenue for the quarter came in at $47.89 million versus $46.95 million last year.
Liquidity
As previously disclosed, as of September 30, 2012, Dynasil is in default with its financial covenants under the Company’s loan agreements. Dynasil 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. These financial covenant defaults give the lenders the right to accelerate the maturity of the indebtedness outstanding and foreclose on any security interest. Furthermore, Sovereign Bank, N.A., the Company’s senior lender, may, at its option, impose a default interest rate with respect to the senior debt outstanding, which is 5% higher than the rate otherwise in effect. To date, the lenders have not taken any such actions. However, the Company cannot predict when or whether a resolution of this situation will be achieved.
The Company has taken and will continue to take actions to improve its liquidity, including the implementation of a number of initiatives designed to conserve cash, optimize profitability and right-size the cost structure of its various businesses. Dynasil has retained Argus Management Corporation and Mirus Capital as financial advisors to assist it in evaluating strategic and restructuring alternatives, including the potential sale of product lines and/or a Company division. While the Company is actively considering such strategic alternatives, there can be no assurances that any such transaction will occur, or, if a transaction is completed, it will be on terms favorable to the Company.
Because of the uncertainty of any resolution of the covenant violations and possibility of an acceleration of the indebtedness by the lenders, the Company has reclassified all of its outstanding indebtedness as a current liability in the financial statements for year ended September 30, 2012 filed and the Company’s independent registered public accountants has included a “going concern” qualification in its audit opinion with respect to such financial statements
For earnings history and earnings-related data on Dynasil Corporation of America (DYSL) click here.
Liquidity
As previously disclosed, as of September 30, 2012, Dynasil is in default with its financial covenants under the Company’s loan agreements. Dynasil 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. These financial covenant defaults give the lenders the right to accelerate the maturity of the indebtedness outstanding and foreclose on any security interest. Furthermore, Sovereign Bank, N.A., the Company’s senior lender, may, at its option, impose a default interest rate with respect to the senior debt outstanding, which is 5% higher than the rate otherwise in effect. To date, the lenders have not taken any such actions. However, the Company cannot predict when or whether a resolution of this situation will be achieved.
The Company has taken and will continue to take actions to improve its liquidity, including the implementation of a number of initiatives designed to conserve cash, optimize profitability and right-size the cost structure of its various businesses. Dynasil has retained Argus Management Corporation and Mirus Capital as financial advisors to assist it in evaluating strategic and restructuring alternatives, including the potential sale of product lines and/or a Company division. While the Company is actively considering such strategic alternatives, there can be no assurances that any such transaction will occur, or, if a transaction is completed, it will be on terms favorable to the Company.
Because of the uncertainty of any resolution of the covenant violations and possibility of an acceleration of the indebtedness by the lenders, the Company has reclassified all of its outstanding indebtedness as a current liability in the financial statements for year ended September 30, 2012 filed and the Company’s independent registered public accountants has included a “going concern” qualification in its audit opinion with respect to such financial statements
For earnings history and earnings-related data on Dynasil Corporation of America (DYSL) click here.
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