Dynasil Corporation of America Sidoti Spring Conference Peter Sulick, Chairman, President and CEO March 29, 2018

Transcription

1 Dynasil Corporation of America Sidoti Spring Conference 2018 Peter Sulick, Chairman, President and CEO March 29, 2018

2 Forward-Looking Statements The statements made in this presentation which are not statements of historical fact are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward-looking statements involve known and unknown risks, uncertainties and other factors. The words potential, develop, promising, believe, will, would, expect, anticipate, intend, estimate, plan, may, likely, could, and other expressions which are predictions of or indicate future events and trends and which do not constitute historical matters identify forward-looking statements. Forward-looking statements include statements regarding management s discussion of the company s strategic plans and objectives and the development of, and potential market for, Xcede s product pipeline. Future results of operations, projections, and expectations, which may relate to this presentation, 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, our ability to develop and commercialize the Xcede patch, including obtaining regulatory approvals, the size and growth of the potential markets for our products and our ability to serve those markets, the rate and degree of market acceptance of any of our products, our ability to identify acquisition and other strategic opportunities, our ability to obtain and maintain intellectual property protection for our products, competition, the loss of key management and technical personnel, the availability of financing sources, as well as the factors detailed in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as in the Company's other Securities and Exchange Commission filings. We undertake no obligation to update the foregoing information to reflect subsequently occurring events or circumstances. 2

3 Who We Are: A Diversified Optics and Material Science Company Optics Companies: Dynasil Fused Silica EMF Optometrics Hilger Crystals Contract Research Company: Radiation Monitoring Devices Biomedical Company: Xcede Technologies 3

4 Our Markets: Industrial Research Military & Defense Energy Homeland Security Automotive 4

5 Our Products Optical Components Filters Gratings Monochromators Beam Splitters Tunable light sources Wire grid polarizers Optical Coatings Mirrors and reflectors Large scale coated optics Infrared Anti Reflective Imaging and Security Crystal scintillators Arrays Detectors Plastic and ceramic scintillators New 2018 Initiatives High Efficiency Anti Reflective (HEAR) and Diamond Like Carbon (DLC) coatings Optical assemblies Handheld radiation monitor 5

6 Our Products: Optical Components Filters Gratings Beam Splitters 6

7 Our Products: Optical Filters Optical Filters Optical Filter Assembly Sources: Assembly - Olympus.com, Microscope - Nikon.com, these are example photos, not representative of the actual assemblies and microscopes using DYSL filters Fluorescence Microscope 7

8 Our Products: Optical Gratings Diffraction Gratings Diffraction Grating Sub-Assembly Mounted Optical Rifle Sight 8

9 Our Products: Beam Splitters Plate Beam Splitters Teleprompter 9

10 Our Products: Coated Optics Mirrors Large Coated Optics Test Slides Dental Mirrors New Initiative: Anti-Reflective (A/R) Infrared (I/R) Coatings 10

11 Our Products: Cold Mirrors for Heads Up Displays Ultraviolet Cold Mirrors Heads Up Assembly Sources: Assembly photo from 3 rd Party Website, Image is just a representation of a HUD assembly, not the actual HUD assembly using DYSL mirrors/ Automotive Display 11

12 Our Products: Large Coated Optics Large coated mirror Telescope assembly Palomar Observatory 12

13 Our Products: Imaging & Security RMD and Hilger Crystals Scintillators Arrays Plastics & Ceramics Detectors 13

14 Field OEM Partners RMD Our Products: Crystal, Plastic and Ceramic Scintillators: Radiation Detector Manufacturing Growth Boule Pillar Detector First Responders, Military, Borders Vehicle Scanner Pager 14

15 Our Research: World Class Research Area External Partner Scintillators Radiation Detectors Medical High Speed Imaging Augmented Reality Homeland Security Dept. of Energy Dept. of Defense National Institute of Health Dept. of Defense Mayo Clinic Dept. of Defense United States Air Force 15

16 Our Future: 2018 Initiatives 1. Entering $3.5 billion infrared optics market 2. Developing capability to do optical assemblies in house 3. Commercial development of Handheld Radiation Monitor Source: 2016 Annual Reports From Flir, Northrup Grumman, BAE, Lockheed Martin, L3, MKS 16

17 2018 Initiatives: Manufacture Infrared Optics $3.5 billion market Investing in capital equipment Hired key industry veterans with 30 years experience Dynasil s value proposition to customers Provide both protective Diamond Like Carbon (DLC) coating and High Efficiency Anti Reflective (HEAR) Infrared coating so customers have a One Stop Shop Developed coatings that can be stripped from substrate, allowing expensive substrates to be reused Markets Defense/Aerospace Automotive Applications/Products Infrared Thermal Imaging Optoelectronics Plano Windows Meniscus Lenses Aspheric Lenses Fixed Focus Assemblies Continuous Zoom Lenses 17

18 2018 Initiatives: Develop Optical Assembly Capability Building out clean space and hiring expertise to vertically integrate Able to capture higher margins and own more of customer relationship Planned facility upgrades: Build out clean space assembly floor HEPA filtered room Laminar flow benches (ISO 5, Class 1,000) Will expand capabilities as business grows 18

19 2018 Initiatives: Handheld Radiation Monitor (HRM) RMD worked with Draper Labs and Alion Science and Technology to develop a handheld Radiation Monitor. Advantages over existing products: 1. Able to immediately and precisely identify type of radiation and isotope 2. Smaller, lighter and longer battery life Packaged detector Prototype HRM Cell phone user interface

20 Financials Fiscal Year 2017 In Thousands of $ 2017 Sales 37,284 COGS 23,386 Gross Profit 13,898 SG&A Optics & Research 13,039 SG&A Biomedical 1,441 NOI Optics & Research 859 NOI including Biomedical (582) Taxes (2,741) Minority/Other (246) Net Income 2,192 Depr. & Amort. 1,240 EBITDA 628 Capital Exp

21 Financials Fiscal Year 2017 by Segment In Thousands of $ Optics Contract Research Biomedical (Xcede) Total Revenue 19,282 18, ,284) Gross Profit 6,562 7, ,898 Operating Expenses Operating Income 6,183 6,856 1,381 14, (1,441) (582) 21

22 Financials Q By Segment In Thousands of $ Optics Contract Research Biomedical (Xcede) Total Revenue 5,007 4, ,188 Gross Profit 1,723 1, ,574 Operating Expenses Operating Income 1,545 1, , (446) (175) 22

23 Questions 23