CVD Equipment Corporation (NASDAQ: CVV), today announced its
financial results for the first quarter ended March 31, 2024.
Manny Lakios, President and CEO of CVD Equipment Corporation,
commented, “First quarter 2024 revenue was $4.9 million, down
significantly versus the prior year period, as our business
continues to experience fluctuations in revenue given the nature of
the emerging growth end markets we serve. While we are disappointed
with our first quarter performance, we’ll stay the course on
strategic efforts to achieve profitability, carefully managing our
costs and cash flow while simultaneously focusing on growth and
return on investment.”
Mr. Lakios added, “As we mentioned in our year-end press
release, we started off the year with several key order wins during
the first quarter. These included a strategic order for our PVT200™
system from a new customer, marking an important milestone as we
seek to gain traction for SiC crystal boule growth, as well as a
multi-system order for our SiC CVD coating reactors. The PVT200™
customer plans to evaluate our equipment for potential additional
orders. This improved order performance resulted in an increase in
backlog from $18.4 million at year-end to $27.1 million at March
31, 2024. We are encouraged by these orders, as we continue to fund
both research and development and sales and marketing activities,
including direct engagement with multiple potential customers,
highly focused on penetrating key market opportunities.”
First Quarter 2024 Financial Performance
- Revenue of $4.9 million, down $3.8 million or 43.4% year over
year primarily due to lower system revenues.
- Gross profit margin percentage was 17.5% due to lower gross
profit margins on certain contracts in progress at our CVD
Equipment segment partially offset by higher gross profit margins
by our SDC segment.
- Operating loss of $1.6 million.
- Net loss of $1.5 million or $0.22 basic and diluted share,
compared to a net loss of $40,000 or $0.01 per basic and diluted
share for the prior year first quarter.
- Cash and cash equivalents of $11.9 million as of March 31, 2024
as compared to $14.0 million as of December 31, 2023.
First Quarter 2024 Operational Performance
- Orders for the first quarter were $13.6 million primarily
driven by demand in the aerospace sector and in our SDC segment for
gas delivery equipment.
- As mentioned above we received these important orders in the
quarter:
- An order for our new PVT200™ system used to grow silicon
carbide crystals for the manufacture of 200 mm wafers. This
represents our second customer for our PVT equipment that the
customer will evaluate for potential additional orders.
- A multisystem order from an industrial customer for
approximately $10 million that will be used for depositing a
silicon carbide protective coating on OEM components, with systems
scheduled to ship in 2025.
- During the first quarter, we implemented a plan to reduce our
operating costs to be consistent with current customer demand. This
resulted in a reduction in our work force in early January 2024. We
continue to evaluate the demand for our products and opportunities
to reduce our operating costs.
The success of our PVT150™ and PVT200™ marketing efforts is
dependent on the performance of our equipment in the field, overall
market conditions, our customers’ ability to qualify their end
product with their customers and our customers’ ability to obtain
the funding necessary to purchase our equipment.
Management Conference Call and Webcast
The Company will hold a conference call to discuss its results
today at 5:00 pm (Eastern Time). To participate in the live
conference call, please dial toll free (877) 407-2991 or
international (201) 389-0925. A telephone replay will be available
for 7 days. To access the replay, dial (877) 660-6853 or
international (201) 612-7415. The replay passcode is 13746228.
A live and archived webcast of the call will also be available
on the company's website at www.cvdequipment.com/events. The
archived webcast will be available at the same location
approximately two hours following the end of the live event.
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and
manufactures a broad range of chemical vapor deposition, thermal
processing, physical vapor transport, gas and chemical delivery
control systems, and other equipment and process solutions used to
develop and manufacture materials and coatings for industrial
applications and research. Our products are used in production
environments as well as research and development centers, both
academic and corporate. Major target markets include high power
electronics (silicon carbide), EV battery materials / energy
storage (carbon nanotubes, graphene and silicon nanowires),
aerospace & defense (ceramic matrix composites) and industrial
applications. Through its application laboratory, the Company
allows customers the option to bring their process tools to our
laboratory and to work collaboratively with our scientists and
engineers to optimize process performance.
The Private Securities Litigation Reform Act of 1995 provides a
“safe harbor” for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made or to be made by
CVD Equipment Corporation) contains statements that are
forward-looking. All statements other than statements of historical
fact are hereby identified as “forward-looking statements, “as such
term is defined in Section 27A of the Securities Exchange Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such forward looking information involves a
number of known and unknown risks and uncertainties that could
cause actual results to differ materially from those discussed or
anticipated by management. Potential risks and uncertainties
include, among other factors, market and business conditions, the
success of CVD Equipment Corporation’s growth and sales strategies,
the possibility of customer changes in delivery schedules,
cancellation of, or failure to receive orders, potential delays in
product shipments, delays in obtaining inventory parts from
suppliers and failure to satisfy customer acceptance requirements,
competition in our existing and potential future product lines of
business, including our PVT systems; our ability to obtain
financing on acceptable terms if and when needed; uncertainty as to
our ability to develop new products for the high power electronics
market; uncertainty as to our future profitability; uncertainty as
to any future expansion of the Company; uncertainty as to our
ability to adequately obtain raw materials and components from
foreign markets in light of geopolitical developments; and other
risks and uncertainties that are described in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2023 and the
Company’s other filings with the Securities and Exchange
Commission. For forward-looking statements in this release, the
Company claims the protection of the safe harbor of the Private
Securities Litigation Reform Act of 1995. The Company assumes no
obligations to update or supplement any forward-looking statements
whether as a result of new information, future events or otherwise.
Past performance is not a guarantee of future results.
CVD EQUIPMENT CORPORATION AND
SUBSIDIARIES
Condensed Consolidated
Statements of Operations
(In thousands, except per share
data- Unaudited)
Three Months Ended
March
31,
2024
2023
Revenue
$
4,922
$
8,695
Cost of revenue
4,063
6,261
Gross profit
859
2.434
Operating expenses
Research and development
746
602
Selling
419
419
General and administrative
1,317
1,600
Total operating expenses
2,482
2,621
Operating loss
(1,623
)
(187
)
Net loss
$
(1,472
)
$
(40
)
Basic and diluted loss per share
$
(0.22
)
$
(0.01
)
CVD EQUIPMENT CORPORATION AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(In thousands -Unaudited)
March 31,
2024
December 31,
2023
Assets
Current assets
Cash and cash equivalents
$
11,893
$
14,025
Accounts receivable, net
2,971
1,906
Contract assets
2,689
1,604
Inventories
4,925
4,454
Other current assets
858
852
Total current assets
23,336
22,841
Property, plant and equipment, net
12,089
12,166
Other assets
18
18
Total assets
$
35,443
$
35,025
Liabilities and Stockholders'
Equity
Current liabilities
$
10,198
$
8,554
Long-term debt, net of current portion
247
268
Total stockholders’ equity
24,998
26,203
Total liabilities and stockholders’
equity
$
35,443
$
35,025
This earnings release should be read in conjunction with the
Company’s filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for fiscal year ended
December 31, 2023.
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version on businesswire.com: https://www.businesswire.com/news/home/20240513863371/en/
For further information about this topic please contact:
Richard Catalano, Executive Vice President & CFO
Phone: (631) 981-7081 Email:
investorrelations@cvdequipment.com
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